A car market crash of epic proportions is already in motion, according to new data released by Manheim Market Insights and Cox Automotive. In June, car prices faced a record drop, marking the end of two years of hefty increases. Used vehicles saw the biggest monthly declines since the pandemic boom, while new cars are about to plummet in value due to an oversupply crisis that is shaking the US auto market.
Still, higher interest rates are making monthly car payments far more expensive than they were just a year ago, and many Americans who bought a vehicle in the past couple of years, and are now seeing its cost fall off a cliff, are already underwater on their loans, which indicates that a wave of financial turmoil is right ahead.
From May to June, wholesale used vehicle prices declined by a record 4.2 percent, according to Manheim Market Insights. More notably, the Manheim Used Vehicle Value Index, a closely watched measure of prices, plunged 10.3 percent year-over-year in June. Compared to one year ago, prices for pickups and vans went down by 6.6 percent and 8.5 percent, respectively. Sports cars were the worst off, falling 14.8 percent in prices compared to last year, while compact cars and midsize cars each dropped by more than 12 percent from June 2022.
Looking ahead, the three strongest predictors of used car prices – new vehicle inventories, new vehicle incentives, and the new-versus-used price differential – all point to a significant crash, the firm notes. In fact, Goldman Sachs analysts lowered their user car inflation forecast by 4 percent to -11 percent, which means that the bank is assuming that used car prices are going to face a 14 percent downside from current levels by the end of the third quarter. That would result in an almost 25 percent crash in a span of just six months, and an oversupply crisis in the new car market could bring the price of used cars even lower before the end of the year.
Right now, the market for new cars is in a strange state. UBS analysts argue that a price war is on the horizon with dealers duking it out by dropping new car prices. In May, new-vehicle inventory reached its highest level in two years, with a notable increase from the previous month. Charlie Chesbrough, Cox Automotive’s senior economist. says that the new car market will continue to see weakening demand due to worsening economic indicators, and the increase in supply will force many dealerships and automakers to start offering discounts.
At the same time, the share of new auto loans with monthly payments exceeding $1,000 has hit a new record as borrowing costs continue to rise. Consumers are taking on too much auto debt, which could have catastrophic consequences during the recession. The latest number available on the average negative equity value of auto trade-ins was $5,341 in Q4 2022, a 29 percent jump from the previous year.
The number of vehicle sales that involved a trade-in with negative equity also climbed by 17 percent over the same period. The negative equity trend could accelerate even further as vehicle prices continue to drop. In other words, conditions for borrowers will become even tougher before the market stabilizes. Car prices still have a lot of room to fall, and during that process, countless Americans may find themselves buried in negative equity.
Article and video cross-posted from Epic Economist.
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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.
The car industry flourished when Henry Ford made cars people could afford.
I tried to buy a mint 2016 Dodge Challenger in 2022 as a gift to my brother in law. The car was 6 years old, was a Dodge and I offered the guy 17,000 dollars for it and I can’t believe I offered that much. But it was a clean car. He wanted 30,000 dollars for it. More than it cost new. HE SOLD IT FOR THAT! Somebody actually bought it for that. I’ll bet he’s pretty sick about it now. DUH?
Yep, stupid is as stupid does. America is not going to go electric, BECAUSE THE GRID CANNOT HANDLE IT AND THERE ARE NO PLANS TO REPLACE ENERGY PRODUCERS. A prime example is the San-Onofre nuclear power plant north of San Diego, which shut down some years back and no one bothered to take into account that it needed a replacement, so now we must purchase our power off the grid which must be transmitted many hundreds of miles which we also pay a fee for over and above the cost of electricity.
I have been tracking SDG&E’s monthly charges for the last seven and half years, and it has incrementally increased our cost substantially. over the last two and a half years ever since Biden shut down our energy supply it has gone up so high that many cannot afford to use their Air Conditioners or even charge their EVs.
Remember my friends that there is no way in hell that Wind, Solar, and hydroelectric can take the place of the power-packed Fosil Fuels we have used for the last 100 plus years. Wind and Solar are especially troublesome because of the need to recycle their materials at the end of their lives. You will pay handsomely for that privilege.
Total cost accounting is what is needed during the analysis. Do you have any idea what it is going to cost to recycle your dead solar panels? AND, how about those dead batteries in your Electric vehicles when that overly expensive battery pack goes dead. None of this was thought out by those handling Joe Biden.
And lastly, you must ask yourselves; WHO is manipulating the WEF and others to push this 2030 agenda on us? we are now at a crossroad of having to accept that we are not alone and this has become a fight for the resources our earth contains. HUMANS ARE BEING EMOTIONALLY TERRAFORMED SUCH THAT WE ARE BEING MANIPULATED TO KILL OURSELVES OFF, SO NO INVASION IS NEEDED TO COME IN AND STEAL WHAT WE BELIEVE IS OURS. You must come to understand that humanity is under attack, AND IT TIME TO WAKE UP !!!
How do you take out a car loan that isnt underwater from the moment you drive the car off the lot?
That’s non-sensical. A car doesnt gain value over its lifetime. (with the noted exception of collector/antique)
You buy used (>=2 years old), and make a large down payment. Most of the depreciation takes place in the first two years.
Didn’t have $ to put down on used Chevy Equinox which was 2 years old and only had 22k on it. Sale price was $28,700k had to finance entire car no $ down – payments for 72 months are $550 per month but has 4 year bumper to bumper 80k mile warranty – my sons car – had to co-sign & when all is done will have paid over $40k for car but son works making payments and it is a clean car. If I could have waited a little longer would have been great – this vehicle was coming off a lease
I just sold my 2020 Equinox with 15k miles on it at the end of the lease a month ago for $26,500 in near perfect condition. I came out ahead about 3k. Looks like I sold it just in time. The dealer marked it up to $30,500. I really wanted to get another one on lease but the terms were very unfavorable so I bought a low mileage used car instead. Saved me a lot of money.