Bizzaro World Continues

A few weeks ago, I was talking to a car dealer friend of mine.  He told me he had very little inventory on his lot.  I told him I bought a car last year.  (It is a Toyota.)  Without hesitation, he said, “I’ll pay you two grand more than you paid for it.”  He was half-kidding, or so I thought.  Intrigued, I went online and got bids on my car.  Two different sites offered me thousands more than what I paid for the car.  Keep in mind, I have used the vehicle and it is not a collector car. 

Cars are typically a depreciating asset.  Given shortages, delays, and inflation, that is not true, at least right now.  Any gain I would make on selling my current vehicle would most likely be lost in the purchase of a new vehicle if I could find one.  I stopped in another car dealer last week.  The sales person said the dealer had a grand total of six new cars on its lot.  That dealer typically carries 300 – 400 cars on its lot!  It is not a good time to negotiate a lower price for a new car. 

Supply will eventually catch up with demand.  I think it is going to take a while for that to occur.  Until the supply chain improves, we will have government officials and pundits try to convince us that inflation is under control.  I know my story is anecdotal, but the more I see, the more I am convinced government officials see what they want to see in inflation data.  Those of us in the real world are having a completely different experience with inflation than what our government officials see in their data.  If things do not change soon, this will not end well for anyone. 

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