Stat Of The Week: The Price Of A Commute
Are used cars a good investment now?
While NYC lawyers resuming subway rides to work have a handy metric to track changes in these costs, drivers are now facing an unprecedented price tag for their cars.
As noted by Slate, the cost of used vehicles has officially “rocketed into the stratosphere,” with Labor Department statistics released on Tuesday revealing a record-breaking 10.5% rise in June. This follows a 7.3% increase in May and 10% increase in April, making the sector the “single biggest component” fueling recent inflation in the U.S.
The trend is mainly driven by a global shortage of semiconductor chips, which has hobbled auto builders, according to Slate. There are other “varied and complicated” factors in play as well, such as a drop-off in auto production during the Great Recession.
This has all produced a rare phenomenon: “Some owners are finding that their older-model vehicles are now worth more than when they were purchased.”
The Car Market Is Insane. It Might Stay That Way for a While. [Slate]
Jeremy Barker is the director of content marketing for Breaking Media. Feel free to email him with questions or comments and to connect on LinkedIn.
