Car Prices Crash By 60% But The Worst Is Yet To Come
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- čas přidán 19. 06. 2024
- In a surprising twist, the U.S. auto market is experiencing a phenomenon that's both a blessing and a curse. Car prices, which once seemed to climb endlessly, are now plummeting at an alarming rate. For consumers, this means long-awaited relief at the dealership. But for many car dealers, this trend is nothing short of a nightmare.
For years, Americans have grappled with skyrocketing car prices. Now, amidst economic uncertainties, we are witnessing a dramatic shift. According to industry analysts, the average price of a new vehicle has dropped by nearly 20% year-over-year. The used car market is even more volatile, with prices plunging by an astonishing 59% from the 2022 peak.
According to data shared by Wolf Richter, seasonally adjusted, prices of used vehicles that were sold at auctions across the U.S fell to $18,151, the lowest since April 2021, and are down by $5,423 (or 23%) from the peak in January 2022, according to the Used Vehicle Value Index by Manheim, the largest auto auction house in the U.S. “From February 2020 through the crazy peak in January 2022, auction prices had spiked by a mindboggling 64%, or by $9,252,” Richter noted. “The historic plunge so far has surrendered 59%, or $5,423, of that $9,252 spike.”
Last month alone, prices fell significantly in all major vehicle categories on a yearly basis, according to Manheim. Luxury cars went down by 12.9%, while SUVs & crossovers prices declined by 14.6%, pickups lost 15.2%, midsize cars fell 16.8%, EVs dropped by 17.5%, and compact cars went down by 17.6%.
If prices doubled and tripled, getting a 20 percent decline is hardly a crash.
Needs to be 60%
I totally agree with you. Let them cry.
How are cars loaded with more tech than any car from 10 or 20 years ago gonna be the same price? Things will get cheaper but marginally at best
@@cf9590 engine, transmission, tires and other things make a good car, not a build in gps, heated seats and such. Putting more electronics doesn't make a car better.
The rise and demand for EV’s! You’re out of your mind! Nobody wants them! Quit shoveling that propaganda!
They raised prices on cars 70% and now lower 20% you kidding me?.
Good take.
They need to lower them 60% more before I even consider buying new
Used car prices need to plummet 60% to bring them back in line with what they're worth.
Good point, touche'!
a coworker was looking for a car at a local dealership. a 2009(?) corolla with 230,000 miles listed at $18,000. told him to look on craigslist
@@boonstein9949 I wouldn't buy a NEW Toyyoyo for 18K.
I don't think even that will help. We're going to see a massive credit freeze again soon, worse I'm afraid than we saw in 2008.
All my bills are paid off, including my mortgage. I'm 53 and had been planning my entire working life for an early retirement between 55-60. I'm worried now.
@@irishledden4924 Not even 18k for a new Toyota? You probably shouldn't think about buying a new anything.
I feel so sorry for those dealerships. But they sure didn't give a s*** about the working man when they were raking us over the coals with 5000 6000 and 7000 dollars over the msrp. I can't tell you how sorry I feel for those sorry, lousy scumbags!!!!!
The Toyota crowd was paying over MSRP Loyally without skipping a beat. Still wont be dropping pricing there.
I have to assume that you're expressing a bit of sarcasm when you say "I can't tell you how sorry I feel for those sorry, lousy scumbags!!!!!" When I looked at this video, as well as other vids that pretty much painted the same picture, I felt anything BUT sympathy for most of the auto dealerships. They took advantage of the COVID-19 pandemic fallout to justify gouging (really, HARPOONING) folks respecting their car sales.
Two parties in a transaction. Naive or greedy buyers got what they deserved also. Average vehicle on road 12 years old. If you do not buy at peak or sell at the bottom, the price cycle does not affect you.
I don't feel sorry for them, not one bit. I remember every dealer who was asking for huge markups over MSRP. And who treated customers like shit. I will never patronize them again. They are reaping what they sowed.
@@blitzmom2674 I was being sarcastic.I don't feel sorry for them
KARMA for price gouging!
Karma is going to get all of us though. Remember 2008's crash due to to the greed of the finance sector? Lots of people who weren't involved in that mess lost their jobs, their homes, etc.
The auto industry in the U.S. is huge, like real estate is. It's going to have a painful effect on all of us.
People don't understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments don't match our income, yet certain investors still earn over $10,400 in stocks and assets. Wish I could accomplish that...
Considering the economic situation I ask,?? How can we save our families and friends from financial slavery. It's getting more scary how people are really suffering these days.l can't fold and watch people around me suffer.
The crypt0 market is bringing a different revolution in the world economy. People who are optimistic investor will earn consistent why the others will sit back and watch.
I combat the negatives effect of inflthinkation, it's a good idea to diversify your portfolio across different asset classes, since this can help protect your portfolio against inflation.
I would really love to know how much work you did put in to get to the stage..what are the strategy?
Ms Zelia Atkinson guided me thru the process of making a sound financial decision for my family. Most importantly, the lady took the time to make sure we understood every aspect of the transaction until we felt 100% comfortable."
Today’s cars are OVERPRICED JUNK!!!!!!
Computers on wheels.
Yeahh
Many new cars don't even come with a full size spare tire !
What a joke
Now car is not a real car.To mutch electronic kill to have real simple driving car.
A car is the cheapest house you can buy now.
Funny oops not funny
I'm living in a Toyota Sienna
Our peak era has passed, with 401(k)s struggling during the recession. My $750K retirement portfolio is shrinking due to inflation, and I fear our leaders are repeating the mistakes of the past. If rising costs worry you about your retirement, I empathize. The American elections are bringing uncertainty with chaotic foreign policies, regulations, and energy strategies.
For retirees and those nearing retirement, it's especially tough. Years of hard work lost to a problem beyond your control-I sympathize with all facing retirement now.
I'm anxious about our future, particularly financially. Considering my first stock market investment, but how with the market in turmoil?
Diversification is key in situations like this. Consulting with a finance professional and diversifying into high-performing options can yield significant dividends and balance volatility. My $330k portfolio grew by 85% in 3 years using this strategy.
I urgently need guidance to salvage my portfolio from massive dips and devise better strategies. How can I contact this advisor?
could you recommend some good advisers? don’t get me wrong, I already have an asset manager, but he seems not to know much about crypto.
The good thing about electric cars is if the dealers can't sell them, they can eat them.
good thing about it is that the global south, BRICS+ & SCO market will expand rapidly & dominate the EV auto market as they are now .... China is the biggest EV auto market in the world ... better still China has the biggest EV auto market that its customers enjoy @ very good retail prices. US is over ... US made ICE cars are not wanted by the paying BRICS+ customers ...... rubbish US cars cannot compete on price & safety regs
I've heard that electric cars have a good amount of lube in their transmissions. The car dealers could drain the lube and cover their EVs with it. Then the dealers can shove the cars up where the sun don't shine!
The oil companies are turning folks against EVs like they did against nuclear power
@@GrapeParfait That doesn't sound very nutritional
😂
F Car Dealers!!!!
Who wants a piece of shit SUV?
Or, EV.
nobody and nobody wants to pay 40 plus grand for them either
@@georgeawestjr.9087 EVs do have a place, but should never be mandated. I'm driving a plug in hybrid, bought used and I burn about 1.2 gallons of gas a day in my 115 mile commute. My Escalade on the other hand used to burn 7 gallons a day on that same commute.
The only EVs I knock are the ones people buy who can't afford them, or are mandated by bureaucracies.
Chomo @@Shadow_Banned_Conservative
Bull shit 💩 prices haven’t budged
I disagree. At least on the used market they've dropped substantially on what I've looked at. My old retirement plan included a used 2015+ Denali 3500 diesel dually with a large truck camper. Two years ago they were $50k+ Now I'm seeing those same trucks for $35k-$40k and with lower miles.
We're about ready I think to see a huge sell-off and repo craze.
@Shadyou don't know what you talking about ow_Banned_Conservative
The price has dropped at AUCTIONS, which are for dealerships! THEIR prices have fallen, but they are not passing that on to us.
So true! No such thing as a used car market crash. Also, all the auto manufacturers have recently gave their production workers GIGANTIC raises! Even here in Alabama production line workers make well over $30.00 per hour. There is only one possible outcome. Higher prices.
What goes around comes around. Dealers sticking it to the consumers are getting revenge. See what happens when dealers got greedy? I see lot rot in their future
I don't think it is the dealership's getting greedy it is the car makers. But I share your sentiments.
No, they were selling used cars for more than what new cars were going for. Yes the manufacturers were greedy, but dealerships were absolutely taking advantage of people.
@@chkngrl I forgot about the used cars, thanks
@@RealHomeRecording It was the dealers. Ford was especially heinous. I was trying to buy a car in 2021 and facing huge markups over MSRP and rude insulting dealers. I bought a jeep instead (Very happy with it) and while I didn't get much of a discount at least I wasn't facing a huge markup over MSRP.
Yup! The sales manager tells everyone else to raise that interest rate, then they get that commission check. But now they ain't selling cars, so those sales folks are stressed out not paying bills 😂
I wouldnt call it a plunge as much as it is a leveling out
But.....What about HIGH INTEREST RATES???? How could ANYONE afford a new or used car 🚗? 🤷♂️
Nope
Just like the house's waiting for the floor in price, will pay in Cash 💸 💰 🤑
Have you heard of CASH? Save. Never take out loans.
Just buy an old car (cash and fix it little by little )!
@@serhiiderevianko4852 Poor people luv the idea of fixing old cars
This is a sign of the terrible times ahead 😢
Got news for you...................terrible times have already arrived!!
FJB and his cronies in his administration. VOTE REPUBLICAN TO STOP THE Destruction of America
Ahead? We’ve started a long time ago. Where have you been?…
Great depression #2 & ww3
The newest new vehicle I'll ever buy again is a 1995 or earlier. Why? The new ones are garbage.
I would take that up to maybe 2007 or 2008.
Let's do 2012 :)))
30 year vehicles are great if you are poor and need a place to live
Bought a Polo 2006 … no issues , fill it up and drive thats it …
@@milemilitinovic3724 No preventative maintenance or service needed . That's awesome 👌
Gee, I feel so sorry for these dealers and manufacturers…they all can kiss mine.
6yr car payments no ty
Without cars and trucks how will hungry millions obtain their fair share of ...................................................................... S O Y L E N T G R E E N ????
15 Minute Cities. Look it up. They will be putting up electronic open air prison's vis GPS/Cell towers. Facial recognition & social credit scores will prevent former freedom of movements. CHYNA already does this.
THE CARS ARE PEOPLE
Car replacement parts made from people.
Each 8 pounds of human can make a gallon of biodiesel. Let's get the rendering machines humming.
@KA9DSL yeah seats will be made only with...leather...
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this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Jennafer Beaver Turner is the licensed advisor I use.
Just research the name. You'd find necessary details to work with to set up an appointment
Thanks, I looked her up on Google and was very impressed by her credentials. I reached out because I need all the help I can get. I've scheduled a phone call with her.
Thanks Mate, the sad truth is that no one has a clue, we all react to what happens as it happens and try to analyse it but can’t predict an iota of what is going to unfold in the markets… content creators are like amplifiers, when times are good they affirm it and try to tell you why it’s good and that it’s looking bullish but then all of a sudden the market turns bearish and everyone affirms it again and try to analyse why… it’s so sad that many are so powerless and it's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 2.3Bitcoin to a decent 12Bitcoin in the space of a few months... I'm especially grateful to Whitney Eston, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
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Someone needs to tell the dealerships trying to charge 6 grand for a 1993 Ford escort.
Well, that sounds like a buy-here-pay-here lot. No franchise dealer is going to sell a 93 Escort.
@@Shadow_Banned_Conservative it was sarcasm.
@@YCRM001 Those kind of deals exist though. I dated a woman for a brief time who had no options other than that $6000, 93 Escort.
Cars prices needs medium attention,
Our congress has no idea how we Americans are feeling, we individuals are fed up with this treasonous administration. I feel for people with disabilities for not getting the help they deserve... Thank you Kathy Shay.. imagine i invested $4,000 and received $6,550 in 4days.
Yeah but the incompetence and corruption that runs through this administration in our Government are getting more risky and ridiculous, i feel the sympathy and empathy of the citizens not getting the due help they deserve.
I feel so too especially the disabilities, on the other hand congratulations to your breakthrough. I appreciate your advisor her results are too professional.
This is correct, Kathy Shay's strategy has normalized winning trades for me and it's a huge milestone for me looking back to how it all started
Same here though I started with as low as $15,000, actually because it was my first time and it was successful, she's a great personality in the State 🇺🇸🇺🇸🇺🇸.
Such information we don't get from most CZcamsrs, how do I connect her??
I don't even have a car anymore. I save so much money every month because I don't. I have adjusted to not getting around now.
No car note
No gas
No ins
No maintenance
No tires
No registration
I can get around and take care of things when I need to but I love it. It's like my life has slowed down where it's really enjoyable. I truly thank God for it 🙏
Me too! One of the best decisions I ever made!
Take it from me... the poorer you get - the happier you are.
We havent owned a car in about 15 years. We bought an e bike when we moved from the big city to rural USA. We put saddle bags on it plus a backpack and do the shopping that way...So what if it takes a couple trips a few blocks away.
Thank yourself. You did it. Congrats.
I don't have a home... Just a 24 year-old Toyota Sienna minivan.
When car payments are 3-4 times my mortgage....NAW! I'll stick to my E-bike.
They may be taking off 25,000 dollars but they also baloon their prices at least 3 times the normal price of the cars and trucks. Again profit over people.
If I buy a used vehicle and it cost me 18K, it better have EXTREMELY low mileage and none of that Honda or Toyyoyo shit.
fake news
F the dealers after how they price gouged us during COVID!!!
Prices dropping is a good thing. Everything is hyperinflated now. We need all other markets to drop too. Especially food and every day goods. Thanks for the good news!
Used and Repo cars flooding inventory
They put a price in them like liquid gold. Here we are supposed to go all electric and the grid can't handle it. They just kept pouring money into vehicles. What person has 70 to 80,000.. to drop on a truck or a fancy car on a regular car lot. It's their own doing . Don't make what you haven't sold. We have a car lot. Steve White in Hickory, n.c. they have the most dodge challengers and charges in these wild colors. Like a whole line. I'm thinking, huh!!! Who buys those colors.. it's sad.
Don't mind me folks, I'm just here for my daily dose of DOOOOOM!!!
They are overpriced and no one wants more payments no matter if they lower prices or not.
Good, cars are way overpriced!
When the depression hits, ALWAYS remember thst mask karens caused it. Never let anyone who contributed to the hysteria live it down.
Don't blame the victims. That's just stupid. Blame those in government and our corrupt institutions that allowed it to happen!
What an ignorant comment lol
I lost my job at Amazon over masks... I couldn't breathe in them! I've since spiraled into homelessness. I hate the world.
Shush and do what you're told
Prices plummeting? Sounds like a great time to sell my car
They are plummeting for YOUR used car (at wholesale), but not for the replacement (retail)!
@@TheOzthewiz Great, then I can buy high and sell low
Dealers are making up for claimed "price cuts" by add-ons like nitrogen-filled tires , vin etching, overpriced clearcoat, etc., and "dealer price adjustments".
What kind of bs is this?
I have been pricing cars for years nothing has dropped 60%...
Thanks for the insight
Doctor Doom! He's our man! If he can't scare us, no one can!! 😅
They have what's coming to them. There was no reason to jack the prices of used cars up over 60% during the pandemic. No one was driving!
00:05 The graph indicates that the automobile industry tried to make its money back from the COVID economic slump in 2020 by drastically raising automobile prices. Then, they just got greedier and greedier.
Auto prices need to return to Pre-COVID prices.
Yet, car dealership have ridiculous mark ups and still trying to sneak hidden unnecessary cost on top of that. Just dont buy cars until all this is over. Maybe we just need to start all over.
All my cars bought and paid. I m 39 owned 4 cars and never made a car payment or lease in my life. My newest car ive ever owned was my current 2005 suzuki verona. 42,000 miles, 3700 cash.
Now everyone getting their nice shiny new crap repo3d.....but i still.got my oldie
We still need another 30% to 40% percent drop. I’m patiently waiting no rush.
I worked at a dealer about 2 months ago. When I left they sold about 300 units. Today I was told they’re at 123 units with a week left in the month. So what do they do? They hire more salespeople. 😂😂 I’m off on a lifeboat watching the ship sink.
Playing the worlds smallest violin for the dealerships who lobby together to pass laws and regulations to everyone from buying directly from the manufacture at a fair MSRP rate.
The Ford dealership I've got 2 cars from send many emails for me to purchase. My current Ford is 16 yrs old. They are willing to work with me. I'm no longer working.
Wish my Prius were that new. It's 18 yrs old now with 90k on it.
Tbh, i don't feel sorry for them.
They gouged consumers with ridiculous prices, so karma is biting them in the butts
The dealers were shafting their customers big time during the chip shortage and pandemic, and treating customers like dirt. Charging huge markups over the retail price. There was ALWAYS going to be a price correction. And customers will remember the dealers who took advantage of the situation during the pandemic/chip shortage and will not patronize those dealers again. The dealers need to wake up to reality.
A 59 percent decrease in the price spike amount is not a 60 percent reduction in price.
How can one know if price cuts are actually occurring with dealerships? Is there online site which shows actual basic price for various cars from year to year?
I'll believe new car prices are dropping when I see it, not before. Fact: There has NEVER been a "buyers market" for new cars, and barring mass extinction there never will. Maybe a leveling off but never a cut. Used cars, on the other hand, are going to slide. Everybody wants new cars, not used.
The ridiculous increases the last few years is still out of control.
As a consumer I see a price drop as a win. Dealers can pull themselfs up by the bootstraps as they already add additional costs and lobby to keep me from buying direct from manufacture at the MSRP
Our small city has lost 3 dealers in june, one of them ford.
Ok, last time. Nobody.......can afford to live here........anymore....
EV’s are not selling and no one wants them!
60,000 dollars for a electric car and having a power outage
I havent seen any car prices fall in DFW. Camrys are selling for 40K. The cheapest one is 33K.
I have been walking so much that I need shoes now and those prices are up 50%
So, how did that new huge UAW contract work out? Wait! It's only just beginning. In a few months those greedy workers will be begging to work for pennies on the dollar.
The first company that sells a modern vehicle laden with 60’s - 70’s tech will make a killing. Ditch power windows, info screens (you can have Navi without that damn screen), heated seats, etc. Too much JUNK in vehicles now. Keep the engine powerful and modern though 😜
Thank out of control inflation and interest rates as folks gotta buy food to eat and pay to keep a roof over their head, no such thing as disposable income. 😢
If prices dropped by 60%, maybe I could buy one last new suv.
I haven't seen any decreases in Auto Sales prices. Used car listings are off the charts.
I currently do not own a car. I have determined that I will need to get a second job just to afford all of my transportation-related expenses, which are: car payment, car insurance, car maintenance, gasoline, and other fluids. I have further determined that I need to get that job before I buy the car that will take me to it so that both I and the dealer will know that I can afford all of those payments. Wish me luck.
💯 I wouldn't buy a new car for nothing! High payment, high insurance, high tag, and then if it has a recall they probably won't have the parts, and if they do have the parts they won't be in no hurry to fix it because they're not making any money off of it❗ I'll just keep my old car or truck and make a new one out of it❗❗
Not seeing any price drops in Alabama ,been looking for upgrade vehicle, so watching prices.
Too many years of outrageous profits for many dealers.
Time to change Laws and allow direct sales from automakers to the Consumers. Way too many horse trading games played at dealerships
A used 2008 Chevy impala loaded was $18,000 with 31,00 miles in 2012
Prices need to go down at least 40% before they're close to being reasonable
Buying a used car is like a gamble now and I am glad I will keep my older vehicle due to newer car in the market not built very well.
Cars went up over 3 times in 20 yrs a truck 20 yrs ago at 21 thousand is now 70 thousand or more I don't feel bad for them there not worth that price or a 50 percent cut.😂
With any luck in the next few months they'll drop 75%
Every new year Everything will continue to get worse, Everything will end up going out of business
F car dealerships
They absolutely r@ped buyers from 2019-2024 and should have saved some of their massive profits.
70 thousand for a pickup truck. How greedy is that. All this is smoke and mirrors.
I am sure that is not the last bubble we will see burst.
How about those Chinese lithium battery🔋companies (including factories being built in the U.S.) that make batteries for EV's?
"Crash" - Nope...it's called coming back to what they should be...pre-pandemic levels.
Down payments and interest is a no go for me.
I have been looking to get a Ford Transit XLT (extra long and tall for some family road trips). I have been waiting some 2+ years. None have materialized despite it being ordered twice (different dealerships).
The only vehicle I'd want is a Hum-Vee kinda thing.
Oh snap, Mr. Boogie-Man is back to scare us. Not scared.
in Canada also?
"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.
Where are these vehicles that dropped 60 percent do tell I haven't seen any auction prices what about retail dealers gouging pockets
Don’t feel sorry for these car dealers, they marked up car prices over 10k above MSRP!
The car dealers have ripped off consumers for years so this is payback.
Enough greed already.
That's why it's worth waiting lmao. I checked my alternative email for junk offers and noticed that some of the dealerships that I contacted about a year or two ago have been sending offers and begging me to visit them and willing to take my old 30 grand offer for a toyota corolla. And those greedy douchebags wanted me to pay 40 grand or more back then. Lmao, do they not know I can google the current prices and see that they are going for around 22 grand? I'm still on my fully functional beater car and will continue waiting.
Cars wont ever be the prices we remember.. all this tech costs and its not like theyre not gonna pack every car full of it. This is the way its gonna be is my bet
Good!
I’m waiting for prices to keep dropping.
Junk cars buyers only pay $200 to scrap a car.
Hopefully, the housing market will follow.
Trying to buy a Tesla 2022 Model 3 LR, 35k miles now under $25k. Just need it to drop a bit more
I wouldn't buy Detroit-based cars at any price.