Car Market Watch
Every month the Bureau of labor statistics releases data on what consumers are paying for goods and how they compare to previous months. September’s data was released Wednesday and per usual, we are going to go over it!
From a high level, over the last 12 months, consumers have paid 5.4% more for their goods/services. Last month when we looked at what cars were doing, we saw a 1.5% drop in used car prices, the first drop in a long time, leaving our 12-month moving average at 31.9%. This month, we followed the same trend, seeing a 0.7% decrease in used car prices, resulting in a 24.4% increase year over year.
New vehicles saw a slightly different trend. Last month if you remember correctly, we saw a 1.2% uptick in the prices paid by consumers. Once again, we saw another 1.3% climb in new vehicles, putting us at 8.7% on the 12 month.
Something to think about for new car buyers: Dealers are doing anything they can to get you to pay more due to their limited supply
Market adjustments - asking over sticker
Including a required ceramic paint coating - talking with local detailers, most of them are not even applying the ceramic product, but are still charging $1000+ for it.
Advertisement fees - charging you for not budgeting for marketing
When looking at where we might be going, I like to look at the Manheim Used Car Index. Manheim, for those unaware, is a network of car auctions for dealers to stock used cars at. You can only gain access to these auctions with a valid dealership license. Their used car index is similar to that of the CPI data, it measures what wholesalers are paying for cars at auction. In September they saw an increase of 5.3% to all-time highs. Dealers have to pass that cost onto the customer, so expect to see an increase in used car prices over the next month.
Teddy Baldassarre
I’m always on the hunt for good content on youtube. Anybody who knows me I watch youtube more than I watch any sort of TV. Recently, I stumbled across Teddy Baldassarre. He puts together really made videos on timepieces that are always sure to educate and entertain.
Some of my favorite videos he creates include Kevin O’Leary (“Mr. Wonderful”), known for being the bad guy on Shark Tank. Kevin, for those unaware, is a massive watch collector. He even goes as far as to say that watches, for him, are an asset class that he acknowledges has done very well over the years.
Give him a shot, watch this video, where the two of them go over all the newly announced watches!
What to look forward to:
Soon I plan on talking about how Tourbillon watch movements work
How you can own part of a luxury watch with the introduction of NFTs in the crypto space.