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The U.S. car price bubble has burst, prompting fears of an impending collapse in the auto industry, particularly as surging interest rates are diminishing demand for auto loans. Even the electric vehicle market is affected, with Tesla's prices currently $5,000 lower than the average U.S. car. Experts warn manufacturers, dealers, and lenders to prepare for significant price declines in 2023 due to accumulating unsold inventory. However, this does not guarantee cheaper prices for consumers in the near future; affordability challenges are expected to continue throughout the year. The video aims to explain these issues in detail.