It's a TERRIBLE time to buy. Here's when things will improve . . .
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- čas přidán 22. 12. 2023
- The tables have truly turned. The patient buyer will be rewarded.
#cars #newcar #buy #dodge #subaru #ford #chevrolet #lol
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Interesting talk......one thing you are missing is that there are still plenty of people willing to pay these ridiculous prices. I don't see how trade-in values are so low when the price of used vehicles, especially trucks, is crazy. It is basically at the point with most makes where you are paying 70-80% of new prices for a truck with 50K or more miles on it. I am sitting and waiting for the prices to go back close to pre-pandemic levels, but its not happening (at least not yet).
You’re spot on - things are not making sense yet but it will have to change in the next quarter or two. They cannot sit on all this inventory. New car prices have to come down. Once incentives start flowing then maybe it’s time to buy.
A local dealer to me leased a old trucking companies yard to hide their true inventory, so they could further the shortage pricing. Another dealer I know has a huge underground parking lot that is so crammed with inventory they can't put any me vehicles in it.
I am buying a vehicle currently, but I am locked in at pre pandemic pricing. So it's 22k dollars cheaper than the current market value. I got lucky on that one. Depreciation won't hit me as hard for the near future. I am financed at 4.74% too
Nice job!!
The manufacturers aren't offering pre--pandemic rebates and incentive offers. It's happening on a select few, but they are few and far between. There are also no real lease deals right now to speak of because the used car market is so out of whack it's impossible to accurately predict future used value which is the residual value plugged into the lease to calculate how much of the vehicle's value you are "using" over the term of the lease. So, along with what the dealers are still doing, the higher interest rates and lack of incentives are making sales come to a complete halt. The other thing that has to happen that you failed to mention is that a few of these dealers who are full of non-moving inventory are going to start getting into financial trouble. Once they start missing a few floorplan payments and the floorplan financing companies come empty the lots and take the cars to auction to liquidate them, you will finally see movement on prices and manufacturer incentives. The inventories not moving isn't hurting enough right now. When a few of them start to fail, the rest will react out of fear and the dam will finally break. This will also help stabilize the used car prices, which are all over the place right now and it's virtually impossible to get an accurate value on a used car since the market is so volatile right now. The market is not back to normal yet, but equilibrium will come fast once the final things that need to take place
Well said! Yes, the pain is not big enough yet - and carrying this inventory is gonna get really painful soon. Thanks for this perspective!!
Also, USSFCU and Navy Federal have great interest rates. USSFCU is where i got a 4.74%
outstanding!!
Incentives are starting but will get better. Think Jan 31st for a trigger point. Do your research and be willing to travel for a better deal. Good example is Jeep is starting to offer 15 percent off but their prices have risen 50 percent since 2018 in some cases. So 15 percent is not a good deal. They will need to increase that to 25-30 percent before they bring things back to reality. For now, the dealers are playing their games but the days on lot are pushing a year on some models. They won't be able to fool anyone much longer. Then you got Toyota/Honda that continue to keep production low and prices high. Days on lot is very low and they sold out their new landcruiser in 30 minutes in Germany. Everything is still volatile but the key is buy from the right dealers, negotiate and be willing to travel or just wait longer. Don't buy on impulse and don't fall for the dealer games.
Agreed. Thank you
Totally agree!!
House and cars any big ticket item is a real bad time to buy right now everything is extremely overvalued.
💯
$42K for a Camry?! Yikes!
Kind of depressing. Hope the future is brighter. Thanks for info.
So do we
These dealerships are still playing games. Dodge by me is flooded..like overflowing…like they have too many cars for their lot….with cars and they all have markups on them.
I can’t even fathom trying to upgrade my car. I have a 2% rate on mine and I know I can’t get that again right now. It is ugly out here.
We agree 💯!!!!!
I agree, that dealerships have their incoming allocation of vehicles, and many dealers tend to hide a certain amount of inventory. Dealers want you to pay the MSRP or even a markup. As we do know, APR% or Interest Rates are double to triple what they were compared to that from 2018 to 2022. Interest rates are ecstatically high in 2023. I have never done a Trade-In because my reason it is like going to a pawn shop and receiving 20 to 40 percent of its current value. Yes! The dealer has to prepare and service the vehicle before selling it as a CPO or Used vehicle, then maybe do very little as the deal is "As Is" with a 30-day warranty. Buyer Beware! The dealer needs to sell that Trade-In at a higher price than they paid and make a profit. I rather put the money in my own pocket and sell privately unless you can afford to lose a few grand. If your old vehicle is on its last limb then get what you can for it. I love OTD "Out-the-Door", you the buyer have the upper hand all the time, don't relinquish your advantage and give in to that salesperson. Know your FICO credit score, not your Vantage score beforehand, have pre-loan approval from your financial institution or know what the APR% offered by the Auto Manufacturer, stay within your budget, do not let the Salesperson run a Credit Check have that done later, Negotiate First, never say you will pay in Cash, go online and search mfr MSRP of the vehicle, just understand that Dealer wants to Sell and will not undercut themselves since they have a business to run and need to cover their overhead cost. If you are buying a new $60,000 MSRP vehicle, for example, you should be able to get a reduction of $1,500 to $4K easily. You really should not be paying MSRP. Right now, Interest Rates are so high, not a good time to buy a vehicle unless you can strike an OTD deal and pay cash to avoid interest. Also this late Spring to Summer the new model be arriving, If you plan on keeping the vehicle for less than 6 years, typically less than 5 years... do not get a Vehicle Service Agreement aka Warranty. Do not fall for the Rust Protection scam and many other dealer schemes to make you pay more. We put Nitrogen in those tires and want to charge you another $50 to $200 is a big joke ... do not pay it period. Nitrogen vs. Air does not make much difference and Nitrogen won't improve the car performance or make those tires any better. // GTC - know how to have fun and make interesting and informative videos. I enjoy their channel. Subscribe and check the Thumbs Up. The current resale of the 2023 Camry XSE V6 loaded is between $35K to $36K low mileage and excellent condition per JD Powers, NADA guide, and KBB. So from $42K definitely lost $6k in its 1st year as depreciation. As a Trade In - Dealer offers you $30K and will resell for $37K to $40K ...insane. Sell it yourself for $37K ... why allow the dealer to make $7K or more? I have heard customers complain and argue in the dealership saying they have been robbed and taken for their Trade-In. Be sure you know what occurs before and during the Transaction. They play the Numbers Game very well and can Short Change You of Money! If possible, do not sign anything. Go Home and rethink everything that was said come back much later or tomorrow as the vehicle not going to sell overnight. Holding/Security Deposit ... get it in writing and signed by the Manager or Finance Manager as Refundable within 48 to 72 hours. Usually $1K deposit but make sure it is refundable in case you change your mind.
Well said. Amazing information, totally agree with everything said. Thank you
What a wall of text to justify poor financial decisions. Save up, pay cash what you can afford.
Good points thanks for the perspective and advice !!
Yup.........they have been marking the Ford Mavericks up 10-20% above sticker until recently.
"Yes, but we have lowered our Donuts and Hotdogs fee to only $999, and we can get financing for anyone, even YOU!"
Lol!!!! 😂😂 classic. Yep, and we have a giant inflatable gorilla out front and a bouncy house for the kids! Come on down and get shafted!!
the car dealers have fooled the masses and sadly I dont blame them. the buyers keep paying these ridiculous prices because they either dont care or are ignorant of basic economics. supply and demand is all what it is.
Prices still 25% too high for the average buyer. Notice I said average buyer. There will always be people willing to pay you much, but the vast majority won't pay anything but a fair price.
100% correct!!
How much for a camry! Is that for the xle or xse at least?
Xse v6 yes
@@GuysTalkingCars ahhh ok that makes more sense
"We can get you into a Camry for only $39,999! [Plus $4999 for the Donuts and Hotdogs fund, extra air in the spare, etc]"
@@jamesrecknor6752 will you include nitrogen in the tires and Covid repellent on the seats ?
Question.. how will your 12,000 deficit correct itself while at the same time the cost of vehicle going down??? How will that work? All
other vehicles value goes down and your is going to go up😮🤔
No - unlikely to correct itself in near term. But deeper discounts on new cars MUST come so that depressed used car values make more sense on trade in.
Sooo, now is the best time to sell your car then...
@@GuysTalkingCars Don't trade it in. Put it on the market NOW private owner sale. It will likely take 2 months to get any interest, and likely another 2 to 5 months before you actually get it sold. If you get an offer at least $1,500 higher than your best trade in offer at a local dealer, then sell it! Don't worry about if you sell lower than what KBB says it is worth for a private owner sale. More money than trade in is more money than trade in period. Just relax, and plat the waiting game. By the time it sells, car prices will be a good bit lower with great financing offers this Spring/Summer.
Bought multiple vehicles during pandemic and found caredge to be quite the opposite of what was actually going on when your actually there purchasing and not just reading data
If your well researched, and have decent skills you wouldnt have a problem......
Agree - gotta take their info with a grain of salt. The days on market data and inventory stuff is what we mostly listen for.
I won't watch Car Edge or any of their other channels since 2 years ago.
We get it !
I bet that PRESIDENT'S DAY Sales in February consumers will get their first HUGE blast of Great financing offers on Newer vehicles along with good Cash Back Offers. Depending on how many vehicles are moved in February/March will dictate if they go more aggressive with their price cuts, and offers going into May for the Memorial Day Sales. If Consumers largely hold out until May and June, they will have no choice but to drop their pants on price to move all this massive inventory that is building up in addition to great manufacturer finance deals on new vehicles.
We are kinda feeling the same. The timing you outline here feels about right to us!
Just started watching the video, but I will say that ALL of 2023 has been a terrible time to buy a car, Used or OLD. The entire year has been bad, but prices have been dropping since early November, so the cracks in the car market are growing and getting bigger. I have been watching Car Edge for the last 12 months or so too! I believe that we will see a lot of 0%, and 1.9% financing offers PLUS CASH BACK on New Vehicles this Spring. We are already seeing Hyundai offering it! The lots at the dealers around me in the Baltimore area are overflowing with cars. They have to pay to park cars in retail shop parking lots for all their overflow! Spring/Summer/Fall, and next Winter will all have eager Dealerships that need to unload inventory. Average Car sales in 2024 will drop by a good bit compared to 2023
Spot on. It’s gonna take another 3-6 months to really force this market to change. It’s happening . . . Slowly.
Had my '17 F150 in for some repair, of course (ford) and was looking around the lot - 70+ 2023 F150s. Deep discounts, 0.99% financing. Out of curiosity I looked at a couple 23s that matched my truck and even with the discounts the base price is still substantially higher in price than what my '17 was. Also they trade on my truck was very low. Checking surrounding dealers they are full with 2023 f150s. The 2024s must be stacking up at the manufacture's lots lol.
Exactly. That’s what I am seeing. They have to be starting to get a little nervous
💯 exactly right
Hold out as long as possible