So I have been following car inventories (new and used) as well as used car prices for more than 2 years now. I view used car inventories as a leading indicator of what will happen to the new car market. I am doing this both because I am looking to buy a new car but also for investing purposes (stocks).
I have noticed new car inventories have increased substantially on the dealer lots around me but most note worthy I have seen a substantial drop in advertised prices of 20% to 30% in the past month on used cars. I thought price corrections were in order, however, I did not think prices would swing so quickly to fast for used cars.
Thoughts?
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