The price of automobiles over the last 18 months has skyrocketed – some over 50% in value – with the slowdown in auto manufacturing along with some other factors. However, a change is happening that could bring a lot of cars on the market. With a slowing economy, that could mean more opportunities for consumers looking to purchase a new auto.
During the pandemic, many banks, credit unions, and auto lenders allowed many consumers to skip their auto loan payments for an extended period of time. It has only been recently that many have had to start making payments again. The problem? Tens of thousands of consumers are now unable to make those payments and many of those car loans are falling behind. It is a really big problem and only those within the auto lending industry know about this growing problem.
As a result, auto repossessions by lenders is now skyrocketing. With a slower economy, it could add additional gas on auto repossessions. One analyst predicted that there will be an excess of cars available to purchase within the next 12 to 18 months. We will see.
With many auto manufacturers working to catch on demand, it could really change the auto market in the coming year. So if you are looking to purchase a car, it may be better to wait and see what the market does over the next 12 months. You might be able to walk in and find a much better consumer situation for a new auto.