The main thing I learned during these last couple of years is which dealerships I will not be returning to once they start begging people to buy cars below msrp again.
As someone who accrued $70k+ of debt at the age of 22 this was needed to hear. Two $25k vehicles and $25k worth of personal loans and credit cards to my name. Ex wife didn’t work for an entire year of covid and to avoid selling things to get by, I instead accrued $25k of debt to pay for bills and keep us afloat and kept listening to empty promises of being paid back. We were a $110k a year household income and dropped to half And had to live off of my income alone. Literally in the process of trading in my Silverado that gets me 15mpg for the cheapest thing that can get me 35+ and get my credit back into the 700s instead of my current low 500s. Divorce is a bitch.
Hey man. Tough to hear your situation. If you know how to drive manual, a 2010-2012 Fiat 500 Abarth (or turbo) is a great car. My buddy gets 40+ mpg IN THE CITY, and when he’s flooring it everywhere, he gets 32-34. He manages to get one for around 5k, although it was dirty. Drivetrain is reliable, but the interior is quite cheaply made. Just throwing out a suggestion out there. Best of luck for your financial state.
The enthusiast car market should cool, and we're seeing cars sit and just starting to have prices cut however with the push towards EV's I don't think alot of these cherished cars will crash in value
In the long term, EVs will look like a fad, their production and waste is very unsustainable, meanwhile there are carbon neutral synthetic fuels already being developed
@@itaintobeezy Not really! Battery production will only get better! EV cars have been slept on for too long due to the oil & gas monopoly. With the 2030 petrol & diesel car ban that will compel every car company to have no other choice but to invest in EV technology, you will notice how innovative the industry will get in such a short time! Heck, the petrol & diesel vehicles have already been gapped by EV's! Those V-12 engines will soon be banned & useless, and even now they cannot compete with the power of EV. This's simply another era that we're leaping into!
@@patrickanthony3632 I hope we can get over 700 miles on a single charge soon. Until then gas cars are all ill get, unless I win the lotto. Just not too practical for everyday person. I think the majority of people in the future will have a hybrid which is the best in my opinion or an EV and a keep a gas car for emergencies.
@@sphincterlicker69 Absolutely! I'm in the same boat as you! The charging time is bound to be improved as well! If you can get 200 miles on a 10 minutes charge, it'd be awesome! It'll happen! So much will change with technology as one thing leads to another! I can picture quantum computing being able to be harnessed to resolve a lot of issues in the future, including battery and energy production.
Used car prices for desired cars are not going to drop significantly or at all. People are going to hold onto the cars that are collectors. The only cars that are going to fall are going to be cars like a Chevy Malibu or Buick Enclave.
90s-00s JDM legends won’t go down, same for vintage cars or Hypercars. Modern, accessible and common mass production vehicles like a Toyota Supra Mk5 will start depreciation but not a Mk4 Supra.
A lot of great advice. I will say that bubbles do burst, but I think the used car market will behave a little differently when prices come back down. There won't be a crash, that's just not how that particular market behaves. In addition, I am an Autotrader window shopper and I have seen more cars show up as great price before they get sold over the last couple weeks than I have seen in the last year and a half. Cars are sitting...
@@bmshaven I hear you bro but I’m absolutely livid. I was moving towards a purchase on a c43 coupe. They were trading for 30k. Now they are trading for 50 or 60 and even more. C300 coupes are going for heaps! I’ve almost given up at this point. Even if I could afford a 60 thousand dollar car, that was S class money a year ago. Coupe, v8 turbocharged s class money.
April of 2020 right as covid lockdowns started to be talked about the universe spoke to me. I was supposed to go to denver for a conference and it got cancelled. I had my eye on a car for a couple years prior. It was listed at 28k when I first came across it. I had some money freed up because I did not travel to Colorado. I noticed the car I had been watching lowered it price to 22k as fear of lockdowns became reality. I decided to go take a look at the car. Drove about 700 miles round trip. I was able to strike a deal at $20,500. I am now the proud owner of a 2001 Porsche Carrera 996.2 black exterior, grey interior, 6 spd manual coupe with 36k miles. Every factory option with the original window sticker.
I’m impressed - love to see sound financial and market analysis mixed in with car content. I made many of these mistakes with fun cars in my 20s. Set me way back. It’s so much more enjoyable when you can comfortably afford the hobby!
I doubt 2022 or 2023 will have auto prices come down. Harness, chip, and other supply chain issues are on going. Unless all things all of sudden turn positive including the Ukrain escalations were screwed for 2 more years.
You very well may be correct. However, most people keep their cars for 3-5 years. What I wouldn't want is to be holding an overvalued loan while prices correct and adjust down.
100% agree... it's supply and demand. And the supply side is hurting badly because carmakers can't produce cars for various reasons. Folks said 2021 would be better for car inventory and then 2022... it's gotten worse and worse lol. 2023 might start the recovery but then we have two years where we underproduced. We might all end up with 10 year new car loans.
I was very fortunate to get my college paid off quickly with a well paying tech job. Living at home with my parents hasn’t been ideal, but I’ve been able to build up my finances to be great once the markets stabilize. I can’t wait for prices to drop. I have my mind set on getting my old man his dream charger and myself something that can tow so I can pursue restorations as a hobby!
Was in the same boat regarding tuitions and the privilege to save while living at home (Not many people have this luxury, hands down am grateful everyday for it). You're on the right track, keep at it!
Same here.. although I'm kind of late on the earning a better pay situation. I'm trying to get into IT at the moment, I have a little cash saved thankfully to my parents letting me stay. I see my friends suffering paying rent.. in debt... That's not how I want to live
@@mannarmylie4195 yeah you're probably right... but as long as I have a 6 month's salary emergency fund in a high-yield FDICC insured account and no credit card debt, I'm doing better than pretty much all of my peers
Yes, we're not going back to the old days. The world is in a mess and at war. A lot of car supply chains relied on Ukraine and Russia for raw materials and parts. This will take years to resolve. And we have a serious inflation which can get worse. The inflated car prices will go down, but not back to 2019 levels.
This is not really about supply chain for new cars. This is about people who bought cars for the last 2 years that cannot afford to keep them. Now because a bunch of them will have to sell them, that creates a glut. That means dealers are paying the banks' interest rates to finance those cars on the lot. Dealers can't afford to hold the cars. They have to be sold at discount. This dynamic will also affect new cars. Because people can buy a used car for so little, why pay all that money for a new one? Therefore new car sales stall and they have to drop their prices to move them off the bank's loan sheet.
Couple months ago I went out and bought a C7 Z06, they had it listed for 69 (reduced from 73) and it was on the lot for 30 days. They wanted it gone so I got it for 64k. Not too long ago a friend of mine totaled it and insurance paid me out 75k based on the market value. I pocketed about 20k, used a portion of it to buy a 3000 dollar civic. I kinda consider it a blessing. No way a 7 year old vette that stickered for 90k was only depreciating 15k over those 7 years and 20k miles. It was awesome and I’ll miss it, but when GTRs/Audi R8s/C8s become more accessible I’ll be ready to jump. Great video!
I have learned my lesson after buying cheap brands over 47 years span, like Mercury, Ford, Chevy, Fiat, Mazda, Datsun (Nissan) or fancy brands like Audi, BMW that either didn’t last or required major money to keep them going. Now just invest in Toyota or Lexus and keep driving the same vehicle for the next 30 years. My previous 1985 Toyota Supra was super reliable for 23 years and 295k miles. My current 2005 Toyota Sienna is still running flawlessly without any issue at 317K miles and I plan to keep driving this super reliable vehicle for another 15 years. I am not affected by car shortage.
Be patient and hold your cash. We are headed into a very deep recession. People will be dumping expensive cars, boats, vacation homes. Prices will tank. Many are over extended and will be hurting for cash
I’m waiting on these prices to hopefully drop man. I’ve been wanting to get my dream car for a good price but these car prices have been absolutely ridiculous as of recently and it’s very upsetting knowing that it’s so close but so far away at the same time. Hoping and praying for all car enthusiasts that prices drop so everyone can roll around in the car of their dreams or a fun car they can make theirs.
This is the first time in my life me and my wife leased a car and it actually made sense. We got a 2021 highlander xle hybrid and it's probably the best decision we've made in this market (big buy side of things).
@@muhammadtayyab5458 Depends... do you have a car collection? If you do, you might sell something to take advantage of high prices. If you just have a decent E36 M3, and you always want to have one, I would ignore the crazy and just enjoy your car. I am looking to add 2 cars to my collection as opportunity comes... a 2002tii and an Alfa GTV6. I will probably never sell my M3... its a 1996 Alpine slicktop after all.
@Paul, difference being that in 1999 there were an abundance of drivers cars to choose from, with new ones entering the market each month. We're in a time where "newer is better" hasn't been true for a while.
What you neglect to tell people is that when the vehicle prices go down, the interest rates go up. So, you still will be paying around the same prices depending on your credit, you’ll just pay it over the life of the contract rather than what the sticker price says. No matter what kind of market cycle we are in, automobiles are traditionally on of the fastest depreciating assets we purchase. Back end or front end, we'll always get screwed on vehicle purchases. The only way to somewhat get a good deal is to learn the predatory tactics the dealers do and don’t fall for thier BS when you go kicking tires. And don’t buy until you have sufficient credit to keep your interest rate as low as possible. Always get a loan secured from your own bank before you even go car shopping, but never tell the dealer you have a loan already or they’ll try and squeeze whatever they can out of you. Make them go talk to their boss a hundred fake times to keep shaving a few hundred off the vehicle before you finally let them know that they won’t be screwing you with their preferred lenders who give them kick backs for bringing business to them. Never buy the car with an all cash purchase because nothing will be reported to credit agencies and it won’t improve your credit score if you don’t show paying off debt. But do put as much money down as possible so you only need to finace a small portion of the price of the vehicle. Even if you put 90% cash down and get financed for the last 10%, it’s gonna show that you paid off that vehicle as the full price whch will boost your credit score and make it easier to keep obtaining low interest for future purchases.
Well said man. I endured the housing crash in 08 and it was brutal. If you live by your means and don’t go into major debt life can be fun. But you might have to drive around in a slammed Versa like me !
here's the funny thing, have been in real estate for fifty years. did not see a substantial decline in value of rental property in 2008. decline was in house prices. houses sold to people who couldn't afford them, then people defaulting on homes they thought they paid too much for.
@@neilabernath5862 I bought a house that I could afford. Are you in mass. Different markets. Denied loans I couldn’t afford. Oh well hope your doing well
Car payments are for suckers, I'm 67 and have never made one. Never paid over $6K for one either (have not changed cars since before COVID, thank god). Being car savvy is a life skill that can be learned and should be taught in schools, but then where would the suckers come from?
I've been waiting for this downturn. I am excited to pick up a really nice example of one of my dream cars in 2022. Thank you for your time and input. No idiots on this video. LOL
Prices are not crashing yet. Supply chains are not fixed. The economy will slow buying. That may bring prices down a bit. But till the supply chain issues are fixed they won't come down much. Won't fall till middle of 23 or end of it
As a used car dealer I can agree with what your saying also say It will still take sometime plus why the prices went up so much on used cars in last few years is due to the the larger dealership like Carmax/name brand dealers ford/Toyota etc. went to dealer auctions and over paid for all those used cars and it sucks for all of us, it makes it hard for me to get used cars for good deal and then I gotta turn around and try to get profit but what I’m thinking is if these name brand dealerships over paid for their used cars how will they do once the new cars start getting pushed out, probably not good if they have to take such a big lose on all those used cars, my guess is those new cars will be sold for even more then before but hopefully I’m wrong
Used car prices will drop for sure. But classic car prices are going to remain solid. There are only so many of those available. The thing that changes with classics is which generation becomes the hot market.
Listening to companies earnings reports is another good way to know what's really going on and going to happen next. For example, CarMax just missed on earnings because used car prices have peaked and are starting to come down.
It will be interesting to see what happens to all these used car dealers as prices drop I don’t see them dropping prices 20-30% - dealers won’t lose money but they will simply not sell cars
I really hope so, I had a '16 Focus ST. I had a year left to pay off and was thinking about also buying an S4 after paying it off and keeping both. The focus got totalled and they gave me a fair amount but had a year and some months left to pay off but now carless i can't get into the same car without paying 8k more for a stock car. Pretty depressing. Lol
“Your favorite car is about to get cheaper”. Yeah because they suck, no air bags, loud, expensive to maintain, and not much faster stock compared towards any other car.
I’ve rung up some debt due to stupidity and servicing my long distance relationship but I’ll be ready for something in Jan 2023. It’d be nice if some prices came down. I’d still like to buy something that’s fun but also value retention/appreciation. Hopefully patience is a virtue.
You are absolutely right! The only way they could drop is if the government gets them to a point they can no longer be tagged for driving on public roads !
I'm pretty sure prices would drop, if half the people decide to sell and buy an ev that would mean more ic cars for sale but only half as much people to buy them, the market would be flooded
I think it could have the opposite as government mandates & crackdowns on ice cars could turn many people off ownership of non ev’s I have seen plenty of people dump their jdm skylines because it’s old & will cost more than it’s worth
Patiently waiting for the chip shortage and car supply issues to resolve. I want to see dealer ripoff agenda like ADM and above MSRP prices end for new cars.
Something I don't understand, 🤔 What makes you think that people who'll be underwater would sell their cars (cheaper)? They can just keep their cars since they can afford payment 🙄 without bothering with how much their cars are worth at that time...
Nope. You don’t understand. Inflation is greater than you think, and permanent. Fed won’t deflate. More likely inflation will accelerate, than deflation will occur.
Which is why I said it's going to stay higher for a while. We have not reached the turning point yet but it will come. The cure for high prices is high prices
Prices aren't coming down ever. We are in the midst of the Great Reset. The intention is for average people to be priced out of everything and unable to own any property, transportation or quality of life items.
I agree about being in the middle of the reset but I disagree on how it will be accomplished. There's already a large percentage of home ownership in this country so simply pricing new buyers out won't help them get what they want. They have to take the homes from those who have them and make sure no one else has the credit to be able to buy new ones. You do that by popping the bubble that everyone bought in so they are all upside down and lose their homes and won't be able to buy more homes for 10 years. Once prices crash they'll be able to buy up twice as many homes for the same price and only those who were caught in the bubble will be in trouble which unfortunately is the majority of investors these days. The crash will be fast and will not remain in a down market for a very long time because of how quickly everything will be bought up, at least that's my opinion. In the end, the meek will inherit the earth because they're the ones who didn't get caught up in all this and lived humbly instead of outside their means.
I bought all 3 of my collector cars for pre covid prices and now they are all worth at minimum $10,000 more. I also bought the nicest house I’ve seen in 2 years in this crazy market and now all the houses in my neighborhood have jumped up another $50-70,000! It’s insane! I do believe whenever they decide to release new cars and the market is flooded that will decrease the prices on these collectors cars because it just won’t be worth it but anymore when you can get a new car for the same price! But nostalgia is truly heavy now!
You think just cause you can tag a higher number it means it worth that number. You funny. If you had a feed and watched how many people viewed your item you will see how many people pass on that insane price and you’ll see a few ballers stupid enough to pay that
It's actually more like if you're under 70 you're experiencing the highest inflation of your life. They'll tell you this is the highest inflation rate since the early 1980s, but what they don't tell you is that they've changed the CPI calculation since then. If you keep that calculation the same this is actually the worst inflation we've had since just after WWII.
You are one of the few, if any, who seems to have any wisdom. You are 100% correct in all of your statements. You and I go against common beliefs and the media narrative. Nobody but you seem to be using any independent thought and analysis.
Just found your channel and I gotta say awesome stuff! I kno it’s a lot easier said than done, but more frequent uploads would be awesome and great for your channel!! Wishing all the best !
Solid advice, bro! We should all be doing the best that we can to get out of debt (harder it is the poorer you already are, unfortunately), and put away nest eggs to buy whatever it is we need (or if we’re lucky, want) on the dip!
@@swpdisciple one of the biggest countries to grow wheat is Ukraine which feeds people, and more importantly the livestock industry. Basically, go (mostly) plant based to save money and get yourself some nice wheels as a result😂
What alot of people aren't getting is. This is a trend and like all trends, it will slow down. We look at jdm cars like their gonna make us money. But history has told us that just like Japan - after the success of the 90s. The 2000s were the end of the cycle and put millions on debt. Let this be a reminder to everyone that trend sitting is a common problem were are experiencing. And alot of "enthusiasts" are gonna fall victim to high amount of interest rates and high amount of loss per capita in the next following years. Note: autocorrect is a dog some of these words don't make sense. Lol
Car prices won’t crash ! Lack of new cars coming on the market , means lack of second hand cars ! Simply supply and demand ! The manufactures know how to restrict the market now , chip supply is still a problem !
Normal used cars will drop once supply catches up. Enthusiast cars though, not a chance. With the push to electric in the next decade and low volume of enthusiast cars being made right now compared to 10-20 and 30 years ago, not a chance.
I work for a family owned dealership network as a FA, the shortages aren't going to be ending any time soon. Especially with the new wire harness shortage due to the conflict in Ukraine.
This might be for enthusiast market, because due to supply chain shortages regular secondary market today is absolutely insane. You can actually sell a used vehicle with low mileage for more than a new model costs.
Very nice video!! Good advice. I love how the dog is just chilling drinking tea when he's house is burning down hahahaha. He's got greater things on his mind ✨ 🙌
When recession hits and people need money for bills, they will be forced to sell their toys. When buyers arnt running to buy toys, Because of a recession. The sellers will be forced to drop prices. That’s the cycle of the markets
@@slowery43 I was not giving advice, I was simply commenting my opinion. This is CZcams comment section not LinkedIn where I’m posing as a FA. Any grammatical errors i could simply care less than to proof read my comment that took a few seconds to write. Take it as you’d like bud.
Car prices in the UK for classics is falling with £10 a gallon , cars like a Rover 3 litre is doomed at 12 mpg , now worthless junk but owners still think there 10k's worth , not now ! Most classics doing under 40 mpg are worthless ...You can't even go to a club meeting unless local , if a club meeting is 150 miles away , that is a £300 fuel bill for a day out ??? OMG ...
on the other hand, these used car dealers that paid 12k for an 8 year old cruze that has 90k miles on it that was 16k new isnt going to be willing to sell it for a loss.
I don't think the car prices will come down to the pre-pandemic level. Our dollar today is probably worth 60-70 cents of what it was before. Although car prices have gone up crazy, our dollar value have gone down significantly. If you bought a 2nd car for a recreational purpose, maybe it's good idea to sell it since we're either in recession or about to be.
Bro I don’t know how old you are but it never happens how you think it will. The credit card recommendation is super solid though. Love you man, love your neighbor.
You're totally right there are always curve balls and unexpected changes. I think what happened in the stock market today is a grim reminder that instability is just getting started.
Maybe the cheap affordable cars will go down but anything collectible and limited I doubt will. Itll drop to a point where it stays in value for what it is. Some are going up instead of going down lol
I doubt things will go down. I work for Toyota and just on new cars msrp I’ve seen about a 1500-3000 increase in the actual msrp not adjusted market Value. Same Camry xse that was 32k in 2019 ( box hasn’t change no major improvement other than Apple car play and awd) is coming to around 39k now a days.
I have a lease that expires in May 2023. I'm just biding my time before making a decision on what to do. I don't have a high end car car and have no interest in one. I'll just wait it out and see what happens.
I pray with all my strength that car prices will go down and I can afford a fun car finally
Supra
This is exactly why the prices won’t dip…
Amen 🙏
You will 🙏🏼
Yes brother
The main thing I learned during these last couple of years is which dealerships I will not be returning to once they start begging people to buy cars below msrp again.
Same man. Same
As someone who accrued $70k+ of debt at the age of 22 this was needed to hear. Two $25k vehicles and $25k worth of personal loans and credit cards to my name. Ex wife didn’t work for an entire year of covid and to avoid selling things to get by, I instead accrued $25k of debt to pay for bills and keep us afloat and kept listening to empty promises of being paid back. We were a $110k a year household income and dropped to half And had to live off of my income alone.
Literally in the process of trading in my Silverado that gets me 15mpg for the cheapest thing that can get me 35+ and get my credit back into the 700s instead of my current low 500s. Divorce is a bitch.
Thanks for sharing man. Looks like you're headed in the right direction 👍.
Hey man. Tough to hear your situation. If you know how to drive manual, a 2010-2012 Fiat 500 Abarth (or turbo) is a great car. My buddy gets 40+ mpg IN THE CITY, and when he’s flooring it everywhere, he gets 32-34. He manages to get one for around 5k, although it was dirty. Drivetrain is reliable, but the interior is quite cheaply made. Just throwing out a suggestion out there. Best of luck for your financial state.
@@EK-np4nx I own an Abarth 500 and daily drive it into DC everyday - it's an amazing and fun daily
Go your own way
Life is a bitch then you get married 😢
The enthusiast car market should cool, and we're seeing cars sit and just starting to have prices cut however with the push towards EV's I don't think alot of these cherished cars will crash in value
In the long term, EVs will look like a fad, their production and waste is very unsustainable, meanwhile there are carbon neutral synthetic fuels already being developed
@@itaintobeezy
Not really! Battery production will only get better! EV cars have been slept on for too long due to the oil & gas monopoly. With the 2030 petrol & diesel car ban that will compel every car company to have no other choice but to invest in EV technology, you will notice how innovative the industry will get in such a short time! Heck, the petrol & diesel vehicles have already been gapped by EV's! Those V-12 engines will soon be banned & useless, and even now they cannot compete with the power of EV.
This's simply another era that we're leaping into!
@@patrickanthony3632 I hope we can get over 700 miles on a single charge soon. Until then gas cars are all ill get, unless I win the lotto. Just not too practical for everyday person. I think the majority of people in the future will have a hybrid which is the best in my opinion or an EV and a keep a gas car for emergencies.
@@sphincterlicker69
Absolutely! I'm in the same boat as you! The charging time is bound to be improved as well! If you can get 200 miles on a 10 minutes charge, it'd be awesome! It'll happen!
So much will change with technology as one thing leads to another! I can picture quantum computing being able to be harnessed to resolve a lot of issues in the future, including battery and energy production.
There is not enough cool JDM cars being built yet. We'd need a whole wave of new Supras and Zs for prices to chill.
Used car prices for desired cars are not going to drop significantly or at all. People are going to hold onto the cars that are collectors. The only cars that are going to fall are going to be cars like a Chevy Malibu or Buick Enclave.
You obviously haven't seen chevy truck prices
@@viejonbigoton >chevy truck
>desired cars
pick one
So true! Collector cars and performance cars are going to sky rocket in prices. This is not good advice!
Did you watch the whole video? Because I pretty much said the same thing you did.
@@TreatsOnTheStreets I mean can you blame just based on the click baity title tbh
90s-00s JDM legends won’t go down, same for vintage cars or Hypercars. Modern, accessible and common mass production vehicles like a Toyota Supra Mk5 will start depreciation but not a Mk4 Supra.
Agreed, anything with actual scarcity won’t drop compared to normal car that’s when going up
Bro have your seen the prices of 240sx lately SMOKING CRACK
So my s2000 should be ok?
@@fhowland yeah for sure
Fred Howland yes they will slowly keep going up. About to list my 07 s2000 for sale
A lot of great advice. I will say that bubbles do burst, but I think the used car market will behave a little differently when prices come back down. There won't be a crash, that's just not how that particular market behaves. In addition, I am an Autotrader window shopper and I have seen more cars show up as great price before they get sold over the last couple weeks than I have seen in the last year and a half. Cars are sitting...
Good comment. Im starting to see more good deals on cargurus. Especially like gas hogs like he said.
@@carsthatlast441 All the V8 sedans I have saved are sitting.
@@bmshaven ⛽️
@@bmshaven I hear you bro but I’m absolutely livid. I was moving towards a purchase on a c43 coupe. They were trading for 30k. Now they are trading for 50 or 60 and even more. C300 coupes are going for heaps! I’ve almost given up at this point. Even if I could afford a 60 thousand dollar car, that was S class money a year ago. Coupe, v8 turbocharged s class money.
Inflationary market. The prices now are like what everything will be worth in the future.
April of 2020 right as covid lockdowns started to be talked about the universe spoke to me. I was supposed to go to denver for a conference and it got cancelled. I had my eye on a car for a couple years prior. It was listed at 28k when I first came across it. I had some money freed up because I did not travel to Colorado. I noticed the car I had been watching lowered it price to 22k as fear of lockdowns became reality. I decided to go take a look at the car. Drove about 700 miles round trip. I was able to strike a deal at $20,500. I am now the proud owner of a 2001 Porsche Carrera 996.2 black exterior, grey interior, 6 spd manual coupe with 36k miles. Every factory option with the original window sticker.
Wow those 996’s are getting insane now.
I’m impressed - love to see sound financial and market analysis mixed in with car content. I made many of these mistakes with fun cars in my 20s. Set me way back. It’s so much more enjoyable when you can comfortably afford the hobby!
Why lease? czcams.com/video/aSX2XKNyCCU/video.html
I doubt 2022 or 2023 will have auto prices come down. Harness, chip, and other supply chain issues are on going. Unless all things all of sudden turn positive including the Ukrain escalations were screwed for 2 more years.
You very well may be correct. However, most people keep their cars for 3-5 years. What I wouldn't want is to be holding an overvalued loan while prices correct and adjust down.
100% agree... it's supply and demand. And the supply side is hurting badly because carmakers can't produce cars for various reasons. Folks said 2021 would be better for car inventory and then 2022... it's gotten worse and worse lol. 2023 might start the recovery but then we have two years where we underproduced.
We might all end up with 10 year new car loans.
@@voxel999 I c u lol.
I was very fortunate to get my college paid off quickly with a well paying tech job. Living at home with my parents hasn’t been ideal, but I’ve been able to build up my finances to be great once the markets stabilize.
I can’t wait for prices to drop. I have my mind set on getting my old man his dream charger and myself something that can tow so I can pursue restorations as a hobby!
Was in the same boat regarding tuitions and the privilege to save while living at home (Not many people have this luxury, hands down am grateful everyday for it). You're on the right track, keep at it!
Same here.. although I'm kind of late on the earning a better pay situation. I'm trying to get into IT at the moment, I have a little cash saved thankfully to my parents letting me stay. I see my friends suffering paying rent.. in debt... That's not how I want to live
Your old man would be happier if you put that same money into your financial future instead of those toys.
@@mannarmylie4195 you know nothing about what I'm doing financially.
@@mannarmylie4195 yeah you're probably right... but as long as I have a 6 month's salary emergency fund in a high-yield FDICC insured account and no credit card debt, I'm doing better than pretty much all of my peers
I'm really not convinced that prices are going down but thank you for your opinion
Yes, we're not going back to the old days. The world is in a mess and at war. A lot of car supply chains relied on Ukraine and Russia for raw materials and parts. This will take years to resolve.
And we have a serious inflation which can get worse.
The inflated car prices will go down, but not back to 2019 levels.
This is not really about supply chain for new cars. This is about people who bought cars for the last 2 years that cannot afford to keep them. Now because a bunch of them will have to sell them, that creates a glut. That means dealers are paying the banks' interest rates to finance those cars on the lot. Dealers can't afford to hold the cars. They have to be sold at discount. This dynamic will also affect new cars. Because people can buy a used car for so little, why pay all that money for a new one? Therefore new car sales stall and they have to drop their prices to move them off the bank's loan sheet.
Couple months ago I went out and bought a C7 Z06, they had it listed for 69 (reduced from 73) and it was on the lot for 30 days. They wanted it gone so I got it for 64k.
Not too long ago a friend of mine totaled it and insurance paid me out 75k based on the market value. I pocketed about 20k, used a portion of it to buy a 3000 dollar civic. I kinda consider it a blessing. No way a 7 year old vette that stickered for 90k was only depreciating 15k over those 7 years and 20k miles. It was awesome and I’ll miss it, but when GTRs/Audi R8s/C8s become more accessible I’ll be ready to jump. Great video!
I love my MX5 and I'll just keep upgrading parts in it while everybody else makes their $900 a month car payments.
I have learned my lesson after buying cheap brands over 47 years span, like Mercury, Ford, Chevy, Fiat, Mazda, Datsun (Nissan) or fancy brands like Audi, BMW that either didn’t last or required major money to keep them going. Now just invest in Toyota or Lexus and keep driving the same vehicle for the next 30 years. My previous 1985 Toyota Supra was super reliable for 23 years and 295k miles.
My current 2005 Toyota Sienna is still running flawlessly without any issue at 317K miles and I plan to keep driving this super reliable vehicle for another 15 years. I am not affected by car shortage.
Here some good advice, if you can’t afford to buy it twice…you can’t afford it.
Does that mean you can't buy a $20,000 car even if you've got $35,000 saved up?
Be patient and hold your cash. We are headed into a very deep recession. People will be dumping expensive cars, boats, vacation homes. Prices will tank. Many are over extended and will be hurting for cash
I’m waiting on these prices to hopefully drop man. I’ve been wanting to get my dream car for a good price but these car prices have been absolutely ridiculous as of recently and it’s very upsetting knowing that it’s so close but so far away at the same time. Hoping and praying for all car enthusiasts that prices drop so everyone can roll around in the car of their dreams or a fun car they can make theirs.
I hope your dream car is a 2-cylinder gas will be $10 soon
This is the first time in my life me and my wife leased a car and it actually made sense. We got a 2021 highlander xle hybrid and it's probably the best decision we've made in this market (big buy side of things).
CFP here... great video. Spot on, the panic buying is starting to remind me of 1999.
What would you suggest an individual do? Liquidate and wait for the crash to buy again?
@@muhammadtayyab5458 Depends... do you have a car collection? If you do, you might sell something to take advantage of high prices. If you just have a decent E36 M3, and you always want to have one, I would ignore the crazy and just enjoy your car. I am looking to add 2 cars to my collection as opportunity comes... a 2002tii and an Alfa GTV6. I will probably never sell my M3... its a 1996 Alpine slicktop after all.
@@pjo33us Much appreciated, thank you!
@Paul, difference being that in 1999 there were an abundance of drivers cars to choose from, with new ones entering the market each month. We're in a time where "newer is better" hasn't been true for a while.
What you neglect to tell people is that when the vehicle prices go down, the interest rates go up. So, you still will be paying around the same prices depending on your credit, you’ll just pay it over the life of the contract rather than what the sticker price says. No matter what kind of market cycle we are in, automobiles are traditionally on of the fastest depreciating assets we purchase. Back end or front end, we'll always get screwed on vehicle purchases. The only way to somewhat get a good deal is to learn the predatory tactics the dealers do and don’t fall for thier BS when you go kicking tires. And don’t buy until you have sufficient credit to keep your interest rate as low as possible. Always get a loan secured from your own bank before you even go car shopping, but never tell the dealer you have a loan already or they’ll try and squeeze whatever they can out of you. Make them go talk to their boss a hundred fake times to keep shaving a few hundred off the vehicle before you finally let them know that they won’t be screwing you with their preferred lenders who give them kick backs for bringing business to them. Never buy the car with an all cash purchase because nothing will be reported to credit agencies and it won’t improve your credit score if you don’t show paying off debt. But do put as much money down as possible so you only need to finace a small portion of the price of the vehicle. Even if you put 90% cash down and get financed for the last 10%, it’s gonna show that you paid off that vehicle as the full price whch will boost your credit score and make it easier to keep obtaining low interest for future purchases.
Thats why you pay cash. Live within your means. Loans are for plebs.
It's amazing how people rush to buy cars when they are at their highest cost
Well said man. I endured the housing crash in 08 and it was brutal. If you live by your means and don’t go into major debt life can be fun. But you might have to drive around in a slammed Versa like me !
here's the funny thing, have been in real estate for fifty years. did not see a substantial decline in value of rental property in 2008. decline was in house prices. houses sold to people who couldn't afford them, then people defaulting on homes they thought they paid too much for.
@@neilabernath5862 I bought a house that I could afford. Are you in mass. Different markets. Denied loans I couldn’t afford. Oh well hope your doing well
@@neilabernath5862 Your in for 50 years ,so this puts you around 70 years old ?
Car payments are for suckers, I'm 67 and have never made one. Never paid over $6K for one either (have not changed cars since before COVID, thank god). Being car savvy is a life skill that can be learned and should be taught in schools, but then where would the suckers come from?
I've been waiting for this downturn. I am excited to pick up a really nice example of one of my dream cars in 2022. Thank you for your time and input. No idiots on this video. LOL
I’m trying to buy my first car and I’m seeing civics with 230k miles going for 5 to 6 grand this shit is insane
Prices are not crashing yet. Supply chains are not fixed. The economy will slow buying. That may bring prices down a bit. But till the supply chain issues are fixed they won't come down much. Won't fall till middle of 23 or end of it
As a used car dealer I can agree with what your saying also say It will still take sometime plus why the prices went up so much on used cars in last few years is due to the the larger dealership like Carmax/name brand dealers ford/Toyota etc. went to dealer auctions and over paid for all those used cars and it sucks for all of us, it makes it hard for me to get used cars for good deal and then I gotta turn around and try to get profit but what I’m thinking is if these name brand dealerships over paid for their used cars how will they do once the new cars start getting pushed out, probably not good if they have to take such a big lose on all those used cars, my guess is those new cars will be sold for even more then before but hopefully I’m wrong
it is all on purpose this is why monopolies are illegal
Used car prices will drop for sure. But classic car prices are going to remain solid. There are only so many of those available. The thing that changes with classics is which generation becomes the hot market.
It would be a blessing to see a 2014 mustang 5.0 drop in price or a 4runner/ fJ cruiser. Those are my options right now.
Definitely go for the 4Runner, I have a 2007 model year and they are rock solid including the new ones.
To hell with what my neighbors buy. The only person I have to impress is me.
Listening to companies earnings reports is another good way to know what's really going on and going to happen next. For example, CarMax just missed on earnings because used car prices have peaked and are starting to come down.
That E36 M3 looks sexy AF.
It will be interesting to see what happens to all these used car dealers as prices drop I don’t see them dropping prices 20-30% - dealers won’t lose money but they will simply not sell cars
They will have to drop prices if they want to survive, dropping prices by 30% and selling a few cars is a hell lot better than selling no cars
@@archygrey9093 elementary
I really hope so, I had a '16 Focus ST. I had a year left to pay off and was thinking about also buying an S4 after paying it off and keeping both. The focus got totalled and they gave me a fair amount but had a year and some months left to pay off but now carless i can't get into the same car without paying 8k more for a stock car. Pretty depressing. Lol
@Beyond Tribalism don't tell me what to do.
@Beyond Tribalism i wouldn't be in this situation if people didn't do drugs and then get into a car 🤷♂️
@@jair2776 triggered baby dont post in a public comment section if you cant handle it
😂🤓
@Beyond Tribalism hahahaha, u act like people just have 40k laying around to buy a car. I truly can't stand people like you.
“Your favorite car is about to get cheaper”. Yeah because they suck, no air bags, loud, expensive to maintain, and not much faster stock compared towards any other car.
I’d love to get my hands on a 2023 manual Supra. I’m hoping this stuff works out 😎
I’ve rung up some debt due to stupidity and servicing my long distance relationship but I’ll be ready for something in Jan 2023. It’d be nice if some prices came down. I’d still like to buy something that’s fun but also value retention/appreciation. Hopefully patience is a virtue.
All you have to do is follow that damn Train CJ!
Once EVs taking over I see gasoline cars, especially enthusiast type cars will skyrocket in value
You are absolutely right! The only way they could drop is if the government gets them to a point they can no longer be tagged for driving on public roads !
@@fredwilliams7893 or gas gets too expensive 10-15$
I'm pretty sure prices would drop, if half the people decide to sell and buy an ev that would mean more ic cars for sale but only half as much people to buy them, the market would be flooded
I think it could have the opposite as government mandates & crackdowns on ice cars could turn many people off ownership of non ev’s
I have seen plenty of people dump their jdm skylines because it’s old & will cost more than it’s worth
Smart investors in any market do not panic buy into a price trend, they always hedge, look for the real value and wait for the rite time.
This information is definitely under rated right now. Glad I came across this. Thanks YT algorithm
i'm more concerned about buying a home. need to be patient though
Patiently waiting for the chip shortage and car supply issues to resolve. I want to see dealer ripoff agenda like ADM and above MSRP prices end for new cars.
Commercial Lender/Credit Analyst/Car Enthusiast chiming in. This is really solid commentary on debt, markets, etc. Great work!
Hey Mr. Commercial lender can my customer plz have more money tysm
@@wesidk5662 yes please provide me with 5 ETH and I complete the transaction
Something I don't understand, 🤔 What makes you think that people who'll be underwater would sell their cars (cheaper)? They can just keep their cars since they can afford payment 🙄 without bothering with how much their cars are worth at that time...
Because they won't be able to afford the payment.
When these car prices “crash” they will still cost more than they did 3 years ago.
of course. because the value of your dollar is now worth even less.
Exactly. It has nothing to do with cars at that point and everything to do with currency devaluation.
Nope. You don’t understand. Inflation is greater than you think, and permanent. Fed won’t deflate. More likely inflation will accelerate, than deflation will occur.
Which is why I said it's going to stay higher for a while. We have not reached the turning point yet but it will come. The cure for high prices is high prices
Prices aren't coming down ever. We are in the midst of the Great Reset. The intention is for average people to be priced out of everything and unable to own any property, transportation or quality of life items.
I agree about being in the middle of the reset but I disagree on how it will be accomplished. There's already a large percentage of home ownership in this country so simply pricing new buyers out won't help them get what they want. They have to take the homes from those who have them and make sure no one else has the credit to be able to buy new ones. You do that by popping the bubble that everyone bought in so they are all upside down and lose their homes and won't be able to buy more homes for 10 years. Once prices crash they'll be able to buy up twice as many homes for the same price and only those who were caught in the bubble will be in trouble which unfortunately is the majority of investors these days. The crash will be fast and will not remain in a down market for a very long time because of how quickly everything will be bought up, at least that's my opinion. In the end, the meek will inherit the earth because they're the ones who didn't get caught up in all this and lived humbly instead of outside their means.
I bought all 3 of my collector cars for pre covid prices and now they are all worth at minimum $10,000 more. I also bought the nicest house I’ve seen in 2 years in this crazy market and now all the houses in my neighborhood have jumped up another $50-70,000! It’s insane! I do believe whenever they decide to release new cars and the market is flooded that will decrease the prices on these collectors cars because it just won’t be worth it but anymore when you can get a new car for the same price! But nostalgia is truly heavy now!
You think just cause you can tag a higher number it means it worth that number. You funny. If you had a feed and watched how many people viewed your item you will see how many people pass on that insane price and you’ll see a few ballers stupid enough to pay that
It's actually more like if you're under 70 you're experiencing the highest inflation of your life. They'll tell you this is the highest inflation rate since the early 1980s, but what they don't tell you is that they've changed the CPI calculation since then. If you keep that calculation the same this is actually the worst inflation we've had since just after WWII.
Shadow stats 👌
You are one of the few, if any, who seems to have any wisdom. You are 100% correct in all of your statements. You and I go against common beliefs and the media narrative. Nobody but you seem to be using any independent thought and analysis.
dream on
One thing you missed was insurance companies writing everything off due to parts shortage which also increased demand
I wish that one day car prices go down so we can ALL afford fun used cars
Lets go Baby!!! We already been getting large amounts of new cars here in our Benz dealerships around Seattle.
awesome I'm in Portland but might make the trip if the BMW dealerships here charge over MSRP
@@voyageFN I believe the two local dealerships here in Seattle and Bellevue also charging way over msrp
I'm 40, I drive a 99 corolla. My house is paid off, and over 500,000 in savings and investments 0 debt. F the Jonses.
Just found your channel and I gotta say awesome stuff! I kno it’s a lot easier said than done, but more frequent uploads would be awesome and great for your channel!! Wishing all the best !
Solid advice, bro! We should all be doing the best that we can to get out of debt (harder it is the poorer you already are, unfortunately), and put away nest eggs to buy whatever it is we need (or if we’re lucky, want) on the dip!
Homes in canada never go down. 1 000 000 is average in Toronto...
Good points mate. Be prepared for the massive food shortages coming soon mate get some stocks stored for you and family
You think so? Why???
I agree. Lots of issues with the supply chain and food. Good idea to keep 3-6 months of food stored regardless.
@@TreatsOnTheStreets oh I see. Let’s hope not, but we’ll know soon.
@@swpdisciple one of the biggest countries to grow wheat is Ukraine which feeds people, and more importantly the livestock industry. Basically, go (mostly) plant based to save money and get yourself some nice wheels as a result😂
I remember the Y2K bug crises, and all the stuff people bought that they didn't need who tried to get rid of it on Craigslist and other places.
Good info.
One thing to know is wealthy people aren't wealthy because they have money. They are wealthy because the own assets.
What alot of people aren't getting is. This is a trend and like all trends, it will slow down. We look at jdm cars like their gonna make us money. But history has told us that just like Japan - after the success of the 90s. The 2000s were the end of the cycle and put millions on debt. Let this be a reminder to everyone that trend sitting is a common problem were are experiencing. And alot of "enthusiasts" are gonna fall victim to high amount of interest rates and high amount of loss per capita in the next following years.
Note: autocorrect is a dog some of these words don't make sense.
Lol
10:49 "You're the smartest person when you've taken in all perspectives." Very wise. Very wise....
I can finally afford a miata
Car prices won’t crash ! Lack of new cars coming on the market , means lack of second hand cars !
Simply supply and demand ! The manufactures know how to restrict the market now , chip supply is still a problem !
All my rides are paid for. 2019 Camry, 2016 Highlander, 2005 Titan, 2000 MR2.
Normal used cars will drop once supply catches up.
Enthusiast cars though, not a chance. With the push to electric in the next decade and low volume of enthusiast cars being made right now compared to 10-20 and 30 years ago, not a chance.
I work for a family owned dealership network as a FA, the shortages aren't going to be ending any time soon. Especially with the new wire harness shortage due to the conflict in Ukraine.
Pretty smart young dude here. He’s exactly right about FOMO.
HAHA I’m still keeping my e36. I just hope one day I’ll be able to afford an m3 model just to have it :)
I sold mine half a year ago. Wasn't the best thing to do.. 😅
Don't feel bad, man. I have an e36 m3 and an e46 m3. I still drive my e36 325i every day because it is more fun on the street.
This might be for enthusiast market, because due to supply chain shortages regular secondary market today is absolutely insane. You can actually sell a used vehicle with low mileage for more than a new model costs.
That's because it can take over a year to receive your new car now, so people are willing to pay more used so they can have it now
Thanks for a great video. This is more than a car video. Well explained. I am gear head to my core. Enjoyed this immensely.
Very nice video!! Good advice. I love how the dog is just chilling drinking tea when he's house is burning down hahahaha. He's got greater things on his mind ✨ 🙌
The car market is heavily tied to interest rates. As interest rates increase demand falls and the monthly payments increase through interest
When recession hits and people need money for bills, they will be forced to sell their toys. When buyers arnt running to buy toys, Because of a recession. The sellers will be forced to drop prices. That’s the cycle of the markets
Hard to take advice from someone who can't write a simple sentence in English posing to be an expert on micro and macro economics
@@slowery43 I was not giving advice, I was simply commenting my opinion. This is CZcams comment section not LinkedIn where I’m posing as a FA. Any grammatical errors i could simply care less than to proof read my comment that took a few seconds to write. Take it as you’d like bud.
Car prices in the UK for classics is falling with £10 a gallon , cars like a Rover 3 litre is doomed at 12 mpg , now worthless junk but owners still think there 10k's worth , not now ! Most classics doing under 40 mpg are worthless ...You can't even go to a club meeting unless local , if a club meeting is 150 miles away , that is a £300 fuel bill for a day out ??? OMG ...
on the other hand, these used car dealers that paid 12k for an 8 year old cruze that has 90k miles on it that was 16k new isnt going to be willing to sell it for a loss.
I don't think the car prices will come down to the pre-pandemic level. Our dollar today is probably worth 60-70 cents of what it was before. Although car prices have gone up crazy, our dollar value have gone down significantly. If you bought a 2nd car for a recreational purpose, maybe it's good idea to sell it since we're either in recession or about to be.
In 2000, $100 was worth 100 dollars, now that same $100 dollars is worth $58 as of yesterday.
Good advice. However, My late 90s Europa G wagons are not for sale at any price. You can bury me with them.
Love the opening lines of wisdom from Proverbs! Great video
Bro I don’t know how old you are but it never happens how you think it will. The credit card recommendation is super solid though. Love you man, love your neighbor.
You're totally right there are always curve balls and unexpected changes. I think what happened in the stock market today is a grim reminder that instability is just getting started.
Only car salesman and real estate agents disliked this video lol
That intro started off lit i thought u were gna start dropping bars
Maybe the cheap affordable cars will go down but anything collectible and limited I doubt will. Itll drop to a point where it stays in value for what it is. Some are going up instead of going down lol
If you actually watched the video he said the same thing
@@archygrey9093 ya true I honestly didn't watch the whole video thanks for pointing it out.
3:43 that's adorable, you think price inflation will come back down
I doubt things will go down. I work for Toyota and just on new cars msrp I’ve seen about a 1500-3000 increase in the actual msrp not adjusted market Value. Same Camry xse that was 32k in 2019 ( box hasn’t change no major improvement other than Apple car play and awd) is coming to around 39k now a days.
There's still E46 M3's out there for $12k-$15k, there just beat up and SMG and convertible, so there still affordable.
Mpartsworldwide just put up a 6mt e46 m3 vert w 192k miles for 15k
Ahhh I understand now. That how's everybody and the mother that lives around me owns a Hellcat or a Scatpack. Low interest rates
I think hellcats and scat packs will be some of the most repossessed vehicles in the sports car segment.
True that, only poorly made cars will lose value
man i just want a LS4 swap kit for my car
Totally agree with your video. I been trying to explain these theories to people. You explained it much better than I have.
Damn....I just purchased a 42k mile S52 Z3M for 21k......thanks for posting this video I feel like shit now....
Jeff, bought a z4 Alpina end of last year 45kmiles for 22k, don’t worry about it,if you keep it long term it go up.
@@andrewpowers2975 that sounds like a unicorn holy guacamole
Trucks.... that's the market that's gonna crash the hardest.
I have a lease that expires in May 2023. I'm just biding my time before making a decision on what to do. I don't have a high end car car and have no interest in one. I'll just wait it out and see what happens.
Great advice Gavin. Hoping that China would think twice about invading Tiawan after they have seen the wests response to Russia's recent invasion.
😂
Fingers crossed the parts market calms down too, i miss $1500 S52s
And $3,500 s54s
$5k E36 m3s 😂
@@NightsN2dr3ams nah what?
I hear talk about biases in a talk about social and spending trends, so I click like.
I'm going to buy a small commercial delivery truck while I wait.
USED car market crashing quick. Hyperinflation leading to a correction. Already happening.
I'm seeing my future used car price drop dramatically every week