Used car prices about to go into free fall

gimmie11s · Apr 12, 2022

Corbic said:
You're not middle class if you can't afford a home. Such an abused and miss understood term.

Middle Class does not mean Average/Middle Income Bracket.

It's a specific "class" in a cast system that exists above the working poor (peasants) but below the Nobility/Ruling/Tycoon and Upper Executive class. (Nancy Pelosi, Tim Cook, Will Smith, etc)

Joe-six pack making $80k a year but unable to buy a home and sending his kids to public school - while above the medium income bracket - is not "middle class".

*End Rant*

Maybe.

Middle-class used to be synonymous with middle-income.

Today, "middle class" is a theoretical term that can be argued has no real definition.

However, middle-income is defined quite clearly.

What Is Middle Class Income? Thresholds, Is It Shrinking

Which income class do you belong to, and what defines the different classes? It's said that the middle class is shrinking, but what does the data say?

www.investopedia.com

Call it what you want, but a guy making over $80k cannot afford to buy a home, we have a problem, Houston.

13COBRA · Apr 12, 2022

gimmie11s said:
Maybe.

Middle-class used to be synonymous with middle-income.

Today, "middle class" is a theoretical term that can be argued has no real definition.

However, middle-income is defined quite clearly.

What Is Middle Class Income? Thresholds, Is It Shrinking

Which income class do you belong to, and what defines the different classes? It's said that the middle class is shrinking, but what does the data say?

www.investopedia.com

Call it what you want, but a guy making over $80k cannot afford to buy a home, we have a problem, Houston.

Is it any surprise the average upper income in DC is higher than any other state? Nope.

Fat Boss · Apr 12, 2022

That link shows what the democrats HATE to admit- more middle class folks are moving to the upper class than to the lower class.

gimmie11s · Apr 12, 2022

Fat Boss said:
That link shows what the democrats HATE to admit- more middle class folks are moving to the upper class than to the lower class.

They would argue its because of D policies.

Corbic · Apr 12, 2022

Fat Boss said:
That link shows what the democrats HATE to admit- more middle class folks are moving to the upper class than to the lower class.

Except that is "income" which is irrelevant in terms actual material spending power when looking at inflation.

Arizona for example.

In 5 years going from Middle Middle at $76k to Middle Upper at $186k isn't a huge leap forward in terms of your economic and physical status - since homes went from $200k to $500k, gas from $1.50 to $4.89, cars from $32k to $45k, and a McDonald's Cheese Burger from $0.89 to $2.50.

Did you gain ground? Sure.
Should you have gained ground in 5 years of working and self development? Yup.

Middle Class in terms of the 1950's was your ability to move out of crowded cities, renting shitty apartments and actually own a home, own a car and have your wife cook dinner every night instead of working a part time job. You had enough financial security that your children could attend paid for universities.

It was a fairly new segment of society unlike the prior century.

Now we're reverting back to ****ing Soviet bullshit blaming the "Kulacks" at the behest of the Ruling Class. "Omfg tax the rich!! Blame the 1%!!" Because the media paint the 1% as some mythical private jet owning oligarchy.

Yeah, let's bleed that guy making $538,926 a year some more since medium home prices where he lives are likely only $2M and he's got all that FU G6 money.

BOOGIE MAN · Apr 12, 2022

Bought our place brand new in May '21 @ 2.675 and all the woodwork was done before lumber skyrocketed, very very lucky timing on all fronts.

*edit* 2.625%***
Went back through some market prices for construction materials, Holy christ did we get lucky on the entire process.

365 Saleen · Apr 12, 2022

One the one hand it is nice seeing the value of your home skyrocket and add equity to your home.
On the other hand is the higher property taxes and the fact that the dollar is diminishing in value so much that the equity means next to nothing.
When the dollar is worthless, then it does not matter what your home is worth.
We are headed to a Venezuelan outcome where people ended up throwing their money in the street.
When it takes a wheelbarrow full of cash to buy a loaf of bread...

13COBRA · Apr 12, 2022

365 Saleen said:
One the one hand it is nice seeing the value of your home skyrocket and add equity to your home.
On the other hand is the higher property taxes and the fact that the dollar is diminishing in value so much that the equity means next to nothing.
When the dollar is worthless, then it does not matter what your home is worth.
We are headed to a Venezuelan outcome where people ended up throwing their money in the street.
When it takes a wheelbarrow full of cash to buy a loaf of bread...

I mean....

None of us will see that in our lifetime.

365 Saleen · Apr 12, 2022

13COBRA said:
I mean....

None of us will see that in our lifetime.

I hope you are right.
But I am betting that it is going to get much worse before it gets better.
After that, it will be like Armageddon.

SolarYellow · Apr 12, 2022

I've been preparing for Armageddon all my life.

PhoenixM3 · Apr 12, 2022

Ghost guns, get your ghost guns here! Prepare for the collapse of society…..

Fat Boss · Apr 12, 2022

Corbic said:
Except that is "income" which is irrelevant in terms actual material spending power when looking at inflation.

Arizona for example.

In 5 years going from Middle Middle at $76k to Middle Upper at $186k isn't a huge leap forward in terms of your economic and physical status - since homes went from $200k to $500k, gas from $1.50 to $4.89, cars from $32k to $45k, and a McDonald's Cheese Burger from $0.89 to $2.50.

Did you gain ground? Sure.
Should you have gained ground in 5 years of working and self development? Yup.

Middle Class in terms of the 1950's was your ability to move out of crowded cities, renting shitty apartments and actually own a home, own a car and have your wife cook dinner every night instead of working a part time job. You had enough financial security that your children could attend paid for universities.

It was a fairly new segment of society unlike the prior century.

Now we're reverting back to ****ing Soviet bullshit blaming the "Kulacks" at the behest of the Ruling Class. "Omfg tax the rich!! Blame the 1%!!" Because the media paint the 1% as some mythical private jet owning oligarchy.

Yeah, let's bleed that guy making $538,926 a year some more since medium home prices where he lives are likely only $2M and he's got all that FU G6 money.

Is that supposed to be an argument that people aren't better off moving from the middle to the upper class? Using your own numbers, at the beginning of your 5 year period someone making the $76k could buy the $200k house, which was about 3x their income. As their income rose to $186k their disposable income soared and so did the value of their home. If they chose to buy the $500k house, they could since it was relatively cheaper compared to their income than their first house.

Fat Boss · Apr 12, 2022

BOOGIE MAN said:
Bought our place brand new in May '21 @ 2.675 and all the wordwork was done before lumber skyrocketed, very very lucky timing on all fronts.

Well played. Your timing was at least once in a generation.

Klaus · Apr 12, 2022

Hurricane Katrina is chilling off shore and is about to make landfall......

Carmax stock is getting destroyed.

me32 · Apr 12, 2022

Klaus said:
Hurricane Katrina is chilling off shore and is about to make landfall......

Carmax stock is getting destroyed.

Have you seen there lots. Full to the max. Doesn't look like they are selling anything

MG0h3 · Apr 12, 2022

Let me know when the price of GenV Viper comes down to earth.

If we’re gonna starve to death in bread lines, I’m getting there in style damnit.

Sent from my iPhone using svtperformance.com

sonicx · Apr 13, 2022

Klaus said:
Carmax stock is getting destroyed.

Maybe Carmax should have saved that 2.2 bills they used for Adesa for a rainy day ….

Weather Man · Apr 13, 2022

Klaus said:
Hurricane Katrina is chilling off shore and is about to make landfall......

Carmax stock is getting destroyed.

Lots around St Cloud are looking thinner than ever. Maybe they are unwilling to go where CARMAX is going at the used car auctions.

sonicx · Apr 13, 2022

Weather Man said:
Lots around St Cloud are looking thinner than ever. Maybe they are unwilling to go where CARMAX is going at the used car auctions.

No. Dealers are unwilling to pay over mmr especially when they’re up against rental companies whom are paying ransom like pricing and can write them down over time. The carmax and carvanas are there too adding to as well.

jpro · Apr 13, 2022

Anyone subscribe/watch this YouTube channel? I stumbled upon it a few weeks ago. Very insightful about what is going on in the auto market:

https://www.youtube.com/c/YourAdvocateAllianceYAA

It is a father and son duo and the father worked at dealerships for many, many years. Good discussions everyday.

Used car prices about to go into free fall

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