We may be at the top
OK, I might be imagining it, but two of my sharpest used car friends around the country have told me today alone that they’re seeing a lot of no-sales in the factory lanes. To be clear, I think what is happening is that the bean counters in Detroit have gotten a little bit drunk on the extraordinarily high prices that the herd has been willing to pay for their vehicles.
Bean counters being what they are, I suspect that they are pushing the floor prices up to test how far the herd will go. It seems, however, or at least there’s early indication to suggest that just maybe they have found the top where even the herd won’t go. If this is true, they will have to lower the floor and then the big question is whether the great herd have filled their bellies or whether they’ll continue to stampede. My guess is the former. Now, if you see something in the general economy that suggests strong retail demand for used cars, then I’ll be wrong on this prediction.