Oversupply of vehicles leads to manufacturers cutting prices, with 5 million unsold cars causing a drop.

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“Car prices are about to drop, an oversupply of vehicles will lead to manufacturers slashing prices. There are too many cars and not enough buyers. UBS reports that the production of cars is outpacing sales by 6%, this leaves about 5 million cars just sitting around, unsold. To sell these cars, manufacturers might have to cut prices. Data also shows that vehicle prices have fallen for three straight months. This is good news for consumers, who will be able to find great deals on new cars. However, it is bad news for automakers, who will see their profits squeezed.”


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h/t Simian_Stacker