The Car Market Is Falling Apart, but Can You Even Afford a Car?
In a recent live broadcast, Lynette Zang answered a viewer's question about the future of the used and new car market. Her response revealed a bigger truth. While prices are dropping, the real concern is affordability.
Falling prices might sound like good news, but most people will still struggle to purchase a vehicle. This issue reflects something far larger than the car market. It highlights the ongoing destruction of fiat currency and the importance of holding tangible assets like physical gold and silver.
The Hidden Costs of Car Ownership Are Exploding
Lynette Zang did not stop at vehicle prices. She explored the entire cost structure of owning a car, and it is getting more expensive across the board.
Key cost increases include:
- Replacement parts
- Repairs
- Parking
- Insurance
Insurance companies in particular are responding to rising costs by denying coverage when repairs exceed certain thresholds. Meanwhile, average incomes have not increased to match these rising expenses. This growing imbalance is making car ownership less accessible.
Used Car Prices Are Dropping, but That Does Not Tell the Full Story
The used vehicle price index peaked just before 2022. It surged due to massive money printing during the pandemic, then began a steady decline.
Lynette Zang believes this downward trend will continue. But falling prices are not necessarily a positive sign. In fact, this pattern reflects a deflationary environment.
Central banks typically respond to deflation in one way: by creating more inflation. That means more money printing, more debt, and more manipulation of market dynamics.
Electric Vehicles Are the Exception, for Now
Unlike traditional vehicles, electric vehicle prices have been rising. Lynette Zang noted that this trend is likely driven by government pressure rather than consumer demand. Despite slow adoption rates, prices continue to increase, highlighting how artificial policies can distort markets.
Nominal Prices Are Misleading—Look at the Real Value
Lynette Zang shared a powerful historical comparison that explains why nominal prices do not reflect true value.
In 1913, when the Federal Reserve was created, a standard car cost $850. Gold was priced at $20.67 per ounce. That meant it took around 41 ounces of gold to buy the car.
In 2024, the average car price is $48,400. With gold around $2,534 per ounce, the same car now costs only 19 ounces of gold.
This means that physical gold has not only preserved its purchasing power over time but has also increased it. This is the essence of sound money strategies.
Gold Protects Purchasing Power When Fiat Currency Fails
Lynette Zang made it clear. When the economy falters, those who are prepared and holding tangible assets will not just survive. They will thrive.
Whether the opportunity is a discounted car, real estate, or income-generating investments, those who preserve their wealth with physical gold and silver will be in a strong position.
You Must Prepare Before the Window Closes
Lynette Zang’s message is urgent. Fiat money is designed to lose value. Sound money strategies are designed to preserve and grow it.
Falling car prices might seem like a win, but unless you have protected your wealth, the opportunity could still pass you by.
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