The New Car Market Is Crashing. My Predictions (I Hope They Don't Come True)
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- čas přidán 2. 06. 2024
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It’s the prices. Nobody needs $100,000 pickups.
100% this.
for a bunch of plastic
We definitely need to get back to simplicity. We dont need rolling houses that do everything for you.
Doesn't stop them from buying them and defaulting on a $2000/month payment. It's a mess
And they are more unreliable
i dont want a daily with
1 afm / cylinder deactivation
2 direct injection
3 a turbo
4 hybrid power
5 “safety systems” that throw fits when im driving down the road
6 crap plastic engine parts
7 bullshit emissions devices that cost $10k to repair
8 ev
9 $50k+ price of admission
needless to say, new cars do nothing for me.
My 1963 Dodge D-100 was reliable as all get-out. But sometimes it would stall at traffic lights. Eventually had to sell because, well, Rust and Kids!!!
Why would I ever buy a NEW CAR THAT STALLS AT TRAFFIC LIGHTS!!!!
The only one I’d remove from that list is turbo. What the hell is wrong with you?! 😂 always turbo. Always. Ive only had 1 car without a turbo. They get a bad wrap never had an issue.
Agreed. This is I went with a 5.0 f150 XLT. Simple, powerful, enough space to haul the family comfortably and parts are everywhere.
You forgot the touch screen's on the list
You're right, I don't want a turbo either, I WANT 2 TURBOS! I'm with you on the rest of the list though.
It’s wild man. The thing for me is… a vehicle with power windows/door locks, AC and a radio is literally all I want. I have zero desire to have all the over the top electronics. I’m a mechanic… all I see is future repair expenses. And I’m flat out refusing to purchase a $60-$70k car.. ill drive old junk forever
Where they get us is in the narrow markets. I have a wife and four children in car seats. I NEED a van or a large SUV. You can’t get any minivan on the markets from the four that are produced for less than $40k out the door and that’s bare minimum’s. Don’t even think about getting into a base model expedition or suburban for that… it’s a joke. Thankfully we are financially set up and we are putting LUMP sums on our new Odyssey to pay it off before this market crash.
@@brandonsipe5038 I relate fully. I’ve got 4 kids and a wife as well. She was driving a 2005 Sienna up until just a few years ago. We got a used 2018 Pacifica 😬 and it’s paid off for now. It had an extended warranty that I had to use a couple of times. Now I’m daily driving the back up vehicle.. a 2009 Pilot.. but before that I had a base model Nissan Versa with manual everything.. unfortunately I couldn’t fit everyone in it if something were to happen to the van so I had to find something bigger
I went to a 20 year old Mustang due to cost and maintenance
All of my vehicles are older than 2005 now, I got rid of everything new because they were junk. the most reliable vehicles I've ever owned had AC and cruse control.
Amen brother
Prices are just astronomical. $45-50k for a stupid crossover is insane. Trucks are closing in on $100k. Some are over that. $30k 8 year-old used trucks in the rust belt with over 200k miles is just insanity.
The auto manufacturers have all priced themselves out of most peoples price range. When a car note is near that of a house note, something is wrong. I was a life long Ford truck customer. I shopped for a new one to replace one that was four years old. I wanted the same truck, just a new one. The price had gone up $24,000. That is ridiculous and I'm just not going to accept that much of a price increase.
I tried to buy a used F150 last year that was 2/3 years old, it is insane how they are priced. I gave up. Lol
Problem is a house note turned into a medium sized buisness note. Bidenomics cmon man it ads up
The quality of new cars is so bad, I’m driving a 2005 g35 that’s built like a tank, i refuse to give it up
I want a wrangler but $55,000!? Screw that. Should be $25,000
Well per the president, Americans have the money to spend or they have our money to give away
Killer topic coop. Enjoyed the hell out of this. We need more solos.
Big problem is price. They’ve been outrageous the past 3 years.
20 Years. Manufacturing quantities, used to provide the ability, to offer products at an affordable rate. This hasn't been the case for decades.
U would think with all the tech advancement. Stuff would get cheaper. Also the manufacturer are doing extra stuff that nobody wants
the real problem is the government spending/sending money and we're left paying for it
More than 3 years. Prices have been out of control for over a decade. They just went even more ballistic over the last few.
They don't want you to have a car. They don't want you to be free. People need to wake up and take the power back before it's too late.
No dude, they want you to have a car, they just want to make absurd profit margins. The Pandemic and lack of inventory caused prices to skyrocket, and with so few cars available dealerships could charge what they wanted and still move product, even used cars, average car prices went up. Prior to the pandemic, a new entry Camry was $25K, entry 2wd F150 was $28K, but now Camry MSRP for base is $27.5K with 2024 F150 base MSRP now starting at $38K growing 10% per year for the last couple of years. Problem now is that availability issues are long gone and inventory piled up but manufacturers don't want to give those profit margins back as lower margins will hurt stock price. This is exactly the same problem with food/grocery store prices, the producers of food product and supermarkets got away with cranking up profits during and following the pandemic but refused to drop prices again once availability and transport costs subsided.
Consumer prices never permanently go back down, ever, doesn't matter if you're talking about food, cars or housing, we're stuck with these increases until the effects of inflation causes salaries/incomes to inch back up to close the gap. Tesla is a great example, they were already one of the most profitable auto manufacturers in the world in 2019 with gross margins of 17%, with price hikes raising them to over 30% at the end of 2021, they increased their profits by 100% from 2020 to 2021. Every other manufacturer followed suit.
Best thing that could happen is seeing a bunch of these manufacturers file bankruptcy again, and the government shouldn't bail them out again as every one of those companies has shifted even more jobs north and south of the border since the last bailout. Let them crumble, let the market implode. When most manufacturers are at 12% to 15% gross profit margin and interest rates on new vehicles under 5%, vehicles are affordable across segments, and the only way we'll ever see that again is if the industry collapses completely due to us not buying the overpriced vehicles.
Just wait, they will all wait until they are in huge trouble before we'll see manufacturer backed 0%-1.9% financing on 72m, then 60 month loans, thousands in cash back, anything to keep from dropping MSRP's.
One very interesting question is once the new market falls apart, what happens to the used market? Usually the two follow each other, more expensive new cars drive used car prices up, but if the new car prices come down combined with slashing production, it could allow used cars to remain overpriced as people will need to buy something.
@@racerex340 on the surface of it, this is a solid analysis. But it runs deeper than that.
@@wesw9586explain then?
Unfortunately there got to powerful can't even try to stand up with out being shutdown immediately. Look at all the groups that's tried and were they are. What we do just eat it plan to live in another country I guess
@@racerex340a mini version of this has and is happening in Ontario Canada. The last couple years, mildly used cars (20k or less, 1 or 2 years old) have had higher asking prices than new cars, because every new car now needs to be ordered. There is no inventory. So people who need a car asap are turning to the slightly used market and paying premiums.
Cash for Clunkers destroyed the lower class. It only helped people who had enough money to buy a new car. And now there is no such thing as a cheap used car lime their was 20 years ago. $500 cars are now $2000.
Dude. You can’t even buy a junker for 2k 🤣 the car market has already crashed. The housing market is about to do the same thing! I can’t wait for it! Been planning and saving for 10 years for this moment and the second it falls and levels I’m buying everything i can! Gonna turn my 500k into 20 million in a matter of years
Yeah. Been helping my buddy shop for a new daily. Not seen much of anything even close to reliable or practical for less than 3000.
@@bigwater52The housing market isn't going to crash that's silly talk. There's literally 0 indicators that's going to happen. Join bigger pockets or another real estate community and educate yourself on how to win regardless of the market, because prices aren't coming down.
Got to hit the tow yard auctions! You can find some gold in there. I do.
@@ZEPRATGERNODT same! I’ve gained a great friendship with some local yards here (live in an upscale county) i think the best one i i ever got cost me 388$ and was a r32 gt a skyline. Was loaded out with all the hks goodies. And had been towed for sitting in a no parking zone. He sent me pics about 2 weeks after they got it. And i told him on the 91st day to call me and id pay him top dollar. I think i spent about 3600’that day on about 15 running and driving cars. Unfortunately i coukd t get a title for it even after trying the title bond and etc etc. so i listed it on being a traiilwr as runnin/driving in a 7-10 condition. But nobody can read. Sold for 17k then buyer backed out after he read it couldn’t be registered. Went up a few more times and was a no sale. So i listed it on marketplace and ended up trading the car for 2.1 acres in the outskirts of town. Fast forward another year and i got a call from the city, stating they would like to purchase 1.8 acres of the property to widen the road and install a roundabout. Told them I’d sell the property as a whole. After we had it surveyed, the city came back and stated they actually only wanted 1.3 acres. And i made a 7 figure profit off of 388$. 3 months later Wawa gas stations contacted me to the remaining land. And ended up signing a 99 year lease, with 0.00$ in leasing/rent. However the way i get paid from it is i get 18% of the monthly revenue. If they sell out, i get 25% the sale. It pays me roughly, 40k month
Manufacturing Has lost their way. EPA, Unions And government involvement are to blame.
Unions only try and keep wages and benefits. So corporations can't take advantage of the worker. Corporations are the problem, not unions.
Fucking CAFE standards and chicken tax.
New trucks are just flat out too expensive for what they are. Interest rates don’t help at all. The general quality and reliability of new trucks are crap and replacement parts for warranty aren’t available so I’m paying on something I can’t even use. Let’s get the parts shortages figured out and address all the bugs and issues with current vehicles before moving onto building more crap vehicles.
Also the dealership greediness needs to stop. The markups, non negotiable “add-ons” and fees are bs.
The government getting involved is the reason for this in the first place! Let the free market dictate supply and demand.
Absolutely, ballots are a tragedy.
A lot of it started when Obama bailed out the automakers instead of letting them collapse and split up so new brands could be built.
can all of you imagine if any manufacturer happened to come out with a decent looking car, that got moderate fuel mileage, and had moderate power, and it came to the market at... 25k? Say a decent looking car, that gets 25mpg and makes 275hp? That is actually extremely easy to make happen. It doesnt come with a bunch of lane departure crap, beeping shit everywhere, push button start crap, 11 cameras, 1200 dollar each led lights at every corner. Just a decent looking rig, moderate mileage, moderate power, a good stereo, good ac and heat for the 25-28k range? I cant imagine it wouldnt instantly become the hottest selling car in america.
One problem stands in their way, e.p.a!
They tried to make vehicles like that... then dealerships mark them up so much they're just as much as the $35-40k MSRP vehicles
Nissan Versa - already available. Won't make your HP requirement but 275HP is more than needed. Not many people buy them though
So you're saying I should continue to stockpile and hoard 90's shitboxes. Check, done.
Maybe they give cash for EV clunkers.
There is not a vehicle made today that is worth the money they are asking for them.its unreal what the prices are.
None of the new cars is attractive, but the price makes it even worse.
Unless the cost of living comes down people can't just buy a new car,
Cooper out here dropping big knowledge in a one take. Great stuff man.
There isnt a lot of people that want to go down and buy a 60k dollar half ton, v6/4cyl truck, and have to pay 8-10 interest on it. Its like an 800 dollar a month truck payment... and in 5 years its worth 30k dollars. Nobody in their right mind WANTS that.
Maybe it's all crap that real car people refuse to buy.
This is 90% of it I drive a 98 F150 I paid 1000 dollars for 13 years ago. And I'll drive it till I can't get parts anymore
I want a truck, not an IPhone.
You know that most consumers in the market for new cars aren’t “car people” right 😂
i'm a car guy ... i have a 97 trans am i bought new, its the only new car i have ever bought. i gave 23k for it, i will never buy a new vehicle again, instead i'll buy used stuff and just maintain them. the new cars are ugly AF ...
People can't afford new cars. Inflation is out of hand and people are having issues even getting a house anymore. It's sad our government would rather enact programs like that than make sure Americans can afford to live a decent life. They just want more tax and more poverty.
It's not inflation. It's corporate greed. The last dealer I worked at, they would have 1200 new cars on the lot. 3 to 7 trucks of new cars showing up M-F. They have less than 180 now. Which gives less options for the consumer. If you want one, you're going to pay for it. Even the banks are killing it at interest rates. Also, pre-pandemic the number of cars you got the next year was decided on how many you sold the year before at some dealers. That is not happening anymore at the ones I worked at.
@@pyrocl0 that's true also. It's honestly both.
Great episode today. I've been watching the average income and cost of new vehicles and housing and can't figure out how a dealer can ask everyone to spend 80K-90K on a new vehicle, and then 75K-85K on one they just took back on trade because the last owner either couldn't afford it or didn't like it.
I've seen this coming for years. I appreciate you putting this out there. I don't hear many people talk about it
Cooper! Make more videos like these and we all will watch your channel go to the moon! I'm excited to see it brotha!
Always enjoy Coop's car talk!
I think the manufacturers are finally seeing the point of diminishing returns on loading up new vehicles with ridiculous amounts of gimcrackery. I do not need lane departure warnings, trailer backing assistance, and a bunch of other useless junk. Last year when I noticed some rust forming on my ‘14 Sierra with 60k, I sold it while it still looked really nice and I had a lot of positive equity in it still. I replaced it with a MINT garage kept OBS 1500 Suburban that I got for $11K with 125k on the clock. I wanted a nice 2500 OBS but couldn’t find one so I’m swapping the diffs for the gears and beef I wanted. Guys like me are the dudes destroying the new car market and it makes me smile
This what happens when the manufactures damn near double the price of a lot of their models in ten years and never mind the economy that is in the toilet.
Well it is also the idiots who kept buying them in droves as well.....Supply vs Demand and during the pandemic idiots kept buying them up like it was a toilet paper shortage once again.
Let the FREE MARKET do its thing. The federal gov has NO business bailing anyone out.
They should all try to make solid affordable cars and trucks, not this garbage that is being offered today.
Safety regulations pushe by major manf. has made the cheapest car way more than needed.
I love this content Cooper. Keep it up. Make sure you lock your doors and have cameras at your house because they might come after you lol
This was a great video! Good job Coop
You should do more of this style video! I listen to you on Spotify at work! Like the way you think
Good vid buddy! Keep it up
Prices of everything skyrocketed during covid...all the govt money pumped into the economy during covid was like crack cocaine to the US economy. Now the govt money high has faded and were now left with the mess of persistent inflation which continues to give us tons of over priced goods and services that fewer and fewer can afford. Not to mention, many folks remember the gouging car dealers were doing as recently as early this year with their HUGE markups. Hell, there were some dealers actually titling brand new vehicles so they could sell them as "used" in order to circumvent the manufacturers anti-markup policies for new vehicles...absolutely crazy stuff.
Couldn't agree more coop. I have 5 more months on my lease and I'm just waiting it out hoping for more serious rebates and deals. Also it seems to me like they have been forcing the sale of vehicles instead of leases due too them getting burned over the last 5 years with lease vehicles
Maybe They want dealerships to get out of the business of selling cars so that They can go full Claus Schwab/WEF on us. We will own no cars and we will be haappy. Dealers can shift to distribution of your government vehicle, provided your social credit is good.
Say you're voting for Trump without saying you're voting for Trump!😂😂😂 I need one of those foil caps, Bro!! I really dig this side of you. I've never thought about what you were telling us, but it makes perfect sense. Keep it coming, Coop!!
Good stuff to hear I was thinking about getting a new truck I'll hold off for 6 months while still looking just looking 23:53
I have a 2015 Golf now paid off. I have no plans to replace it until it needs to be replaced.
When a new car costs as much as a house and interests rates are crazy out of control, even with great credit, it's not worth buying right now. People don't have $60k-100k for a new truck also. Also the dealership market adjustments on nicer cars is stupid too. Why do I need pay $5k-25k markup for a nicer non-suv car
Well.... if I made more money, or new cars weren't so expensive. I'd like a new car, but I'll stick with my 05 for now.
Dude, I’m a small business owner. I went to buy a new work truck as my 05 Silverado with 800k miles was just costing a lot of money to keep on the road. They gave me 2k trade in and i had 10k to put down. My business nets about 1.1-1.3 yearly. Credit score above 820 these folks wanted 20k down on a 34k new truck. How tf can the average guy/family afford to put down 85% of the cost of a new car….. if i wanted to put 20k down I’d just buy a 20k truck. Oh and an 18.9% intrest rate. A new car is so hard to get for the average person/family
Been saying this for the last few years. Market is going to reset, when is a guess unless you have a seat at the table. Solar market is similar, value plummets and has little resell value.
I watched a video recently that brought the point that 2024 will be the last year you can purchase a new car with a sticker price under 20k. Interest rates will have to drop as well.
New cars are becoming less unique with less options to distinguish one car from the next and needing to have to higher trim levels to get certain features will be drag on the market as well.
King ranch f150 used to be a 35-40k truck back in the 2000's, now $90-100k, ridiculous and the new trucks are junk i work on them for a dealer, overpriced garbage
The buying power of our dollar has been cut in half. The price of the truck has really stayed the same in a way. The longer a fiat currency goes the less its worth. We need to go back on gold standard. If you made 100k in the early 00 you lived like a king. Now you need 100k to merely live.
Also. Theyve started to force tons of parts, body panels and airbag parts discontinued after 10 years. I cant get many oem replacement body panels for all the major manufacturers
Cooper. Great topic. Really enjoyed it.
The car companies have already figured in the price the cost of unsold inventory that's why they go up in price. New cars sell for about ten times the cost to make them.
America wants cheap transportation. Like the mini trucks from the 70’s and 80’s. Toyota, Nissan, S-10, Ranger, Dodge D50, Chevy Luv. I bought a new 1987 Nissan hardbody 2 weeks after graduating high school. I believe I gave $5,900 for a regular cab, 2wd, 4cyl 5spd. No radio, no AC. Just basic transportation because I was going to work in the Trades. I drove 85 miles to my first job as an Ironworker as a first year apprentice making $8.10 a hour. After four years I made $16.75hr.
My Nissan truck payment was $112 a month. But I needed a reliable truck because I was driving over 1,000 miles a week. In 2yrs I put 100,000 miles on that truck. Sold it for $3500. I went and bought a new base model Toyota truck just like it for $6,800. Did the same thing. Sold it in 2yrs for $3800. Americans need cheap basic transportation. Like a base mini truck for $20-$25k with inflation. Not $60-$100k for a F150 I’m afraid to use or put miles one. I just bought a 2016 GMC 1500 regular cab work truck for $15k with 50,000 miles. I will drive it till 200k and buy another. I refuse to spend over $25 for a truck. 🇺🇸🦅
I've been saying this since 2019, and dealerships were buying people out of their manufacturing waitlists. It won't be a housing bubble it will be an auto bubble. Trucks for 100,000 was always a stupid price. It's a truck that's supposed to work.
I watched a short video a few weeks ago where a guy was showing how certain dealerships were spreading their new inventory across their lot to hide the fact that there was 20+ new vehicles of the same model.
Our local ford dealership has started to fill the back of the kia lot. It's across the road, and behind the kia building. I wouldn't put it past them that they are hiding overstock. I wonder if their online stock represents that.
interesting stuff cooper
curios too see how it works out
I just got a 23 gmc sierra, got 10k off....still got screwed! Bad situation left me at a dealers mercy...
It’s also affected the used car market. I’m seeing salvage/rebuilt title cars at used car lots going for 10k +
I'm seeing a lot of the same over here. I live in a small town in northern Norway and a lot of the dealers here have had to move their stock to other lots to not have people notice that they've got 20-50 brand new cars not being bought. I'm getting ads for 50K vehicles with 8K discounts, 3 year loans with 0.85% interest. People over don't want/can't afford new vehicles right now and the manufacturers are getting desperate.
Cars are the worst investment we've created as a flex. To get from point A to point B in a safe and reliable way you need 12-15k.
The average new vehicle nowadays is 40-50k and in 5 years you've paid 60k for a car that's worth 30k. Just stupid.
Also there are a ton of jobs that rely on inventory moving. A lot of peoples livelihood . I think this situation is only solved to move inventory to raise demand for new production.
I'm the odd one out that would wait for them to essentially give a truck at half price for something 2 years old because I just want cruise control 4wd ac and heated seats.
To be honest what is the point if dealerships now. It is an archaic system that we needed before the Internet and the ability to build out the vehicle on the web. Dealership fees and a middle man that siphons off of a sale. How many people know that they want when they go to a dealer. We need to go to direct to consumer. That's 25% right there.
You'll still need the dealer for warranty items. That and if they would just have 2-3 vehicles of every model with different options packages so you can see it in person and test drive the car/truck/suv. From there you go online and order it to your specification. I will not buy/order a car if I can't test drive it first.
I know for a fact that the Ford truck plant in Louisville was storing overstock trucks at the Kentucky speedway close to my house.
Thousands of them. All 2020 models
Its hard to reduce the price of your product when government mandated equipment is a main driver of the price.
I work at a ford dealership and they have a new 23 on the lot I was interested in and they wanted me to pay 70,000 for 2,000 more I could get a 24 in the same trim, or pay 10,000 less and get a trim down in a 24 model. That’s ridiculous to me
If they came out with a carbureted, no info-tainment, base base base vehicle for like $20k I would consider buying new.
The inventory levels are still way below historic levels. Having some new-old stock vehicles on the lot was pretty common in the past too; it's not a new phenomenon. Only very recently have the big three started offering incentives on trucks again which was common place pre-pandemic. Companies are building inventory because they know a small drop in interest rates will spike demand again. It's the floodgate for the auto market (and the housing market). They don't want to be caught sitting on their hands without enough inventory to cover demand. That's where they were in '21-'22. The big 3 are also all in a lot better shape today than they were in 2007. All of them are earning billions in profit, and periodically buying back stock/reinvesting in new infrastructure. The post covid boom filled their coffers so they can wait out a year with lower sales.
Not disagreeing with you, but an observation I had recently. I sent my wife’s car to the local Dodge dealership for its free oil change and state inspection, and I was surprised at how little the inventory was. There were only 2 2500 rams and a handful of each model after that. This isn’t a small town dealership, it’s one location of probably 5 of the same company. Maybe they are hiding them off site to try to change the image of supply and demand?
Car prices are ridiculous...Think about what you can build for $100K.
Great Content!
I’m old, retired and in excellent financial shape. I have NEVER and will NEVER buy a new car. Just doesn’t make sense. I’ve always been able to buy lower mileage vehicles for far better prices.
Covid flip market is what crushed used market. More than anything else, chip shortages that caused used cars to be in demand and then flippers came in to buy and resell at a premium while they were inflated.
I wonder if the chip shortage had some effect on it, since they had a ton of vehicles sitting waiting for them, while still doing assembly of new ones. Cash for clunkers took out a lot of 4th gen fbodies too :(
the chip shortage was caused by the vehicle manufactures. the american companies slashed their chip orders in march of 2020 in fears that new car sales were going to crash. the chip manufactures never really stopped producing chips during cvd because the production is heavily automated and only required a minimal amount of employee's per shift to keep things going while korean and japanese manufactures doubled their orders to stock pile and wait out cvd.
Cooper you are 100% spot on. Thank you for speaking the truth that no other media wants to talk about.
Great video Cooper
It all starts with us. Vehicle manufacturers are only going to make what the consumer wants. When the majority buys fashion over function that’s what they will make. Stop buying what you want or “deserve” and buy what you actually need. Buy based on quality and craftsmanship.
There were 6mil cars in the used market, there’s now 2mil in circulation. The new car market was never a strong push for middle America. But the used market is missing the three to 4 year old models because of the pandemic, there’s a year or two left of this at minimum. New car manufacturing becoming “old” inventory is because of the push to produce, and essentially “we’ll finish it later” thought. Summary is it’s probably up a creek for two more years
It shouldn't really be called a "crash", they priced these cars sooo high to a point no one can afford anything, and anything they can afford they don't want to buy. So the prices will need to come down to reflect true Market Value. It's like if I go around the neighborhood and tell an old lady I can mow her 1/4 lawn for $175, she'll be like "no i can't afford that, I can only afford $35 - $40". Either I have to lower my prices or deal with a lot less customers or no customers at all.
Thanks for making this video
Would this apply to the side by side world? Been debating on going to get one
110%
A lot of lightnings go to government agencies in bulk we have had 50 GSA vehicles come in the last two weeks , however I live near a base and two nuclear facilities and they go to all three
They just need to bring back the good leasing deals. Cars would fly off the lots.
I never paid attention to the market, but this makes total sense. I have bought a new car with a lease for my last couple of vehicles but just this month I bought my car out instead of trading it in for a new one because it's just getting too expensive.
I had my friend at the local Ford dealer order an F250 optioned just the way I want (not a bunch of stupid stuff, just good truck features) it finally came in, but I had to bail because it's just too damn expensive and the rates are ridiculous. Big bummer.
The problem I see across the board is inflation over the past 3-4 years vs the increase in salary. Vehicles have gone up 30%, along with the cost of living and housing, and wage increase only 7%. Not to mention dealerships price gouging. This is why their lots are filled with new vehicles. They've saturated the market with those willing to pay the high prices. Now it's down to those that could potentially use a new vehicle, but with the prices, it just makes more sense to fix what you have and keep driving. The bells and whistles are nice, but not at the cost of being in the poor house.
I recently just bought a new 2024 Custom Silverado (as basic as it gets) because they had a 10k rebate do to their price inflation and TONs of stock. I still don't feel like a I got a fair price based on how high interests rates are and it doesn't seem like we're getting any kind of interest break because the government keeps borrowing money and they have to pay that back some how.
I worked with a guy that flipped e30 bmws before it was cool, hed get 60 min with a car before it would be sent to the crusher... he was very quick to grab all the hard to find parts before it was too late
Price.... that's how it's fixed. I ordered a 2022 super duty in 2021, msrp was 100k. Our family gets Ford A plan which you buy at invoice (what the dealer pays), my truck was low 70s invoice. They're greedy, plain and simple. Granted not every vehicle is marked up that much, but the markups are crazy. Also these manufactures keep adding technology alot of people don't want or need, further raising the cost.
I work for Honda on the manufacturing side, we are full tilt. im not at the dealer level but sales are strong.
Have a 2017 Silverado with 209k miles and is just about due to be replaced. I’m seeing 2023’s and 2024’s advertised for $10k+ off MSRP and it’s been hard to not pull the trigger. However, I’m enjoying not having a vehicle note and also waiting to see just how low the prices will continue to drop.
Electric eels are fresh water 😂... all great points a few years ago I was going to order a new truck and went used instead. So glad I didn't fall in the trap saved a ton of money for something I'm just going to work on anyways. Life's too short to stay stock
I work at a dealership here in Amarillo, tx and we are packed with new cars sales men are selling next to nothing compared to what they were selling. And now everyone is fixing there older cars witch is nice for me lol
I’m tired of being punished for the bad decisions of large automakers and the greed in the marketplace of retailers.
I think the next step is going to be massively subsidizing leases and getting people stuck in the constant debt cycle of leasing.
Got my 2012 ram 1500 express for $29k and 0%. Probably my first and last new truck. I park it in the winter and just picked up a used Yukon xl from out west that’s super rust free that needs a motor for my new winter vehicle
I work at a diesel repair/performance shop in Canada and most people are spending upwards of $20k on major repairs on older trucks (10-25 year old trucks) because it’s more cost effective than getting into something newer to replace it
I have an 08 Sierra with 430,000 kms on it. I looked at what I could get for $15-$18k in a used truck. I'm now in the middle of refreshing my 5.3, ordered a rebuilt trans for it, a new box from the south and new rockers and I'll be good to go for another 400k!
Check out the boat market! Boats are going for 1/2 the price than 2023
I'm driving a car with over 300,000 miles and would love something newer, but even the used car market is outrageous. Luckily our other car was bought brand new in 2020 before prices jumped. Hoping prices plummet at some point but not holding my breath.
Thanks Joe.
I just got out of the car sales business after 7 years. Started at Kia, moved to Ford. The high interest rates, lack of rebates, greedy dealership owners/management, and dwindling used car market really destroyed the business for the time being. I now build the M1A1 Abrams and it was a fantastic career move, although it was later than it should’ve been.
Just do what GM did, manufacture the car without certain parts and sit on them for 8 months and then sell it as a next years model. Hence the Sierra “refresh.”
All we have right now in our market is the very few people who actually have enough money to keep this going so the stretch between poor and rich is huge.
Well, this already happened in the powersports market. Prices are out of line, people stop buying, those that do are tagged with MASSIVE interest, dealers get wrecked, and the parent companies lose money like mad and their stocks tank and layoffs go nuts. Cars ARE next whether we like it or not.
Thanks for this.. Cash for clunkers wasn't our idea. Japan has been doing it for 30 or more years, just an FYI.
Manufacturers and their pricing is the problem. Instead of holding dealers feet to the fire over markup they were adding they added it to sticker and now you don’t hear about it anymore. Remove the 30% and it is back to normal pricing.
I've been a mechanic for 13 years, I've seen the failure rates of these new vehicles. It's like they build in a shelf life for them so they don't last. Most modern vehicles start experiencing major issues after 100k miles, and most people will put that on a vehicle before their loan is paid. We speak to manufacturers for service bulletins and explanations for common failures, and we are told it starts with development. Major manufactures are cutting cost in materials and labor, and as long as they get paid for the vehicle, and warranty expires before the problems begin, it's not their problem.
The vehicle market has some very serious problems, and it extends far beyond prices and inventory.
Prices have been out of control for a while. Doesn’t seem to stop people from buying them. Interest rates are the game changer in my opinion.
The Manufacturers need to make more base and lower spec cars and trucks people can afford.