Used Car Market Pricing and Hyper Inflation

The used car market is crazy right now! New record prices being set every day.  From the outside it looks like the value of them is increasing.  This however is not the case.  What we are seeing is hyper inflation and your dollar is no longer worth what it once was.  

The vehicle you see sell for $40k today but once sold for $30k 6 months ago is actually the same price.  How is that possible? Here is my breakdown of how that happens. I am using easy round numbers to show how I came to that conclusion. Your $1 is now worth $.75, this is caused by the massive amount of supply that has been added to our current circulation.  This is a 25% decrease in the value of every dollar you have.  

This is definitely not the time to buy IMO.  I feel that the market will come back down at some point, most likely when the manufactured chip shortage ends and more new vehicles are available on dealer lots.  More on the new vehicle shortage in a coming post.