The Car Market Takes a Massive Hit as Car Prices Are About to Drop by 70%
The car industry in 2023 is undergoing a significant downturn unprecedented in recent history, with an intense price competition due to a significant vehicle surplus. Analysts compare this slump to the 2008 financial crisis, but with a more rapid price decline. The U.S. auto market faces a sharp price drop with cars previously being inaccessible due to high costs, exacerbated by issues like the COVID-19-related chip shortage. As a result, Americans are holding onto their vehicles longer, with the average car age reaching 12.5 years. The used car bubble has deflated, and new car prices are anticipated to decline significantly. This price decrease is further illustrated by brands like Tesla, which have cut prices in response to declining profits and market pressures. Kelly Blue Book data als...