(Epic Economist)—We have good news if you’re in the market for a new or used car: The U.S. auto market is finally facing the shift everyone was waiting for – prices are reporting significant month-over-month declines, and a set of factors, including a higher-than-expected rise in supply, will lead to even steeper price cuts in the final weeks of 2023.
After over a year of continued gains, new data shows that the vehicle sector has entered a bear market. In the second and third quarters, the market shifted into lower gear, and now analysts predict that an oversupply of vehicles will lead to an end-of-year price war that will finally bring affordability back to somewhat ‘normal’ levels.
But experts with Cox Automotive – the owner of the closely followed Manheim Vehicle Value Price Index – say there’s a light at the end of the tunnel as wholesale prices continue to drop in November. Just in the first 15 days of the month, dealers paid almost 2.3% less for vehicles at auction in the U.S. And now, wholesale prices are down by 5.3% amid falling demand and surging inventories.
This means a downward spiral is already in motion. Wholesale price drops usually become retail price drops after about six to eight weeks. And retail prices are already dropping. On Friday, the Manheim Index for used vehicles fell to 206.1, meaning that it officially entered a bear market with a 20% decline. Meanwhile, new car prices have been getting better for months. The Index also shows that pickups are selling for about 4.2% less at auction right now, and SUVs for 4.8% less. Compact cars are down 10.7%, and midsize cars about 8%. Broadly, the difference in average price between new and used is back to where it was in 2019.
While that’s great for would-be buyers who have been waiting for some relief for almost two years, it is also a sign that manufacturers are already experiencing financial losses. UBS estimates that car production will exceed sales by 6% this year, resulting in an excess of 5 million cars that will require sizable price cuts to be sold before the end of the year. Some of these price cuts have already happened, with electric vehicle makers Lucid and Tesla slashing the prices of popular models by nearly $20,000.
Manufacturers and dealerships are in panic mode ahead of the holiday season. They are motivated to clear out their inventory by year-end, and that can trigger a rush to the bottom that may result in an ugly downturn for the industry. Theyneed to make room for the incoming 2024 models, and every day a 2023 model sits on the lot, it eats into their profits. The longer a car remains unsold, the more it costs in terms of dealership floorplanning expenses.
Companies are giving 2023’s year-end sales everything they’ve got. Those who have been waiting for low APR financing, shouldn’t miss this chance because this opportunity could be gone by January. There are only about six weeks left before the end of the year, and the final quarter always carries extra weight for car makers and dealerships. Meeting sales goals is now a top priority, both for business success and employee bonuses. Consequently, there’s added pressure to sell every vehicle possible in December.
Expect to see the sharp declines experts have been warning about throughout the whole year. Prices are likely to drop more abruptely than anticipated as companies try to boost their financial results to mask their losses, and divert the attention from the crisis that is unfolding in the sector with some short-term gains.
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.
I bought a NEW 2020 Honda Fit LX in March 2021 (The last new Honda Fit in all of the Southeast USA). 2020 was the last model year the Fit was built. It had a whopping 6 miles on it. It was the showroom model and nobody wanted it. I had the dealer do a full detailing of the car (especially the inside…..do you know how many people have probably sat in that car?). It was going for $13,000. I negotiated down to $11,000 and then got $2,000 for my trade-in. So I got a $16,000+ (MSRP) car for $9,000.
I just looked online and Carfax has a USED 2020 Honda Fit LX with 62,000+ mile for $16,488. I can sell my used car with 18,000 miles for I’m guessing around $18,000 to $20,000.