Does anybody remember this cult classic?

Looks like he will soon be back in action with a vengeance: 

A record share of new car shoppers are being saddled with monthly payments topping $1,000, according to June data from Edmunds. That’s higher than the average cost of rent in 24 US metro areas on the Zumper National Rent Report. Meanwhile, the average monthly car payment reached $712 in May, according to Cox Automotive. That’s higher than rent for one-bedroom apartments in cities like Wichita, Kansas, and Akron, Ohio.  – Bloomberg

What could possibly go wrong?   FOMO in the used car market….Geez! 

It appears the used car bubble is going to burst.  Bummer, my daughter just bought a used VW yesterday.  No worries, she is not a flipper and got a very good price.  

The coming deflation – yes, lower prices and not “disinflation“, which in the words of Wolf Blitzer, is “happening now” – in used car prices will dampen CPI inflation on the margin, even though they are only about 4 percent of the CPI basket. 

Stay tuned, folks.  It’s about to get interesting.