@@disposabledad The problem is you need new construction to be successful, otherwise there will be less of it and that's what contributes to the housing shortage.
Dealers think we are idiots. $11k markups and when we drive off the lot we are in the hole $17k as value drips immediately. Don't fall for the hype. The correction is here and dealers will be crying by April.
@You Tube greedy people trying to fleece you leaves a bad taste in your mouth. I feel the same as you... wife let it slip that my engine blew to a Kia dealer and the price went up $7k. I drove thirty minutes and bought the same car for $10k cheaper than theirs. Dumb greedy sales guy lost a deal that day. Don't ever consider the consumer desperate you are not the only dealer in the state.
Tesla has a massive backup of orders. Unless this car has a ton miles on it, or it's been in a wreck, he's trying to rob somebody asking to buy it for $32k
I used to have my theory back in the day when I saw this process has it been under another industry and I thought I would try it about twenty years,,,, but I can see it's up to the professionals as it's a full-time job in thank you for the channel
I bot a 2021 Tesla Y in June 2021. I drove it all over the US for a year, and put 22K miles on it. I sold it in May 2022 for the same price I paid for it a year earlier at 0 miles. Got out at the peak of the market, and bought a used 2012 Subaru Outback with the cash equity I had built up in the Tesla. Good times.
I am a retired used car dealer and everything you have said is 100% true and accurate. And... you are not in any way verbose. I just kept on saying... "Yes, he's on the right track!!!" Well done. I'll look forward to seeing your next installment.....
The most informative Video on Dealer Auctions yet. As a former small Dealer I like how you have a pre-determined price that you'll pay and you stick to it otherwise it's real easy to get hyped up in the bidding process. Also great that you physically go to the Auctions. Looking forward to your other videos.
I’ve been watching your videos for the last couple of years and just want to say that you’re doing a great job Craig. You do go on rants and I appreciate your rants and your valuable information. Thank you
I was a retail dealer a few years ago. Now I’m getting back in as a wholesale dealer and this video was sooooooooo good I watched it twice. You are a gold mine Craig.
This is the best video you’ve done in a while . I see it as a real time market report. I’m in the market for a fun car. I’m watching your videos to see when I should buy
This is the same issue with the C8 Corvettes now. All those dealers that overpaid for the ones that owner's flipped are having to drop prices pretty dramatically.
@@mj_aussie_coaster_travels8310it’s un heard of to sell a new car what u paid for it a year later. As soon as u buy a new car u take a hit as soon as u drive it off the lot. If he breaks even on the c8 that’s a great deal if u ask me. Enjoy the car of that caliber for a year for free.
You also have to consider that the market for a used super high end BMW is quite small. Families with that budget could get into something pretty nice AND brand new for that price. And ....BMWs aren't exactly known for low ongoing maintenance costs.
It’s a Great Toy if Your a Car Guy! I prefer AMG’s Myself, never lost big on one yet! I always keep the miles low, once they hit 30K+ time to get out and get a different one! But that is a great looking BMW! 67K miles, pretty close to that 70K mark, unless it’s really taken care of with All the service’s done and paperwork & dealership records to back it up? Don’t remember if it was a #1 owner car, I think that’s a big deal too! 2-3 owner cars I stay away from. Just my two cents worth. Great Video Man & Thanks
Great explanation and insight info mechanics of dealer auctions. Very impressed with your evaluation of declining auto values week over week and ability to subvert your human side of self want to your business side of prudent restraint. Fascinating to watch your mental process at work. Great job 👍
Tesla used prices are dropping in the retail market, mostly because Tesla has dropped prices for December delivery by $7500 to keep people from cancelling their orders. Tesla had been seeing a lot of cancellations because the Fed is bringing back rebates on Tesla's starting 1/1/23. When new prices drop $7500, it affects the used market. Problem is used car managers at franchise dealers are afraid of getting their asses chewed off by general managers for losing money at auctions. They're gonna start getting hammered by their floorplan companies pretty soon and are gonna have no choice but to drop prices soon.
It's not really price drop but gov't. rebate as an incentive for EV buyers. I bought 3 Teslas - M3 RWD n 2 MY LR all year 2022. I don't care about tax incentives. Not going to drive ICE cars again. In fact I sold my 2 MBenz after I got 2 delivered in Dec. 22 n Aug. 22, 3rd delivered in Nov.2022...awesome n compelling to drive very quiet indeed...but Tesla in not for everyone to costly for an average joe...
2 Thumbs up Craig. I appreciate these learning episodes... When you give us a look at whats happening on the ground level. It makes your channel worth tuning into.
I enjoyed learning about the car market. I have gone to auto auctions before as a driver. This gave me some great insight . Thank you. Keep up the great work. More talk means better teaching.
Loved the video glad you didn't buy any of those cars the values are dropping rapidly why pay more when you could pay less. You didn't let your impulse buys lead you down a dark road. Good Job
Just ran across your channel. I love the detail you go into! Anymore very rare to find a dealership that is honest. I ran across a Ford dealership that is Amish owned. Greatest people to deal with. I'll make the drive! Great video!
Loved that Craig. I’m not a dealer, but I bought, drove and sold 19 BMWs over twenty years to avoid depreciation and you definitely make the profit when you buy not sell. Thoroughly engaging 👍
Ev overload is coming… so many on the market spread across still a very narrow market… it makes me smile when dealers finally get payback for overpricing cars now stuck with them… awesome
This is one of your best videos so far! I used to be at a Chevrolet store in Cleveland Ohio and I was F&I I did new car used car and GSM. With our used cars we were on a 60-day turn unless it was something real special. And I had a wholesale account I don't know if dealers do this anymore when I would wholesale a car if I would make money on it the profit would go into a separate account on our statement and if I had cars that were getting old I could take the money out of that account and write them down whether I retailed the car or wholesaled it. They probably don't exist anymore but I used to buy a lot of cars at the curb from wholesalers. They were a lot cheaper than the auction and when I would do my reconditioning a lot of times if I had to wholesale it I could get out of it okay at the auction even with all Recon costs. This past January I bought a 2018 Porsche Panamera sport Turismo 4S certified with 52,000. It was the least expensive 4S in the marketplace for $63,000 everything else was in the '80s and '90s. I now have 72,000 miles on the car. The best I can do for this car wholesale is $50,000. The good news is I had a 2018 E300 with 120,000 miles on it and if the market weren't so crazy it would have been worth somewhere in the mid teens. I wholesaled it for 27. I miss the business and I'm thinking of getting back in it especially when I see videos like this thank you very authentic 100% truthful
I’ve owned 3 Teslas. They are a one trick pony. Fun for about a month then you get bored. I had a Model S P90D with Ludicrous mode, a 19 Model 3 Perf, and a 22 Model 3 LR. Have fun with it but out of all 3 I still went back to ice 🧊
Great video good communication about the market and the future of the car market. We all have to throttle our wants and try to determine needs. Nice job kept it moving and didn’t get stuck on anything. I wish I could channel your thought process when I buy a car I’m always getting the shaft.
awesome video. thanks for being a dealer that's pushing to bring fair prices (with a little juice for you) to buyers. I'd drive up to NH to buy a car from you just because of a transparent video like this
Really good information, had family on the dealer side. My uncle managed a Buick/Chevrolet for a thirty years. My parents never paid retail for a car. When I started buying car I made a lot mistakes, my uncle always said buy what you need not what want.
Definitely seeing the market adjusting locally in CT. Prices are dropping on used cars (now below suggest MSRP instead of above) and to a lesser degree, new cars (now about 2% below MSRP instead of above). As the shortage ends and the gluts start to grow expect prices to drop even more. A local dealership 6 months ago had 6 cars on the lot. Now they have almost 100. Huge difference in the last six months.
Same, MSRP + $2k is what I am seeing on some new models. Used prices are slowly coming down, but nothing great yet. Still seeing one year old (low mileage) cars selling for over MSPR new. Hope demand in the next few months dies off more. I like going to a lot seeing 7 or 8 new of the same used model I am shopping for.
Carmax is looking for everything to be back to normal around September. They have stopped advertising to buy your car and are trying to unload the slow movers so the bite in the ass is not that bad when the market adjusts.
Thanks for sharing your knowledge of how cars are sold and bought in the states ....totally different way it works here in NZ. We are over paying $$$ for every thing .
The depreciation on that Suburban is insane! (13:14) from $70,000 in 2018 to $23,000. Even with 130k miles on the clock, that's an absolute bargain. You got a great deal and timed the market really well.
The question now, is, what will the depreciation be like for its new owner. Cars: If you don't need one, just cut holes in your trouser pockets, it's pretty much the same.
Keep in mind that was suggested retail 70k, and 23 was his price at auction, note the $32k tag on the mirror. Suburbans have tremendous depreciation, deserved or not, for some reason Tahoes, not so much.
Thanks, you are full of information and insight. Just keep talking and educating. As a car 🚙 guy and lot selling I really appreciate the educating, thanks so much.
It's interesting to hear the thought processes behind dealership buying and selling and all of your extra comments on wanting versus needing a car. I am not a dealer but I'm afraid I usually fall prey to wanting rather than needing a new car.
Yeah, my experience is with used is always full of regrets and a money pit. Better to wisely buy new. My neighbor has all used cars and they are always getting fixed. It's a gamble for sure.
I've been watching the Tesla prices for the last couple of months, just before Christmas the smaller dealers in the area gave up and dropped their prices by around $15k, at the start of this month a 2019 Model 3 LR with around 20k miles was $50k, now $35k. Carmax and Autonation are holding firm in the $50k range. Right now Carmax has 570 Model 3's, 191 of the are LR's, I guess they are praying they can shift a few more before having to bite the bullet and take the loss.
At one point Carvana had 90% of Chevy Volt listings, on Ebay. All the newer (2016+)'s were 20-25k, with mileage hardly affecting price. Carvana is in the same boat as Carmax. The decision to "eat it" is tough, but at the pace of a large institutional/stock it can be slow enough to bankrupt.
Hey Craig. I learned a lot about car inventory and dealer finance. Before I wrote this message, I thought about market models generally. If the Fed was able to explain its interest rate/demand/price model the way you have, the public would have a much better understanding of monetary policy.
The Fed is raising rates to lower inflation. So they’re crashing the Market Place to lower prices. Because our Market got so big with the 0 interest rates for so long and made this ginormous market we’re in now. But by May to June when inflation starts getting manageable they’ll pause and by the end of the Year when everything is broken they’ll go back to their old ways and start cutting rates again to bring the Phoenix flying again. And we’ll cycle again 😂
Thanks for the updates, good to see how quickly the market is changing. I like the 2018 suburban I see it listed on your site for $29,995 seems like a reasonable price for a 4-year-old vehicle compared to what a new 2023 suburban would cost. As far as the BMW, I guess it depends on a personable level, if it's less than 20% of your gross household income, sure why not buy it and have some fun. If it's a good chunk of money that would affect your household income especially as the overall economy is going through recession might be better to hold off and focus on cars that the economy will be looking for in tight times. Economical fuel-efficient vehicles.
I don't think I could sink $65k into a luxury car which is in the middle of depreciating rapidly in a tightening economy. Tesla also is heavily incentivising people to accept deliveries on the cars they ordered, adding a $7500 discount as of yesterday. To be clear this is an incentive they're adding to try to convince people to accept delivery on the cars they already ordered, as many are walking away. This signals Tesla is really struggling with demand right now, even lower prices are on the horizon.
Yeah, awesome as that M5 is, it'll not be an easy sell in a market with tripled interest rates... When market is down, toys and luxury tends to hold little interest, necessities rule...
This is only because the Fed rebates are being restored in January. The Tesla discount will end in January. People were cancelling their December deliveries and reordering for a 2023 delivery.
I’ll keep driving my Pontiac Vibe/Toyota Corolla everyday and tell these dealers to go scratch, let them all go bankrupt now after their market adjustments nonsense that they have been playing these last few years. Karmaaaa
Here here .. dealerships gave everyone a big gouge during Covid. I hope the market wipes out scummy dealerships. I hope people remember those places that tried to f’ them .
@@777_Logistics He could ask, and my answer would be not spending it on useless TH-cam comments. It's pretty clear to anyone with a brain it's a waste of money.
Nope, Time is most valuable asset, so if it's in the service bay even for free, your still wasting time getting diagnosis,free rental, phone call updates, going back to dealership to pick up, peace of mind GONE "will I make it to X point in emergency???". Not worth the high sticker.
@@AlienGrade well, yes of course. My usual youtube comments are meant for a chuckle with truth behind it. My own brother, we are in our 60s now, was considering a used BMW or Miata. I referred him to various youtube channels speaking to how awful BMW, Mercedes are. He got the Miata. Rich people get new cars every year, so breakdowns mean nothing, and even if they do breakdown, underlings take it in. Pure status symbols for them. As for me, gimme a 1995 Lexus...but then parts become a problem. How about a 1970 pickup with a small block Chevy, heat and AC? I don't need auto climate, blender doors, heated seats, touchpads everywhere
That 2020 high mile Model 3 is still worth 36K all day long in this market. A lot of high mile comps out there in last 45 days. And 90% of them are over $35K wholesale. these cars run through week after week for cheap auction "no sale " fees... Someone will eventually want it for 35K ,and seller will let it go.Running it through auction multiple times ,insures exposure to a lot of dealers It's just like Ebay auctions..Sellers relist same product for over a month ,and someone eventually comes across it ,and it finds a home
There are a couple of 2018 Tesla 3 EVs posted on Backlot that don't even have a $27k bid. This same EV last year was always listed for over $50k. An EV that was originally $35k and $25k after rebates and incentives in 2018.
A month ago you were willing to give $32,000. If it were me, offer would drop each week. to allow for prices dropping. Week 2, $31,500, week 3, $31,000. Does The selling dealer will be more eager to sell seeing the high bid each week dropping.......
A couple things: I really appreciated the depth of explanation. I usually don't watch vids that are half an hour cuz you only have so many hours. This was worth watching, because it helped me understand why the fact that I KNOW that the market is plummeting but I don't SEE the market plummeting when I look for a car... that's thing one. Thing two - you gotta take off that hat more my man, you got the best hair ever and you cover it up for the whole vid!
Teslas have been dropping dramatically. I am in the business and I have seen* dealers who bought model 3s 4-5 months ago at $60k. Now MMR is at $35k and they are stuck. They don't want to show that loss on the books and are still holding. It makes no sense!
@@ilovepinktacos I will keep an eye out. The lowest I have seen personally is $37k for a model 3, I don't understand why MMR is so low, it is based off the last 30 days of sales averaged for the same model vehicle. I did see a 16 Model S 90D for $33K, MMR was $40K at the time. I almost bought it for myself but I listed it wholesale and it sold within 15 mins. Any particular years or models you are looking for? I saw a 13 model S with the rear seat recently sell in the low 30s also.
This was definitely interesting though you did over explain it somewhat 😊 I used to think Teslas were amazing but my neighbour has a Kia EV6 GT which is pretty awesome (slightly ugly rear) but super quick, great range and doesn’t feel cheap inside.
Craig, the floor plan payment idea only applies to dealers the run on credit. Many larger dealers buy cars cash and not credit so there are other variables you’re not accounting for.
Actually a lot of large franchise dealers us floor plans.... I personally know a franchise dealer with 20 plus locations with a billion dollar floor plan
I was in the business a long time and know a lot about it nobody pays cash for their used cars that's very old school and that's if you owned one or maybe two stores. Any more it's all Floorplan. And also even if they were paid for in cash the dealer is going to loan itself money so they're going to charge interest internally on it to the Department so it's really no different
Your information is very interesting and your excitement can be contagious. I don't know if you've talk too much Because you have useful information. I have heard you say the same thing like 3 times, on many occasions before. I think you just really enjoy your business. I loved Buying, fixing , detailing and flipping cars Then they told me I had to get a real job.. If I had a straight up Used Car business and a TH-cam channel, you would see a whole new meaning to the word "talking too much" :) lol keep up the good work, always enjoy watching your channel bro!
2019 BMW M5 completion with over 50k miles and out of factory warranty will go next week for under $63k maybe even closer towards $60k MMR value point. Wait till after New Year’s and see what will happen to those “specialty” cars. January and February had been traditionally slow selling months but you’re a dealer and you should know better and this year especially with our economy not doing great and plummeting values and floor plan rates going up you should score this car easily. I personally trade 2019 M5 competitions with less then 30k on the odometer and now even early 2020 models that qualify for CPO for under $60k already and after I recon it and CPOed it I’m all in at under $61.5k-$$62k and soon you will see them going at auctions for that as well. Residuals on leases back in 2019 we’re set at about 54% for 12k mile lease 57% for 10k mile so wholesale value right around $60’ish should be right on target Be careful and don’t overpay with rapid depreciation going on back to “normality” Be patient with BMW’s that always depreciate and M5 competition is no exception, soon enough same car with less miles will be selling at auctions for under $60k
Prices have already dropped in Minnesota. Tesla website is selling used Model 3 SR+ for as low as $32K, and right there's a Model 3 Performance for $39,200 that can be delivered next week 🤷♂️
Yea in northern states in the winter it's rough for evs, having to always run the heat while driving significantly impacts range and performance so they have to give discounts and incentives.
@@almarkowbender yeah, it was below zero all day today. My Niro EV efficiency was about 1.8 miles per kWh, but when it's regular winter it's around 3.3 and over 4.5 in spring to fall. Because they don't naturally produce wasted energy like gas cars, the heat has to come from the battery. And heat pump doesn't help when it's this cold either. Best to just stay in doors 🥶
@@D4x4Bronc Is it 'glorifying ', or just acknowledging that right now, they ARE superior vehicles??? At face value, outside of Musk, politics, etc....that's the truth
My thoughts on the BMW are you end up in a game of hot potato. Right now buyers for a $70K used car are few and far between, so you have to hold it a while to off it. Even if you’re lucky and the price doesn’t drop any further, the longer you own it the more likely it is to break. With the cost to fix those things you’d be counting your blessings to break even on it. I know your heart wants it, but your brain should say ouch! I don’t want to be holding a hot potato!
Next year with the IRA, you can get a Model Y AWD long range for $59k brand new after the credit. Tesla will release the Model Y AWD Standard range for $52.5k after the tax credit. To compete favorably with the iD.4. So keep your used prices in expectation with that. Next year, used Tesla model Y’s need to be low $40-$45k to sell at retail. Also reconstructed title teslas are banned from the supercharger network.
you can actually have your reconstructed Tesla to be approved by Tesla. By a certified Repair shop. Supercharge and all like new and none reconstructed Tesla's/
He is being himself… He is a disgusting human being. Self-centered. selfish. Cares about no one except the almighty dollar. Overall a despicable human being.
I think you're doing a fantastic job you're just very informative and you enjoy what you do you keep talking that's the way I am with business in real estate and development I get a rush out of it and I love it it's all about the grind🎉
Great explaining Craig. I always watch your videos to know what prices will be doing for the consumer in 4 - 6 mo. I live on the west coast and there are Tesla's listed on Autotrader for $32K with 37,000 - 40,000miles standard range no accidents one owner. They do be dropping!
I have never hoped for businesses to fail like I hope the “market adjustment” dealerships fail in 2023.
How about the real estate business?
@@kagnewcobra5228 new construction will suffer the most, in desirable areas already constructed homes are speculated to somewhat hold their value 🤷
@@disposabledad The problem is you need new construction to be successful, otherwise there will be less of it and that's what contributes to the housing shortage.
It would be great for consumers and the electric car industry as a whole if they sold them at msrp. Not increase price "due to demand."
Dealers think we are idiots. $11k markups and when we drive off the lot we are in the hole $17k as value drips immediately. Don't fall for the hype. The correction is here and dealers will be crying by April.
Not overpaying needlessly is spot on. Refusing to over pay helps correct the market and forces the downward adjusts to happen faster.
Asians: "hold my pillow full of cash"
@You Tube greedy people trying to fleece you leaves a bad taste in your mouth. I feel the same as you... wife let it slip that my engine blew to a Kia dealer and the price went up $7k. I drove thirty minutes and bought the same car for $10k cheaper than theirs. Dumb greedy sales guy lost a deal that day. Don't ever consider the consumer desperate you are not the only dealer in the state.
Tesla has a massive backup of orders. Unless this car has a ton miles on it, or it's been in a wreck, he's trying to rob somebody asking to buy it for $32k
I used to have my theory back in the day when I saw this process has it been under another industry and I thought I would try it about twenty years,,,, but I can see it's up to the professionals as it's a full-time job in thank you for the channel
I bot a 2021 Tesla Y in June 2021. I drove it all over the US for a year, and put 22K miles on it. I sold it in May 2022 for the same price I paid for it a year earlier at 0 miles. Got out at the peak of the market, and bought a used 2012 Subaru Outback with the cash equity I had built up in the Tesla. Good times.
I am a retired used car dealer and everything you have said is 100% true and accurate. And... you are not in any way verbose. I just kept on saying... "Yes, he's on the right track!!!"
Well done. I'll look forward to seeing your next installment.....
There is a big difference between talking a lot and saying nothing, and talking a lot while saying something useful -- Thanks.
The most informative Video on Dealer Auctions yet. As a former small Dealer I like how you have a pre-determined price that you'll pay and you stick to it otherwise it's real easy to get hyped up in the bidding process. Also great that you physically go to the Auctions. Looking forward to your other videos.
I’ve been watching your videos for the last couple of years and just want to say that you’re doing a great job Craig. You do go on rants and I appreciate your rants and your valuable information. Thank you
I was a retail dealer a few years ago. Now I’m getting back in as a wholesale dealer and this video was sooooooooo good I watched it twice. You are a gold mine Craig.
This is the best video you’ve done in a while . I see it as a real time market report. I’m in the market for a fun car. I’m watching your videos to see when I should buy
This is the same issue with the C8 Corvettes now. All those dealers that overpaid for the ones that owner's flipped are having to drop prices pretty dramatically.
Bummer for them🤣
Like the one he's trying to flip!🤣
MMR has dropped about $7500 since the video about it, would have been worth mentioning in this video to prove his point, lol
@@markmansel9899 you mean the one he’s selling for what he paid for it? That’s a terrible flip…
@@mj_aussie_coaster_travels8310it’s un heard of to sell a new car what u paid for it a year later. As soon as u buy a new car u take a hit as soon as u drive it off the lot. If he breaks even on the c8 that’s a great deal if u ask me. Enjoy the car of that caliber for a year for free.
You also have to consider that the market for a used super high end BMW is quite small. Families with that budget could get into something pretty nice AND brand new for that price. And ....BMWs aren't exactly known for low ongoing maintenance costs.
EXACTLY
All along the video i was saying "don't, don't"
Moneypits... 🤑
It's not a family car. It's a car you could take them in, but its not a family car.
It’s a Great Toy if Your a Car Guy! I prefer AMG’s Myself, never lost big on one yet! I always keep the miles low, once they hit 30K+ time to get out and get a different one! But that is a great looking BMW! 67K miles, pretty close to that 70K mark, unless it’s really taken care of with All the service’s done and paperwork & dealership records to back it up? Don’t remember if it was a #1 owner car, I think that’s a big deal too! 2-3 owner cars I stay away from. Just my two cents worth. Great Video Man & Thanks
Great explanation and insight info mechanics of dealer auctions. Very impressed with your evaluation of declining auto values week over week and ability to subvert your human side of self want to your business side of prudent restraint. Fascinating to watch your mental process at work. Great job 👍
Amazing stuff. Felt like a behind the scenes of the car sale business. Appreciate the transparency.
Tesla used prices are dropping in the retail market, mostly because Tesla has dropped prices for December delivery by $7500 to keep people from cancelling their orders. Tesla had been seeing a lot of cancellations because the Fed is bringing back rebates on Tesla's starting 1/1/23. When new prices drop $7500, it affects the used market. Problem is used car managers at franchise dealers are afraid of getting their asses chewed off by general managers for losing money at auctions. They're gonna start getting hammered by their floorplan companies pretty soon and are gonna have no choice but to drop prices soon.
"Teslas." The plural of a word does not get an apostrophe
It's not really price drop but gov't. rebate as an incentive for EV buyers. I bought 3 Teslas - M3 RWD n 2 MY LR all year 2022. I don't care about tax incentives. Not going to drive ICE cars again. In fact I sold my 2 MBenz after I got 2 delivered in Dec. 22 n Aug. 22, 3rd delivered in Nov.2022...awesome n compelling to drive very quiet indeed...but Tesla in not for everyone to costly for an average joe...
@@djyoutubo I agree, but spell check/grammar check consistently apply correction to plurals of car brands, for some reason.
Tesla ev tech more advanced? bull
@@DrWhom exactly. There is nothing special about batteries and electric motors.
2 Thumbs up Craig. I appreciate these learning episodes... When you give us a look at whats happening on the ground level. It makes your channel worth tuning into.
110%
Great video and no you did not overtalk just very informative thanks
I enjoyed learning about the car market. I have gone to auto auctions before as a driver. This gave me some great insight . Thank you. Keep up the great work. More talk means better teaching.
You never talk to much, your every word is info, thanks.
Loved the video glad you didn't buy any of those cars the values are dropping rapidly why pay more when you could pay less. You didn't let your impulse buys lead you down a dark road. Good Job
Just ran across your channel. I love the detail you go into! Anymore very rare to find a dealership that is honest. I ran across a Ford dealership that is Amish owned. Greatest people to deal with. I'll make the drive! Great video!
Great content. Thanks for the honesty and information. You don't talk too much, you rationalize and think out loud which is added valuable content.😄
Your auction and sales videos are the most helpful on TH-cam
An old saying from a retired commodities guy........."Your first loss is your best loss"!!
I love how you keep it real, thank you for all you do.
For keep it real, this dealer has a shit load of terrible reviews
Loved that Craig. I’m not a dealer, but I bought, drove and sold 19 BMWs over twenty years to avoid depreciation and you definitely make the profit when you buy not sell. Thoroughly engaging 👍
I work with car dealers every day and I really like the way you present on this video. Looking forward to more of your content.
Ev overload is coming… so many on the market spread across still a very narrow market… it makes me smile when dealers finally get payback for overpricing cars now stuck with them… awesome
This is one of your best videos so far! I used to be at a Chevrolet store in Cleveland Ohio and I was F&I I did new car used car and GSM. With our used cars we were on a 60-day turn unless it was something real special. And I had a wholesale account I don't know if dealers do this anymore when I would wholesale a car if I would make money on it the profit would go into a separate account on our statement and if I had cars that were getting old I could take the money out of that account and write them down whether I retailed the car or wholesaled it. They probably don't exist anymore but I used to buy a lot of cars at the curb from wholesalers. They were a lot cheaper than the auction and when I would do my reconditioning a lot of times if I had to wholesale it I could get out of it okay at the auction even with all Recon costs.
This past January I bought a 2018 Porsche Panamera sport Turismo 4S certified with 52,000. It was the least expensive 4S in the marketplace for $63,000 everything else was in the '80s and '90s. I now have 72,000 miles on the car. The best I can do for this car wholesale is $50,000. The good news is I had a 2018 E300 with 120,000 miles on it and if the market weren't so crazy it would have been worth somewhere in the mid teens. I wholesaled it for 27.
I miss the business and I'm thinking of getting back in it especially when I see videos like this thank you very authentic 100% truthful
I don't think you talk too much. I enjoy hearing your thoughts and explaining how you arrive at your decision.
Very enjoyable. I love extra talk. The tangents are food for thought. Thank you for this video
I’ve owned 3 Teslas. They are a one trick pony. Fun for about a month then you get bored. I had a Model S P90D with Ludicrous mode, a 19 Model 3 Perf, and a 22 Model 3 LR. Have fun with it but out of all 3 I still went back to ice 🧊
Yep I have a floorplan. I’m usually out of my loans within 30 days.
ACV Is my go-to lately. Found them from one of your early videos.
I havent owned a single one. Been the high bidder on them almost daily for weeks now with no sale
what's ice?
@@ropicllcoffical9610 Ice refers to gas piwered vehicles
Great video good communication about the market and the future of the car market. We all have to throttle our wants and try to determine needs.
Nice job kept it moving and didn’t get stuck on anything.
I wish I could channel your thought process when I buy a car I’m always getting the shaft.
The biggest trick at car dealerships is turning a want into need
awesome video. thanks for being a dealer that's pushing to bring fair prices (with a little juice for you) to buyers. I'd drive up to NH to buy a car from you just because of a transparent video like this
Sir, thank you foe spreading your knowledge 👍🏼 I knew a lot about this but I learned a lot too…not everyone is that transparent !!
This is what Lucky Lopez talks about. Great content !
I recently just opened my used car lot and all the content you put out is very helpful
@@Matthias_Fischer lmao right
Really good information, had family on the dealer side. My uncle managed a Buick/Chevrolet for a thirty years. My parents never paid retail for a car. When I started buying car I made a lot mistakes, my uncle always said buy what you need not what want.
Great vid! You don’t talk too much…it’s great info worth hearing more than once!
Look forward to seeing what happens with the Teslas!
two years ago the Model Y was about ~20k lower on average this year. We have a ways to fall.
Definitely seeing the market adjusting locally in CT. Prices are dropping on used cars (now below suggest MSRP instead of above) and to a lesser degree, new cars (now about 2% below MSRP instead of above). As the shortage ends and the gluts start to grow expect prices to drop even more. A local dealership 6 months ago had 6 cars on the lot. Now they have almost 100. Huge difference in the last six months.
Same, MSRP + $2k is what I am seeing on some new models. Used prices are slowly coming down, but nothing great yet. Still seeing one year old (low mileage) cars selling for over MSPR new. Hope demand in the next few months dies off more. I like going to a lot seeing 7 or 8 new of the same used model I am shopping for.
Carmax is looking for everything to be back to normal around September. They have stopped advertising to buy your car and are trying to unload the slow movers so the bite in the ass is not that bad when the market adjusts.
Thanks for sharing your knowledge of how cars are sold and bought in the states ....totally different way it works here in NZ. We are over paying $$$ for every thing .
Boy!!! this is my first view of your video. You know I incredibly loved your way and honesty. Subscribe and a new fan. Kudos bro.
The depreciation on that Suburban is insane! (13:14) from $70,000 in 2018 to $23,000. Even with 130k miles on the clock, that's an absolute bargain. You got a great deal and timed the market really well.
That’s cause Nobody wants a crappy used Chevy gas guzzler
The question now, is, what will the depreciation be like for its new owner.
Cars: If you don't need one, just cut holes in your trouser pockets, it's pretty much the same.
Keep in mind that was suggested retail 70k, and 23 was his price at auction, note the $32k tag on the mirror. Suburbans have tremendous depreciation, deserved or not, for some reason Tahoes, not so much.
Great video I enjoyed it. Us consumers really need a break prices on everything have been too high for too long
But they were so happy to get their stimulus checks.
Great video. Since I am in the market for a used car right now, this gives me an idea where used car value is going.
Thanks, you are full of information and insight. Just keep talking and educating. As a car 🚙 guy and lot selling I really appreciate the educating, thanks so much.
It's interesting to hear the thought processes behind dealership buying and selling and all of your extra comments on wanting versus needing a car. I am not a dealer but I'm afraid I usually fall prey to wanting rather than needing a new car.
Yeah, my experience is with used is always full of regrets and a money pit. Better to wisely buy new. My neighbor has all used cars and they are always getting fixed. It's a gamble for sure.
I've been watching the Tesla prices for the last couple of months, just before Christmas the smaller dealers in the area gave up and dropped their prices by around $15k, at the start of this month a 2019 Model 3 LR with around 20k miles was $50k, now $35k. Carmax and Autonation are holding firm in the $50k range. Right now Carmax has 570 Model 3's, 191 of the are LR's, I guess they are praying they can shift a few more before having to bite the bullet and take the loss.
Carmax is going bankrupt so the cars will be cheaper soon. The Carmax cars have to go somewhere and Carmax stockholders took the hit.
At one point Carvana had 90% of Chevy Volt listings, on Ebay. All the newer (2016+)'s were 20-25k, with mileage hardly affecting price. Carvana is in the same boat as Carmax. The decision to "eat it" is tough, but at the pace of a large institutional/stock it can be slow enough to bankrupt.
@@hcox1111 Carmax stock is down 20% When it gets down to 30 % BUY ! BUY ! BUY ! It's an excellent run copany .
Great video Craig, I really enjoyed watching. Thanks
VERY informative!! Thank you. Market forces truly at work from the source!
Hey Craig. I learned a lot about car inventory and dealer finance. Before I wrote this message, I thought about market models generally. If the Fed was able to explain its interest rate/demand/price model the way you have, the public would have a much better understanding of monetary policy.
i don’t really think the fed wants people to understand Monetary Policy.
The Fed is raising rates to lower inflation. So they’re crashing the Market Place to lower prices. Because our Market got so big with the 0 interest rates for so long and made this ginormous market we’re in now. But by May to June when inflation starts getting manageable they’ll pause and by the end of the Year when everything is broken they’ll go back to their old ways and start cutting rates again to bring the Phoenix flying again. And we’ll cycle again 😂
Thanks for the updates, good to see how quickly the market is changing. I like the 2018 suburban I see it listed on your site for $29,995 seems like a reasonable price for a 4-year-old vehicle compared to what a new 2023 suburban would cost. As far as the BMW, I guess it depends on a personable level, if it's less than 20% of your gross household income, sure why not buy it and have some fun. If it's a good chunk of money that would affect your household income especially as the overall economy is going through recession might be better to hold off and focus on cars that the economy will be looking for in tight times. Economical fuel-efficient vehicles.
BMW's lose their value by 50% in 4 years. Very few technicians drive one.
Great cars and favoured by drug-dealers...just sayin...
Lots of heart and soul you put into business it's called tough love..good luck from edmonton alberta
The best channel for this content. Thanks Craig!
I don't think I could sink $65k into a luxury car which is in the middle of depreciating rapidly in a tightening economy. Tesla also is heavily incentivising people to accept deliveries on the cars they ordered, adding a $7500 discount as of yesterday. To be clear this is an incentive they're adding to try to convince people to accept delivery on the cars they already ordered, as many are walking away. This signals Tesla is really struggling with demand right now, even lower prices are on the horizon.
Yeah, awesome as that M5 is, it'll not be an easy sell in a market with tripled interest rates... When market is down, toys and luxury tends to hold little interest, necessities rule...
I ordered one in September, and I am walking away. True story.
@@TheRbraden Rob does it cost you anything or can you simply walk away with your deposit 100% returned?
This is only because the Fed rebates are being restored in January. The Tesla discount will end in January. People were cancelling their December deliveries and reordering for a 2023 delivery.
@@goleafsgo8496 you lose the $250 deposit.
Sometimes, usually b/c background noise I miss something. Otherwise I dig speed of your cadence it reminds me of east coast traders I've worked with.
Keep bringing them prices down !!!!!!! Doing a great job kind sir !!!!!! And thanks for sharing the insider information thank’s
Very good video
I personally love the commentary and explanations of everything!
I’ll keep driving my Pontiac Vibe/Toyota Corolla everyday and tell these dealers to go scratch, let them all go bankrupt now after their market adjustments nonsense that they have been playing these last few years. Karmaaaa
Yay dependable gas vehicle.
Here here .. dealerships gave everyone a big gouge during Covid. I hope the market wipes out scummy dealerships. I hope people remember those places that tried to f’ them .
Love this type of video to see changes in real time and your thoughts on the market. Thanks!
Why would you pay $1.99 to comment when it's free
@@almarkowbender does he ask you why you spend YOUR money the way YOU do?
People worried about other people's money 😅
@@almarkowbender So your saying you are cheap! Got it.
@@zamin_ali Yes I am not wasteful.
@@777_Logistics He could ask, and my answer would be not spending it on useless TH-cam comments. It's pretty clear to anyone with a brain it's a waste of money.
Great video, please keep them informative!
Loved the video. I love the tangents. Super fun to watch!
mercedes, Range Rover, and BMW are fine choices as long as the warranty is in effect
Nope, Time is most valuable asset, so if it's in the service bay even for free, your still wasting time getting diagnosis,free rental, phone call updates, going back to dealership to pick up, peace of mind GONE "will I make it to X point in emergency???". Not worth the high sticker.
@@AlienGrade well, yes of course. My usual youtube comments are meant for a chuckle with truth behind it. My own brother, we are in our 60s now, was considering a used BMW or Miata. I referred him to various youtube channels speaking to how awful BMW, Mercedes are. He got the Miata. Rich people get new cars every year, so breakdowns mean nothing, and even if they do breakdown, underlings take it in. Pure status symbols for them. As for me, gimme a 1995 Lexus...but then parts become a problem. How about a 1970 pickup with a small block Chevy, heat and AC? I don't need auto climate, blender doors, heated seats, touchpads everywhere
That 2020 high mile Model 3 is still worth 36K all day long in this market. A lot of high mile comps out there in last 45 days. And 90% of them are over $35K wholesale. these cars run through week after week for cheap auction "no sale " fees... Someone will eventually want it for 35K ,and seller will let it go.Running it through auction multiple times ,insures exposure to a lot of dealers
It's just like Ebay auctions..Sellers relist same product for over a month ,and someone eventually comes across it ,and it finds a home
💬💬💬🔝🔝🔝Thanks for watching
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Love the added info! Upbeat and insightful.
Keep doing what you do. Great job.
There are a couple of 2018 Tesla 3 EVs posted on Backlot that don't even have a $27k bid. This same EV last year was always listed for over $50k. An EV that was originally $35k and $25k after rebates and incentives in 2018.
How do you like Backlot?
@Andrew Shevchuk it has its perks and it has its issues... So I'm so so on them.
Is that for the public ir dealers only?
@@777_Logistics dealers only
Looks like the Model Y is the suv most want. If they are getting a Tesla.
A month ago you were willing to give $32,000. If it were me, offer would drop each week. to allow for prices dropping. Week 2, $31,500, week 3, $31,000. Does The selling dealer will be more eager to sell seeing the high bid each week dropping.......
A couple things: I really appreciated the depth of explanation. I usually don't watch vids that are half an hour cuz you only have so many hours. This was worth watching, because it helped me understand why the fact that I KNOW that the market is plummeting but I don't SEE the market plummeting when I look for a car... that's thing one. Thing two - you gotta take off that hat more my man, you got the best hair ever and you cover it up for the whole vid!
Craig, you are so honest and transparent. First time viewer.
Right, I can imagine there are a few dealers not liking him much, for enlightening us all to the inside of the deal..
Kinda what's happening to the housing market 😆 buyers living in the present; sellers living in the past.
Love the content. You need to let that M5 go. 😂
I don't know why that B.M.W. gets to him, He had a Varon for a while .
Love the info!
Re-confirms what I've been thinking!
Keep up the great vids!
🏁
Carry On Bro !!! You do great !! We love your videos !! HooAh ! Keep 'em coming !
The first loss is ALWAYS your best loss. Waiting 3 for 4 weeks only adds to their agony.
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Teslas have been dropping dramatically. I am in the business and I have seen* dealers who bought model 3s 4-5 months ago at $60k. Now MMR is at $35k and they are stuck. They don't want to show that loss on the books and are still holding. It makes no sense!
Where can I get that deal for $35k sheesh I’ll even give you a $5k finders fee
@@ilovepinktacos I will keep an eye out. The lowest I have seen personally is $37k for a model 3, I don't understand why MMR is so low, it is based off the last 30 days of sales averaged for the same model vehicle. I did see a 16 Model S 90D for $33K, MMR was $40K at the time. I almost bought it for myself but I listed it wholesale and it sold within 15 mins. Any particular years or models you are looking for? I saw a 13 model S with the rear seat recently sell in the low 30s also.
Wud so rather be in 60k Model 3s, than $TSLA.
If you buy used, don't get stuck with a Tesla with no warranty on that 20k battery.
Good explanation. You didn't talk too much, it was perfect and on point.
You made perfact sense hang in there you will get it. Good luck man👍👍
This was definitely interesting though you did over explain it somewhat 😊 I used to think Teslas were amazing but my neighbour has a Kia EV6 GT which is pretty awesome (slightly ugly rear) but super quick, great range and doesn’t feel cheap inside.
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Craig, the floor plan payment idea only applies to dealers the run on credit. Many larger dealers buy cars cash and not credit so there are other variables you’re not accounting for.
Actually a lot of large franchise dealers us floor plans.... I personally know a franchise dealer with 20 plus locations with a billion dollar floor plan
I can agree with skigod9, worked in the office at a large dealer and they exclusively use floor plans
No big dealer buying cash. There's so many advantages of credit if used wisely.
I was in the business a long time and know a lot about it nobody pays cash for their used cars that's very old school and that's if you owned one or maybe two stores. Any more it's all Floorplan.
And also even if they were paid for in cash the dealer is going to loan itself money so they're going to charge interest internally on it to the Department so it's really no different
It’s still money tied up that’s not producing an income
Your channel is great. Very informative and entertaining.
Your information is very interesting and your excitement can be contagious. I don't know if you've talk too much Because you have useful information. I have heard you say the same thing like 3 times, on many occasions before. I think you just really enjoy your business. I loved Buying, fixing , detailing and flipping cars Then they told me I had to get a real job.. If I had a straight up Used Car business and a TH-cam channel, you would see a whole new meaning to the word "talking too much" :) lol keep up the good work, always enjoy watching your channel bro!
You don't talk alot, you share alot of good information. Thank you.
2019 BMW M5 completion with over 50k miles and out of factory warranty will go next week for under $63k maybe even closer towards $60k MMR value point. Wait till after New Year’s and see what will happen to those “specialty” cars. January and February had been traditionally slow selling months but you’re a dealer and you should know better and this year especially with our economy not doing great and plummeting values and floor plan rates going up you should score this car easily. I personally trade 2019 M5 competitions with less then 30k on the odometer and now even early 2020 models that qualify for CPO for under $60k already and after I recon it and CPOed it I’m all in at under $61.5k-$$62k and soon you will see them going at auctions for that as well. Residuals on leases back in 2019 we’re set at about 54% for 12k mile lease 57% for 10k mile so wholesale value right around $60’ish should be right on target Be careful and don’t overpay with rapid depreciation going on back to “normality” Be patient with BMW’s that always depreciate and M5 competition is no exception, soon enough same car with less miles will be selling at auctions for under $60k
Great knowledge, articulate and sensible delivery. Top draw!
Great information thanks for sharing. Another awesome video.
Can u imagine what happens if carvana goes under and those cars are released to the market. Great video.
Why do titles take so long to get at times ?
In Minnesota, we have an expedite service for an additional $20--Title in 7 days !!
Prices have already dropped in Minnesota. Tesla website is selling used Model 3 SR+ for as low as $32K, and right there's a Model 3 Performance for $39,200 that can be delivered next week 🤷♂️
Yea in northern states in the winter it's rough for evs, having to always run the heat while driving significantly impacts range and performance so they have to give discounts and incentives.
@@almarkowbender yeah, it was below zero all day today. My Niro EV efficiency was about 1.8 miles per kWh, but when it's regular winter it's around 3.3 and over 4.5 in spring to fall.
Because they don't naturally produce wasted energy like gas cars, the heat has to come from the battery. And heat pump doesn't help when it's this cold either. Best to just stay in doors 🥶
Seen one for $30K with 28K miles
@almarkowbender actually teslas are some of the best In the winter! -30 degrees warmed up the battery in 4 minutes no snowflake was ready to drive 👍🏼
@@MadmaxMusic93 You will have extremely limited range because running the heat inside the car uses a lot of energy.
Thanks for the video and info. Good to know
I liked the way you talk, straight forward just the facts.
I can't wait for the day I'm flipping Teslas 🙏🏾
That has happened for the last year
Hate seeing people glorify them.
@@D4x4Bronc Is it 'glorifying ', or just acknowledging that right now, they ARE superior vehicles??? At face value, outside of Musk, politics, etc....that's the truth
@@closeredge5198 superior? by what metric? BEVs as a class are horrible.
@@petesmitt Technology, performance, maintenance, safety.... let's not play dumb.... the data is out there
My thoughts on the BMW are you end up in a game of hot potato. Right now buyers for a $70K used car are few and far between, so you have to hold it a while to off it. Even if you’re lucky and the price doesn’t drop any further, the longer you own it the more likely it is to break. With the cost to fix those things you’d be counting your blessings to break even on it. I know your heart wants it, but your brain should say ouch! I don’t want to be holding a hot potato!
Very clear and informative, thanks for the valuable information
Good vid, Good Luck!! Every one needs to be able to apply NEED/WANT!
Next year with the IRA, you can get a Model Y AWD long range for $59k brand new after the credit. Tesla will release the Model Y AWD Standard range for $52.5k after the tax credit. To compete favorably with the iD.4. So keep your used prices in expectation with that. Next year, used Tesla model Y’s need to be low $40-$45k to sell at retail. Also reconstructed title teslas are banned from the supercharger network.
They also remove options after the first owner.
I need a good used black on black Model Y 7 seater.
you can actually have your reconstructed Tesla to be approved by Tesla. By a certified Repair shop. Supercharge and all like new and none reconstructed Tesla's/
@@Mx4_1972 Tesla said they are working on a program to do that in the future, but not right now.
@@Mx4_1972 I can have my reconstructed gas vehicle marked road worthy and get gas no matter what or where. 😁
Craig, just be yourself. You audience finds you.
He is being himself… He is a disgusting human being. Self-centered. selfish. Cares about no one except the almighty dollar. Overall a despicable human being.
@@paulh1745 Merry Christmas!
I think you're doing a fantastic job you're just very informative and you enjoy what you do you keep talking that's the way I am with business in real estate and development I get a rush out of it and I love it it's all about the grind🎉
Your "rant" really taught me alot.Thank you
Great explaining Craig. I always watch your videos to know what prices will be doing for the consumer in 4 - 6 mo. I live on the west coast and there are Tesla's listed on Autotrader for $32K with 37,000 - 40,000miles standard range no accidents one owner. They do be dropping!
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Its EV as a whole. But teslas just ugly asf I dnt want a car that looks like a EV
@@letzgo905
Yeah i don't want a plane that looks like a plane
Doesn't a dealer have to pay a fee each time they run a car through an auction weather it sells or not?
yeah just a no sell fee which is like 20 bucks. But every auction is different so I don't know much it is there . But yes there is a fee
"Weather"?
whether
@@Fred_Durst1 Spellcheck don't like "whether" that's why I just go ahead and spell it wrong. Most people are stupid anyway when it comes to spelling.
Thx for an informative video!
Thx
Love the rant!!!