The Auto Sector Continues To Slide
Wholesale used car prices continued to decline in April, down 14% year-over-year per Manheim/Cox Auto.
What do auto dealers and commercial real estate owners have in common? “Pretend and extend.” I’m afraid both are going to have to face reality as prices will trade lower for each before they rebound. The CRE Office sector in particular has what appears to be a long-term problem as it does not appear that companies will return to the office at 100% capacity.
The consumer is stretched, auto dealers know this, and it is reflected in their price sensitivity at auction.
