The price of used vehicles barely budged last month. Even so, they're still at record highs, inventories are tight, and things aren't improving.
Used car prices rose just 0.2% in July, sharply slowing from the double-digit gains of April and June. It's exactly what economists were looking for.
Buyers are paying more than ever for new and used cars, and practically everything is selling, as the auto business is completely upended.
"I always laugh when people say, oh, it's isolated, it's transitory," El-Erian told CNBC, adding there is a "fundamental misunderstanding" of the concept.
A new or used car will run you thousands more than it did before the pandemic. Here's how - and why - prices have skyrocketed so much.
"Normally we're all friends and coworkers, but right now, when someone pulls up, it's a little edgy," one dealership employee told Bloomberg.
A used-car shortage has pushed prices to record highs. But prices will drop in coming months, experts say.
Even though prices went up by 10.5% from May to June, the highest increase since tracking began in 1953, experts say signs point to lower prices soon.
The auto market has seemingly been turned upside down. A five-year-old car, for instance, will now run you more than $24,000 on average.
Used car prices have soared so much in recent months that some in-demand models are thousands of dollars cheaper to buy new.
Car-rental prices have jumped 86% compared to last year's Fourth of July as 43.6 million Americans plan on hitting the roads, according to AAA.
A supply crunch from factory closures and worldwide auto-chip shortages for new vehicles have pushed up the prices of used vehicles.
The average US car was about 12-years-old in 2020, as COVID-19 shutdowns kept many people at home and their cars off the road.
If you want a used car, be prepared to shell out. UBS estimates they shot up another 10.8% in May, after April's 68-year record surge of 10%.
"It's just a total dislocation in the market caused by a surge in demand and lack of supply," the CEO of an online used-car marketplace said.
The crippled Colonial Pipeline has sparked gas stockpiling and price hikes, while the April used-car surge was the highest in data going back to 1953.
UBS sees the used-car prices jump leading an "enormous surge over just the past few months" for the consumer price index, a popular inflation gauge.