Transcript Summary

• Car prices have experienced the biggest increases in history over the past three years.
• The pandemic caused car production halts and shortages of important parts, leading to higher prices.
• Used car prices increased by 52% and new car prices by almost 28% between January 2021 and January 2023.
• Median household income in the US rose by 13% during the same period, making cars less affordable.
• Central banks‘ efforts to curb inflation raised average interest rates on car loans.
• People are holding onto their cars longer, leading to increased repair costs.
• Auto insurers have been losing money, resulting in higher insurance prices.
• Demand for affordable cars is intense, with shortages in the market.
• Car buyers are facing challenges with loan payments and availability of credit.
• Vehicle repossessions have surged, including subprime and prime loans.
• Auto insurance costs have risen due to expensive car replacements, parts, and increased litigation costs.
• Wholesale car prices have started to fall, and carmakers are offering incentives to buyers.
• Electric car prices have decreased, and inventory has grown.
• Dealerships may discount unsold high-end cars, leading to potential production of more affordable models.
• Affordability issues and high interest rates are expected to have an ongoing impact on the car markets.