I almost believed you about the AURA app, but of course, it's a click baitand and you're reaching an advertisement. Bad choice, it makes subscribers unsubscribe and block your account
My plan is to go back to the Chevy dealer I shopped back in 2021 and go right to the same salesman I spoke to last visit. He told me to add 10k to the MSRP of everything on the lot and "maybe" I can drive a new truck home. He was a cocky shit. I told him I'll wait because i don't have to buy anything immediately. He told me not to count on it, the days of negotiations are over for good and I'll just have to get used to it. He also told me I'll never see inventories above 20-30 total units again and I need to get used to ordering without test driving. I'm starting to look again. I still haven't bought anything. I'm patient and I'll wait even longer if I have to. I know he's still there. I see him outside all the time when I drive by Chevy. I'm not buying anything from him or that dealership. I just want to stop by and make him eat his words.
You need therapy. Some people don’t care about 10k if you have it you have it. If 10k is make or break for you. I would say focus on you not the guy at Chevy telling you hard truths of the ever changing market. Stop wasting your time on CZcams and work harder.
@@phillipdunn655uh oh big baller here likes getting ripped off by dealerships. I bet your wife's boyfriend loves it too. Who am I kidding, you're an incel in a basement.
Surprisingly, nothing seems to be selling. The challenges range from supply chain disruptions to changing consumer preferences, leaving dealers grappling with excess inventory and shrinking profit margins.
It's indeed a complex scenario. With the shift towards electric vehicles and a general slowdown in the automotive industry, dealers are facing an uphill battle. The demand for traditional gasoline-powered cars has dwindled, and this mismatch is causing a stagnation in the market.
As a car enthusiast, I've noticed the shift in consumer preferences firsthand. While it's great news for buyers with the potential for better deals, it's disheartening for dealers who are struggling to move their inventory. This calls for a strategic approach from both perspectives.
Exactly. It seems like a challenging time for dealers. I wonder if there are financial consultants who specialize in assisting businesses through such market downturns.
@@MrKruor There are 2020 Ford's, Ram's, Chevy's and Toyota's on the market with just over 100k miles and they want like $35-60k depending on the trim level, etc. No way would I pau that much for a used vehicle and have no waranty in addition to the high miles. Honestly those trucks are not worth it anymore.
The best advice is NEVER pay interest on a DEPRECIATING asset. Right now there are a TON of very good used cars that are between 5 and 10 grand that will serve you very well for the next 3 to 5 years and STILL be worth around 50 percent of what you paid when you're ready to upgrade. Watch the CAR WIZARD'S series on what to buy and what to avoid. You're welcome.
Very true. Don't be the sucker your new car is dropping like a rock. They're 30% overpriced as it is and the quality is cheaply made, most parts are from China even in a Benz!
Never take a Loan out for a depreciating asset like a car ! If can't pay cash you can't afford it. That is the Best advice. Don't be living above your means. When times like high inflation hits living below your means gives you cushion instead of living on the razors edge !
I just bought last yr a jeep grand Cherokee loaded. 2013 165,000 miles I paid $5k car has nav, leather, sunroof. And some other bells. It was taken care of at the dealer every 3k mileage. You just have to look and you can find some gems.
If you do your homework, (and some automotive knowledge helps too), it's possible find a quality, reliable used car that will serve you well for 15 - 20 years! The predatory covid-era market, and rampant inflation, has turned many people against new cars. The insane technology, decreasing reliability, and increasing cost to repair many makes, doesn't help. The most I ever paid for a vehicle was $4700 and it lasted 25 years. Today, I'm driving a '98 Altima, bought for $3400 in 2005, and a clean 96 Tacoma I patd $400 for in 2015. (Yes, it did need some repair) Currently, with only 83K on the clock, it may outlast me!
2019, I was buying cars CHEAP. Decent cars for $1500, needing only minor repairs. One of those cars, my brother bought it for $1500 in 2019, drove it for 4 years and sold it a few months ago for $3500. Will we ever see that kind of market again, ???
You will. Just not on market place. Wholesale public auctions will have those deals. Auctions really are the only place I can find deals now. Cheap cars on market place are generally destroyed for 1500$ now. I got a 09 Mercedes’ c300 v6 133000 miles. One owner clean interior and exterior. $1025 otd. Needed an alternator. Sometimes you can score. Just need to look hard
@@rajivsingh1999do you have a license to buy them or can a guy without one like me buy at the auctions your talking about. Ik there’s stuff online but the dealer like auctions that’s not a bunch of insurance cars.
That's the issue, it's still a $1,500 car and even if we assume 25% inflation from 2019 until now. You have a $2,000 car, not $3,500 since it's obviously bottomed out in valuation
As a 20 yr real estate broker, thank you! I HATE that "marry the house, date the rate" saying. "You can always refinance" was bad advice in 2005 and its bad advice now. You've got some great insights and I'm curious how long you expect. This shake up in the auto industry to last. I expect another 18-24 months but i'm not in the industry. (And that's assuming there's not another crazy financial curve ball coming down the pipe)
Why is it that I have never heard of, nor met a person who enjoys the car buying process? It's because the dealers have created a dishonest, untrustworthy process, and an adversarial relationship with their customers. I can't think of anything else that I buy that has anything close to this experience. There is a stereotype for a reason.
And that's because the car companies make them build new showrooms every 3 or 4 years, adding millions to costs of cars nationwide. Do you really care what the showrooms look like? But the major car companies Ford, Honda , GM , Toyota make them spend money or lose the right to be a dealer
My best car-dealer experience, was in 2005, at the used car lot of a local Volvo dealer.They'd advertised a pair of '98 Nissan Altimas. I went in to see the sales-manager. No pressure! After taking my info, he simply handed me the keys to both cars and stayed in his office. First, I started the immaculate-looking silver Altima and the engine made a horrible rattle. End of test-drive! Next, a slightly shabby white Altima with crappy tires. It ran and drove just fine, with cold AC, along with a few clunks and noises, that I determined were easy DIY fixes. I offered $500 under the asking price, and drove home in my 'new' $3400 Altima. I'd noticed there was no owners pouch in the glovebox, but remembered there was one in the Altima with the noisy engine. So a couple days later, I drove back to ask the sales manager if maybe for a few bucks, I could have the one from that car. He opened the door, pulled out the owner's pouch and just handed to me, with a "Have a nice day". One might say I paid too much for a shabby, imperfect, 7 year-old Altima. But I'm still happily driving that car today!
I just bought a new Jeep Wrangler and they dinged me $299 for window etching! These moforks must lie awake at night figuring ways to beat you out of your money.
The rate could be 0% but the prices are still high. Think about this... 10% off MSRP average 8000 off, that's an 80,000 truck which should be maybe 50k. You are still getting bent over. And remember taxes, insurance, gas and other costs. Don't pay attention just to the rate, but also the price of the car. Unless 30% off, nope.
I bought my mk7 gti from flipping (I started with $3000 and made $14000) and the car costs me no $$ per month on finance. Totally happy with the car and don’t plan on selling! Thanks Craig for helping me flip a few cars a year! (In my country I can legally sell 6 cars per year no license and last year did it and got $19,000 tax free from flipping at $3000)
If you own it for 8 and it's now worth 6...you will take 6 or you'll end up taking 4 some months down the road. Period. Your first loss is your best loss.
@@neilgunns8391 inflated pandemic values are unprecedented, this current vehicle market cannot be referred to in any other instance in history. just the business, kid
@@teenagedsteam6404 your opinion matches up with your username, teenager. you're speaking out of your ass and all I hear on my end is a load of 💩!!! Vehicles aroudnd or under 10k have been consistently dropping in values over the course of the last few months and recalibrating with where their true value lies, which YES, is a few thousand dollars worth!! It's not a matter of them dropping in true value, bud. It was all inflation brought on by our government and what goes up... must come down.
Nothing is a deal still. I remember 2017 to 2018 i was getting 4 bangers for 800 to 1500 bucks needed some minor repair and i could flip for 3k to 7k and i would drive it until i could flip. I used todo it for fun. ( i am a home mechanic) i like to fix things lol ...i found a car for my wife in 2018 a 2002 mercedes e320 4matic wagon with only 100k on the clock for 3k! I found a 1997 960 volvo wagon with 90k miles like 10 years ago lol for 1500 bucks!! Needed nothing! I needed a 4x4 car i got a 2002 sequoia with 140k miles for 3500k about 8 yeard ago. I still have all these cars all still reliable. People need to start learning how to mantain their cars and buy parts before they break. Like sparkplugs coils brakes extra tires etc etc. Little by little put it in your garage or shed. When time comes you have everything ready. I do this my garage is full of parts when my car brakes i am ready!
@@glengarbera7367 2008 to 2012 nissan versa 1.8 those little buggers are east to fix and durable specially the 4 speed not cvt...early 2000 jetta I flipped a lot but complicated to fix and expensive parts. I gotta say any toyota corolla or camry they wouldnt last they sale fast...also only manual or standard gearbox Hondas very hot on the market people would love those. Any auto Hondas with over 200k have issues with auto gearboxes so stay away from that..I used to flip ford focuses Fiestas and fusions until they realized the gearboxes are trash so I stopped. And any volvo wagon is a fast sale easy to fix durable and the beauty of a volvo they don't rust easily. The sequoia is very reliable I use it only for snow and outbanks Beach ventures about 30 to 50 times a year and I have only done breaks on that thing very reliable and dependable.
Great! Now the Tax Man will audit you 3 years deep to see if you have been paying taxes on your flips. After all, you just announced it on Social Media!
@robertscheinost179 I am at peace with the irs. I know the rules of the game no more than 5 a year in ny state. By the way what a negative comment lol out of nowhere is this what youtubers call a troll? Sorry I am old.
I'm a cash buyer w/789 credit score. I only buy the least optioned vehicle available so long as it has good reviews. It's sad the industry was forced to invest in the phony EV market, crammed down the throat of the American consumer. I see the damage done by that & other mismanaged decisions to cause a economic collapse. I realize dealers cant sell at a loss, but the reciever can.
If you're upside down on a loan another option is to drive it until paid for and hopefully a little longer then you can make up some of the money you spent upfront on your car. I did that with an 06 SRT magnum right after I bought it gas prices nearly doubled two months later the same car was $7500 less. I drove it just shy of 5 years without a car payment in the long run I drove the money out of it. I would have drove it longer but it dropped a valve @70000 miles loved the car
I was thinking that same thing. I one time had a new 1995 Escort. Severely upside down. I felt the best advice is keep driving it until you can sell for what you owe. In the mean time, just LIVE with it. Apparently that was hard for me to do because I was very dissatisfied with the car.
@@The1Mischief The Average Refund Is LOWER Because Tax Rates Are Up And Income Is DOWN. And People Who Owe Are Filing Later Because They OWE Money. CLEAR?
I have a question for all the car dealers: In my experience, whenever a cash buyer comes in the door, and offers the "new market" price on a car rotting on the lot ...I have never seen the dealer actually sell at a loss. They always throw up hands and say, "I can't lose money, we'll send it to the auction in that case". This seems to be the mode, of both Mom/Pops and the bigger dealerships. Why not take the "bird in the hand" and sell the car you paid too much for, to your poor little old customer? Why go to all the work to take your loss at the auction? 30-40 years ago, it did not seem to work that way... what has changed? Why take it to the auction, take a loss, spend the time, and loose the fees? What am I missing here.. why not let car buyers get a deal once in a while; that would be good for dealer's reputation ... we all know they need help in that dept....
idk about other dealers but at my dealership we take deals where we actually LOSE money but we're only able to do that if we're able to get high-profit deals from other customers
Disposal of unsold inventory at auction is more palatable to investors. Inversely, salespeople giving away inventory at a loss to customers = bad optics. This is to be avoided.
Where do you get the “new market” value from? I get a lot of unreasonable offers from the public for less than wholesale. You need to make money, if you’re stuck in an aged vehicle sometimes you need to sell for a loss. To the auction or to a customer it shouldn’t matter. Personally i would sell to a customer over wholesaler if they are offering the same amount.
@@ryanmac358 I have been turned away by simply offering KBB values. Many dealers claim other books (JD Power etc) to hoke up value on their end. The "new market" would simply refer to a car, you as a dealer might be upside-down on. For instance.. trying to sell a Tesla M3 for 26k, when actually the the realistic sale price might 23k. I find that dealers are far less willing to "take a loss and move on" than one might think. Maybe dealers have a pile of cash.. but to me there would be nothing worse than tying up money in a car on your lot that would never sell. Here is a scenario I would like to get your opinion on: Lets say you paid 28k for this Tesla M3, last year when things were giddy... then the EV market collapses.. (for BS reasons) and now your car is only worth 26k at the auction, but that auction is not for 3 weeks from now and you have bills and you would have to take it there and wait and pay fees... and lets say today a streetwise customer comes in and offers your estimated auction price of 25,500 or say 500 bucks less than you might gross at the auction? would it not be better to take the "bird in the hand" --after all, you are losing money anyway why wait to lose the money? Why not lose a little bit more and be sure you are rid of the car? You'll also gain the reputation of selling cars cheap, which might be a good thing word of mouth. I have my own theory - - I think car dealers like many other dealers of things are actually just compulsive chance takers (the thrill of the dice) with a day job - - in other words, there's a thrill in waiting for the next deal hoping you'll do better. That goes with buying and selling … Otherwise why would it make sense to compulsively go back to the auction? There's got to be some drawn out. Hope that you'll do better than your loss. to err is human and we are all human, so I am not being overly critical of car dealers everywhere... I have noticed that if you know what a car is actually worth in a falling market, and are willing to offer the dealer a chance to take the escape shute... at a small loss... They seemingly never do.
@@TheBigdog868 That makes sense... I can see that might be bad optics to the middle-management... but tell that to Sam Walton. When word of mouth spreads that you were the cheapest place in town, people will buy from you whether you are or you aren't...later. And you'll lose money at the auction too.. why make the auction house rich?
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult....
@emiliayulia1520 if you tell me what an ETF is I will think about how 🤔 best to advise you, but 1 thing I do know is you just broadcast on CZcams that you have $400k to invest. Your screen name is probably enough for someone with computer skills to find your location, ie who you are. I'd remove your post and make sure nobody can transfer your money out of your account.
The prices on the lot say the dealers are doing just fine. When they drop 40 or 50% you can tell me something has happened. Until then I will just fix what I have and continue to wait.
as a wholesaler there is a definite drop in prices. This time of the the year prices should be higher for dealers prepping for tax season, but I noticed prices are lower than what they were around thanksgiving to christmas season.
My retail side is very slow this year and it’s tax season. ppl are asking for under 5000 around 4500 for a car. Carmax auctions area GA TN vehicle were passing the high side of wholesale into average retail.Even todays auction.
@clintonmichaels9259 this!!! I'm new and trying to build inventory. I'm trying to even stay in the 4500-6000 range. But when MMR is 2300 and they're buying it auction for 7k, they can have it.
@OutlawChevy2 I'd love to..most of them around here refuse to talk to me. I've got a few but it would be nice to have someone out of state out of competition
I have several vehicles I had imaginations to sell all. And get one good one. I had thoughts but not sure if should do it or not. Because I'm happy with my $3000 vehicles. I have a 13 Kia Rio 150k miles, 05 F150 213k miles, 4.6l, 06 Rav4 150k miles, and 11 Ford edge limited 167k. HAPPINESS IS THEYRE ALL PAID FOR. And they all run great. And it's nice to have different types of vehicles for different needs. Example. The fancy 11 Ford edge is weekends only, and my Kia Rio is my commute car.
When you were shocked by the "margin" that dealers had on these cars when they were adding market adjustment over the MSRP remember there are 2 people involved in the sale of a new car. The Manufacturer and the Dealer. The Dealer was the one gouging for the market adjustments not the Manufacturer.
Craig, this is why I bought the Silverado at the time it was the least expensive crew cab 6.5' bed LT on the market in the USA. I also like Flying Wheels no dealer fee.
My very low mileage 2010 Ford Fusion looks very good to me for many years to come as long as someone doesn't wreck into me. My kids are saving to buy cars and they are not financing anything, pay for it all. The market up here in Canada is even worse than yours, it's crazy! Ad 20% or so to all those new US car prices since our dollar sucks. Same with our house, we owe pennies on the dollar as we bought in a good market 10yrs ago and we kept our purchase low. My mortgage is lower than most people's car payment.
Bushradical on YT just drove all the way to Alaska across Canada from Michigan to loan his car to his son as finding an affordable car up there is really hard apparently.
I'd like to see more videos on fixing up the cheap cars you bought. And what kinds of trucks you can snag to resell for that price. Because it almost seems impossible
Hi Craig. Great video. And thanks for the lesson. I think also that the General Public have been Scared by the Dealers and the Public now Despise Car dealers. They took the Piss out of their Customers. At least You and Dealers like you are just trying too Pay your Bills and keep your head above Water. Now Dealers can't give Cars away. Great video bro. Thanks. 😅🇨🇮
I want a BMW M8. 2020s are going for 65k to 75k with 20k miles. A new 2024 BMW M8 is about 130k. I'll buy a used one at 8% with a descent down payment vs paying 3% on a 130k 😂
Just bought a 2023 Audi A5 45 Sportback Premium Plus with ventilated seats, 19" wheels, PPF, and an Audi 130k mile warranty for $46k yesterday. 12k miles on the clock.
@@Lorenzo-wl5xt MSRP is about the same in 2023 as 2019, plus in 2020 they added a mild hybrid system, upgraded the tech to match the A6 and A8, updated the Quattro system, and gave it a facelift with new LED headlights and taillights. My window sticker that I found in the glove box said MSRP was $56,865.
It may be moving in the right direction, but it’s nowhere close where it needs to be. New car prices are still way way way too high. Interest rates are ridiculous. Not a buyers market at all. Maybe for ignorant buyers. Very few cars appreciate. The vast majority eventually end up rotting away in a junk yard. So you’re throwing money away. At least make it an affordable purchase for your budget.
If a dealer is selling a car/truck and is asking $20K and more over MSRP, that not a good time to buy no matter what the incentives are. The average person know their credit or their in denial but it's the vehicle price that's upsetting people
Last June 26, 2023, I bought a new 2023 Nissan Titan Pro4X with a $7,000 discount with a doc fee as the only adder and they financed it for 0% for 60 months! 5 year 100,000 mile bumper to bumper warranty and the dealer also included a lifetime drive train warranty.
Yes new truck prices are coming down...BUT trade in values from these new truck franchises are going down faster ! Trade in values have completely tanked ! So in some cases buying a new truck now is worse than before. Especially if you don't have A+ credit to qualify for the factory interest rates.
New cars are crazy priced. Yes there could be a deal to be had with the incentives and rates but will be quickly upside down by the nature of new car sales plus have a massive payment for that shorter term loan for the low rate. Or by used, significantly cheaper, with the higher interest but a payment that is more manageable. Perhaps you pay more but if you shop you won't.
I work at a Chevy dealer, the 2.9 is in lieu of the cash rebates, and with how expensive vehicles are now most can’t afford the payment on 2.99 for 48-60 months, almost 90% of our customers leave in 84 month loans. It’s crazy, not sure how people justify the cost anymore, the same Silverado I sold in 2019 is now $25k more
I’ve been watching the prices drop a bunch too.. I told my better half the other night that the prices are dropping so much here in southern KY, I’m thinking about jumping in the “flipping” game to buy up to a new Harley this year. Lol.. The past 2 years I’ve been lucky.. I bought a brand new Road Glide in 22.. road it all summer and fall then sold it in November 22.. for what I gave for it.. Didn’t lose a dime.. Did the same thing in March 23.. rode it all season and dumped it in November 23.. I did lose $1500 on that one.. Not bad at all. But from looking at the market.. I don’t think I’d get that lucky a 3rd time.. So I’m gonna go about it like you did on the Ferrari.. Like you said @Craig.. it’s getting tax season.. now’s the time. Plus, I think it will be fun just to try.. I’m sticking with the lower priced easy to move ones though. Quick sales. Stay blessed brother. Love the info!!
Spot on. As an enthusiast of certain model Lexus cars, I have seen all you’ve described. I’ll add, some dealers, new and used, still have their heads in the sand though.
That's the kind of trucks people are spending money on, to keep on the road. Buying new engines & tranies is cheaper than buying any new truck. And those old trucks are relatively simple & reliable, compared to the bumper-crop of flawed, expensive to fix, vehicle technology in the past 15 - 20 years! (Look for the CZcams video on the failed $5600 F150 tail-lights, that kept the truck from starting!)
As a Used Car dealer 3 hours from Craig in a Northeast College Town we have had to drop prices 10% to 20% on 1/3 of our inventory. Due to the severe cold it has kept buyers away. Good news sales pick up in March and April and we have a few budget cars: Camrys, Corollas, Versas ,Civics and Sentras coming from the shop. Our trucks are sitting. We don't have a floorplan so we don't HAVE to dump cars but we don't have lots of room and it isn't good mechanically when vehicles sit.
I track prices monthly on our cars. A year ago we could ask for more $$$ on cars then now, prices have softened. We manly sell Toyota and Hondas, which hold their value generally better. Since we own our cars outright we can hold onto our cars for as long as we want, and since there aren't many dealers around it can work to our advantage. If times are slow we can stop buying at auction. We don't finance either...cash only.
This is hard to believe I just bought a truck 2/15 and all tables had deals going and it's a huge dealership. The finance manager said they've never gone under 45 cars sold a weekend
small trucks are selling way better than those big over built over priced behemoths. fords 20k one and toyotas soon 20k one. all electric is tanking everyone realizing hybrids are the way. like the prev toyota ceo said.
Incentives and lower interest rates on a new vehicle will NOT make up the cost of the initial depreciation hit on a new car. Someone else has already taken that hit on a used car and it will take far less to break past the negative equity on a loan. Also, most people trade in the car they have so their trade-in value will also be worth less than it would have been in a stronger market, counter-balancing the lower price of the car they're buying. Someone making that kind of transaction is no better off now than before.
I bought a new silverado in 2018 got 15000$ off my buddy was the salesman i kept saying i stole this truck he said they still made like 10000$ profit in 45 min must be nice
When the Computer Parts Market was going insane I made alot of profit selling PC's now everything leveled off and now theres no profit really to be made, The used Car industry was the same way, its still rough but going down on most vehicles outside of Trucks.
I’ve been in the market for a C7 Z06 I’ve been watching all of them in my area just sitting for over 5 months now and not selling for the ridiculous asking prices on lots… PEOPLE ARE DONE TAKING IT UP THE A#% 🤷🏼
When you borrow on a car there is always the risk of being upside down, especially if you need to get out early than the contract maturity. Sometimes you get lucky, and sometimes you are left holding the bag.
That is why its important to make sure you buy something that will depreciate less than average like a Toyota or Honda or a popular sought after model. You can get more for your money with a new Hyundai but you will also take a big deprecation hit which would be okay if you plan on keeping it for a long time.
Generally there's 10 to 12% mark up in new vehicles. During COVID....yeah dealers where adding market adjustment.....but manufacturers were offering very little incentives (if any). Now the reason (for example Ram dealers) can offer 15% below MSRP is because the are received incentives from the manufacturer in order to do so.....incentives that weren't offered during the crazy sellers market during COVID.
I bought a used car for cash 5 years ago. Still drive it. Have spent a total of $978 on repairs above oil and new tires. So my car payment money has been averaging 8+ % in investments.
Interest rates were too low too long. It looks like it will take longer to dig out of this mess that created. The real problem is low interest rates caused greed in prices.
You are making things up! When the new car market was thriving during Covid, the manufacturers didn’t need or have incentives. So the fact that the dealers were marking up vehicles by 10K was because of supply and demand. So when you try and add todays $8000 cash back incentives to 20/21/22 prices is just insane. You should and I pretty sure you do know that factory incentives are never part of dealer profits. It’s a customer incentive that the dealer never gets!
Classic buddy good humor !:) I grew up in New York live in Texas now. My cousin is GM over 30 plus dealerships and I asked him at Christmas a few years ago why we are paying so much for cars and trucks that are made in Mexico he smirked turned and walked away! I kne something wasn’t right but everybody I shared this with did not seem to care? They the dealers were stealing from there customers with no care of consequences? May that pay a heavy price or go out of business:)
Been thinking this was coming for years. Even if used values were to drop FIFTY percent would still have 80% + equity on 2020 car ... since owe less than $2k. 2018 car paid in full. Both at 36k miles. And 1999 old fun car (all the fun is in the cheapies as Craig has said) paid in full ... and only 81k miles. Ready for lean times in automotive sense for a few years at least. Hope its short lived and minimal pain for the market ... but wouldn't bet on it.
You're so right about car prices going down. I think prices will continue to go down throughout the rest of this year (another 10%). Be patient and buy new after mid-year. We'll probably save more. . . Great videos! 😂 ❤
I never paid over MSRP the last 4 years!! Always got great deals from my Chevy dealership because they were honest and fair. They never suffered during this crazy years.
Car Market is not dead I live in Florida and I know a couple car lots who are selling cars daily idk about u but in Florida cars sell all the time at car lots and at the public police auctions those cars have been at the same price for about 3years till present day my friend sells old civic si and gsr Integras hes getting 8-12k for those I just see with my own eyes prices are the same
A lot of what you see from the new cars as far as pricing and interest, is less about making big profit in actual cars, and more about keeping the factory allocated. It cost them so much more to not have the factory fully allocated than taking very low margin on each sale.
Problem is, adjusted for inflation, car prices are still 20% or more higher than they should be. Example: Base Mini Cooper with no options was 20K 5 years ago. Today 30K. Inflation is 20% over the past 5 years so that Mini should be 24K. Hold onto your car and put in a new motor, transmission, anything to keep it running. Only way the greedy car manufacturers will have to drop prices.
Same market in canada, though not the manufactorers MSRP price reductions to the extant mentioned, -yet. But no doubt they are coming. Great snap shot of your market, informative and concise, well done.
You mentioned that car buyers now have to be reasonable about the car values and offers and that during the pandemic you had the power and were not overcharging you were just charging the market price. It amazes me how you dealers have convinced yourselves that you were not taking advantage you were not being greedy and you did not fleece your customers. Those foolish customers who purchased cars back then are now upside down in a depreciating oftentimes unreliable vehicle but you walked away with outrageous prices and profits. What you did wasn’t reasonable it was almost criminal you took advantage…. Please don’t play with words now to explain what happened you screwed your customers and now they don’t care what happens to your dealership and your overpriced cars. We don’t have to understand how much you paid for them and that you don’t want to sell them at a loss… it’s time for you to understand the market has changed you cannot gouge your customers now I hope every car buyer remembers how you (dealers) took advantage and does not buy anything until there are market adjustment of reductions 10,000 or more because as you said that is what the market is now.
Interest rates arent even that high. Everyone is just used to very low rates. Once the prices of vehicles come back down from outer space, people will buy again.
I was looking at purchasing a new Suburban last summer. Test drove a 2021. It was just okay imo. Too big. Bad sight lines. And, $65-80k, and wait 6-8 months. So I found an '03 with 100k on the odo. Very happy with my cash purchase and upgrades/customizations. 😊
@Flying Wheels....can you please make a comprehensive video on buying a used car at the dealer.please include the pros and cons as well financing vs paying cash, finance through a credit union vs a regular bank.and also what do if you discovered a lemon days or weeks after you already signed at the dealer and drove home the vehicle.please i would appreciate this in-depth video....i love the way you explain things in your videos and already convinced theres no better person who can pull this off.please help !! And thank you.
I got a used Mercedes wagon last year. I couldn’t get a new one at the time that wasn’t black or white with few options. I could not place an order. Mercedes wasn’t letting anyone build one, but was waiting for the new model, which still is not available. I had to get one out of state for a deal, and that was a huge pain. I’m happy I saved nearly 30% off the inflated new price by getting a used one, but a new car would have been more to my liking, fewer flaws. I see the market is changing, but haven’t noticed discounts on German cars in Texas. I’m considering new on the next one, but supply isn’t up yet. Waiting…
What pisses me off about new cars with all these incentives is that I live in the tax land of Maine and I still pay excise tax on the msrp no matter how much of a reduced price I pay.
I think the bloodbath will begin in the next 10-15 months when the car changers figure out they are stuck. Then the dealers will pay for all these people they buried up to thier necks with no way out. The unsecured debt on vehicles must be astronomical
I am going to have to disagree that it is a buyers market here in Southern California. I have watched many CZcamsrs say the same thing I am hearing here but for the last two weeks now I have been trying to purchase a 2018 - 2019 Honda Civic EX-L and these dealers are not budging. They are like it will sale by this weekend if you don't take it. Typically I feel they say this to get your emotions up to just purchase the car but they have been correct so far. The cars are selling and I honestly cannot believe these dealers are asking above $20,000 some nearly $25,000 for a 5 year old Honda Civic. This is still crazy to me as at $25,000 that is what it sold brand new for back in 2019. For $4,000 more you can get a brand new Civic, not the same trim level but full warranty and zero miles. So as far as I see where I live I have not seen it become a buyers market, maybe it will in the near future.
Some cars are still in demand. Go look at a 2019 Equinox, and I guarantee you will get a price reduction. 🤣 Buy a new Civic for the extra $ and move on with life.
@@mph5896 that is a negative on a new Civic. It is for my teenage daughter and we will not be purchasing a new car for several reasons. I will stick with a 2018 - 2019. Thanks for the suggestion 😉.
@@eostrike I would personally stay away from the 1.5 unless you buy an extended powertrain warranty on it. Too much of a risk for a head gasket problem. The block is designed like the 1.5 Ford Ecoboost in which there is minimal sealing surface between cylinders due to a slot cut out as a coolant passage.
@mph5896 thanks for the heads up. My whole family drives Honda's. My wife has a 2017 CRV 1.5L turbo with nearly 100k and knock on wood no issues. Now because you mentioned head gasket, next week may be a different story 😀.
@@eostrike Ha. A 2019 1.5 CRV is in my family. Purchased new, now has 35k on it. I was concerned with oil dilution, but figured Honda would make it right if it was an ongoing issue. Then I started hearing about head gaskets a few years ago. A Honda care warranty will be purchased for the CRV just in case. The LX comes with the 2.4 in the CRV in that year, and I believe the LX Civic comes with a 2.0 NA.
If you have to buy a new car and have no other choice, you have to realize a few things right now. As soon as you drive it off the lot, it just lost 25% of its value…maybe more. However, if you make all the payments for how ever many years you financed and keep the vehicle the entire time, it will, eventually, be paid off, and would have equity value. Somewhere in there is a break even point, where you could sell it for exactly what you owe and break even. Essentially, buying a new vehicle can be looked at as a justifiable expense, if it gives you a reliable vehicle that doesn’t cost you expensive repairs, prevents you from using Uber for all your transportation needs and was a solid/quality built vehicle that you can keep driving for 10 yrs and beyond, well after you’ve paid it off.
Banks were begging for trouble by loaning more than the value of the car PLUS taxes and license. It's no wonder ppl are under water. Option 4: get a second job and use that money to pay down your debts. Then be more careful the next time you go shopping.
On new car interest rates you have to read the fine print which should identify that”effective” interest rate. You receive a small cash discount if you finance but larger discount if you arrange your own financing.
Funny thing Flying said; He said a dealer can't sell for less than they have in the car, dealer would go out of business. OK, BUT. What he didn't say is, Is OK to sell a car to a person that they cannot afford or charge that person way too much for the car, aka Gouge the customer.
only 2 options that won't screw you in the long run. if you owe to much 1 pay the difference 2 keep the car till its paid down. eventually you will owe less than its worth. make sure you have gap insurance also. i always say if your buying a car and the dealer even hints that ou should have gap insurance your making a bad deal
I remember your video on the Covid crisis when people had more income coming in and put off paying their mortgage's and rents for 6 months, you said the chickens would come home to Roost, boy were you right..
Try Aura free for 2 weeks at aura.com/flyingwheels
Good evening Craig!
You need to buy more taco’s
They hold their value
Consider setting credit card alerts so that you can see all transactions coming across. So if you get breached then you'll see it immediately.
Consider a hardware key for your financial accounts.
I almost believed you about the AURA app, but of course, it's a click baitand and you're reaching an advertisement. Bad choice, it makes subscribers unsubscribe and block your account
@@Breezyaon1he said it’s today’s sponsorship
My plan is to go back to the Chevy dealer I shopped back in 2021 and go right to the same salesman I spoke to last visit. He told me to add 10k to the MSRP of everything on the lot and "maybe" I can drive a new truck home. He was a cocky shit. I told him I'll wait because i don't have to buy anything immediately. He told me not to count on it, the days of negotiations are over for good and I'll just have to get used to it. He also told me I'll never see inventories above 20-30 total units again and I need to get used to ordering without test driving. I'm starting to look again. I still haven't bought anything. I'm patient and I'll wait even longer if I have to. I know he's still there. I see him outside all the time when I drive by Chevy. I'm not buying anything from him or that dealership. I just want to stop by and make him eat his words.
😂
I bet he's going to be like ye come on down we have a good deal just for you
My cousin just bought a 2022 Chevy Silverado for around $35K over the weekend.
You need therapy. Some people don’t care about 10k if you have it you have it. If 10k is make or break for you. I would say focus on you not the guy at Chevy telling you hard truths of the ever changing market. Stop wasting your time on CZcams and work harder.
@@phillipdunn655uh oh big baller here likes getting ripped off by dealerships. I bet your wife's boyfriend loves it too. Who am I kidding, you're an incel in a basement.
Msrp on ram went up 30-40k in the last 3-4 years, 10% off is not a deal.
This, right here, is what I tell people and they don't get it usually.
Exactly 4 years up 25k should be 3k
Screw these dealers im keeping mine
dealer just gonna add 15% more with scam fees like paint protection/nitrogen tires/delivery fee/scotch guard.
100 percent. Fuck these dealers and manufacturers
Buy a 5 year old truck, better quality and 1/2 price of new one that is mostly using cheap Chinese parts.
Surprisingly, nothing seems to be selling. The challenges range from supply chain disruptions to changing consumer preferences, leaving dealers grappling with excess inventory and shrinking profit margins.
It's indeed a complex scenario. With the shift towards electric vehicles and a general slowdown in the automotive industry, dealers are facing an uphill battle. The demand for traditional gasoline-powered cars has dwindled, and this mismatch is causing a stagnation in the market.
As a car enthusiast, I've noticed the shift in consumer preferences firsthand. While it's great news for buyers with the potential for better deals, it's disheartening for dealers who are struggling to move their inventory. This calls for a strategic approach from both perspectives.
Exactly. It seems like a challenging time for dealers. I wonder if there are financial consultants who specialize in assisting businesses through such market downturns.
Indeed, engaging a finance consultant can be a game-changer in navigating these tough times.
I've been consulting with NATHAN TRAVIS COOK
Yeah, truck prices up 25k over the last few years and coming down a couple thousand isn't a deal.
No more 1500's with 125k miles going for 35k
@@MrKruor There are 2020 Ford's, Ram's, Chevy's and Toyota's on the market with just over 100k miles and they want like $35-60k depending on the trim level, etc. No way would I pau that much for a used vehicle and have no waranty in addition to the high miles. Honestly those trucks are not worth it anymore.
Exactly
Actually they're up more than 50%
The best advice is NEVER pay interest on a DEPRECIATING asset.
Right now there are a TON of very good used cars that are between 5 and 10 grand that will serve you very well for the next 3 to 5 years and STILL be worth around 50 percent of what you paid when you're ready to upgrade.
Watch the CAR WIZARD'S series on what to buy and what to avoid.
You're welcome.
Very true. Don't be the sucker your new car is dropping like a rock. They're 30% overpriced as it is and the quality is cheaply made, most parts are from China even in a Benz!
And more importantly never pay a market adjustment on a depreciating asset.
Never take a Loan out for a depreciating asset like a car ! If can't pay cash you can't afford it. That is the Best advice. Don't be living above your means. When times like high inflation hits living below your means gives you cushion instead of living on the razors edge !
I just bought last yr a jeep grand Cherokee loaded. 2013 165,000 miles I paid $5k car has nav, leather, sunroof. And some other bells. It was taken care of at the dealer every 3k mileage. You just have to look and you can find some gems.
If you do your homework, (and some automotive knowledge helps too), it's possible find a quality, reliable used car that will serve you well for 15 - 20 years! The predatory covid-era market, and rampant inflation, has turned many people against new cars. The insane technology, decreasing reliability, and increasing cost to repair many makes, doesn't help. The most I ever paid for a vehicle was $4700 and it lasted 25 years. Today, I'm driving a '98 Altima, bought for $3400 in 2005, and a clean 96 Tacoma I patd $400 for in 2015. (Yes, it did need some repair) Currently, with only 83K on the clock, it may outlast me!
2019, I was buying cars CHEAP. Decent cars for $1500, needing only minor repairs. One of those cars, my brother bought it for $1500 in 2019, drove it for 4 years and sold it a few months ago for $3500. Will we ever see that kind of market again, ???
Covid messed up the whole market, don't think so
That’s the issue… The cars cost too much and they require way more repairs than in the past
You will. Just not on market place. Wholesale public auctions will have those deals. Auctions really are the only place I can find deals now. Cheap cars on market place are generally destroyed for 1500$ now. I got a 09 Mercedes’ c300 v6 133000 miles. One owner clean interior and exterior. $1025 otd. Needed an alternator. Sometimes you can score. Just need to look hard
@@rajivsingh1999do you have a license to buy them or can a guy without one like me buy at the auctions your talking about. Ik there’s stuff online but the dealer like auctions that’s not a bunch of insurance cars.
That's the issue, it's still a $1,500 car and even if we assume 25% inflation from 2019 until now. You have a $2,000 car, not $3,500 since it's obviously bottomed out in valuation
As a 20 yr real estate broker, thank you! I HATE that "marry the house, date the rate" saying. "You can always refinance" was bad advice in 2005 and its bad advice now. You've got some great insights and I'm curious how long you expect. This shake up in the auto industry to last. I expect another 18-24 months but i'm not in the industry. (And that's assuming there's not another crazy financial curve ball coming down the pipe)
Why is it that I have never heard of, nor met a person who enjoys the car buying process? It's because the dealers have created a dishonest, untrustworthy process, and an adversarial relationship with their customers. I can't think of anything else that I buy that has anything close to this experience. There is a stereotype for a reason.
And that's because the car companies make them build new showrooms every 3 or 4 years, adding millions to costs of cars nationwide. Do you really care what the showrooms look like? But the major car companies Ford, Honda , GM , Toyota make them spend money or lose the right to be a dealer
Buying a house is even worse.
My best car-dealer experience, was in 2005, at the used car lot of a local Volvo dealer.They'd advertised a pair of '98 Nissan Altimas. I went in to see the sales-manager. No pressure! After taking my info, he simply handed me the keys to both cars and stayed in his office. First, I started the immaculate-looking silver Altima and the engine made a horrible rattle. End of test-drive! Next, a slightly shabby white Altima with crappy tires. It ran and drove just fine, with cold AC, along with a few clunks and noises, that I determined were easy DIY fixes. I offered $500 under the asking price, and drove home in my 'new' $3400 Altima. I'd noticed there was no owners pouch in the glovebox, but remembered there was one in the Altima with the noisy engine. So a couple days later, I drove back to ask the sales manager if maybe for a few bucks, I could have the one from that car. He opened the door, pulled out the owner's pouch and just handed to me, with a "Have a nice day". One might say I paid too much for a shabby, imperfect, 7 year-old Altima. But I'm still happily driving that car today!
e bike and bicycle shopping is still fun and you get to pay cash up front no loans needed
I just bought a new Jeep Wrangler and they dinged me $299 for window etching! These moforks must lie awake at night figuring ways to beat you out of your money.
The rate could be 0% but the prices are still high. Think about this... 10% off MSRP average 8000 off, that's an 80,000 truck which should be maybe 50k. You are still getting bent over. And remember taxes, insurance, gas and other costs. Don't pay attention just to the rate, but also the price of the car. Unless 30% off, nope.
Why should the “truck” be maybe 50k? Which truck that is 80k “MSRP” should be 50k? Really curious about that
I bought my mk7 gti from flipping (I started with $3000 and made $14000) and the car costs me no $$ per month on finance. Totally happy with the car and don’t plan on selling! Thanks Craig for helping me flip a few cars a year! (In my country I can legally sell 6 cars per year no license and last year did it and got $19,000 tax free from flipping at $3000)
How did you find the cars to sell ? Buying private makes sense, but selling private is also generally a lower price than what dealers sell. Thanks!
If you own it for 8 and it's now worth 6...you will take 6 or you'll end up taking 4 some months down the road. Period. Your first loss is your best loss.
Losing half it’s value is a stretch for any vehicle unless you bought it wrong to begin with. Our boy isn’t that dumb.
Vehicles under 10 don’t drop thousands they drop hundreds if that even
Im curious how you came to this conclusion man.
@@neilgunns8391 inflated pandemic values are unprecedented, this current vehicle market cannot be referred to in any other instance in history. just the business, kid
@@teenagedsteam6404 your opinion matches up with your username, teenager. you're speaking out of your ass and all I hear on my end is a load of 💩!!! Vehicles aroudnd or under 10k have been consistently dropping in values over the course of the last few months and recalibrating with where their true value lies, which YES, is a few thousand dollars worth!! It's not a matter of them dropping in true value, bud. It was all inflation brought on by our government and what goes up... must come down.
You are correct. I've been wanting to buy a Cadillac EXT since October of last year, prices have dropped 5 to 6k in the Chicagoland area
Nothing is a deal still. I remember 2017 to 2018 i was getting 4 bangers for 800 to 1500 bucks needed some minor repair and i could flip for 3k to 7k and i would drive it until i could flip. I used todo it for fun. ( i am a home mechanic) i like to fix things lol ...i found a car for my wife in 2018 a 2002 mercedes e320 4matic wagon with only 100k on the clock for 3k! I found a 1997 960 volvo wagon with 90k miles like 10 years ago lol for 1500 bucks!! Needed nothing! I needed a 4x4 car i got a 2002 sequoia with 140k miles for 3500k about 8 yeard ago. I still have all these cars all still reliable. People need to start learning how to mantain their cars and buy parts before they break. Like sparkplugs coils brakes extra tires etc etc. Little by little put it in your garage or shed. When time comes you have everything ready. I do this my garage is full of parts when my car brakes i am ready!
What were the best car models you made money on flipping.
@@glengarbera7367 2008 to 2012 nissan versa 1.8 those little buggers are east to fix and durable specially the 4 speed not cvt...early 2000 jetta I flipped a lot but complicated to fix and expensive parts. I gotta say any toyota corolla or camry they wouldnt last they sale fast...also only manual or standard gearbox Hondas very hot on the market people would love those. Any auto Hondas with over 200k have issues with auto gearboxes so stay away from that..I used to flip ford focuses Fiestas and fusions until they realized the gearboxes are trash so I stopped. And any volvo wagon is a fast sale easy to fix durable and the beauty of a volvo they don't rust easily.
The sequoia is very reliable I use it only for snow and outbanks Beach ventures about 30 to 50 times a year and I have only done breaks on that thing very reliable and dependable.
Great! Now the Tax Man will audit you 3 years deep to see if you have been paying taxes on your flips. After all, you just announced it on Social Media!
Right. IRS audit of uniqu3xperiences on YT lol
@robertscheinost179 I am at peace with the irs. I know the rules of the game no more than 5 a year in ny state. By the way what a negative comment lol out of nowhere is this what youtubers call a troll? Sorry I am old.
I'm a cash buyer w/789 credit score. I only buy the least optioned vehicle available so long as it has good reviews. It's sad the industry was forced to invest in the phony EV market, crammed down the throat of the American consumer. I see the damage done by that & other mismanaged decisions to cause a economic collapse. I realize dealers cant sell at a loss, but the reciever can.
Tax refund market is going to disappoint you this year.
If you're upside down on a loan another option is to drive it until paid for and hopefully a little longer then you can make up some of the money you spent upfront on your car. I did that with an 06 SRT magnum right after I bought it gas prices nearly doubled two months later the same car was $7500 less. I drove it just shy of 5 years without a car payment in the long run I drove the money out of it. I would have drove it longer but it dropped a valve @70000 miles loved the car
Exactly. I'm sure he knows that, but a car salesman is a car salesman. He thinks about getting you into another car.
Unless the rest of the car was trash, a new engine would've been cheaper than a new car!
I was thinking that same thing. I one time had a new 1995 Escort. Severely upside down. I felt the best advice is keep driving it until you can sell for what you owe. In the mean time, just LIVE with it.
Apparently that was hard for me to do because I was very dissatisfied with the car.
Tax Refunds Are At An ALL-TIME LOW and Sluggish Coming In
What?
@@The1Mischief The Average Refund Is LOWER Because Tax Rates Are Up And Income Is DOWN. And People Who Owe Are Filing Later Because They OWE Money. CLEAR?
But wages increased so tex refunds cant be lower@@johneisenberg5065
@@johneisenberg5065tax rates?…. Do you mean the tax brackets? If so they have NOT changed
@@johneisenberg5065also if income is down then you will be in a lower tax bracket so you’ll be taxed at lower rate.
I have a question for all the car dealers:
In my experience, whenever a cash buyer comes in the door, and offers the "new market" price on a car rotting on the lot ...I have never seen the dealer actually sell at a loss. They always throw up hands and say, "I can't lose money, we'll send it to the auction in that case". This seems to be the mode, of both Mom/Pops and the bigger dealerships. Why not take the "bird in the hand" and sell the car you paid too much for, to your poor little old customer? Why go to all the work to take your loss at the auction? 30-40 years ago, it did not seem to work that way... what has changed? Why take it to the auction, take a loss, spend the time, and loose the fees?
What am I missing here.. why not let car buyers get a deal once in a while; that would be good for dealer's reputation ... we all know they need help in that dept....
idk about other dealers but at my dealership we take deals where we actually LOSE money but we're only able to do that if we're able to get high-profit deals from other customers
Disposal of unsold inventory at auction is more palatable to investors. Inversely, salespeople giving away inventory at a loss to customers = bad optics. This is to be avoided.
Where do you get the “new market” value from? I get a lot of unreasonable offers from the public for less than wholesale. You need to make money, if you’re stuck in an aged vehicle sometimes you need to sell for a loss. To the auction or to a customer it shouldn’t matter. Personally i would sell to a customer over wholesaler if they are offering the same amount.
@@ryanmac358 I have been turned away by simply offering KBB values. Many dealers claim other books (JD Power etc) to hoke up value on their end. The "new market" would simply refer to a car, you as a dealer might be upside-down on. For instance.. trying to sell a Tesla M3 for 26k, when actually the the realistic sale price
might 23k. I find that dealers are far less willing to "take a loss and move on" than one might think. Maybe dealers have a pile of cash.. but to me there would be nothing worse than tying up money in a car on your lot that would never sell. Here is a scenario I would like to get your opinion on: Lets say you paid 28k for this Tesla M3, last year when things were giddy... then the EV market collapses.. (for BS reasons) and now your car is only worth 26k at the auction, but that auction is not for 3 weeks from now and you have bills and you would have to take it there and wait and pay fees... and lets say today a streetwise customer comes in and offers your estimated auction price of 25,500 or say 500 bucks less than you might gross at the auction? would it not be better to take the "bird in the hand" --after all, you are losing money anyway why wait to lose the money? Why not lose a little bit more and be sure you are rid of the car? You'll also gain the reputation of selling cars cheap, which might be a good thing word of mouth.
I have my own theory - - I think car dealers like many other dealers of things are actually just compulsive chance takers (the thrill of the dice) with a day job - - in other words, there's a thrill in waiting for the next deal hoping you'll do better. That goes with buying and selling … Otherwise why would it make sense to compulsively go back to the auction? There's got to be some drawn out. Hope that you'll do better than your loss. to err is human and we are all human, so I am not being overly critical of car dealers everywhere... I have noticed that if you know what a car is actually worth in a falling market, and are willing to offer the dealer a chance to take the escape shute... at a small loss... They seemingly never do.
@@TheBigdog868 That makes sense... I can see that might be bad optics to the middle-management... but tell that to Sam Walton. When word of mouth spreads that you were the cheapest place in town, people will buy from you whether you are or you aren't...later. And you'll lose money at the auction too.. why make the auction house rich?
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult....
@emiliayulia1520 if you tell me what an ETF is I will think about how 🤔 best to advise you, but 1 thing I do know is you just broadcast on CZcams that you have $400k to invest. Your screen name is probably enough for someone with computer skills to find your location, ie who you are. I'd remove your post and make sure nobody can transfer your money out of your account.
The prices on the lot say the dealers are doing just fine. When they drop 40 or 50% you can tell me something has happened. Until then I will just fix what I have and continue to wait.
If you save 6% rate buying a new car you will lose far more in depreciation over the next 48 to 60 months than the rate saves you. Buy used cash.
as a wholesaler there is a definite drop in prices. This time of the the year prices should be higher for dealers prepping for tax season, but I noticed prices are lower than what they were around thanksgiving to christmas season.
My retail side is very slow this year and it’s tax season. ppl are asking for under 5000 around 4500 for a car. Carmax auctions area GA TN vehicle were passing the high side of wholesale into average retail.Even todays auction.
@clintonmichaels9259 this!!! I'm new and trying to build inventory. I'm trying to even stay in the 4500-6000 range. But when MMR is 2300 and they're buying it auction for 7k, they can have it.
@flatlandAutoSales you need to talk to some "seasoned" dealers before you fuck up big time!!!
@OutlawChevy2 I'd love to..most of them around here refuse to talk to me. I've got a few but it would be nice to have someone out of state out of competition
I have several vehicles I had imaginations to sell all. And get one good one. I had thoughts but not sure if should do it or not. Because I'm happy with my $3000 vehicles. I have a 13 Kia Rio 150k miles, 05 F150 213k miles, 4.6l, 06 Rav4 150k miles, and 11 Ford edge limited 167k. HAPPINESS IS THEYRE ALL PAID FOR. And they all run great. And it's nice to have different types of vehicles for different needs. Example. The fancy 11 Ford edge is weekends only, and my Kia Rio is my commute car.
When you were shocked by the "margin" that dealers had on these cars when they were adding market adjustment over the MSRP remember there are 2 people involved in the sale of a new car. The Manufacturer and the Dealer. The Dealer was the one gouging for the market adjustments not the Manufacturer.
AND....... dont forget the dealer crap add ons - then you pay sales tax/ finance on top of all this !!!
Does it never end?
Craig, this is why I bought the Silverado at the time it was the least expensive crew cab 6.5' bed LT on the market in the USA. I also like Flying Wheels no dealer fee.
I’m keeping and fixing my cars, New cars are 2/3 over inflated Im not buying, I will keep buying $4,000 hoopties and running them until the junk yard…
You're probably a millionaire. Wise.
10:11 Had me rolling! The Devil’s Lettuce! 😂😂😂
My very low mileage 2010 Ford Fusion looks very good to me for many years to come as long as someone doesn't wreck into me. My kids are saving to buy cars and they are not financing anything, pay for it all. The market up here in Canada is even worse than yours, it's crazy! Ad 20% or so to all those new US car prices since our dollar sucks. Same with our house, we owe pennies on the dollar as we bought in a good market 10yrs ago and we kept our purchase low. My mortgage is lower than most people's car payment.
Bushradical on YT just drove all the way to Alaska across Canada from Michigan to loan his car to his son as finding an affordable car up there is really hard apparently.
@@eamonnmckeown6770 He's a good dude. I like his channel
Wow !!!you really made this car market make since to me ,and thanks for the honesty and information it truly helps families. ❤
I'd like to see more videos on fixing up the cheap cars you bought. And what kinds of trucks you can snag to resell for that price. Because it almost seems impossible
Hi Craig. Great video. And thanks for the lesson. I think also that the General Public have been Scared by the Dealers and the Public now Despise Car dealers. They took the Piss out of their Customers. At least You and Dealers like you are just trying too Pay your Bills and keep your head above Water. Now Dealers can't give Cars away. Great video bro. Thanks. 😅🇨🇮
3:52 "We can't sell at a loss, it is not possible." Anything is possible, lolol. Thx for the vid tho!
Yeah that pissed me off tbh. Per car dealer, customers are the only ones who should lose.
No shit. Fine, dont sell at a loss. Sit on the inventory and go bankrupt.
They’ll sell at a loss with other dealers not customer
Before COVID, I bought new cars only at 15-20% of MSRP. I am glad you see I can do it again. Too bad I only get a car every 10 - 12 years
I want a BMW M8. 2020s are going for 65k to 75k with 20k miles. A new 2024 BMW M8 is about 130k. I'll buy a used one at 8% with a descent down payment vs paying 3% on a 130k 😂
Just bought a 2023 Audi A5 45 Sportback Premium Plus with ventilated seats, 19" wheels, PPF, and an Audi 130k mile warranty for $46k yesterday. 12k miles on the clock.
Is that a good deal?
How much was the same car back in 2019? Same trim
@@Lorenzo-wl5xt MSRP is about the same in 2023 as 2019, plus in 2020 they added a mild hybrid system, upgraded the tech to match the A6 and A8, updated the Quattro system, and gave it a facelift with new LED headlights and taillights. My window sticker that I found in the glove box said MSRP was $56,865.
@@WilC379
I'd say it's a great deal
Thank you for sharing your personal experience
It may be moving in the right direction, but it’s nowhere close where it needs to be. New car prices are still way way way too high. Interest rates are ridiculous. Not a buyers market at all. Maybe for ignorant buyers.
Very few cars appreciate. The vast majority eventually end up rotting away in a junk yard. So you’re throwing money away. At least make it an affordable purchase for your budget.
If a dealer is selling a car/truck and is asking $20K and more over MSRP, that not a good time to buy no matter what the incentives are.
The average person know their credit or their in denial but it's the vehicle price that's upsetting people
Last June 26, 2023, I bought a new 2023 Nissan Titan Pro4X with a $7,000 discount with a doc fee as the only adder and they financed it for 0% for 60 months! 5 year 100,000 mile bumper to bumper warranty and the dealer also included a lifetime drive train warranty.
Unfortunately your nissan is now -13000 dollars from the crazy amount you paid. Congrats.
Yes new truck prices are coming down...BUT trade in values from these new truck franchises are going down faster ! Trade in values have completely tanked ! So in some cases buying a new truck now is worse than before. Especially if you don't have A+ credit to qualify for the factory interest rates.
Me being a wholesale dealer, the softer market puts me back into the game! We're known at our auctions for selling "lot ready" vehicles.
New cars are crazy priced. Yes there could be a deal to be had with the incentives and rates but will be quickly upside down by the nature of new car sales plus have a massive payment for that shorter term loan for the low rate. Or by used, significantly cheaper, with the higher interest but a payment that is more manageable. Perhaps you pay more but if you shop you won't.
If people are under water voluntary repos is the way to go. Its a life lesson and then those people can buy a cheap used car.
Ppl are still on the hook for losses incurred. Voluntary repo or not.
I work at a Chevy dealer, the 2.9 is in lieu of the cash rebates, and with how expensive vehicles are now most can’t afford the payment on 2.99 for 48-60 months, almost 90% of our customers leave in 84 month loans. It’s crazy, not sure how people justify the cost anymore, the same Silverado I sold in 2019 is now $25k more
I’ve been watching the prices drop a bunch too.. I told my better half the other night that the prices are dropping so much here in southern KY, I’m thinking about jumping in the “flipping” game to buy up to a new Harley this year. Lol.. The past 2 years I’ve been lucky.. I bought a brand new Road Glide in 22.. road it all summer and fall then sold it in November 22.. for what I gave for it.. Didn’t lose a dime.. Did the same thing in March 23.. rode it all season and dumped it in November 23.. I did lose $1500 on that one.. Not bad at all. But from looking at the market.. I don’t think I’d get that lucky a 3rd time.. So I’m gonna go about it like you did on the Ferrari.. Like you said @Craig.. it’s getting tax season.. now’s the time. Plus, I think it will be fun just to try.. I’m sticking with the lower priced easy to move ones though. Quick sales. Stay blessed brother. Love the info!!
Spot on. As an enthusiast of certain model Lexus cars, I have seen all you’ve described. I’ll add, some dealers, new and used, still have their heads in the sand though.
My newest vehicle is a 2003 F-150. I’m not interested in anything newer.
That's the kind of trucks people are spending money on, to keep on the road. Buying new engines & tranies is cheaper than buying any new truck. And those old trucks are relatively simple & reliable, compared to the bumper-crop of flawed, expensive to fix, vehicle technology in the past 15 - 20 years! (Look for the CZcams video on the failed $5600 F150 tail-lights, that kept the truck from starting!)
You have great info. And great content.Your story's are easy understand market.I Thank you.
As a Used Car dealer 3 hours from Craig in a Northeast College Town we have had to drop prices 10% to 20% on 1/3 of our inventory. Due to the severe cold it has kept buyers away.
Good news sales pick up in March and April and we have a few budget cars: Camrys, Corollas, Versas ,Civics and Sentras coming from the shop. Our trucks are sitting. We don't have a floorplan so we don't HAVE to dump cars but we don't have lots of room and it isn't good mechanically when vehicles sit.
You had to drop prices because you overpriced initially lol. Lots market is still saturated with overpriced vehicles
I track prices monthly on our cars. A year ago we could ask for more $$$ on cars then now, prices have softened. We manly sell Toyota and Hondas, which hold their value generally better.
Since we own our cars outright we can hold onto our cars for as long as we want, and since there aren't many dealers around it can work to our advantage. If times are slow we can stop buying at auction. We don't finance either...cash only.
10,000 off a 100,000 truck is still 90,000 and 3% for 72 months is like 1400 per month no thanks
99% of new cars have built in problems that most don't want to buy a problem that cost $$$$$.
Same small dealer problems here in Canada great video you tell it like it is
11:57 can't get those rates here in Canada, they are 7.99 and up. They advertise that as a special promo rate as well.
This is hard to believe I just bought a truck 2/15 and all tables had deals going and it's a huge dealership. The finance manager said they've never gone under 45 cars sold a weekend
small trucks are selling way better than those big over built over priced behemoths. fords 20k one and toyotas soon 20k one. all electric is tanking everyone realizing hybrids are the way. like the prev toyota ceo said.
Incentives and lower interest rates on a new vehicle will NOT make up the cost of the initial depreciation hit on a new car. Someone else has already taken that hit on a used car and it will take far less to break past the negative equity on a loan. Also, most people trade in the car they have so their trade-in value will also be worth less than it would have been in a stronger market, counter-balancing the lower price of the car they're buying. Someone making that kind of transaction is no better off now than before.
I bought a new silverado in 2018 got 15000$ off my buddy was the salesman i kept saying i stole this truck he said they still made like 10000$ profit in 45 min must be nice
When the Computer Parts Market was going insane I made alot of profit selling PC's now everything leveled off and now theres no profit really to be made, The used Car industry was the same way, its still rough but going down on most vehicles outside of Trucks.
Mark-ups are crazy. 10% off a $15000 mark-up is not a deal.
I’ve been in the market for a C7 Z06 I’ve been watching all of them in my area just sitting for over 5 months now and not selling for the ridiculous asking prices on lots… PEOPLE ARE DONE TAKING IT UP THE A#% 🤷🏼
When you borrow on a car there is always the risk of being upside down, especially if you need to get out early than the contract maturity. Sometimes you get lucky, and sometimes you are left holding the bag.
That is why its important to make sure you buy something that will depreciate less than average like a Toyota or Honda or a popular sought after model. You can get more for your money with a new Hyundai but you will also take a big deprecation hit which would be okay if you plan on keeping it for a long time.
Generally there's 10 to 12% mark up in new vehicles. During COVID....yeah dealers where adding market adjustment.....but manufacturers were offering very little incentives (if any).
Now the reason (for example Ram dealers) can offer 15% below MSRP is because the are received incentives from the manufacturer in order to do so.....incentives that weren't offered during the crazy sellers market during COVID.
I bought a used car for cash 5 years ago. Still drive it. Have spent a total of $978 on repairs above oil and new tires. So my car payment money has been averaging 8+ % in investments.
Interest rates were too low too long. It looks like it will take longer to dig out of this mess that created. The real problem is low interest rates caused greed in prices.
You are making things up! When the new car market was thriving during Covid, the manufacturers didn’t need or have incentives. So the fact that the dealers were marking up vehicles by 10K was because of supply and demand. So when you try and add todays $8000 cash back incentives to 20/21/22 prices is just insane. You should and I pretty sure you do know that factory incentives are never part of dealer profits. It’s a customer incentive that the dealer never gets!
I just drive by the local car lots filled with 2023 trucks and laugh ...
Classic buddy good humor !:) I grew up in New York live in Texas now. My cousin is GM over 30 plus dealerships and I asked him at Christmas a few years ago why we are paying so much for cars and trucks that are made in Mexico he smirked turned and walked away! I kne something wasn’t right but everybody I shared this with did not seem to care?
They the dealers were stealing from there customers with no care of consequences? May that pay a heavy price or go out of business:)
Been thinking this was coming for years. Even if used values were to drop FIFTY percent would still have 80% + equity on 2020 car ... since owe less than $2k. 2018 car paid in full. Both at 36k miles. And 1999 old fun car (all the fun is in the cheapies as Craig has said) paid in full ... and only 81k miles. Ready for lean times in automotive sense for a few years at least. Hope its short lived and minimal pain for the market ... but wouldn't bet on it.
SOME BANKS ARE DENYING LOANS FOR CARS. That is a warning something is wrong.
You're so right about car prices going down. I think prices will continue to go down throughout the rest of this year (another 10%). Be patient and buy new after mid-year. We'll probably save more. . . Great videos! 😂 ❤
When the hood has homes for $1,000,000. How can anyone afford a car?
I never paid over MSRP the last 4 years!! Always got great deals from my Chevy dealership because they were honest and fair. They never suffered during this crazy years.
Car Market is not dead I live in Florida and I know a couple car lots who are selling cars daily idk about u but in Florida cars sell all the time at car lots and at the public police auctions those cars have been at the same price for about 3years till present day my friend sells old civic si and gsr Integras hes getting 8-12k for those I just see with my own eyes prices are the same
A lot of what you see from the new cars as far as pricing and interest, is less about making big profit in actual cars, and more about keeping the factory allocated. It cost them so much more to not have the factory fully allocated than taking very low margin on each sale.
Problem is, adjusted for inflation, car prices are still 20% or more higher than they should be. Example: Base Mini Cooper with no options was 20K 5 years ago. Today 30K. Inflation is 20% over the past 5 years so that Mini should be 24K. Hold onto your car and put in a new motor, transmission, anything to keep it running. Only way the greedy car manufacturers will have to drop prices.
Same market in canada, though not the manufactorers MSRP price reductions to the extant mentioned, -yet. But no doubt they are coming. Great snap shot of your market, informative and concise, well done.
You mentioned that car buyers now have to be reasonable about the car values and offers and that during the pandemic you had the power and were not overcharging you were just charging the market price.
It amazes me how you dealers have convinced yourselves that you were not taking advantage you were not being greedy and you did not fleece your customers.
Those foolish customers who purchased cars back then are now upside down in a depreciating oftentimes unreliable vehicle but you walked away with outrageous prices and profits.
What you did wasn’t reasonable it was almost criminal you took advantage…. Please don’t play with words now to explain what happened you screwed your customers and now they don’t care what happens to your dealership and your overpriced cars.
We don’t have to understand how much you paid for them and that you don’t want to sell them at a loss… it’s time for you to understand the market has changed you cannot gouge your customers now I hope every car buyer remembers how you (dealers) took advantage and does not buy anything until there are market adjustment of reductions 10,000 or more because as you said that is what the market is now.
Just stumbled on your channel, love the vids, subscribed.
As soon as you drive a new car off the lot you’re losing thousands. I think the “buy a new car” advice depends on the car.
New SUVs and trucks are still up %40 from pre pandemic….far too expensive
Depreciation is borderline irrelevant if you plan to use your car 10-15 years.
Still getting screwed if you buy any of these new cars .. they are just adding a little lube to make it more comfortable
Interest rates arent even that high. Everyone is just used to very low rates. Once the prices of vehicles come back down from outer space, people will buy again.
FJB
I was looking at purchasing a new Suburban last summer. Test drove a 2021. It was just okay imo. Too big. Bad sight lines. And, $65-80k, and wait 6-8 months. So I found an '03 with 100k on the odo. Very happy with my cash purchase and upgrades/customizations. 😊
@Flying Wheels....can you please make a comprehensive video on buying a used car at the dealer.please include the pros and cons as well financing vs paying cash, finance through a credit union vs a regular bank.and also what do if you discovered a lemon days or weeks after you already signed at the dealer and drove home the vehicle.please i would appreciate this in-depth video....i love the way you explain things in your videos and already convinced theres no better person who can pull this off.please help !! And thank you.
I got a used Mercedes wagon last year. I couldn’t get a new one at the time that wasn’t black or white with few options. I could not place an order. Mercedes wasn’t letting anyone build one, but was waiting for the new model, which still is not available. I had to get one out of state for a deal, and that was a huge pain. I’m happy I saved nearly 30% off the inflated new price by getting a used one, but a new car would have been more to my liking, fewer flaws. I see the market is changing, but haven’t noticed discounts on German cars in Texas. I’m considering new on the next one, but supply isn’t up yet. Waiting…
I think trucks are probably the worst, sports cars a close second. The used prices are literally WTF
Buyers haven't stopped buying. Buyers are buying cheaper cars with the same payment.
Dealers will be closing for sure. Cars are not investment.
Prices still high with absolutely insane interest rates even with great credit
I love the Cybertruck but I’m hearing they are having issues with rust. Might not be that great in NH.
electric is a scam...buy a deisel
What pisses me off about new cars with all these incentives is that I live in the tax land of Maine and I still pay excise tax on the msrp no matter how much of a reduced price I pay.
I think the bloodbath will begin in the next 10-15 months when the car changers figure out they are stuck. Then the dealers will pay for all these people they buried up to thier necks with no way out. The unsecured debt on vehicles must be astronomical
I am going to have to disagree that it is a buyers market here in Southern California. I have watched many CZcamsrs say the same thing I am hearing here but for the last two weeks now I have been trying to purchase a 2018 - 2019 Honda Civic EX-L and these dealers are not budging. They are like it will sale by this weekend if you don't take it. Typically I feel they say this to get your emotions up to just purchase the car but they have been correct so far. The cars are selling and I honestly cannot believe these dealers are asking above $20,000 some nearly $25,000 for a 5 year old Honda Civic. This is still crazy to me as at $25,000 that is what it sold brand new for back in 2019. For $4,000 more you can get a brand new Civic, not the same trim level but full warranty and zero miles. So as far as I see where I live I have not seen it become a buyers market, maybe it will in the near future.
Some cars are still in demand. Go look at a 2019 Equinox, and I guarantee you will get a price reduction. 🤣
Buy a new Civic for the extra $ and move on with life.
@@mph5896 that is a negative on a new Civic. It is for my teenage daughter and we will not be purchasing a new car for several reasons. I will stick with a 2018 - 2019. Thanks for the suggestion 😉.
@@eostrike I would personally stay away from the 1.5 unless you buy an extended powertrain warranty on it. Too much of a risk for a head gasket problem. The block is designed like the 1.5 Ford Ecoboost in which there is minimal sealing surface between cylinders due to a slot cut out as a coolant passage.
@mph5896 thanks for the heads up. My whole family drives Honda's. My wife has a 2017 CRV 1.5L turbo with nearly 100k and knock on wood no issues. Now because you mentioned head gasket, next week may be a different story 😀.
@@eostrike Ha. A 2019 1.5 CRV is in my family. Purchased new, now has 35k on it. I was concerned with oil dilution, but figured Honda would make it right if it was an ongoing issue. Then I started hearing about head gaskets a few years ago. A Honda care warranty will be purchased for the CRV just in case. The LX comes with the 2.4 in the CRV in that year, and I believe the LX Civic comes with a 2.0 NA.
If you have to buy a new car and have no other choice, you have to realize a few things right now. As soon as you drive it off the lot, it just lost 25% of its value…maybe more. However, if you make all the payments for how ever many years you financed and keep the vehicle the entire time, it will, eventually, be paid off, and would have equity value. Somewhere in there is a break even point, where you could sell it for exactly what you owe and break even. Essentially, buying a new vehicle can be looked at as a justifiable expense, if it gives you a reliable vehicle that doesn’t cost you expensive repairs, prevents you from using Uber for all your transportation needs and was a solid/quality built vehicle that you can keep driving for 10 yrs and beyond, well after you’ve paid it off.
Banks were begging for trouble by loaning more than the value of the car PLUS taxes and license. It's no wonder ppl are under water. Option 4: get a second job and use that money to pay down your debts. Then be more careful the next time you go shopping.
Might have to buy new just to avoid dealing with dealers at this point.
On new car interest rates you have to read the fine print which should identify that”effective” interest rate. You receive a small cash discount if you finance but larger discount if you arrange your own financing.
Funny thing Flying said; He said a dealer can't sell for less than they have in the car, dealer would go out of business. OK, BUT. What he didn't say is, Is OK to sell a car to a person that they cannot afford or charge that person way too much for the car, aka Gouge the customer.
only 2 options that won't screw you in the long run. if you owe to much 1 pay the difference 2 keep the car till its paid down. eventually you will owe less than its worth. make sure you have gap insurance also. i always say if your buying a car and the dealer even hints that ou should have gap insurance your making a bad deal
I remember your video on the Covid crisis when people had more income coming in and put off paying their mortgage's and rents for 6 months, you said the chickens would come home to Roost, boy were you right..