Jim Bianco Warns Roaring Used Car Prices Are Rising Faster Than Bitcoin

Your car can be more valuable than what’s in your portfolio.

According to market researcher Jim Bianco, used car prices are rising faster than Bitcoin and other assets.

“If you want to know what the best investment you probably had in 2021, this is the car you have in your driveway or in that garage,” the president of Bianco Research told CNBC’s Trading Nation. “It is growing faster than the stock market, and more recently, faster than some cryptocurrencies.”

He bases his analysis on the Mannheim Used Car Price Index, which is designed to track pricing trends in the market.

“Over the past four months, they have risen in price by more than 20%. This is not only more than the S&P, but in the last four months, it is more than Bitcoin itself, ”he said. “As of December 15th, the last dataset we have, right now it’s just accelerating higher and higher. There is no peak, at least for the moment. “

Bitcoin has risen about 5% in the past four months, judging by the close of the stock exchange on Thursday. V S&P 500 has grown by 26% this year.

Bianco names two bullish driving forces in the used car market. First, new car prices are dropping due to a shortage of semiconductors.

Kelley Blue Book reports that car prices have hit an all-time high. In November, the average price of a new car was $ 46,320 and a used one – $ 27,569, up 27% over the same period last year.

Second: speculators who want to turn over the transport.

“What we see in used cars is the desire of people to buy them and the desire of people to speculate on them,” he said. “Buy it now because it will only get more expensive.”

‘Telltale signs of a bubble’

This is clearly not your parents’ car market.

“It has all the hallmarks of a bubble,” he said. “It is assumed that the prices of used cars will depreciate. They shouldn’t go up in value. Nevertheless, this year they have risen in price by 49%, that is, by 50%. “

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