Cars that tend to break down are older cars in disrepair. Even if the owner is just thrifty, they would be able to tow it immediately.
When people are flush with cash and don’t think they need to save, they will spend more on new cars. When people anticipate the need to save money, they will keep older cars longer.
This metric is of limited utility this year. Car prices were the highest inflating good last year due to the whiplash of negative demand in mid 2020 then strong demand in 2021 while chip supply lagged.
When people are flush with cash and don’t think they need to save, they will spend more on new cars. When people anticipate the need to save money, they will keep older cars longer.
This metric is of limited utility this year. Car prices were the highest inflating good last year due to the whiplash of negative demand in mid 2020 then strong demand in 2021 while chip supply lagged.