The Used Car Market Is Collapsing
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- เผยแพร่เมื่อ 13 มิ.ย. 2024
- It's widely known that cars used to be depreciating assets. The moment you drove them off the lot, they'd lose a significant amount of value, and this decline would continue over time, measured as the residual value. This made sense because, unlike stocks, bonds, or land, cars are assets with an unlimited supply that eventually wear out and go out of style. But after the unusual events of 2020, the car market did something unexpected. Used cars began to appreciate in value, causing prices to skyrocket across the market to levels that were once unimaginable. The car bubble had grown to a point where everyone believed it would implode, and right now there are signs that maybe this prediction has some merit,
Lucky Lopez Clip (full video)
• Used Car Market Update
CQA Clip (full video)
• OVERFLOWING FORD LOTS ... - ภาพยนตร์และแอนิเมชัน
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Click bait title
Title: used car prices are collapsing
Conclusion: prices aren’t collapsing as much as people expect.
I have noticed the change in titles for MHFIN. They are now more of the hyperbolic titles for getting clicks. This channel seemed more fact-driven before.
Thanks!
Thanks bro
Every youtube channel. Clickbait is part of the business model. As well as the youtube "oh!" Face. Cringe
@@87mcmahan87 true. It has become a turn off for me.
For years everything was supposed to collapse yet years later nothing.
Duhh ppl are full of shi nobody knows when anything will happen
Nothing? Inflation is raging, household savings are at record low, household debt at record highs, The way I see it we are clearly in a recession, and it has gotten very much tougher to get by. I say plenty has happened.
It’s a process, not an event.
The collapses us, the consumers not the items lol
If your waiting to wake up one day and the tv tells you all hell is breaking loose you’ll be waiting forever.
I’ve been in a used car market in Las Vegas for 24 years and prices have been crushed over the last year or so. Government stimulus artificially pumped up the car market from 2020 to early 23, but when that stimulus money ran out car prices tanked. Most of the cars I sell are under $10,000 and I would say prices are down by about a third over the last year. It’s largely due to all the repos. The glut of repossessed cars is driving down pricing everywhere and it has become tough to make money. Sales prices are down yet the cost of everything is through the roof. Rough time in the used car market.
You forgot to mention the covid regulations reducing production rate of everything causing upward pressure on prices, The old supply and demand effect.
Repos are trashed cars, that are run into the ground. It takes a TON of reconditioning to get them into a condition to get market value out of them. If even possible.
Actually the new car market is crashing. (leading to the used car tanking)
yeah but that’s been happening for 4 years
@@coatoil8671 Two years ago values were at an all time high. Next?
I scored a Toyota Van with 14k miles on it for 14.5k last year. The used car market has indeed busted.
I gave up on the car market two years ago. Taking lessons from mechanics in Mexico and Cuba, I rescued a junk car. I'm glad that I did. I especially like the opportunity to customize. This is not an entirely new thing in the USA. Remember people who discarded the engine in Chevy Vegas and put in a 350 CID V8?
I love my $5000 Toyota which has never let me down and I do all the maintenance myself and has retained its resale value pretty well.
Today is my first day on Prozac, so I’ll be happy either way. 😁
🤣🤣🤣🤣
Beware the side effects. Use your power of the mind not the pill. Life is good.
lol
Beware all the flood cars coming from everywhere.
I sold a used car and I had to discount it to my rock bottom price. I tried to sell a family members car and I couldn’t get his rock bottom price. With repair costs so high, if their is anything wrong with the car and you have to discount the cost of the repair to the buyer, it won’t be worth selling. People are very tight with their cash in the used car market. I don’t blame them either
apprecite the variety of videos
I sold my 2018 chevy cruze LS with 87k miles to a chevy dealer for $8k-they initially offered $7k-I needed to sell my car quickly to buy a house and move. They listed it for $14k...like wtf. Car dealers are like Gamestop where they give you $1.50 for a used game and then sell it for $20. I hope they all go bankrupt and we can buy directly from the manufacturers.
Poor planning costs money
@@weswest8666 To elaborate, I had it for sale for months $2k below book value and didn't get any offers, so I reluctantly sold to the dealer.
Interests rates are crazy, new cars 6-8% rate, used cars 10-13%
As a first time auto buyer with a 720, I just got 20%.
@@andrewo.6682 . Ouch!!! I hope you didn't take out that loan! If you did refinance as soon as possible or pay it down as quickly as humanly possible. 20% is insane!
The lease cliff is inconsequential: People who bought off those leased cars will either become sellers OR if they keep them then they won't be buyers... So there's no net difference in supply OR demand.
Interesting. Thanks!
Great video!
Thank you, love your channel!
I find it interesting when one channel that I subscribe to references another channel that I subscribe to. I'm not sure if that means I am stuck in some sort of confirmation bias or that I am selecting multiple good sources.
Good sources
Yep, i'm one of those who leased early during the pandemic (2020) then bought out my lease (2022, before interest rate hikes). Got lucky I guess. Crazy times.
But I still feel like used car market make a big u-turn and come back. Ppl just trust used cars these days. They are reliable with high milage.
The new car market is collapsing also everywhere
It is time for it and for tractors
In 2001 I got a $2,000 car on installments that ultimately cost me over $10,000... But what could I do. I needed a car and only had $1,000 to put down on it... As it has turned out it has been the best running car I have ever owned... Mazda 2 2013 runs like a little tank and has been massively reliable
So trading in my 2018 Stinger with 33K miles in 2021 for only 4K less than I paid for it was a good idea :). Amazingly I was able to get a Miata (maybe because it was Oct) for 3,200 off sticker. Most dealers wanted sticker but I found one in NH that was listing 1,700 off sticker and was able to negotiate them down even further.
I couldn’t recall where I’ve heard the narrators voice from.. are you also a fps streamer?
No
@@MHFIN How about "The World According to Briggs"? I like both his and your voice and delivery cadence.
Appreciate it David! But no I just have this channel
@@MHFIN Lol ok your voice reminded me of phixate, a gaming streaming lol. www.youtube.com/@Phixate
I think used car prices will not collapse further for the simple reason that new car prices are now so high that people can't afford them.
New car prices will go down. Car producers will start putting massive incentives(price reductions) in next 6-18 months
New car prices are already tanking, and most dealers are offering massive discounts.
?? See... Tesla.
@@todaynottomorrow367 I think the EV market has its own unique paradigm as range anxiety is prompting many to consider hybrids rather than full EVs, hence price drops for Tesla.
The new car market has slowed to a crawl. THUS, the used market cannot just collapse also. People still need vehicles. You can't have both at the same time, and the new prices have not really collapsed yet.
meltdown? you mean return to normal..
You need to adjust car prices for the cost of insane government regulations in the last four years.
What regulations are you referring to?
Nobody is buying luxury because nobody can afford luxury.
Says who. I’m making a deal on a SV Range Rover right now.
Stop having poverty mentality
In america and europe people whose Cars are not for sele sell their lights engines and car parts their at half price at work shops increasing by %80 daily
We should give everyone a car loan ninja car loans iykyk
$85,000 for a Genesis suv is crazy!!!! It's not a Lexus that has high reliability and market demaand ... it's not a BMW that has status... it's just a Genesis... so why $85,000???
Dealers are not lowering price
Not crash, correction
Note: Cars are not "assets" - they are "tools". On average, those who drive for their daily work commute spend about 25% of their working life paying for the car (car cost, fuel, repairs, insurance, etc.).
That's false.
@@earlysda @earlysda CityNerd has a video calls "What does it all cost" and calculates the costs of car-ownership based on detailed statistics. URLs don't seem to work here anymore, but it should be easy to find. Search for the title and CityNerd.
This video is completely incorrect. 18+ years in the business I ran 2 of the largest franchise new cars stores in the US.
What’s wrong specifically?
EV market is REALLY crashing hard!
Maheim not manaheim
According to TH-cam everything is collapsing all the time. Most these videos meaningless.
Wait until after the election
Owning several cars in a high or hyper inflation environment is a way to keep up with inflation.
Prices aren’t going down anymore folks.
With the upcoming future money printing, inflation is what you will see.
This topic appears to have lost its relevance and has been proven incorrect. It would be prudent to abandon it and focus on more pertinent matters. Just take that L and move on
CAR PRICES WILL NEVER GO DOWN! THIS IS THE NEW NORMAL!
Collapse? Really...when will you ever do anything that is going in a positive direction? Click bait title...what you are failing greatly at realizing is the fact that the big three exploded their asking prices so high given the fact all three unions have forced dramatic price increases of new inventory ....thereby forcing most buyers into the used car market...please stay in the realm of reality and consider all factors just not cluck bait factors...
Depreciating liability
Being alive is a liability.
@@MrSupernova111 Only to your medical and life insurer.
LIARS!
A recession is coming. As is Haley’s comet.
Never listen to the youtube doomers
I do like the ones that back up statements with facts. I think MHFIN does back up his comments with real data. In any case a market collapse is not a doom gloom scenario. It offers great opportunities for the well-informed. Just ask Warren Buffett.
@@DavidMartsolf the point is we're a long ways away from the crash they've been calling for the last 3 years. Cars are still too expensive
@@DavidMartsolf He has lots of data, and an equal number of skewed conclusions.