I'm new to the buisness and I was wondering why some cars were slightly less than what the dealers were selling them for. I was expecting a logical explanation like "smaller margins but bigger volume of sales" but nope, I went to about 10 auctions and I saw this very thing you were talking about, you nailed it directly on its head. You should do a video about renting out your dealer license, thank you for sharing this information hopefully more dealers see this so prices are more competitive for the RIGHT reasons.
@@LuckyLopez777 Thanks. Could you please mak more videos about TURO? Pros and Cons? Is that possible earn more than 100k/year with TURO? Wich cars you think are The best and most profitable?
your not alone buddy i started my dealership maybe a month ago and noticed right away auction prices are insane. I just remain patient and don't rush into buying anything study as much as possible..
@@Cryptosporidium-zu2sc That’s a very smart and responsible way of doing Business. I passed my test I am just having a really hard time finding place right now.
@@fayd6664 I promise you don't rush into finding a place be patient and prepare for it and know your gonna get it. What is meant for you is going to come to you and will be perfect to start with.
Lucky I am a car broker 1year in and this information is one of the best lesson out here keep up the good information (Slim’s Auto Sales LLC) Stonecrest Ga thanks again looking forward to using that app
I'm an indy dealer out of L.A., I've been hitting auto auctions for years and have never seen things this bad. You got good videos, real informational and i like youre trying to school the newbies!
Again you are right Lucky, Manheim now won't even give you numbers to run the cars at the auction it's just unbelievable they way small dealer get treated like crap Because big dealers are ready they want it all for them selfs SAD WORLD WE LIVE IN Lucky
Our franchise dealer hasn't let a single trade-in go to auction in the last 3 months. We have a 377,000 mile Toyota on our lot right now lol, in normal times anything over 80k goes to auction, unless it's a Land Cruiser or something special
I’m glad. To see a pro like yourself see what i see and I’ve been in business three years. I refuse to pay the high prices and a lot of new dealers and stupid dealers will be out of business. Ive got a side hustle so I’m just gonna wait it out. I pay cash for my cars as well
I’m a dealer and I bought 15 cars last week because we were low on inventory, bought them overpriced 1500 over clean trade. . I regretted the next day when we went to advertise them. Carmax high as hell. I’m trying to figure out what to do after they sell or even if they don’t. I’ve been in it for 4 years and I was getting burnt out auction after auction going home empty handed so I decided to bite the bullet and pay the prices. Lol
I found you from Superspeeders Rob and this is the most true thing I have heard about the current state of the car market. I want to buy another car but right now I am just waiting to see what happens with the car market and I don't have a car lot, I just flip one or two cars per year.
So, it seems to me that if you are correct, the “SD” business is not sustainable and they may end up out of business or changing their business model, if you are incorrect regarding the “SD”, the folks that do not use the loan lines will struggle and eventually be OOB. Thoughts? Good video!!
You are definitely right SD going crazy bid now get more 1k to 3k . I agree with you I don’t have to buy cars because my lot is run out inventory. Thank you
Great video. I completely stopped buying cars from adesa and manhiem here in charlotte. The bids will literally make you laugh out loud. I get cars cheaper by haggling people from Facebook market. If you don't provide in house financing you will not be profitable as a dealership currently.
Another factor contributing to the over inflated prices is PPP loans and EIDL loans/grants that dealers have received. Many dealers are spending this money like who cares if i overpay for cars. It's free money to them. I guess you can file them in your stupid dealer section Lol. I've been looking at a lot of independent dealer lots and they are packed with inventory so i think retail is already slowing down. A few lots are bare but i think those are from dealers being cautious and not wanting to get stuck with over priced inventory. The same thing happened last year after the EIDL/PPP loans. The market came back to normal around August. I look for the same this year.
Love your videos iam a subscriber i have a question what can we do to combat this problem with high prices now myself is a very small independent dealer in California if the prices dont go down soon iam going to go out of business what can dealers like me do to stay ahead
I completely agree with the video info. The only problem I have is that I’m basically force to purchase something anything in order to sell even if I make less than normal, sucks but if I’m a small fish in a small pond and then we get a flood and this pond becomes a huge lake then I feel like I have to learn to swim with it. I hate it
Vegas is one of the most overpriced used car cities in the US we’re kind of out of here by ourselves in the middle of the desert so we don’t get a lot of new used vehicles coming in so everything is about two to $3000 more expensive here
Is the App laser appraisers ? I'm a new guy in the industry and I don't trust MMR at all. I usually spend like 15 minutes on each car I'm interested in to research the value of the car.
Another great video Lucky. I saw a video by Chevy Dude in LEX who said there is a slowdown with the chips that go into all of the onboard computers. When the C-19 lockdown came the autos stopped selling pushing things back. Chip makers went to Cell pones and PC's for higher margins. Now they auto manufacturers want the chips but the chip manufacturers doesn't really want to take the thinner profit margins in autos. I'm sure there is all of the above going on concurrently. Interesting times.
The pendulum is finally swinging the other way after a year after this video was released. Delinquincies over 60 days for subprime auto loans have almost doubled since Jan 1st. Spreads on credits are starting to widen so we are seeking small stress cracks in the market
I was actually hoping that at the end of March she would go back to normal but now it’s looking like they may approve another stimulus package so if that goes through prices may not go down till December
Man! what a wealth of information yet again! Used car prices are nuts right now...I have a 05 escalade ext...ive dumped money into it but its in great shape for a 16 year old truck. bottom line...I bought it for less for what KBB claims its worth...I dunno we'll see.
Interesting note I looked up Auto Floor Planning in Texas and found "First Gear." A Cox Automotive Company. Part of the Cox Communications "group." One of the Cox sisters lives in Hawaii. I know their pilots and mechanics on the Gulfstream G-550 at that time. As I understand it the Cox sister and her husband who "runs things" are great people and always deal above board. I'd recommend them as a good patterner to have unless you "Lucky" know of a different reason.
You didn’t mentioned the biggest one of them which is car manufacturers are not in full capacity till Jan 2023 . Big dealers are buying at crazy prices not stupid or new dealers .They need inventory more than any other guys . Little guy can go out of business but big dogs must stay alive . That’s the real reason buddy .
I'm seeing a lot of used cars at the same price no matter the condition. You will have one 4Runner beat to hell priced exactly like another one that is pristine. Those nice ones go fast. But a dealer has to realize that if a 4Runner is on the lot for 2 months it is priced TOO HIGH
That’s totally my point people don’t pay attention to the grading of the cars whatever MMR says that’s what they bid on it’s crazy and little by little they’re just overpaying more and more for cars
@@mikemillie3826 I'm not in the market for something that new. Taking a 30+ thousand dollar truck off-road is not my idea of fun. But you should have no problem selling it if it is a 4x4. Problem is, not a lot of private buyers looking for someone that new. Why the regret, the cost, or the fact that you bought an actual truck and not a jacked up car with a ton of tech?
Carvana prices indicate someone is paying too much. LOL There may be a big crash soon, especially when incomes aren't keeping up with this crazy inflation.
l suppose buying auction cars right now is just like buying ammo, ridiculously over priced. If you shoot anyone, make sure you ask for that bullet back,lol. Last joke was unrelated to the video
Im a Shooting Fan Myself Im actually flipping bullets right now lol I have 7000 rounds of 223 and 5000 9mm. I took them on trade last year for a car i was only into $1800. now its like gold lol the only thing more valuable is Wood lol
@automotive life cox automotive baby, trying to monopolize the automotive industry. Control the auctions (wholesale prices) MMR, the flooring line NextGear to lend you money to buy at higher prices , the “vehicle value” KBB and autotrader for retail values.
great break down..exactly what is going on at the moment...I think prices will remain somewhat high.With the new wave of illegal immigrants, a lot of these guys are going into the car business..I already seeing it happen here..(not being political, but my opinion)
I love it!!!!
I'm new to the buisness and I was wondering why some cars were slightly less than what the dealers were selling them for. I was expecting a logical explanation like "smaller margins but bigger volume of sales" but nope, I went to about 10 auctions and I saw this very thing you were talking about, you nailed it directly on its head. You should do a video about renting out your dealer license, thank you for sharing this information hopefully more dealers see this so prices are more competitive for the RIGHT reasons.
Lots of great information. What was the app you were talking about in the video?
Laser aprasier or mmr
You know you're doing a good channel when I actually get pen & paper to take notes. Keep up the great work!
Thanks I appreciate it 🙌💯
@@LuckyLopez777 Thanks. Could you please mak more videos about TURO? Pros and Cons? Is that possible earn more than 100k/year with TURO? Wich cars you think are The best and most profitable?
You the best lucky. I like how you break things down and give Trade secrets of who owns what
Thank. I appreciate that
I am in the process of starting my car dealership and oh man what a time to start haha. Your videos help a lot. Thank you!
Thanks I appreciate it. And yes it’s a crazy time but buy right and take your time you will be good
your not alone buddy i started my dealership maybe a month ago and noticed right away auction prices are insane. I just remain patient and don't rush into buying anything study as much as possible..
@@Cryptosporidium-zu2sc That’s a very smart and responsible way of doing Business. I passed my test I am just having a really hard time finding place right now.
@@fayd6664 I promise you don't rush into finding a place be patient and prepare for it and know your gonna get it. What is meant for you is going to come to you and will be perfect to start with.
@@Cryptosporidium-zu2sc Thanks man it really help hearing from someone in the business. What state are you in? if you don’t mind me asking.
Lucky I am a car broker 1year in and this information is one of the best lesson out here keep up the good information (Slim’s Auto Sales LLC) Stonecrest Ga thanks again looking forward to using that app
congrats on the 1yr GA is a Good Place for BHPH. the laws there are Dealer friendly
Thanks lucky
Thank You Derrick :)
100% Truth!
🙌💯
I click on the MMR breakdown because that shit can mess you up real quick
yes sir
Preach!
1000%
I'm an indy dealer out of L.A., I've been hitting auto auctions for years and have never seen things this bad. You got good videos, real informational and i like youre trying to school the newbies!
Thanks appreciate it 💯
Awesome to the point information.
Thanks :)
just like that housing market
100%
I want to learn more about Adesa and Carvana, and looking to see if we short Carvana to zero
but then what happens to Adesa
I’ve been in the auction business for 32 years now. There is no real science.
Again you are right Lucky, Manheim now won't even give you numbers to run the cars at the auction it's just unbelievable they way small dealer get treated like crap Because big dealers are ready they want it all for them selfs SAD WORLD WE LIVE IN Lucky
Yeah. I would try ACV they come out to you and sell your cars from your lot. and you can buy cars from your phone
Thank you so much for the information. I am still flipping cars.
😁👍
how do you know that franchise dealers are now providing 10 cars for example and not 100 ? How do I know why there's low supply in the future ?
Our franchise dealer hasn't let a single trade-in go to auction in the last 3 months. We have a 377,000 mile Toyota on our lot right now lol, in normal times anything over 80k goes to auction, unless it's a Land Cruiser or something special
@@joepierson3859 Wow !
100%
@Joe said it right there. you can get run lists every week and you can see most Franchise stores are getting less and less trade ins into the Auction
I’m glad. To see a pro like yourself see what i see and I’ve been in business three years. I refuse to pay the high prices and a lot of new dealers and stupid dealers will be out of business. Ive got a side hustle so I’m just gonna wait it out. I pay cash for my cars as well
That’s all I’m waiting for them either to go out of business or the credit lines close there accounts lol
I’m a dealer and I bought 15 cars last week because we were low on inventory, bought them overpriced 1500 over clean trade. . I regretted the next day when we went to advertise them. Carmax high as hell. I’m trying to figure out what to do after they sell or even if they don’t. I’ve been in it for 4 years and I was getting burnt out auction after auction going home empty handed so I decided to bite the bullet and pay the prices. Lol
I found you from Superspeeders Rob and this is the most true thing I have heard about the current state of the car market. I want to buy another car but right now I am just waiting to see what happens with the car market and I don't have a car lot, I just flip one or two cars per year.
Thanks I appreciate it. And welcome to my channel 😁
Good recap.
Thanks 😁👍
Don't forget Carvana. They are giving TOP DOLLAR if you sell your car to them.
100%. I just sold a car at carmax they gave me retial lol
So, it seems to me that if you are correct, the “SD” business is not sustainable and they may end up out of business or changing their business model, if you are incorrect regarding the “SD”, the folks that do not use the loan lines will struggle and eventually be OOB. Thoughts?
Good video!!
What’s the app u never made a video or maybe I missed it??
You are definitely right SD going crazy bid now get more 1k to 3k . I agree with you I don’t have to buy cars because my lot is run out inventory. Thank you
Thanks 😁💯.
If you don’t mind me asking what’s the app your using/mention
Laser Appraiser
Great video. I completely stopped buying cars from adesa and manhiem here in charlotte. The bids will literally make you laugh out loud. I get cars cheaper by haggling people from Facebook market. If you don't provide in house financing you will not be profitable as a dealership currently.
One of these price videos updated monthly coming out of pandemic would be awesome!
I will Post Monthly
Another factor contributing to the over inflated prices is PPP loans and EIDL loans/grants that dealers have received.
Many dealers are spending this money like who cares if i overpay for cars. It's free money to them. I guess you can file them in your stupid dealer section Lol.
I've been looking at a lot of independent dealer lots and they are packed with inventory so i think retail is already slowing down. A few lots are bare but i think those are from dealers being cautious and not wanting to get stuck with over priced inventory. The same thing happened last year after the EIDL/PPP loans. The market came back to normal around August. I look for the same this year.
Very True 100%
What’s the app you’re using to buy cars? Did you get that partnership yet?
Making the video next weekend
@@LuckyLopez777 where is the video
Love your videos iam a subscriber i have a question what can we do to combat this problem with high prices now myself is a very small independent dealer in California if the prices dont go down soon iam going to go out of business what can dealers like me do to stay ahead
build your networks to buy cars. 90% of my cars i buy from. online FB IG CL offer-up and ads.
I hardly buy form the auctions.
I completely agree with the video info. The only problem I have is that I’m basically force to purchase something anything in order to sell even if I make less than normal, sucks but if I’m a small fish in a small pond and then we get a flood and this pond becomes a huge lake then I feel like I have to learn to swim with it. I hate it
Stay strong. the market should correct it self soon
And the auction fees keep creeping up every year 😒
they are insane lol IAAI. if you buys a $3k car you will have 1500 in fees lol
Great Video, how is the used car market atm in Vegas? My Dad needs to go used car shopping here in Central MD this weekend.
Bryan
Vegas is one of the most overpriced used car cities in the US we’re kind of out of here by ourselves in the middle of the desert so we don’t get a lot of new used vehicles coming in so everything is about two to $3000 more expensive here
Its ridiculous right now I can't wait for this to end... Hopefully in the next two to three months...
Me too
Is the App laser appraisers ? I'm a new guy in the industry and I don't trust MMR at all. I usually spend like 15 minutes on each car I'm interested in to research the value of the car.
Are use laser appraiser in a few other ones but I’m gonna go in the depth on the video probably this weekend
Another great video Lucky. I saw a video by Chevy Dude in LEX who said there is a slowdown with the chips that go into all of the onboard computers. When the C-19 lockdown came the autos stopped selling pushing things back. Chip makers went to Cell pones and PC's for higher margins. Now they auto manufacturers want the chips but the chip manufacturers doesn't really want to take the thinner profit margins in autos. I'm sure there is all of the above going on concurrently. Interesting times.
The pendulum is finally swinging the other way after a year after this video was released. Delinquincies over 60 days for subprime auto loans have almost doubled since Jan 1st. Spreads on credits are starting to widen so we are seeking small stress cracks in the market
Hey lucky, If you had to put a timeline on it, when do you think the prices will go back to normal again?
I was actually hoping that at the end of March she would go back to normal but now it’s looking like they may approve another stimulus package so if that goes through prices may not go down till December
This video worth $$$
THANK YOU! Stupid dealers are killing us “new dealers” because we buy in cash 🏧 😭
Thanks I appreciate it
I smashed the like button for that TH-cam algorithm just like how I do for Graham !
Yes 🙌💯
Man! what a wealth of information yet again! Used car prices are nuts right now...I have a 05 escalade ext...ive dumped money into it but its in great shape for a 16 year old truck. bottom line...I bought it for less for what KBB claims its worth...I dunno we'll see.
Kbb has gone up so you should check The price now.
I was at GAA on Wednesday and saw a fusion sell for 27250.....😮😮😮😮
I saw a smart car with over a 100k miles sell for $6000. my mind exploded lol
Interesting note I looked up Auto Floor Planning in Texas and found "First Gear." A Cox Automotive Company. Part of the Cox Communications "group." One of the Cox sisters lives in Hawaii. I know their pilots and mechanics on the Gulfstream G-550 at that time. As I understand it the Cox sister and her husband who "runs things" are great people and always deal above board. I'd recommend them as a good patterner to have unless you "Lucky" know of a different reason.
I work with Cox Automotive
@@LuckyLopez777 The pilots I know are the salt of the earth, and express the Aloha spirt every where they travel.
There's a buy here pay here in my town they had a Yaris that was 3000. Down 250 a month
Sounds like a bargain lol
@@LuckyLopez777 it had 135k miles and it was $8999 decent
You didn’t mentioned the biggest one of them which is car manufacturers are not in full capacity till Jan 2023 . Big dealers are buying at crazy prices not stupid or new dealers .They need inventory more than any other guys . Little guy can go out of business but big dogs must stay alive . That’s the real reason buddy .
I said the franchise stores are not selling trade ins. because they don't have the cars from factory to fill there lots
I'm seeing a lot of used cars at the same price no matter the condition. You will have one 4Runner beat to hell priced exactly like another one that is pristine. Those nice ones go fast. But a dealer has to realize that if a 4Runner is on the lot for 2 months it is priced TOO HIGH
That’s totally my point people don’t pay attention to the grading of the cars whatever MMR says that’s what they bid on it’s crazy and little by little they’re just overpaying more and more for cars
I bought 4 runner $33,000 2021 I regret buying it plan it sell it back in market soon
@@mikemillie3826 I'm not in the market for something that new. Taking a 30+ thousand dollar truck off-road is not my idea of fun. But you should have no problem selling it if it is a 4x4. Problem is, not a lot of private buyers looking for someone that new. Why the regret, the cost, or the fact that you bought an actual truck and not a jacked up car with a ton of tech?
Mmr dummies lol I don’t even use that junk
I dont mind using it for a guide but. Most dealers live and die by MMR lol
Carvana prices indicate someone is paying too much. LOL
There may be a big crash soon, especially when incomes aren't keeping up
with this crazy inflation.
so true
Give a hug to brazilians entreprenours
Hugs from the USA 🇺🇸 to Brazil 🇧🇷 😁👍
l suppose buying auction cars right now is just like buying ammo, ridiculously over priced.
If you shoot anyone, make sure you ask for that bullet back,lol.
Last joke was unrelated to the video
Im a Shooting Fan Myself Im actually flipping bullets right now lol I have 7000 rounds of 223 and 5000 9mm. I took them on trade last year for a car i was only into $1800. now its like gold lol the only thing more valuable is Wood lol
@@LuckyLopez777 Yeah, good investment. I can only afford shooting my bb gun right now, so empty beer cans are becoming commodity as well. lol
@@magrisers lol 🤣
We have ND and stupid dealers hahahha
🙌💯🤣
Looking forward to your pricing app recommendation. I don't want to be that guy, relying 100% on MMR. 🤘
Should be this weekend
@automotive life cox automotive baby, trying to monopolize the automotive industry.
Control the auctions (wholesale prices) MMR, the flooring line NextGear to lend you money to buy at higher prices , the “vehicle value” KBB and autotrader for retail values.
We can’t say the name out loud they will come get us lol
great break down..exactly what is going on at the moment...I think prices will remain somewhat high.With the new wave of illegal immigrants, a lot of these guys are going into the car business..I already seeing it happen here..(not being political, but my opinion)
Hi Lucky
How do you determine the cost of a vehicle in the auction?
I’m making a video about it next week
@@LuckyLopez777 🙂👌🏾