Why Dealerships Refuse to Lower Prices
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- เผยแพร่เมื่อ 23 พ.ย. 2023
- Why Dealerships Refuse to Lower Prices
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Lucky, I shit you not, I just had a Tesla car add on this TH-cam video 🤣that’s when you know shits getting real
I should thanks tesla for the ad lol
Another no haggle stealership with poor fit finish and quality.
*Ad. 'Add' is a math term.
No it's obvious ad match for you tube. Nothing special there.
I was shown a Hyundai ad and then a Nectar mattress one.
Dealers would rather take a loss at the auction than sell for a fair price to their customers. For the ones who won't budge on their prices, Let them go bankrupt and close their lots down.
sad but true
So true - it's crazy 😢
@DeathB4Dishonor77 they are part of the problem; literally faking production problems to try and keep their 30-75% msrp overpricing
Seeing the same issues. They’re not willing to lower their prices whatsoever smh
I have a standing offer at the local dealer for 50% off sticker on a Gladiator they've had for 375 days.
Half off is what it's going to take to get me to buy. (With 800+ credit and an owned late model trade...their dream customer. )
...
Still waiting.
My daughter worked at a Subaru dealership and she wanted to purchase a used car from the dealers used car lot that was sitting for 60 days. She offered them $400 over their trade in cost. Sales manager says no way, a week later they sent it to auction and lost 3k from the original trade in cost not including the additional floor plan costs.
Daughter sent an email to the owner of the dealership saying is this how you do business?
THAT is outstanding on her part! Well done!
Why would she continue to work there if she isn’t considered an asset to the company to begin with. That type of business model is very telling.
Did she get fired for calling him out?
She resigned her position because they reneged on their offer for a FT position in the department she was hired for.
She had a new job lined up with a Honda dealership which was only 15 minutes from her house vs 35 minutes.
She loves working at the Honda dealership and is scheduled for a promotion as soon as her replacement is trained in her original job.
Any decent dealer has zero problem hooking employees up. The used car dealer I wrenched for used to swap trade-ins for all the parts we could fit in a truck bed (him and the salvage yard owner were bros) and after I pulled what he needed what I pulled for myself was zero charge. I got trucks at their cost too. That was a bargain for my boss because it got him motivated loyalty.
I guess the dealers are just gonna have to pay that pesky "market adjustment." I feel no pity for their relentless greed and predatory business practices.
Exactly! I remember the Hyundai dealer wanted an extra $7k over retail because they had the only electric car within 500 miles! I told them they are nuts because only idiots would spend an extra $7k on a car that could get in a wreck the next day, and the insurance company would only pay what it’s really worth. We went to volks wagon and paid what it’s worth, and it was delivered in 6 months
@@noneyun9943Bro, do you know the price of a Hyundai replacement battery? Look it up, it will blow your m.
We are well over due for a market clean up. Hopefully 20% of dealers go under and make space for the good dealers to thrive in the future.
Good dealers…what’s a good dealer to you. They are all scum get real. They are so greedy. Dealers I worked for made $4k on average each car
I don't believe there is such a thing as a "good dealer".
It's not gonna work unless 85% of the dealers go under.
“Good” and “dealer” don’t belong in the same sentence.
no, the smaller mom n pop dealers who didn't do markups will be absorbed into the gynormous conglomerates. be careful what you wish for. less dealers = less competition = higher price.
Let them continue to pay on their floor plan….Hold the line, don’t buy
thats probably whats going to happen
Yes sir.
That won't be a problem.
we are screwed no matter what.......cars wont cost cheap no matter what because of inflation
HOLD THE LINE !!!!
I went into a Honda Dealership, I went through about 3 sales managers, and they talked a good game, even got me down from a 7% (trade in) to 3% apr, but wouldn't budge on the price!!
I ended up going to a Mazda dealership and walked in and out without all the fuss, saved about 10k.
nice $$$$
Just bought a CX-5 for $30K loaded!!
Honda bye-bye
Honda and Toyota have always been my worst dealership experiences, by far.
The only problem with your logic is that you bought a Mazda.
I've been a Toyota fan for over thirty years. No more, I was thinking about a Mazda and now you've convinced me to stop in and take a look at one of their cars.
Bought 3 trucks from the #1 ford dealership in the Bay Area. I asked for $2000 off a truck that has been sitting for 90 days. Sales manager said, verbatim: “we would rather lose money at auction than sell at a loss to a customer”. I swore to never buy there again. Also, they lowered the price by $1300. Still never going back.
Typical morons with huge egos. Total losers. I cant stand dealerships.
Translation: “We want to condition the public to believe overpaying for an automobile is the new way of life”.
They’re avoiding selling to customers for a discount because they don’t want people to look for discounts in the future. Discounts eat through their profits & they don’t want that. They want that extra profit.
That shows they view the customer as a enemy
90 years? Was it a model T?
I hope they drained the gas tank!!! 90 yr old gas can't be good
A coworker of mine told me last week that his car payment is $726/mo-7 year financing. Used 2021 Hyundai Kona. This is why dealers aren’t lowering prices, people are oblivious to the cost of borrowing and just sign on the dotted line without thinking.
lol that’s more than I pay in rent in rural Indiana.
HA repo incoming , and that thing will be worth nothing
8 year finacing at over 5% by GMC and others is the best. Yes customers are to blame too cause addicted to credit. Even with awful bankrupt terms like that.
What?!?! Omg did he get the shaft!!!
7 years over $700 for a freaking Hyundai? Just lmao
I have a 1998 Ford F150, that my son was using. I was thinking about letting him trade it in for whatever he could get. Then I saw the crazy prices for new pickups. I decided to keep it and spend the money to drop in a long block, fix a few other “warts”, and enjoy a renewed truck for literally a fraction of the cost!
Thinking of doing the same for my '08 F150 with 185K miles. Replace valve timing components, rocker arms fix up some rust. Should be able to get another 100K out of it. Not paying $50-$70K for a new truck.
Were they genital warts lol Your truck got HPV bro. Used and abused lol.
Yup, keep.our old trucks running. Our '17 Ram had the hemi tick fixed. Expensive but no where near the cost of a replacement. Plus we got that truck at msrp -25% back in '17 which doesnt look like that's ever gonna happen again.
Yep, spend 10k on a new engine and transmission and your truck will be as new, new trucks cost 65k-100k😂
lol imagine thinking a 25 year old shitbox is brand new. 🤦♂️🤦♂️🤦♂️
Dealership refuse to reduce prices and we refuse to buy😊
I have made offers to some dealers in the last 4 months and they all refused only to have to lower their prices to the exact amount that I offered them 3 months ago. Now when they call me I tell them 2000 less than their current price :)
Fr. My buddy offered 20k on a 25k grand car. Dealer said no and 3.5 months later dealer was basically begging them to buy it and he offered 17k and dealer gave up and sold for 17k. He got hell of a deal as he was willing to pay 22k and saved 5k
I got aggressive on an offer recently. I brought my checkbook and wrote an offer for $2k under the list price on a ‘22 4Runner with 60k miles. The dealership didn’t take my all cash offer. I was shocked, but your video is making sense. Lots of arrogance out there with dealership managers.
The dealership doesn’t want a cash offer. A good bit of their profit comes from financing.
Man the 4runner needs an award for the most overpriced vehicle in history.
They don't want cash deals
@@rlsjunior797 that makes sense, but man I hate car payments. And interest rates right now are horrible.
60K miles in just one year ?? WOW
I started trying to buy a truck in July and couldn't find one at any of my local dealerships in Houston for a reasonable price at all. All of them were significantly overpriced and virtually every dealership in my area that I went to (Ford and Chevy/GMC) had a full lot of vehicles and virtually no customers. I ended up going online and browsing Driveway. I spent the better part of two months continuing to check with local dealerships and checking Driveway daily. I ended up purchasing an F-150 via Driveway from a Mercedes Benz dealership in Iowa. It was fairly low miles, 4x4, and had a great price compared to my local dealers.
I went to one of my local Ford dealerships last week to have the oil drain plug removed and replaced (the last owner apparently was Hercules.) They probably had over 100 F-150's easy sitting on their lot. No one was there looking at cars, In the two hours that my truck was being serviced, I walked the lot to look at the new vehicles and probably had 10 different salesmen trying to sell me a vehicle. I was the only person walking around their lot, new and used.
Doing research on their vehicles, the overwhelming majority of them had been on the lot for more than 90 days.
When I walked to the used lot side, there were tons of F-150's, Mustangs, and Explorers. Several of them had been sitting for so long, they had flat tires. A used car salesman came out trying to sell me a 2020 Expedition and I asked him were they doing a lot of business and he said not really. I asked if he sees many 2015-2018 vehicles and he said that he couldn't remember the last time he'd seen anything that old on his lot.
I then asked him if he had any used Rangers or Broncos ( because my wife is looking for a small truck.) He said that they get them every once in awhile, but that no one's trading them in and that when they do, they tend to sit for awhile because they're holding their value and the dealership isn't interested in lowering prices.
Honestly, I hate to see dealers lose money and face getting fired or having their lot closed all together, but I'll never forget when dealerships were charging $10-15k over sticker price just because they could.
Thanks for sharing your experience with us. It's very helpful.
TX is hella overpriced since its a driving state, and cars tend to be in better condition than the rust belt.
@@darrendent8288it wasn’t prior to Covid.
Most of the new vehicles would have to come down at least 20k for me to buy.
@@lesliehunter1823 yeah, you won't catch me ever purchasing a $100,000 truck, not even if I won the lottery.
Hmm so dealerships want us to "bail" them out by refusing to lower prices?
crazy right lol
yes they want to be bailed by government(yes we would pay for that) like they did GM and so fourth
Silly billys only Banks and manufacturers get bailouts.
@@LuckyLopez777you talking about used cars. What about new cars.
Yea, what really sucks is they will do this again. They found out they can do it, and WILL do it again!
It doesn't matter what dealers WANT to do, which is always to overcharge the customer. The reality is that they don't have a choice but to lower prices because it will cost them too much to sit on inventory and pay the huge monthly costs associated with that. Dealers have been lucky in the post covid era with supply shortages and desperate customers, but those days are over...they just haven't yet come to terms with the new reality. They will.
Indeed they will. They actually have no options at this point. The customer holds all the cards right now. All of them.
Facts I told the Toyota dealership it’s $25K for the Corolla SE,or no purchase.
@joshuaB.Nicholas how much are They asking for?
Oh yes they do have another option that will probably happen. Keep losing money then CRY and get another Govt. Bailout.
the problem isn't dealers refusing to lower prices, it is people who are buying at these high prices
Facts!!! there are still lots of people willing to over pay
If you need a vehicle, and the prices for used are ridiculous, what are folks to do, buy a car. Your diagnosis is flawed.
@@davediaz5127Reason I bought a new rav4
They did that during the pandemic with all their stimulus checks… now it’s time to pay since there’s no more free hand outs and repos are wayyyyy up. Uninformed buyers are suckers
@@davediaz5127 folks need to KNOW THEIR TRUE WORTH and stay in control of the deal and be prepared to walk at the first signs of b.s. at the stealerships.
When my dad was sales manager, he was discounting cars in 2001 to move inventory during slow period. Owner got mad and put his daughter to replace, my dad left and so did others. Business closed down just a few years later... They went from ultra wealthy, to just rich as real estate boomed. Their dealer lot was sold to a condo developer $$$
some owner and dealer groups are dumb and have to learn the hard way
@@LuckyLopez777some? You're being too generous Lucky
I know what your saying we got some of the car lots like family own, when you walk in , hold onto your wallet an never go to the back offices, they will fleece you into shame
its not dumb its greed defying logic@@LuckyLopez777
Have been wholesaling cars at Copart for 7 years and this is spot on. These dealers are NOT coming off their minimums mostly and those that haven't done so are losing more and more month over month. The smarter ones are selling at cost quickly or slightly below cost and moving on. The duller dealers (most of them) are getting hosed.
If you finance a vehicle, you can't afford it. get a financial advisor to help you.
Having a skilled advisor rebalance your finances for optimal performance is KEY!!!
The rules are simple. Choose quality stocks and follow them up. If you're not one for such complexities, hire a wealth manager to grow your money. I use the latter. Pulled in more than $46k in the last two months alone.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your expert? I'll be happy to use some help.
her name is Graciela Lynne Schriewer.
Greed will be their downfall.. times are about to get a lot worse and dealers will be kicking themselves for not reducing prices sooner!
facts!!!! $$$$$$
What goes around comes around - they were greedy and took advantage of people since 2021. Hate to say it but I hope they saved their pennies
I was a salesman at a dealership in the late 90’s that went out of trust, couldn’t pay the interest on the floor plan. Pulled in the lot as usual, was told to park my demo, remove any personal items and give them they keys. With no notice and living 35 minutes away I asked exactly how I was supposed to get home. Not their problem. It didn’t take long to see the writing on the wall. There are a lot of big numbers in the car business, it doesn’t take long for it for a dealership to go off the rails.
In 2009 I was with United Road Service and we would go to GM dealerships and take possession of the whole entire lot and take them to auction…. It was brutal.
Would that mean the dealership also went belly up?
@@TheFrenchPug the GM dealer in my town closed around that time. I was giddy since I swore off GM in 1998 after they screwed me on a non repair. Ford closed a few years later and now we have ZERO new car dealers.
@@connor_flanigan Buying new is normally a poor financial choice so I'd consider that a bonus.
@@Comm0ut perhaps. but having 6 new car dealers close (in addition to losing numerous factories) in a small town is not an indicator of good financial health for that town. I bought my last new vehicle almost 20 years ago and still have it. it stickered at around $16k and is one of the best vehicles I've ever owned.
@@Comm0ut No new car sales, no used car sales.
I think what's happened is a generation of businesses were started and grown during an exceedingly long period of cheap credit, even by Keynesian standards.
Entitlement, pressure tactics and bullying money out of their pay pigs is all they've ever known. But now the free money is gone. It's time to pay the piper. Good business sense would have every dealer move with the market to keep the inventory shifting, but none of these people ever had to develop good business sense - they had free money growing on trees for well over a decade, and all they had to do before was name their price.
By rights, none of them should ever have gotten this big, and without all this market meddling - they wouldn't have. Now the only thing left to do is to let them fail.
100% agree. I think a lot of people and companies who complain about labor cost, materials costs, gas prices, and any other costs are just not used to a true capitalistic system.
But on the other side of this, companies are gouging customers too. Prices increases have nothing to do with costs. Profits were at all time highs. That does not compute if costs were also higher.
Buy less, buy better quality, use longer.
Low rates for too long is a big cause of these prices. In homes as well.
100% facts
You my friend are right. Too many businesses opened and success with cheap rates and a indebted customer. These businesses need to close down with normal economic circumstances so more succeful businesses replace them and are truly competitive and productive. Thats economic fundamentals.
@@billm3210 Economic fundamentals are too inconvenient to these idiots, so they mess with the economy every chance they get. From silly low base rates to the UK's idiotic "help to buy" scheme, which ought to have been called "help to get into crippling debt". They shaft regular people every chance they get, and expect the gravy train to last forever.
Something something don't f-ck the golden goose and all.
The consumers need to remember the private seller market. Pre-pandemic, the private market was huge.
facts. more deals on FB then dealer lots
I want consumers NOT to buy any car starting this year.. well they just went and bought it. 🙄😐🗿
Pre-pandemic a lot more consumers were cash heavy. The banks would lend to them at low interest with lots of cash down. Credit has tightened and the dealers can get them that upside down loan that they can't get on their own.
True, but if a buyer is in that situation (upside down loans). Then he/she should NOT be buying a car.@@ltwig476
I will be buying my next car on FB marketplace.
This situation is going to get worse! Thank you for the content
facts! and thanks 😁
well it has to get worse. The problem is dealers will not lower till the day they go under......and even then it doesnt mean 2019 prices like Lucky just said. I helped my parents buy a brand new Tiguan in 2020 one month before Covid lockdowns and was able to negotiate 3k under MSRP and my parents got a 0% 6 year loan
I have learned so much from you over the last 6 months or so.The insight into monthly carrying cost, is valuable. Love the props, especially the stack of hundred dollar bills. All of this free knowledge, only costs me a "thumbs up/like".
There’s a car dealership that I drive by frequently, those cars haven’t moved in a long time, it’s like a car museum.
Two out of four auto dealers in our county have closed. All cars gone, all employees fired, and plywood on the buildings. They didn't have going out of business sales. They just shut down and all the cars got loaded up on trucks to never be seen again.
Maybe to be junked? There are pictures of car lots in China with thousands of unsold cars that perhaps will never be driven. Just like lots for old air planes.
Probably because the bank who financed their floor plan repossessed all the cars
@@atlantasailor1if they're in good condition, absolutely not
The stealerships are more then welcome to
1. Keep their inflated inventory on their lots
2. Pay those high floor plan costs on all those lot vehicles that have been with them for 30-376 days
3. As consumers pay higher cost so do the stealerships so they can sit on their hands all they want to.
$$$$$$
@@LuckyLopez777 the consumer keeps their money and the stealerships can keep their costly cars but they can’t stay in business with that mentality
The same thing applies to real estate prices. When I buy a car, I email dealerships and give me offer. Never get trapped at the dealer endlessly talking to the manager.
Thanks for this great video. Up here in Canada, dealerships are still asking premiums for BEVs and we are finally starting to see cracks in the prices. I totally agree. Prices in the next 6 months are going down. As far as interest rates go, they will follow in late Q3 2024. Just watch the US 2 yr, 10 yr treasuries.
I played the long game with a dealer recently. I have been looking for a 2018-2019 Lexus GX460. Found a luxury package with decent miles (less than 50k), but solid maintenance records via Carfax (serviced every 5k miles). Started at $37,999 (mid-Sept), purchased yesterday $30,824 (including TTL). Caught it before they were taking it to auction. Will keep this for another 200-300k miles.
what a bunch of arrogant idiots
Went to my local Chevy dealership last night to look at a couple of cars that showed up on their website in early September, they have lowered the price a few times since they first got them I offered $1000 less on cash then what they were asking and they said no, I said ok it can have another birthday on your lot and left
We've had more than 5 vehicles consistently over 70days old because of the unwillingness to reduce or increase trade numbers. Unfortunately sales manager is related to owner and will never be fired or realize how much it's hurting us salesmen. I've had reasonable offers just to be laughed away. The thrill/fun to sale has basically left because of their operation so I've been looking at different avenues
I will continue to drive my 2006 chevy cobalt for another 6 months to 1 year
Funny how this is not just car dealerships.. almost bought a kawasaki enduro last week and the dealer baited with low price then hit me with a price over msrp...and would not come down even with me putting cash down.. I walked. They all have a lesson to learn.
I surprisingly had a good experience with a powersports dealer that is a locally run family business. They even let me test ride a few bikes when I was there. I had been looking at a few others at a more Japanese branded powersports dealer that was bought out by Motosport and they would only let me sit on the bikes in the showroom and all of their sticker prices were over MSRP on stuff that had been sitting all summer. I already knew they were gonna try to legally rape me on something that I wouldn't even know if I would enjoy riding on the highway and went back to the family owned place and they took a grand off a bike that they had 2 copies of on the showroom floor on top of a cash offer that Indian was already supplying. I hope the mom and pop places can stay open through this, but honestly it's the cartel like corporations that will have the liquidity to survive.
I have recently attempted to make two different purchases with the Kendall Dealership group in the PNW. Both times i asked for less than 10% of their asking price off. I was hit with all sorts of silly reasoning and remarks. The big one of course was the " we will just send it off to auction". I said exactly what you did in the video. "well you may get less than my offer and you wont have someone coming back for service and giving the dealership business." This was on vehicles over 60 days on their lots. Well its been almost three weeks and I keep checking, those vehicles are still there.
Every time they refused to deal I went somewhere else, got better pricing AND sold my trade in within a week of posting on FB market place for way more than their offer.
Stay focused guys. They cant hold out longer then us.
Around Tulsa an small town dealers are not wanting to sell, I hope they realize they are heading towards bankruptcy
Lucky I found this in my feed.
Even w car sales on my resume, I had a hard time describing to my family why it's so important to wait to end of month, end of yr thing and to look for excess of 90 day cars. This was perfect. Thanks for taking the time to do this!
Love your content. Thank you. In the market for a small suv for my daughter in chicago & this was super helpful.
I’m on the market for a fully loaded RDX. I found one used on the lot for almost 4 months they been dropping price every week or two. I put in a good offer in cash and they declined. They’re still trying to charge BS dealer fees smh I’ll just stick with my 2019 Honda Accord with 30k miles paid off 😭😎 Sales person told me they’re to upside down to drop it lower to the price I offered them 🤦🏻♂️
Im sure they will be calling toy soon $$$$
@@LuckyLopez777thank you for the content! I’ve been on the side line for a year watching car prices drop. Your videos really help 👏🏻🙏🏻
@@TheRealCatofyou’re not wrong! But I do want a SUV, more features and Acura is better quality. I love my Accord, almost 5 years and 0 issues.
Thanks for specifying the various dealership holding and selling fees. I knew they had carrying costs for their inventory, but not to this level of detail. New subscriber.
I'm really glad I found your channel. Great info and insight. Thank you for your time and effort!
I’m glad I saw this video . I’ll wait to buy my new truck. Thanks for the advice.
I think the decade of low interest rates made everyone think they are good business people and with high interest a lot business owner are having a wake up call about how their businesses were terribly managed. I don’t it’s just the car industry.
During good times any idiot can set him self up in business and appear to be doing well. However, during the tough times is when they fail and the people who actually know what they are doing succeed
Facts lots of dealerships are about to fail
Lol! That's right! When the tide goes out you see who is naked 😂
That's so true in other lines like real estate. Some real dirt bags.
Great Content ! I’m starting to like your videos a lot! Thanks for the knowledge 🤘🏼
Sending your video to my kids so they can be informed. Thanks!
Great info. I was seriously blown away when car shopping earlier this year. I went to Ram, Ford, Jeep, and a few others and could not comprehend why they were sticking to these ridiculous prices when they had full lots and few customers. I actually ended up at Jaguar because it was the same price range Jeep was asking and if I'm paying that much anyway I'd be soft in the head to end up in a Jeep Grand Cherokee over a Jaguar F Pace. I just could not understand why they were so outlandish with pricing when they weren't moving any cars. Now it makes sense, and I wonder how many of the sales managers from 8 months ago when I was shopping still have their job. Kudos to Jaguar for being super reasonable and giving me a good deal on a CPO with a better warranty than the domestics though. Tough break, Big 3
😂
That Jaguar will have a transmission issue sooner than later. That's why you got a good deal. But hopefully you're covered.
@@TheFrenchPug You do know it's not 2006 anymore, right? They use the same transmission Jeep does lol. What are you even talking about? It's the same ZF 8 speed everyone and their mother is using. Check recent reliability reports. JLR is higher than Jeep and Ford across the board for the last 5+ years.
@@cummins24421 Yes. I know it's a great brand. I have a Jaguar dealership down the street from me here in So Cal. My daughter in law bought a 2020 Jeep and it went out on her 6 months ago. The dealership told me they are replacing those all the time.
Lucky, another great video, as always. I didn't realize dealer costs were as high as they are. I live in the Tampa Bay area of Florida and I don't see prices dropping much, if at all. I bought a 17 RX350 with all the bells and whistles, back in April. A quick search the other day shows cars similar to mine, but with lower trim packages and higher miles are going for about the same as I payed. I think I got a good deal and I love the car. So, glad I didn't wait as I probably wouldn't have saved any money and I wouldn't have had the pleasure of driving my 17 for the last seven months.
There's only one Tampa on Earth, so you didn't need to throw in Florida. Everyone knows where it is. I live there too in the winters (I'm one of those damned Snowbirds), and I am watching all the dealers SCREAM in agony! I can't WAIT for Gettel and all the rest of those Sarasota b@st@rds burn. Being a retired old geezer, it's fun to watch bankruptcies in Sarasota, it warms the cockles of my heart! But the rural county dealers are going to get it too, like Alan Jay and Bill Garrett and the others. The Rednecks are all broke too, not just the old NY and NJ Jews on the coast. Everybody is running out of money, and the young can't afford to buy a thing! People who are getting kicked outta trailer parks can't afford $85,000 pickups and $40,000 Corollas, they can't afford food! I can't wait to see them all boarded up and their salesmen working at McDonald's! Like the Chinese say: interesting times!
My first time tuning in. This is great information! Thank you.
I am new to your channel, and from here in the PNW what you described the fact of not discounting the inventory to move it on. I have been in car and RV sales for almost 30 years now. During the pandemic a lot of dealers raised their minimum pack and even their soft pack which is a variable rate and some instances to astronomical levels. When dealer I work for raised hard pack on us four times in 2 years. Now they're not making any money they have not readjusted their pack and they're getting stuck with a bunch of old age inventory. And you're 100% correct they are firing the general managers and sales managers because things are just not selling and when they do they are losing money. I've seen several dealerships in the RV world out here get their flooring pulled from them and sent to auction. We are going to see more and more of this in the next 6-12+ months go one. Anyone that has been in the business for more than a few years has seen this before. It is not like it was after 08 with entire brands going away. But if these dealers don't figure it out that's where we're headed.
I grew up in Detroit during the 50's and 60's. I learned that the auto industry was very sensitive and a good indicator of the health of the economy. First car sales were slow then factory workers were laid off going into a recession. Last to recover coming out of a recession as well. Another indicator is incentives to buy. Zero percent financing, factory rebates, nothing down.
That's what I am looking to do. Justicely needed. I hv a old car now, 2000 toyota carry. But it's 284k+ . I have a smaller lot business 2 business and customer consumer spot. They r from Middle East Russian. Etc gd vibe. Has 200k Mercedes & lower end car or truck. Like a TRX dodge. I want a PHEV hybrid. Suv or truck. I also need to be steadfast. He spoke of luxury cars prices going down. And lower end vehicles staying high_ or not dropping in value.
I think we saw this mass-repossession in Cincinnati years ago. During the 2008 economic downturn, Nissan Motor Company took back all the brand new Nissans off the lot at Busam Nissan ("The dealer closest to your heart" has been their slogan for decades). The cars later returned; they are still in business today.
Back in September my wife and I purchased a brand new SR5 Toyota Tacoma for cheaper than what the previous dealers we went to were asking for used ones! They even came down on the price and gave us a great deal on an extended warranty. Thankfully none of the previous dealers would budge on their prices for a used one.
Thanks for the insight. Your advise helps me think more about the process and how I can get a better deal when I shop. I may go to leasing since I rarely drive over 10k miles per year.
Thats why labor rates are 150+ an hour for labor.
Anyone else notice Lucky Lopez and Car Questions Answered always upload at the same time? And this time it's the same topic😂No hate yall both cool
3pm on Mon and friday is the magic time for posting. I learned that from Graham Stephen
Presentation of the information and credibility is paramount in reviewing all of these TH-camrs information.
Yes, I noticed 🤣. CQA (well, Car Edge, actually) was also showing "new" 2022 cars still sitting on the lot.
This is SO much better than those goofy sideshows.
@@jamesgullo8240 depends on your version
This vid is right on time. Thank you.
Brother, not only do you provide solid information and advice, your production value is top notch. Sub’d
the used car lots I'm coming across are full! Was recently at a dealer with a cash offer (as noted in other comments, I know dealers prefer financing) but it was interesting to see the dealer not willing to budge on their price even though their lots were full. Prices in my area are starting to come down and I have a feeling they will continue to come down for a bit more . . .
You’re the man for this.
thanks 😁👍
Thanks for the update. I have noticed, if I'm reading the room correctly, the car lots where I live are over stuffed to the point I suspect they may have to start stacking them 2 high. I suspect the vast majority are used vehicles but the shiny new ones that are next to the road seem to have a lot of brothers and sisters, so I suspect they too are moving more slowly.
Great explanation on the biggest question on everyone's mind. Thank you!
I see Ford Lightnings rotting in dealerships around the corner for $100k. 😂😂😂😂😂
the are going to have a fire sale soon. they are flopping on pre owned as well
@@LuckyLopez777 I can’t wait! I love fire sales.
I believe the Ford dealers will suffer the most.
Waiting for that, so far prices aren’t moving on lightnings
I have a fleet of used cars, never need a new car 😂
I did not know these things. I recently sold my vehicle for 16,700 and saw it listed for 23,700 a week later by the dealer. I don't see market prices going down anytime soon tbh. The prices I've seen for a lot of vehicles I'm shopping for are ridiculous. fingers crossed it changes.
You don’t have to see it, the data is already there. Prices are already coming down and have been all year if you look at cargurus price trends
I refused to use my car as a trade. I sold it for what the dealership offered me including the sales tax. Sold it in hours because of the greed of dealers and markups.
I work for a Automotive Finance company in NY, I inspect the off lease cars, he is SPOT ON!!!! 👍Great Video Lucky 👍
Thank you for sharing! Best of luck to you.
Something has got to give, right? I'm really surprised it's taken this long. Either 1) They actually used the sky-high pandemic shortage profits to build up their cash-on-hand and they're now slowly burning that down, 2) Sales have been down, but enough to just keep them afloat, 3) The banks (floor plans) are deciding to extend them more and more credit, or 4) Some combination of all of those.
Its the banks keeping everyone alive cause the treasury is still giving them good over night rates. Eventually its not sustainable but for how long? When a bust comes and you see unemploymemt take off. All other figures like CPI etc are adjusted and fake. Good indicators are rail and marine freight and shipping volumes. and fees.
Thanks for the education. You rock!
My pleasure!
@@LuckyLopez777I sell used power equipment. I remember a friend told me ,once you have the customer there “make the sale!” I sell every time , usually to the first person that looks. ( you probably knew my friend. He was one the top car salesmen in the country.)
Beautiful content you are the real deal honest and up front you should be running the dealership that’s why they going out of business greed and fake fees and lies and so much more I truly hope the bad dealerships go out of business by that’s wishful thinking and the great small or big dealerships which do business right with no hidden fees or sale lies shine threw please make more videos 🙏🏻👊🏿🔥🔥🔥🔥
Again great insight on the current market conditions Mr.Lopez. My Family background is Dealership owners started by my grandfather. Your skill set is obvious to me. Your employees should be grateful to have a stable employer. Happy Thanksgiving 🚘🇺🇸👍
I recently purchased a TRX and had to deal with a few different dealers wanting a 20k market adjustment for some that had been sitting on their lot for 60-120 days. I laughed and found one at MSRP and paid cash for it. Fast forward a few weeks and they have all been calling me asking me to come in and "work a deal" with them. lol
8:19 minute mark. Do not offer cash. Offer to finance it. This way the GM will think the F&I manager will make some reserve points and have a better wack at you for back end products.
So take the loan, as long as there isn't an application fee. If there is an application fee see if you can get it waived and by taking a 1/2% bump in rate. Then pay the loan balance in full when you make your first car payment. Or, if you want to be a super nice guy so the F&I guy doesn't take a charge back. Pay the loan WAY down but keep it open for 3- months. Depending on lender, 3- months is usually charge back period. Ally is longer if memory serves correctly.
"this is a dumpster fire"
Thank you for explaining that, would have never figured that one out.
Excellent review of whats going on. Thanks!!
no problem 👍
My first "job" after retiring from the USAF was selling cars in a podunk town. I made a really good living from selling. My monthly average was 22 cars a month that lasted for two years. Then a new sales manager came and the whole place went to shit. LSS what I learned helped me teach my children EXACTLY how to read and communicate to a salesman what they want and how much they were willing to pay for their vehicles.
@dlbracer56
Did that town happen to be Alamogordo, New Mexixo ?
This is the best piece of advice I've seen on here regarding buying a vehicle, i.e. just make a damn offer. There was a low mileage truck I wanted last spring. Had everything I wanted, right down to the color. It had been on the lot 287 days. I made the 3 hr trip to the dealer, only to have a salesman completely stonewall me. He said price wasn't negotiable. I had researched the truck a lot, and knew a price I would be ok with, but instead of making an offer, I was so pissed by his attitude that I basically told him to pound sand, and walked. For some reason over the years, I've forgotten how to negotiate like I once had. If I had to do it over again, I would've just made the offer. So, not getting the deal I wanted was at least 50% my fault.
Just make the offer and its not accepted leave your contact info and say call when you want to negotiate.
It always boils down to Supply & Demand. The Dealerships can be as greedy as they want, but if there is a surplus of Car Supply, and the Demand is dwindling, eventually, the Dealers will either have to take full loss, or drop the Prices.
I haven't been watching prices super close, but in my area I can say that the dealer lots are getting fuller and fuller and fuller... I'd say something's gonna' break loose soon.
Subaru, in the New England area. It's been in short supply and with market adjustments of five thousand dollars, Now there is tons of new inventory and the market is gone, but they still want to get MSRP
come to vegas. they are all MSRP. no on needs AWD in the desert lol
I have been looking at a BMW in California for the past two months. I went to my local BMW dealership since they are a sister dealersip. I was thinking this car has been sitting on that lot for over 80 days and I could negotiate the price but no one would budge. So I have decided to sit and wait.
Fantastic content. Good work Lucky.
I just returned from a Kia dealer local to me, looking for a basic economy car to commute with. They had a used forte listed at 19,860. I tried to negotiate and they wouldn't move more then like 300$ on a car that has been sitting more then 2mo. Blown away how crazy dealerships are. Msrp for a 2023 base forte is 19,870 i think.
Had a 2018 forte. Wasn't a fan. Gutless and don't get me started about the AC.
I had a Toyota dealership refuse to come down on price $200 a couple years ago. I said "are you really refusing to sell at just $200 less?'' ...and they did refuse, I bought elsewhere
Add: Ended up going to another dealer 30 minutes away. Ended up purchasing a CPO 2021 kia sportage Awd. Got it out the door for 20,000. With taxes and registration included, I actually got it cheaper than the forte at the dealer closest to me. It also came with an interior and exterior waterproofing spray that they originally wanted to charge me for, but I removed it after I mentioned I didn't ask for that. It took about 3 weeks to find a car and went to three dealerships, but it was worth it.
I get what you are saying and thank you for the tutorial. However there is one market segment that is scorching hot - used hoopties. Try finding a Japanese economy car with under 100K miles for under 10K. Bought one in July. 67K miles and had to pay $9800. if I were 20 minutes later to the dealer I would have lost it. While I was there, within 20 minutes 2 other parties showed up to see it. So I follow the market now and finding this today is nearly impossible.
Bought my 4 door ‘04 Civic Ex just as covid had become a big problem. Listen to this.. the car belonged to the gentleman’s grandmother who had moved out of town. Left the car for him to use while he got his own car. He buys his own vehicle shortly after. Talks to his grandmother and she no longer wants the Civic. Tells him to sell it and keep the money. I thought he was BS until I inspected the car. Not a spec on the car, not one dog/cat hair, nothing. Extremely clean car. He kept it parked in his garage.
I buy it from him for $5k with only 50K miles on the odometer. 1 owner, no accidents, never smoked in.
In the moment I honestly thought I got fleeced because I grew up seeing old civics sell for a few grand at most. In hindsight I actually made out! I’m extremely grateful I bought my econo. car when I did. I’ve had multiple people try to buy it. NO WAY! This is getting passed down to my sons when they’re old enough.
Now if I could find an early 2000s 4x4 truck I’d be set up. Still on the hunt but things are getting better.
That’s why the strategy today is to buy very old but well built American cars and/or vehicles that are secretly Japanese. Ex: the 199-2005 Buick lesabre because it has a bulletproof 3.8L V6 engine or the Pontiac vibe.
Thank you for this video!!! 🔥🔥🔥
For new cars, a good time to buy is when the new facelifted model starts coming in and they still have some of the previous model year on the lot. Happened to me in 2014 when the new 2015 Camry appeared on dealer lots. Everyone went gaga over the new styling, but otherwise technically the 2014.5 (yes, half model year back then) was the same. Got a great deal because the dealer was highly motivated to get it off the lot. I tend to keep my cars for a long time, so the difference in 2014.5 or 2015 used car price won't affect me when the time comes (right now it's a $600 difference and will be less by the time I'll sell it). As a matter of fact, the way excise tax works in Massachusetts (i.e., % of MSRP by MY age), I already saved that difference in the first year.
They’re waiting for a bailout
I go to a Nissan dealer on my tool route that bought 5 C8 Vetts and 1 C7, including a Z06, all in the last month and a half.. All are listed at or over MSRP. They also have tons of BMW and Mercedes, Mustangs, a few Teslas and a new Hummer EV. Keep in mind, this is in a suburb of Kansas City. They will not survive.
McCarthy or state line?
@@bassntruck Wood in Lee's Summit.
Goin' to Klansas City,
Klansas City here I come!
They got some crazy little women there,
and I'm gone get me one!
I just do not get the dealer model, I walked away from sales because they were stubborn, but now I only buy from my local GM dealer bc during the truck craze they never sold over MSRP which is still high, but got a good deal on my 2023 GMC Sierra 1500 AT4. Good luck opening new dealerships you know the market so hopefully you are successful, great video as well.
That was very useful info! Thanks Lucky
Let them all go out of business. no bail outs
I think a lot of people are stuck mentally in the 80's and earlier when it comes to dealerships. I know quite a few folks who still only buy locally. They're stuck in supporting local dealers who STOPPED supporting them decades ago. I know people who overpay by thousands at their local dealer rather than hop on the old interwebs and buy a state away. Customers need to be better informed. Research, pinpoint what you want, find 3 to 5 of that example by upping your search radius, fire off a mass email to the holders of those cars with your terms and price.......one of them will agree. When they do, go get it!
I drove 18 hours one way to get my last car
@randywhelchel4674 ......I drove 7 hours once. I flew 1700 miles to Florida a few years ago to save ~ 6k. Then, 2 years ago, I made a 5 hr drive to Chicago to save ~ 5k.
Some people opine that time is worth more than the savigs. It's a depreciating asset, and in my eyes, the ONLY way to have a shot at not losing my rear end is to get the best price I can on the front end.
I had a dealership back in March tell me that they were told not to sell to people farther than 100 miles away. This was when it was hard to get new cars on the lot. They wanted to keep the new cars for the locals. In a way it makes sense but I hope they are trying to get any deals they can now. They treated me pretty good. So I hope they stay in business.
Great video! This especially applies to all the Ferrari 812 / Lamborghini Aventador's that have been sitting on AutoTrader for 6 months now at $150k over MSRP and when I have made an offer, they just say that the market is strong. I figure they eventually will come to reality.
Mmhmmm
Very insightful and helpful, thank you
The dealers are going into panic mode late Q1 early Q2 2024.
fist panic then Fire sale mode. if not. Bankruptcy
I stopped buying cars. It's stressful to get ripped off and be exposed to identity theft.
How do you mean ID theft?
@c.m.7037 most people borrow money to buy a car.
When you borrow money they get SS , ID, and address.
That's where it all starts. Right there in the dealership. Car salesmen are sleazy people to begin with.
I subscribed as soon as I heard the "we're seeing dealers do *dumb* shit like this..." comment - keep it coming!
Thank you for the information!