The Car Market is Collapsing - Here's Why - Market Updates
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- čas přidán 19. 11. 2023
- Hyundai Selling Cars on Amazon - Slow Auto Sales - high Supply and Low Demand and the UAW auto manufacturer strike are all factors of the Car Market Collapse
Here is what to expect with the Auto industry repo market new and used cars
Between increased interest rates overprices cars market adjustment people are not buying as much and saving their money.
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Auto News Car Dealership Dealer Floor Plan Lines of Credit LOC Finance Recession current Used Car Interest Rates Car Prices Dealer Auction Auto loans floor plans line of credit for car dealers How to buy and sell cars for profit get a dealers wholesale and auction license how to start a car dealership fix cars make money selling cars How to bank repossessed repossession reposession auctions work used car market trade in interest rate auto loan market economy recession new covid UAW strike - Auta a dopravní prostředky
Car dealers did it to themselves by charging "market adjustments " I do not feel bad for them at all. I cannot wait for the day I can buy directly from the manufacturer
You and all the rest of the hard working consumers.
Virtually all states require auto manufacturers to sell new vehicles through local franchised dealers (franchise laws). Go look up the article: State Franchise Law Carjacks Auto Buyers. Stupid, I know...
Have fun with MSRP deals forever once that happens...
@@MLProductions.1 Better than getting robbed by some sleazy car salesman. People are happy to buy Tesla at asking price.
@@tommycasidy3031Not so much, or Elon wouldn't have dropped his pants
Keeping cars for 12- 15 years is a big part of why I retired at 58. Cars are not an investment, just a depreciating asset.
@MrJdebest , I love how dealerships try to sell you on extended warranties to "protect your investment." This gives me a great opportunity to talk their ear off about what an investment is, and what a depreciating asset is. They just love the free education. 😆
Spending money on a liability is stupid
@@brianmaloney45All of my cars are investments.
@ MrJdebest - I hope you consider running from public office. IMO: The USA could use more politicians with your wisdom. * Anyone can operate a government with deficit spending. ** Deficit spending always make people weaker and less able to solve problems with the best solutions.
@brianmaloney45 or when they call you and you tell them that your car is like 20 years old and then they no longer want to sell you an extended warranty.
I love this for the market! I love how the dealerships are being affected and are paying for all the market adjustments they did
Yup, Just like cable TV
Why do you like small business losing money? You people are sick
"Market adjustments"...don't use their downplay terms, just say it like it is, paying for all the *gouging* they did.
Supply and demand...the entire world increased in price.
What goes up must come down.
I'm 40 and luckily grew up watching my dad do his own maintenance. I'm constantly trying to get my kids involved with doing your own maintenance. Shop wanted 600 to replace pads front and rear on my 07 Mercedes. Did them myself for pad cost of 70 bucks. Changed oil and filter myself for oil and filter cost of 83 dollars. Shop wanted 260 and Valvoline quick lube wanted 220. What gets my kids attention is when I show them how much money I saved doing it myself. Im abiut the only person i know my age that does their own maintenance. Nowmi know not everyone had access to a house with a garage or drive way. But i live in an apartment and do it in my parking bay on the weekends when management isnt there to make a comment.
Same here man. Except i’m 27 with no kids living at home (also in an apartment). I’ve probably saved 5k in labour over the past 3 years on my 2015. And not even much was wrong with my car, just a few small things + oil changes. But even something small can easily be $500 in labour. I’m trying to convince my friends to start wrenching. Not only do you save money but you become less vulnerable if you get stranded, or you’re less likely to get screwed when you DO need a mechanic.
Cheap pads and pad slapped your benz lmao please stop working on your car or at least learn to do it right
This is a problem government keeps pleasing voters by increasing minimum wage forced everyone now doing things themselves.
@@isorozco511 don't mind cheap pads since they are easy to replace.
Well, I'm 65 years old. And I do all that and more on my pickup at a $190 an hour at a shop. You're stupid to take it there.
As a consumer, you can keep your car longer, fix it, and stop being broke like most people. No payments, and not being broke or a paycheck away from being broke and on the street.
You see how much repairs cost today? Rotors and pads front and rear, shops are soaking people for $1500.
100% .... At 62 my wife and I have bought a few cars at higher interest rates than now, and we adjusted what we bought because of the interest. The interest rates we see now are normal. Spoiled mericans can't figure it out.
@@mph5896the average car payment is $780 and 72 months. You need 3 sets of pads and rotors before the loan is paid off no?
@@mph5896that's a fact a brake job damn near higher than a transmission replacement. That's why we all need a tree shade mechanic
Thanks Craig.
I'm going to make a prediction here. The dealers that think there is going to be a boom during tax time are in for a rude awakening. They said the exact same thing last year, and they were caught off guard when tax time sales were way under predicted levels. We're headed into 2024 and there is absolutely no sign that things are getting any better, and in fact they are quite a bit worse than they were in January-March 2023. The Fed is at least a few months out from pivoting on rates, maybe more. Consumers are starting to miss payments and their credit ratings are taking hits, so loans will continue to grow more difficult to obtain, and high rates will be made even worse. The fleet sales that were propping up the car market going into 2023 are on their way out (they tried to hide poor consumer sales in early 2023 using fleet sales to fluff the numbers). Many new dealers are sitting on tons of new 2023 inventory, and in some cases even "new" 2022 inventory, so they will be forced to lower prices as customers choose cheaper "new" vehicles due to better rates vs older used vehicles with insane rates. On top of all that, the job market may not be in the negative, but if you've been paying attention at all you certainly have noticed that "jobs added" over the past year have decreased report to report, and jobs added are coming in lower than projected continually... meaning at some point we will be at negative job growth. The average income tax refund in the United States is not nearly enough to out weigh current pricing and loan requirements. Mix that with the fact that the stimulus money that was pumped into the economy, as of last month, has worked it's way through the system and is now out of the hands of most consumers. On top of all that, student loans are now back in play, and that wasn't a factor in 2023 either. Dealers had better be VERY skeptical of this tax time bump they so desperately want. If you aren't selling sub $10k cars, your gonna feel the pain...
We'll see if I'm right.
Straight greed!!!!! Everyone is trying to rape each other in one way or another.
You are correct. Consumers are broke
Scared money makes no money
Agree, we shall see. A lot of guessing on your part but you could very well me true! We need strong LEADERSHIP in our country as never before!
Smh...more opinions on this subject than A-holes these dayz. All different, all Wrong. Truthfully, tho....I haven't seen a decent tax season since Trump. LibNuts keep moving the goal post and changing everything to meet their delusional Socialist goals. Hopefully the DemoRATS start getting tired of their BS eventually.
We need more Craig's in the used car business. Smart, honest, informative.
when he said that blue trailblazer isn't crazy high miles, I'm guessing 180K which isn't 'crazy' high miles but yeah, it's crazy high miles.
The market sounds quite complex for dealerships but it's very simple for consumers. We, the consumer are struggling to make it from paycheck to paycheck, so our lot is easy, we just can't afford expensive cars. Things have gotten to the point where even if the engine and transmission died on my current car, it's still cheaper to have those things replaced than to buy a new car, and in a country where a 5 year old honda civic sells for $32,000, it's cheaper to fix your old car than to buy a late model used car too. You just can't milk people for money when they haven't got it.
Another factor that is just slowly building in the background is the fact that income isn't going up proportionately with basic costs of living, so getting a new car is less of a priority for a lot of folks
Income may not being going up but people saving more is what really is needed
Thus the UAW strike occurred. What is the period for the gradual 25% increase 2 years, 5 years, 20 years?
@@Youngstomataand no one is saving more. Credit card debt is insanely high and savings accounts are empty.
I have not bought a car in over 20 years. I focused on learning how to fix it and obtaining the tools. It feels good to develop the skills and it might be better for the environment for not just throwing it away. I just can not see myself giving away my hard earned money to some sleazy car dealership or salesman .
... or just buy Toyota and Honda ... their other brands are good but parts are overpriced.
You hid it spot on.
For every one of you there are there are 113 different stuck up b****** who demand the daddy by them a new car every 3 years. And buy car I mean $70,000 SUV
Not realistic for most people. Honestly, the environment has nothing to do with it.
@@torilessAll cars have electronic and mechanical components that eventually wear out and have to be replaced. All of them.
Crazy small world that you own the dealership in Danville and I happened to stumble upon this video! I drive by that dealership multiple times per day.
Interest rates and a crumbling economy are going to be the real kicker moving forward. Things are drastically changing, and not for the better.
Crumbling? In what reality? Inflation is half of what is was a year ago. Personal income is up by 0.3% a tiny amount for sure but going in the right direction. The stock market, even if it doesn't apply to most Americans, is doing great. Interest rates are... going down. Unemployment is down 0.1% over a year ago so not really sure how you view the economy as crumbling?
@@tjhurlburt6160 I own various unrelated businesses. The last few months across the board revenue has been in the toilet. The majority of the middle class is stretched so far on credit. Take a peek at the data on repo. It’s alarming.
Look at Black Friday events. No lines, nothing selling, etc.
Everything is way up, and wages aren’t anywhere near even following inflation. It’s a bad time out there for the majority of America. So yes, the economy is crumbling for most.
@@tjhurlburt6160lol everything you said is factually incorrect
@@joshjuarez7777 where are the facts then? Please, post them. Or better yet, do some real research and you'll see that the numbers I posted ARE correct. You may not like them, and you may not like the reality of what is actually a FACT, BUT, that's the bitch about reality, you can't change it. You can choose to live in a world where you believe everything you see on Tik Tok, or whatever SM platform you choose to get your information, but I actually interact with the real world and what I posted is TRUE.
@@joshjuarez7777 actually everything that man just said was actually factually, correct income might be up but stuff is still expensive so well and prices are not increasing anymore. They are not dropping at the rate that they need to be but employment of the unemployment variety is down, and the economy actually has grown, but you seem to not like actual fact
I have neighbors who bought a $90k pick-up. Nice truck, but it's absolutely disgusting to think what the depreciation on that base price will be. In 2 more years, it might, MIGHT, be worth $50k
All these overpriced vehicles in 5 yr the depreciation is around 50% or more, that’s it make any sense to buy a $90k vehicle?
About 10% per year
An old mechanic once told me that every $1000.00 ,should get you 10,000 miles,.and every 25 dollars a month,is roughly 1000.00 worth of vehicle. (17000.00 financed ,roughly 400.00-425.00/month.) This math has actually worked out pretty well on any car purchase I've ever made in the last 15 years,.but that doesn't seem to be the case now .....
I paid $115k for my house in 1998. It is worth $620,000 now. I also drive a Honda Fit. How people waste money astounds me!
I bought a Corvette two years ago and it's still worth what I paid for it
I'm a wholesaler helping dealers acquire inventory for their lots. Everything you said is spot on. I have 350 active dealers and more than half are on buying freezes because the books are dropping and they are overstocked. On top of that banks are getting tight on loans
Am looking for a truck an a car
yeah but im on market for camaro ss and dealer still asking 39k car 3 years old when brand new was 38 just stupid
@@pawes2266holy shit 😮
@@pawes2266 Keep send all congratulatory letters to Cov19, as we all screw up from there and (don't forget add record inflation of this useless administration).
Im a small wholesaler in Maryland... Seeing the same thing. The franchise trade ins i buy, i have almost no competition when buying.. barely anyone is touching anything
I hope Amazon starts selling Toyotas, so customers don't have to walk in with a carrier bag filled with five grand. I'm amazed at how greedy some dealers are still being. It's refreshing to see an honest dealer like yourself. I wish you the best of luck my friend.
I'd be careful what you ask for. Amazon has modeled their business after Feudalism, not Capitalism. They don't make anything, they charge manufacturers rent to sell their products which gives them tremendous leverage in the marketplace. I just another road towards an unpleasant monopoly.
If you think Amazon is better then dealerships i got news for you.😢
Toyota will be in big trouble. No inventory is not smart business. Yes they make good vehicles but their prices hugely inflated, and long waits. They will lose brand loyalty.
Guaranteed
It's pretty incredible to see a car dealership owner state the list price of a vehicle on the lot and then say he would take $X if someone came in and offered that price. That's some brutal honesty right there. Love this channel
New dealers gouged the hell out of customers the last few years,10,20,30 thousand over msrp. Now people are bailing on those overpriced upside down cars. Interest rates are up, prices for everything from food to electricity are up. Whats not up,wages. So the toys get cut first, then the expensive cars, then houses, down to the basics. I don't think tax time is going to cause a big recovery. Most folks will be so behind in bills by then that money is already spent. Prices will crash another 20-30% or more. Dealers will go out of business, even used dealers like car max are in trouble right now. Not sure where it ends, but it's going to get ugly.
Very few people are being spared under this regime.
Build back debter
The problem is that car companies are charging way to much for vehicles, not to mention the interest rates and to finish it all off the dealerships being greedy by wanting to mark up charges and in the end you really have to ask yourself if it’s even worth it. That why people ain’t buying new or used cars.
I remember back in 2015 I bought a 2007 f150 with 56k miles for 17k and that thing is still running. Todays market would be 30-40k with a V6. So everything pretty much quadrupled???
I paid cash (well a CC actually). This is what you can of you buy only when needed. One was a repo from San Diego and the other a trade-in (you know the rip you off on those trade-in prices).
Car manufacturers face similar inflation costs so the finished product is more expensive. Drive long I say…
if we as dealers could sell cars cheaper and make a proffit we would.
Craig is a straight shooter and always has great insight! I’ve never bought new, always about 9 years old and about 90k miles. The key is they are nice cars, but heavy on maintenance. Good thing I can turn a wrench. Fuel and insurance are about all I waste my $ on.
My neighbour only ever bought sub £1000 cars and never serviced them at all, and when they finally gave up, he would go and get another one. He drove them like a monk with his right foot missing though.
You hit the nail on the head about inflation leaving us all short at the end of the month plus high interest rates and rent going up on people who don't own a home.
That hundred thousand dollar pickup is worth 35 thousand
Eh maybe 50-60
@@bigpicturethinking5620 you're right it was 25 years ago prices
You wish buddy
No vehicle is worth 100K
Sure doesn’t feel like the power is with me just yet. These prices are so outrageous it’s beyond negotiating. They need to drop another 20-30%, or I’ll just walk. There is no way I’m paying these prices, period!
right, 3 year old used cars are still $2k less then new, and 100k mile used cars are $20k+
I know, a truck with 170k miles of any year for $19k just makes me cringe.
Used trucks reasonable but SUV's are still insane.
@@musouiumm 9k for tacoms with 200kmile is actually a good deal. Those things are expensive
@musoui seems like you're jealous of your coworker. He got a taco.
I saw in Bernalillo, NM there is a brand new Tesla dealership. I saw it today. Side note - I was shopping to get.a used SUV but now I have to sell my old 4Runner to pay for my student loans. My student loan was not part of the 'forgiveness.' So I'll have to wait to get another vehicle sometime down the road. But I enjoy your videos! Keep it up.
I will never get why so many people buy cars and even houses on "Monthly Payment" criteria. Price is actually the number that matters most.
You ever been homeless and had to claw your way up from the bottom? Yea, *THATS* why you will never get it. Be thankful for your life, and get your nose out of the air.
@@jrr7031 When I was 20 I was homeless - and I remember saving up $5,000. Unlike most of YOU people I didn't go out and buy a $20,000 car using the banks money. I bought a good cheap car and took care of it. You just don't get it and that's why you will never be financially independent.
When prices of everything is going up and you have to decide between an expensive car payment on a nice vehicle or paying rent guess what...the car payment doesn't get paid and a cheaper car is acquired. Times are tough but living in your means is more important.
I'll be happy when car prices dip below 2018 prices. Right now they are 30-40% over 2018 prices. So any small dips in prices now are still huge increases relative to 2018 prices.
I just heard a commercial advertising LAST YEARS (2023) Ram pick-ups for "Up to 15 percent off. You could save as much as $15 Thousand Dollars".
That means the original MSRP was $100K.
There isn't Ram or Dodge pick-up worth $100K unless it was the First Power Wagon off the assembly line, put in a museum and NEVER driven. And even that's a stretch.
In 2002 I bought a 1993 Geo Prizm with 95,000 miles for $2,500 plus tax. 21 years later with normal maintenance and a $1,500 trans and the car is still going with no signs of quitting. People who are paying 35K plus for everyday vehicles are nuts.
Heyy that’s what’s up. I just picked up a geo metro 91. I also own a 99 metro 47mpg 2k. I plan on keeping it as long as I can
lol, I would never ever consider a 1000 a month car payment.
I'm so old, I keep thinking that $199 is a decent car payment!
@@brucemaki8679 same here. I keep seeing people paying 1200 a month, that's just insane to me.
That just means you don’t make enough money. If you owned a business and made enough money you could just write it off.
@@kingwillie206 . Actually if you owned a successful business you should be able to pay cash for any vehicle and not have a loan.
@@4dogsgaming - Paying cash is stupid in most situations knowing the payments can be written off and that cash can be used for marketing.
Gotta say Craigs transparency is unparalleled. I have a ton of respect for his honesty and openness
I am an auto locksmith and thoroughly enjoy your videos. Thank you for providing good up to date content.
I take mechanic and body courses to keep my car because new cars and garage bills are almost too high to even consider. Even mechanics are pricing themselves out of business.
Good idea. Fix yer own, buy good scan tools , and learn how to read
now im 40 i appreciate late 80s early 90s and some early 00s vehicles i know and love
I’m 54 and say the exact same thing, shit turned into overly complicated junk after about 2006..id take my truck years up to say 2012/13’ but everything after was the redesigned models with even more computer crap…
I own a 2002 Grand Marquis Merc with 1,2.5k miles I paid 2300$ for. I’ve driven it 25000 miles without incident miles after rebuilding the front suspension myself for less than 400$ for first quality parts, plus 75$ realignment and about 450$ for new tires. It still looks, runs and drives like new, 22-25 mpg. All less than payments by far and with no payments. I’m about to replace all belt driven engine accessories (water pump, alternator idler and belt tensioner pulleys w/new belt for less than 200$ in first name parts (I spend time price shopping online). None of these are broken on the car, but I’m doing it pre-emptivly as the w/pump is making a little noise and while I do it I’m doing it all so no issues anticipated for the next 100-150k miles. I’m retired on fixed income but I can afford to keep the merc. running and reliably because I have no payments. And I would never pay anyone 1500 for a simple brake job! Pads and rotors on most vehicles is a 1-3 hour job with 2-400$ in parts and anyone of ordinary sense can do it with a jack, stands, simple hand tools and CZcams instructions.
Those are the best cars! Panther platform Mercs or Crown Vics... cheap to fix, comfy, cheap to buy and if maintained properly can last a long time.
I was getting a tire repaired when the mechanic told me I needed a brake job, I told him I knew because the brake linings were squealing for the lady year or so. I got a quote for $1500,00 fir both front and rear, I told them the rear are good as I just inspected them. They only do complete jobs. I did the front myself for $28:00 and a few hours if my time. Even if I did the back also it would not have been over $100:00.
Thank you for an interesting video. I just found your chanel a week ago, and have seen a lot of your videos. Your honest commenmts are realy good. You tell what you buy at and what you sell for. You tell when you have made a mistake, and a lot of people can not/will not acknowledge that they have made a mistake, so that makes your videos even better. I hope you get a sale on the 1 year parked car :D
Prices in my area are still insane. I have a 2014 that I bought new 9 years ago for about 15k. My same make and model right around the same 95k miles is going on used lots for 16k+. I recently had to replace my catalytic converter and get some other major maintenance issues taken care of, to the point it made me think about getting a new car. It was crazy because it would have made more sense to buy a brand new 2023 over a 2018-2020 reliable used model given the insane pricing and interest rates on the used vehicles. The dealer would have been able to give me 3% interest on a new 2023 since I'm 800+ on credit, but a reliable used vehicle I would have been looking at 7-8% best rate even with my good credit. At the end of the day I just got the fixes done because I don't want a car payment in this economy. Everything is more expensive now(except gas, thankfully that's dropped a bit) and people don't have money to begin with, no one has the money to spend on a car/car payment.
Buying direct from the manufacturers is the way it should be. Let dealers go away.
oh that's brilliant...dealers go away, then the factory service goes away, factory warranties go away because there are no dealer service depts. plus you have no way to trade in your used vehicle on a new one....brilliant!
Manufacturers are not interested to deal with customers. That is the thing
Do you think GM will stand behind you on a warranty issue,
One of the best thing I've ever done was getting rid of my car payments and cable tv. Saved us at least a grand a month.
Hi Craig, I just took a trip from Connecticut to Florida and back. I passed many car dealerships on the road and I gotta say they had plenty of inventory on there lots.
A couple of weeks ago I needed a part for my Nissan and went to my local dealer in CT. It took me almost 10 minutes to find a parking spot. The had cars all over the place. Inventory everywhere.
Excellent, informative and helpful video. Well, thought out good job.❤
I'm 61 , and own 4 vehicles , all of which are at least 15yrs. old. lol No car payments, and no mortgage is a beautiful thing.
Yes it is. To open the wallet and see cash.
In the words of Rabbit Pitts, "if a car is fixin'ta have a birthday on a car lot, that's bad"
We had a motothome on an RV lot I worked at that almost turned 3 lol it was a month shy.
@@rorosnusnu2035 RV lots are charging too much, for $60-80 a day I can rent a decent house or condo.
This was pretty cool and I appreciate the honesty 🔥🔥🔥👏🏾👏🏾👏🏾
The problem is not just here in the USA market it is everywhere around the world! The export market saw this coming months ago, the export buyers made it clear that used inventory is over priced to begin with and with inflated shipping costs has made it impossible for generating profits. So naturally they stopped buying so my projection government is going to help Auto manufacturers ( not used car dealers) the cost of new cars inventory is going to drop to make it attractive along with better interest rates, while the sale of used inventory is going to continue to suffer for another year or more!
I never saw any of your videos, never even heard of you until right now. You are absolutely, 100% spot on as to the current state of the used car market. I've been in this industry my entire life; we have entered a correction period. Wholesale values have plummeted, drivers are going to be stuck in their current rides unable to roll the negative equity into their trades, a whole host of things that you have pointed out far better than I can. Thanks for presenting this to the public!
I have been watch only a couple of years. I am not in the market. I bought used Camry's so they will last decades.
Don't forget, the big three have walked away from cars in the US and they are moving to truck/SUV sales almost exclusively. Those entry level cars are gone.
I can't fault them for following the market, it's a business, not a philosophy of which cars they like.
Then they price them so high that they can't sell them? Nothing makes sense anymore. Unless you look at who the majority shareholder institutions are. Then it all makes sense.
Entry-level trucks are gone, too.
they were garbage before they stopped making them. the turbo trend is/was awful
We need cars back! That we can afford. The majority of people in the US are middle class. Make the reliable lower price cars again! Please
Another great video. Thanks so much for the great information and your personality makes the video so much better.
It’s the same process when you buy a vehicle from Carvana or Vroom or other online retailer.. It was so much easier and less stressful with pressure from a dealer keep trying to sale you alll these other packages when you repeatedly said you wasn’t interested. Plus I literally bought a Car online in a hour with a trade in, while I purchased a car in person and it still took hours.. The main thing I Hate is “ shotgunning “ when you have financing but the dealer will shoot your information trying to get a better interest even tho you specifically told them don’t run your credit . Because the dealer get a cut when they send buyers through them..
Yup shot gunning is bullshit. They put 5 or six hard inquiries on your credit report and hurt your credit score. Also one of the credit reporting agencies hold it on your report for a minimum of 2 yrs.😮
I tend to drive my daily driver for many years. I have a 2011 Ram and a 2013 Subaru Impreza. I am also a small time car flipper for 25 years. Prices have gone down somewhat for sure and that's good for me. I buy cheap as i can one vehicle at a time, do all maintenance that is needed, complete detail and even upgrade the audio system. Doing 1 or 2 vehicle's at a time and sell within a few weeks keeps me with little overhead since everything is done at my garage at my house.
I buy vehicles all the time from large dealerships in my area, but from their "Back lot " where everything is going to auction.
A friend of mine just retired and sold his Honda Civic with over 500,000 miles (how much more he doesn't know as the odometer broke several years ago. That was his commute to work car, which made his weekend vehicle, a 4x4 Chevrolet Suburban, last forever.
Just avoid 2007 for Toyota.
I have done the same since 2020. Bought / sold 14 vehicles. Buy from private party,, sell to dealers.. A retirement hobby. Supply of good private party vehicles is less lately.
Last few years just focused on paying off all loans
Feels good not being effected by the “market”
I’ve only watched a few of your video.
I’m already cheering you on.
Your best tool is your personality!
Great job!
I live in Europe, last december after a month of negotiation I bought a low milage squeaky clean 1 owner 2010 Ford Explorer. From a private seller, listed for 14000 EUR, I got it for 7600 EUR. (*USD/EUR rate was almost one to one) It's a super fun car, love it. Craig I really appreciate the insight you share with us. Been following your channel for a few years. Gotta love that Escalade!
I do prefer being a cash buyer. Vehicles just seem to drive a bit differently for me when there isn't a bank note being towed behind it. Meaning, I can do with it whatever I want and sell it whenever I want without any hassles. But there have also been times when a bank will offer "No Early Pay Off Penalty" that seems to benefit both parties.
Man. Not wanting to be in the $5000 car business is so bang on, but they seem to be the only thing folks want. I absolutely HATE this market. I completely understand why new car stores rely on dealers like us/me at the auction. It takes so much more to get these "Lot Ready" than a 3-5 year old unit. Great info Craig!
Amen. 5000.00 cars typically come with some deferred maintenance built in and before you know it you have more money in it than it's worth. Can't sell it with bald tires, or God forbid it's an interference engine at 90,000 miles and you aren't sure if it's ever had a timing belt service or not so you do it just to be sure.
I got a buddy who hates buying “non runners”, but I love em. Why? Because I’m buying at a deep discount KNOWING, I have to do some things to it. He buys, and HOPES he doesn’t have to.
@@PBTexasBoy In 15 years, I haven't found a used car yet that doesn't need something!
@@OldeCarrGuy me either!!
Its not what people want, its what they can afford. People are running from financial commitments. The economy is beginning to tank and costs are sharply rising on everything. It doesn't change the fact that transportation is essential but something has to give so its 5000 cars for everyone.
Great video! Very informative I subscribed!
New to this site. Enjoy Craig's hands-on, ground floor, reality baste View of what's going on. Good job, Craig, thanks for your genuine and quality help !
Thanks for the update. Glad you are keeping it real. I see too many dealers and private sellers still pricing their vehicles at peak 2022 prices, and they just don't sell. Those that are adjusting their prices to the market seem to sell their vehicles a lot faster in 2023.
I think we are all in for something far worse than any of us have ever experienced.
A broken clock is right twice a day.
yup....I can feel it too. Here in Canada the housing market hasn't crashed...yet....when that does it'll be 2008 all over again. People were overpaying by $500K for houses and mortgaged to the hilt. It was common to see "sold for $300K over asking".
Nostradamus
Look up David oates and reverse speech, our leaders are planning Armageddon
Well if inflation has been 20% for 2 years (real inflation, not the government figures) then we've got 40% less in our pockets. That's a lot of money to try and save, certainly more than an annual holiday or a meal out every couple of weeks, a lot more than a spotify subscription, and way more than any salary increase.
There was an artificial shortage created by auto manufacturers in order to keep up with pre COVID profit margins. The tables have turned and with high interest rates and at least 50 days worth of inventory for most makes/models (new 2022 models are still on lots), prices are dropping and rebates/financing is turning towards the consumer.
I’d wait until the first quarter of 2024, particular Jan/Feb.
I spent $400.00 fixing 2 old bicycles that didn't cost that much when they were brand new. I paid $189.00 for a schwinn at Walmart and over $200 to get it fixed up. During covid bikes weren't available so the bike shops named their own prices!
To concur, as a used car dealer 3 hours from Craig we are seeing floor traffic and phone calls slow. Cold weather came early this year, and I believe people are watching their $$$ with Christmas coming.
Unlike the last three months we have 5 cars around $10,000 and we are paring down inventory.
Thankfully good local reputation and 20 years of customer base has regulars coming back for more vehicles which helps keep the lights on.
Even though parts are expensive many are keeping their cars rather than buying new because they are frugal so our two repair shops stay busy.
Craig is self aware enough that even though he would prefer to see his friends in shiny vehicles they seem to be wise in offloading expensive toys and buying reliable ugly beaters to drive with uncertain times ahead.
Looking foward to Craig's next auction video.
Craig, One thing I've learned is that you're usually spot on and 1 year ahead of what the market actually does.
EXCELLENT editing without the distractors.
I love Craig and this channel…but the vids with the captions, etc have got to go already!
lol, this guy is as clueless as you are. There is ABSOLUTELY no way to know how the market will be in 1 year 😂
Nobody is ever 1 year ahead. 4 months max
Thanks for the information greatly appreciated 🙏
I also think that car prices will go down, but unfortunately I have no money for cars at this moment 😞
For the new car market I truly believe the manufacturers and dealers are willing to die on the hill of few vehicles at outrageously high prices. They made records profits in 2022 with that model and will not give it up. They will willingly go bankrupt before going back. The big three will get their bailouts.
Will their overhead it's too high they can't drop prices by 20,000 and stay in business
Wait for the first big dealer to cash in.
It's a house of cards.
As a person looking for a new expedition, this was super helpfull, but so hard to consider buying right now in this market. Also, my 99 has 184k and runs like a TANK so it's hard to give up such a good running truck! Absolutely love these monthly updates Craig! You take everything i'm thinking of and explain it further out
Invest in maintenance and repairs. It's so much cheaper, and you will know what you have.
Thanks to Head Gasket Sealer, I got 231K on my 99 and still rolling.
Buy a new one and keep the old one.. its only worth $1000 anyway.. just keep it.. if you dont really need a truck everyday then consider buying another type of vehicle and keep your truck for truck use.
@@TobaccoRowe1960just used it on my car. Mechanic wanted $2000
My 2019 was $68k , nothing wrong with it, but wanted the sunroof and leather package plus the 2023 design. It was $108k. So I bought a boat and trailer instead..
Very honest review of what is going on in the used/ new/ car market.
People think you are just there to give them 'bargain prices' not realizing like everybody else you have to eat and turn a profit too!
I never fixed airplanes for free. I always got paid well for the jobs I did.
People today are just broke ... right across the board. Good video. I gave you a thumbs-up and subscribed.
Nice video, Craig. Quite refreshing to see an honest and thoughtful perspective from an auto dealer. Thanks for this.
Craig I think your observations are spot on. If new car stores want to survive they are going to have to revisit their prices and win sales/customers of service and the customer experience. Ordering vehicles on line works just fine…but it’s a soulless transaction and customers want to be made to feel special and have someone to connect with if/when they have questions. New car stores pissed off a lot of customers during the pandemic and then followed up with astronomical market adjustment pricing/fees. I predict a lot of “Stealers” will fold as consumer adoption to buying vehicles online…but ones who value customers and don’t gouge the heck out of us will survive and do OK.
I don't care about feeling special. Amazon doesn't make me feel special. I just want a cheaper price. We all know what we want long before we show up at a dealer usually. We have all spent hours on the internet doing our research. I have been investing in Amazon because i believe we will be buying our kids from them at some point.
Pretty much WHY Amazon will succeed, new car dealers are arrogant and they will crush them.
Stumbled across your show during the corvette fiasco and enjoy your content. Keep up the good work.
welcome to the group. i have been here since he started the $400 flip up to a ferrari series when he brought his first $400 car for that flip so i have been here a couple of years. . hard to find a running $400 car anymore.
Great info, thanks!
This is straight talk. Thank you for your insights!
I’m still waiting for the car market to collapse… So many people have been saying that for the last year or so a car prices are still ridiculous
I tried to buy a new small van in 2021. They offered me thousands less than my car was worth and wanted $10k over sticker. The guy was actually trying to explain to me how I was getting a great deal. I just laughed and left. In 2022 I decided to try again. Different dealership, different small van. Almost like I was talking to that last sales guy. They have inflated the price of their cars by thousands over sticker. Now they are hurting? Let them hurt, I’m not hurting. All the automakers production is down and the media wants us to believe it’s because of covid but it’s easy to see production is down because demand is down and demand was down because dealers were inflating the prices of their vehicles. Even Toyota and Mazda were doing it. I drive a 2016 Mazda Miata. The Mazda dealer offered me $9k for my car when they only had one on the lot, same year with more miles for $21k. My car was kept spotless with no damage ever. Parked it in my front yard and sold it in two days. Let the dealerships go broke.
I never trade in. I always sell first as a private seller than use that cash for the down payment. They will always screw you on the trade in.
From a car dealer- my area may be insulated slightly because we have a large influx of people from out of state, but in the last 2 days I’ve missed out on dozens of vehicles because other dealers in bigger cities are paying $2-$3000 over dealer wholesale for everything. Smaller guys can’t buy anything unless we pay over wholesale, which means they have to resale for over retail. Rather than ask over retail pricing, I just didn’t buy anything. People have been predicting the car market to crash for over 2 years. It may change next week, but as of 3 hours ago at a dealer auction, there is zero sign of a crash. Supply is very short contrary to what this guy says
Good Video. Left me with more questions than when I started the video, especially since the customer is more informed today. Talk more to the point of the Lease returns from 2020 and the changes in the market and what the dealers are doing about it. It's obvious to me power has swung to the hands of the smart buyers while considering the spike in vehicle costs triggered by the push for undesirable EVs. And thought number 2, Convenience talks to the point about what has killed "Black Friday" customers that are now cutting all the issues through online shopping. Customer Convenience and has always been the enemy of dealerships. Going to a dealership, customers know they are getting taken coming and going and it will take hours to get convinced to just buy what's on the lot. Just like the Iphone coming out, killing photography shops, DVDs, and magazines; Amazon taking on the convenience topic will significantly convert the car buying experience leaning to grab moms that want "quick and easy". "just give me black with a sunroof please and make it cute."
Great vid Craig! Great insight. Amazon is destroying everything it touches and people aren't understanding. Yes, you can order everything online, even your house now. But the two major things a person buys is their home and automobile. Maybe im old school, but I'm no leaving that up to pictures or marketing. I need to sit in it, kick the tires, rev the engine before i purchase. I cant see myself that lazy to just order without the physical part.
Yeah, you're old like me. While I agree with you, more recent generations are fine with all of this, and those are the ones this marketing is directed towards. Young kids can't appreciate driving a well maintained PAID FOR car. Heck I didn't get it until my 30's myself. Now I know better.
Old people tend to buy the same cars over and over again though, Ford guy keeps buying Fords Chevy guy keeps buying Chevys etc, granted they still want to sit in them but they're going to buy the same car no matter what
@@joepierson3859 your point?
Great content lately. Keep it coming.
Best job I ever had was buying inventory for a large Toyota company in Vermont. The market was so fun to follow and predict. You say it very well!!
The psychology behind this video of yours is excellent. Bravo! Mission accomplished I bet! lol
Great content, it just told me exactly what I was thinking.
Chevrolet Dealers selling C8 Z06's are begging trying to get 20 over. They were 50 over and arrogant.
Times are changing, FAST
I was just talking about the same thing you cover today with my friends last Friday. The Floor plans, vehicle bought during tax season, and how to survive with all this dealership monthly expenses and cars dropping value 30 and 35% of they price. I hope this economic weather change on 2024. Nice video brother.
The brutal honesty is appreciated bro- keep those videos coming I enjoy the content
Love your content. Really on point
Craig you remind me the old days when buying from a local small car dealer that was honest and caring about customers as you seem to be we need more like you in this crazy market. Love YourClarity
A few left, not many
You are delusional. He is probably one of the worst type of dealer. Looks like one of those "buy here, pay here" type lots. They prey on bad credit buyers by charging them inflated prices for worn out over 100k mile vehicles. The ONLY thing he is trying to do is find another source of income with CZcams. Anyone who is honest & truly wants to help people are not successful at the car selling business. You are either a sleezeball, or if not, you won't be in business for long.
It's sad to hear that people wait for a tax refund, just for them to borrow 10s of thousands of dollars at over 10% interest for a depreciating asset. 😂😂😂
Appreciate the honest thoughts from the perspective of a dealer! Great breakdown
I recently bought an F-150 from Driveway. I thought the process of ordering a vehicle online to be delivered was pretty interesting. My F-150 was for sale at a Mercedes dealership in Iowa. I thought the price was pretty decent, but in hindsight, after getting a pickup that averages 18 mpg with a 36 gallon tank, I'd probably have been better off getting an econobox, lol.
Private sellers like myself are struggling too. November through January is a sink zone for car sales. Best time to buy from auctions though. Horrible economy doesn’t help.
Appreciate your video buddy I feel like you were shooting straight
Craig this is so true. See it happening down here in Lynnfield MA too. Northshore is high in inventory and lower purchase power. Consumer is understanding % rates and how badly they are affecting monthly payment. The other video in which you talk about people come by to ask for cheaper cars. The consumer market is defenetely in a shifting market.
Dear Editor: Compared to before, you're doing an amazing job. There isn't too many distractions. No loud background music that almost drowns Craig out. Awesome job. But...
I still think there are a few too many pop-ups. The little black text boxes seem somewhat useless to me. That's just my opinion though, do what you want. I might even be wrong in general.
I 100% agree. Very gimmicky and distracting.
LOL! He probably can't AFFORD an "editor" anymore!
Um, it's a FREE video on YT. Are you kidding me? LOL. If it's that much of an issue, just stop watching them.
@@dyates6380 It's not an issue to me, I just know that (as someone who has edited numerous videos) outside feedback is super helpful!
At least I didnt have to see little bits of movie clips every 90 seconds in this one! lol im good either way, great information.
In the 2007-2009 recession: "New vehicle sales fell nearly 40 percent. Motor vehicle industry employment fell over 45 percent. Faced with bankruptcy, Chrysler and General Motors were bailed out by the U.S. government using TARP funds. At one point, the federal government owned 61 percent of General Motors." So you MIGHT want to be a bit CAUTIOUS about predicting a "bottom" at THIS point.
Very interesting ! I had no idea that people were wanting to downgrade from a 30K car to 5K car.
One other thing I think is killing the market is just how much the price of new cars has jumped over the last 3 years. For example, my 2020 Dodge Challenger Scat Pack was $38,995 base price before options, etc., now the base price for a 2023 Dodge Challenger Scat Pack is $48,225! That's ridiculous! Almost $10k in 3 years?
Yep! It’s insane
Thank you very informative and at the same time cool..👊👊
From what I've researched from the used automotive market here, on marketplace especially the used car prices are literally falling off big time here, the days of 400 to 1000 dollar used cars are popping up across the board, I am the middle man between the sellers and the flippers around here, went from little to no sales profit to hundreds to thousands of dollars in profit lately just over the last couple of weeks, hang in there y'all the deals are about to be everywhere, especially with the automotive industry in chaos and this failed ev vehicle thing, the combustion engine isn't going anywhere the demand is just too high for it plus there just isn't enough infrastructure in place to support EVs yet❤❤❤❤ Liked the vid Craig, been with your channel for about three years now, and yes we still miss German but respectful of that
Very educational. thanks so much
I WORK FOR FORD - ABSOLUTELY DISGUSTING THESE prices currently driving a 2010 taurus... love the car 🚗 I'm happy I didn't give these greedy dealers a dime ..
It takes a monster like Amazon to kill the monster that is the current monopolistic dealership model.