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.
Safeguarding Your American Dream: Discover the Power of America First Healthcare
In today’s economy, healthcare costs remain one of the biggest threats to financial stability and family security. Americans work hard to build a better life, yet rising medical expenses can quickly erode savings, force tough trade-offs, and even push families toward debt or bankruptcy. Medical bills continue to rank as the leading cause of personal bankruptcy in the United States, with millions facing underinsurance or unexpected out-of-pocket burdens that no one plans for. Many turn to government-run marketplace plans under the Affordable Care Act, hoping for relief, only to discover that what appears affordable on paper often delivers higher long-term costs, limited real protection, and coverage that may not align with personal values or family needs.
America First Healthcare stands out as a private insurance agency dedicated to helping conservatives and families secure better coverage and better rates through customized, values-aligned options. By conducting free insurance reviews, the agency uncovers hidden gaps in existing policies and connects clients with private alternatives that emphasize personal responsibility, small-government principles, and genuine affordability—often delivering up to 20% savings while providing stronger protection for the American Dream.
The allure of marketplace plans is easy to understand: open enrollment periods, premium tax credits for many households, and the promise of “comprehensive” benefits mandated by law. Yet recent data reveals a different reality, especially after the expiration of enhanced premium subsidies at the end of 2025. Enrollment for 2026 dropped by more than one million people compared to the prior year, with many shifting to lower-tier bronze plans to keep monthly premiums manageable.
These plans feature significantly higher deductibles—averaging around $7,500 nationally—and greater cost-sharing requirements. Families who once paid modest amounts after subsidies now face average premium increases of $65 or more per month, even as they accept plans that leave them responsible for thousands in upfront costs before meaningful coverage kicks in.
High deductibles create a dangerous barrier to care. Studies show that people in such plans are less likely to seek timely treatment for chronic conditions, attend preventive screenings, or fill necessary prescriptions. A seemingly minor illness or injury can balloon into major expenses when patients delay care until problems worsen. For a family of four, a single hospitalization, cancer diagnosis, or unexpected surgery can easily exceed the deductible, triggering coinsurance and out-of-pocket maximums that still leave substantial bills. One recent analysis noted that some proposed changes could push family deductibles toward $31,000 in future years, further exposing households to financial risk.
Beyond the numbers, marketplace plans often carry structural limitations. Coverage for certain critical services may include waiting periods or narrower networks that restrict access to preferred doctors and specialists. Preventive care is required to be covered without cost-sharing, but everything else—lab work, imaging, specialist visits, or ongoing treatment—typically waits until the deductible is met. This reactive model contrasts sharply with the proactive, holistic approach many families prefer, especially those focused on wellness, early intervention, and maintaining health to enjoy life rather than merely reacting to illness.
Values alignment represents another growing concern. Government-influenced plans operate within a framework shaped by federal mandates and political priorities that may not reflect conservative principles of limited government, personal freedom, and ethical stewardship. Families who want to direct their healthcare dollars toward providers and benefits that honor traditional values sometimes find marketplace options feel misaligned, forcing a compromise between affordability and conviction.
Private alternatives, by contrast, offer year-round flexibility without the restrictions of open enrollment windows. Independent agents can shop across a wider range of carriers to design plans tailored to specific family needs—whether that means lower deductibles for frequent medical users, broader provider networks, or add-ons that support wellness and preventive services from day one. Clients frequently report more stable premiums that do not automatically escalate each year, along with genuine cost savings once the full picture of deductibles, copays, and coverage depth is considered.
Take the experience of real families who made the switch. Amanda C. shared that her new plan felt “way better” than what she had through the marketplace. Johnny Y. noted his previous coverage kept increasing annually until he found a more stable private option. Sofia S. expressed delight with her plan and began recommending it to others. These stories echo a common theme: when families move beyond one-size-fits-all government marketplaces, they often discover customized protection that better safeguards both health and finances.
Founder Jordan Sarmiento’s own journey underscores the stakes. In 2021, a six-day hospitalization generated a $95,000 bill. Under a well-structured private “Conservative Care Coverage” plan, his out-of-pocket responsibility would have been just $500. That stark difference illustrates how thoughtful planning and private options can prevent a medical event from becoming a financial catastrophe.
Practical steps exist for anyone questioning their current coverage. Start with a no-obligation review of your existing policy to identify gaps—high deductibles, limited critical-care benefits, or escalating premiums. Compare total projected costs (premiums plus potential out-of-pocket expenses) rather than monthly premiums alone. Consider family health history, anticipated needs, and lifestyle priorities. Private agencies can present side-by-side options that include stronger wellness incentives, broader access, and plans built on shared values of self-reliance and freedom.
In an era when healthcare inflation continues to outpace general cost-of-living increases, relying solely on marketplace solutions carries growing risk. Families who proactively explore private alternatives frequently achieve meaningful savings while gaining peace of mind that their coverage truly works when needed most.
America First Healthcare makes this exploration straightforward through its free review process. Families and individuals receive personalized guidance to close coverage holes, reduce unnecessary expenses, and secure plans that align with conservative principles—protecting wallets, health, and the American Dream without government overreach. Many who complete a review discover they can enjoy better benefits for less, often saving up to 20% while gaining the customization and stability that marketplace plans struggle to deliver.
Ultimately, protecting your family’s future requires looking beyond the marketing of “affordable” government options. By understanding the long-term costs hidden in high deductibles, shifting coverage tiers, and values mismatches, Americans can make empowered choices. Private, values-driven insurance offers a smarter path—one that rewards diligence, supports wellness, and delivers real security. For those ready to move beyond the limitations of traditional marketplace plans, a simple review can reveal options designed to serve families, not bureaucracies. The American Dream thrives when individuals and families retain control over their healthcare decisions, and thoughtful private coverage plays a vital role in making that possible.
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.