Used car prices causing the inflation?

[tsptalk]

Inflation just jumped the most in years, yet markets are largely ignoring it. Here’s why

That’s because a significant reason for the overall prices increase is thanks to a dizzying rise in one isolated area of the economy: used car prices.

https://www.cnbc.com/2021/07/13/inf...arkets-are-largely-ignoring-it-heres-why.html

 

[Boghie]

Used car prices are the reason gas is 50% more expensive!!!

 

[Bullitt]

All those rental car agencies have scrambled to hoover up any vehicles they can in bulk after cutting their assets in early 2020.

Oil still cheaper today than it was from 2010 to 2014 and 2018. Point the finger at the ESG crowd for trying to cancel "evil oil" companies.

 

[Bullitt]

Carmax down 25% today, missing analyst revenue estimates by half. Auto prices should start to tumble as soon as this weekend. Just saw the 30 year mortgage hit 6.7%.

From today's earnings call:

Macro factors, including vehicle affordability that stems from persistent and broad inflation, climbing interest rates, and low consumer confidence, all led to a market-wide decline in used auto sales. In addition, wholesale values were affected by steep depreciation in the quarter.

Although the lower credit consumer continuous to show demand by actively shopping and applying for credit, they continue to be challenged with affordability and being able to complete the purchase.