Despite Massive Price Increases, Retail Sales Drop: Buyers’ Strike & Fading Stimmies Dent the WTF Spike | Wolf Street

People are figuring it out, and some potential buyers are going on buyers’ strike. That is why a 30% year-over-year spike in used vehicle retail prices – and a 45% spike in used vehicle wholesale prices – cannot last and will unwind, but won’t unwind all the way, and prices will remain relatively high, as pricing pressures shift to other products or services:

For your amusement, below is the CPI for used vehicles with that phenomenal 30% spike year-over-year, triggered by an 18% price spike over the past two months. Auto purchases are mostly discretionary. Most people can delay by a year or two or more the moment when they buy a vehicle. That was proven during the Financial Crisis, when auto buyers went on strike and vehicle sales plunged and stayed down for years. In the retail data today, there is already a first glimpse of a buyers’ strike in the making (the chart shows the CPI value for used vehicles and not the year-over-year percent change).

Despite Massive Price Increases, Retail Sales Drop: Buyers’ Strike & Fading Stimmies Dent the WTF Spike | Wolf Street