Now every time we see stories like this where there could be a shortage in vehicles, it could do two things. It could also obviously run the price of cars, but it can also cause companies to have to lay people off because, hey, you know, you can’t make money off of things you’re not selling, right? If you can’t get the raw materials, if you can’t actually get the cars, the parts, all of that stuff to assemble, you got issues. It says here, the S&P global’s April 2026 draft global light vehicle sales forecast now calls for a reduction of between 800,000 to 900,000 units in 2026.

And they’re actually calling for 500,000 units to be short in 2027. It says the revised forecast includes a 200,000 unit reduction in Gulf Corporation Council sales with the broader impact expecting to be uneven. And what they’re saying here is really interesting. Current vehicle inventory appears strong enough to absorb potential production cuts, so the sales reduction forecast is based on economic impact rather than lower production. This comes from Stephanie Briely of S&P global mobility. And this is why it matters, they’re saying. For dealers, the greater risk is not immediate production disruption, but the downstream effects on affordability and shopper demand.

Higher fuel freight and vehicle costs could make consumers more hesitant, squeeze margins, and create added pressure in an already payment sensitive market. That is your key word, payment sensitive. There are people, like when I went to go buy this car, the GT3RS, they asked me if I was going to pay payments. I’m like, no, I’m going to write a check. And I asked them if that was normal, and they said, no, it’s not. You see, most people are funding their lifestyle to look rich. And people, whether it be a Porsche GT3 or a Honda Civic, there are people that cannot afford to buy the car cash they did not think ahead.

And so they’re extremely sensitive to the payments. And those people are also extremely sensitive to the price of fuel. This is where dealerships, I believe, third and fourth quarter are going to be hemorrhaging, and they’re going to be panicking. There are going to be dealers in the country, I believe, that are going to move units for barely break even because some of them didn’t manage their own funds. Now, sure, there’s going to be places that raise their prices, because just like fake Rolexes, like mine, the Rolex industry and stuff, they feed off of people’s insecurities and the need to spend more money.

I see it in my financial education company. People are like, well, it can’t be that great because you’re not charging much. This is the real world. And so you’re going to see some dealers sit there and go, yeah, I want X amount for this car, 200 grand for this new Z06 Corvette, where you’re like, I could go down the street like an hour away and get that same car for 150. And I’ve actually had those conversations with dealers. It’s like, well, then go do it. But their only selling point is, but you won’t have to drive an hour if you just spend the extra 50 grand.

It’s like, you’re really hearing yourself. This is how humans work. So you may see a run up in price because, oh, there’s less cars, so we’re just going to gouge you like what happened during COVID. But I think what’s going to happen is the people just aren’t simply going to show up because of the added cost of insurance as those go up, the cost of fuel and so many other factors, let alone what you’re about to experience in the grocery stores in America this summer, they’re going to be forced. Who cares if there’s less cars because there’s so few buyers, the auto dealers are going to be forced to drop their prices.

That’s why I’m going to wait until Q4 to buy my next car. I believe I’m going to be picking up a Lotus. Amera, those are a great deal. I mean, geez, oh, right now that’s looks stellar, but I might change my mind if I find a GT 40. All right. With that being said, this is going to be a buyer’s paradise, but you also want to wait until the stock market turns down. When the stock market turns down, that’s when buyers or owners of fancy cars or any cars that matter, except for the lower end cars, they start to drop their price because they’re seeing their net worth go down at the same time everyone else is.

And people stop calling from their Facebook ads and all of a sudden they consent or they just go for it, lower prices. Where was I saying? I’m thinking about taking this bad boy out for I screw it. I’m doing it. So with my whole point is that we’ve got to be patient. Patience is what pretty much just makes wealthy people wealthier. And before I got to that, it was patience that well, that’s what got me today. I don’t want to be more than the talking head. So I’ll just see you guys later. The economic ninjas out.

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