Bob Voltmann: Is This The Dawn Of The Used Car Era In The USA
Transcript
Sean : You know, as you were talking, I was wondering, is this the dawn of the Used Car right with the chip and supply chain disruptions likely due to the geopolitics? I mean, you know, the whole Ev thing we, which requires probably twice the microchips. And all that we had, that we already are short on. I mean, is this the dawn of the used car? I remember my time in Iraq and Bosnia in the military, just remembering every car I saw looked like it was 30-20 to 30 years old. And I could say, is that the route we’re taking here in America? Is that going to be the situation? What are your thoughts on that?n
nBob :Well, we’ve been in the era of the used car, and we saw used cars become an appreciating asset, which nobody thought possible. They were. And again, as new vehicle prices increase, and now interest rates have more than doubled. And it takes 18 months for a Fed rate hike to work its way all the way through the market. So we’re 18 months at least, into this or ahead of us. So people are being priced out of that new car market. And it’s just going to continue to put pressure on the US vehicle market. And if you have people like me who have a very decent vehicle, I’m not trick getting rid of it, because I don’t know that I can get a new one.n
nSean : Yeah, no doubt I’m in the same boat, right? We have a decent vehicle and miles are fair, it’s in great condition. And normally, in normal circumstances we probably would have traded in a year ago, but they’re just gonna hold on to it a little longer. Right. I completely understand great insight, and I would have never guessed that it took 18 months for the Fed for a rate hike to affect the whole economy. So it’ll be interesting to see how it affects everything that we deal with on a day to day basis over time.n
nBob : One of the main things like things like loans are immediate. You see what’s happened with interest rates, mortgage rates, they doubled out in a year. People know what car loans are doing if they can even get a car loan. But it takes a long time for rent increases to work their way through and in other things for sale.n
nSean : nBuy everything you want to buy now people.nn
nBob :Well, we’ve been in the era of the used car, and we saw used cars become an appreciating asset, which nobody thought possible. They were. And again, as new vehicle prices increase, and now interest rates have more than doubled. And it takes 18 months for a Fed rate hike to work its way all the way through the market. So we’re 18 months at least, into this or ahead of us. So people are being priced out of that new car market. And it’s just going to continue to put pressure on the US vehicle market. And if you have people like me who have a very decent vehicle, I’m not trick getting rid of it, because I don’t know that I can get a new one.n
nSean : Yeah, no doubt I’m in the same boat, right? We have a decent vehicle and miles are fair, it’s in great condition. And normally, in normal circumstances we probably would have traded in a year ago, but they’re just gonna hold on to it a little longer. Right. I completely understand great insight, and I would have never guessed that it took 18 months for the Fed for a rate hike to affect the whole economy. So it’ll be interesting to see how it affects everything that we deal with on a day to day basis over time.n
nBob : One of the main things like things like loans are immediate. You see what’s happened with interest rates, mortgage rates, they doubled out in a year. People know what car loans are doing if they can even get a car loan. But it takes a long time for rent increases to work their way through and in other things for sale.n
nSean : nBuy everything you want to buy now people.nn