CARMAX DISASTER! Here comes the COLLAPSE of the Car Market!
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- เผยแพร่เมื่อ 16 พ.ค. 2024
- CARMAX is signaling the collapse of the car market. With new vehicle inventory climbing at an unprecedented rate, dealers are having to SLASH prices left and right and incentivize deals with exceptional interest rates. When new prices are discounted by 10-20%, where does that leave the Used Vehicle Market? Not good at all for a company like Carmax where they take a long time to make changes. Carmax is a beast of a company with stakeholders to appease. Making drastic price cuts can't happen overnight, they need to seek the necessary approvals. This process forces them to ALWAYS be behind the game. The market is quickly falling and CARMAX can't keep up. Carmax NEEDS to be agile in a time like this if they want to succeed. They need to make organization-wide decisions and changes swiftly in order to keep up with this volatile market. Would you agree?
The cars on this Carmax lot are easily 15-20% overpriced. In this video I highlight some recent stats that are indicative of what the car market is doing right now. Carmax stock dropped 19% over the last 3 weeks... their year-over-year net income saw a 27% LOSS... Since reporting those losses, they saw an instant drop in stock cost. Carmax purchase 14% less vehicles from people last quarter, and a 45% increase in vehicle purchased from other dealerships. This is a clear indicator of where we're at right now. Average price per unit has only seen a $600 drop across the board, all while CARMAX sustained their average profit margin per vehicle of $2200. Kind of insane...
New inventory is through the roof right now... dealers are having to take desperate action to sell their inventory. With each passing month, Carmax is LOSING MONEY. The longer a vehicle sits on their lots, the more it'll cost them. And well, I can honestly say... a good chunk of the vehicles on this lot have been here for over 45 days now. That's not good.
Let me know your thoughts. Have you seen your local CARMAX continue to do well during the pandemic? Or are they stacked with vehicles that they've had for months? Thanks for watching as always. If you found ANY value in this type of content, please consider Liking and Subscribing. Your support means a lot and I certainly appreciate it! Thank you.
-Stay Untamed...
#carmarket #carmax #usedcars
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Refusal to buy is always the consumers' strongest weapon.
Amen to that 🙏
The economy is so screwed up right now. I'm a little more fortunate than others and I feel the struggle. I don’t know how others are getting by.
democrats screwed us all.
I say that every day…
the fact that a car right now per month is how much a house was a few years ago is sickening. idk how people aren't losing their minds yet.
Ikr? Cant believe things have gotten to this point… so quickly.
These prices are insane and no haggle? Who are buying these vehicles? Hard pass.
People with bad credit!
I love the mess the dealerships are getting into. They loved to get over on consumers during the pandemic and made it seem like they were doing you a favor by reducing the markup, lol.
You know what they say about Karma…
24 percent is absolutely crazy. No way in hell. I’d rather save up money and pay cash for an older car.
Agreed… a $50K vehicle will quickly turn into a $100K vehicle after payments are made over 60-72moths. Insane.
I’m seeing $7000-$9000 thousand off MSRP on New tundra’s, at my local dealership. My my how things have shifted. Now the dealership’s are hurting for customers 🤔 I don’t think CarMax will make it 👎🏼
In what part of the country are you seeing those discounts?
Maybe time to start getting reasonable
A truck with a v6 should not cost more than 50K no matter the the make and model. I'll keep my 2021 4runner for now.
Dealership would rather wholesale to CarMax rather than negotiate to potential buyers? Smh…
Yep path of least resistance in their eyes… which is pathetic
In some cases they don’t have the customers to negotiate with!!
Too much $$$ when groceries and medicine have to come first....we can't eat our vehicles. It's all about survival under this administration, pitiful.
Sheep voted for this guy
It's probably a waste of time explaining this to you but it was Trump that transferred 5 trillion upwards, not Biden. Did you think that kind of $$ wasn't going to cause massive inflation? So what did Biden do when he started his term? Raised interest rates. Something everyone was complaining about but was necessary to offset the inflation. Expenditure under Trump was so gargantuan though that even raising interest rates absurdly high could not offset inflation to what was practical. Then to top it off greedy capitalists (in every industry) used the opportunity to use "inflation," as an excuse and really just jacked up prices 50% regardless of inflation. But you guys are the "muh free market," types so you don't want government intervention that would regulate prices, so Biden couldn't do shit else.
healthcare was always shit in USA no matter republicans or democrats!! who have bigger health issues and not alot of money its better to go to Mexico then for health services
You all are not educated at least not how economics and markets work. This is 40 years in the making. We still haven't paid for the GFC and need I remind you that Trump gave out massive stimis just like Biden did. One this he did that Biden did not do was give coporations their biggest tax cuts in history. Let's not be naive and lets stop calling people names. It is not helping. What would help is if you picked up a book and read about how this stuff works so you can make and informed decision. Without out that you are the real Sheep.
@@Mr11ESSE111 i would rather eat and pay my utlities before i worry about health care.
It never ceases to boggle my mind that people pay tens of thousands for high mile used cars.
Personally, I think it's insane that people spend over 5K on a car, especially with endless internet DIY resources for car maintenance. I can't say much about the newer cars, I can only imagine they're a giant pain to work on, but the older used cars are generally quite simple. Get yourself a good mechanics starter tool set, find a TH-cam tutorial, roll up your sleeves and save yourself thousands.
People really need to find their common sense these days.
I’m with you. It’s great what you can learn on TH-cam these days! =] Tutorials for everything.
I'm DiYer. But manufacturers do not like DiYer, they make things complicated and software control their vehicles. About 2 weeks ago, a friend of mine's car, Chrysler Pacifica 2020 model, having misfiring issues.
I know few things can relate to misfiring, I started with Spark plugs, and the coil, I did not succeed. My scanner couldn't read Chrysler code, took the car to Firestone, had them scan the car, they were unable. Took to independent workshops, no luck. At this point, I'm suspicious about their software control system. Had to take it to deal and waiting for the results. It's been 5 days so far.
That works if u have a home..most apt complex won't let you wrench on a car..
$40,000 for a 7 year old car with 100k miles on it? Carmax can sink to the bottom of the ocean at those prices
Lol
Blows my mind too 😳
I have been reviewing the CarMax financials and listened to their earnings release last week. They have zero intention of dropping prices, they are going to hold on gross profit and will take the hit on the demand side. They have lost market share this year (slightly below 4%) and stated it’s a trade off they are willing to make. Also did not realize that they hold their own loans, currently about $17 billion. Their stock was down about 15% in the past 2 weeks.
Beautiful Family
Thanks Kevin! I’ve hit the life lottery. =]
I bought a 35k used etron at carmax. When I got it cracked windshield, brakes nosy, and worst right arm axle or control arm loud thomp noise. I returned it the next day and got my down payment back.
Only idiots buy a used car online!
Beautiful family. Definitely appreciate the car market content. Keep it up, thanks man.
Thanks a ton man =]
LM Great looking family. You sure have your hands full. Many Happy Meals coming your way!
The public needs to stay the course & don’t buy into these prices!!
Ridiculous Prices + High Interest Rates + Raising Insurance Rates = High Repos!!
Let the market recorrect itself to pre- pandemic levels.
Forgot your squeegee today, of all days! 🙂
American greed. Max profit and screw the consumer. Insane what some dealers, not just CarMax are charging for it's vehicles. All the little addons like PPF, NitroFill, key fob ins, etc...Then with most buyers it's a financing issue with rates with perfect credit around 7-8% and with crappy FICO's in the nosebleed 20%+ range.
Isn't our whole system in general greedy?
What? They gonna tax me on selling used stuff on marketplace using cash app? Anything over $600? What?
Great video as always brother …. All I can say is greed will be the downfall of the car-truck market …no one can afford them anymore !!
Thanks Troy, yep. We need a factory reset… clear the field of the greedy dealers. 👌
Time to short Carmax 😈
That time was 2 months ago, bud.
Thanks for all the content and info!
Thanks for the positive feedback! Appreciate you tuning in! =]
Thanks for the update, been looking to upgrade my truck but at these prices theres no frikkin way, even with excellent credit. You're the first source I go to when considering a new or newer vehicle, especially since you are local. Thanks for keeping your finger on the pulse of the vehicle market
Because of the scamming reputations that so many dealers have, no-haggle pricing is the only way to shop fairly from any retailer. I'd rather know that I walked in and got the same offer as everyone else, even if I pay slightly more for it.
Keep em coming boss. Great info
Seriously! I thought I was the only one to call my kid “buggaboo” 😂🍻
Haha awesome! Great minds! =]
I think you're right on the money on your analysis of CarMax.
Love the one you're with. Prices are pure fantasy and madness.
So they're just passing their liabilities around?
V6 or not. A used Tacoma isn't worth that. Specially being so underpowered and an outgoing model made in Mexico
but comparing to the 2024 tacoma,a over priced ,overteched 4 banger,the used tacomas with the v6 are now GOLD.
@@billw8476 so you claim but they really are not. The prices are too high. That's why they are rusting on lots
@@cmdrls212 but the third gen is what is hot right now, which is why the price for them are high. very few want the 4th gen dispose-a -truck
Gen 3 is not at all under powered. It’s ridiculous to say that. Look at the 0-60 times between others. Since when do pick up trucks need to be sports cars anyway!? Ridiculous
Oh my God that Nissan Titan for $30,000 is crazy. Four years ago I paid 31,000 for a Ford F150 XLT with options that had 21,000 miles on it.
I forgot that it was a 2019 bought in 2020
Thanks for sharing… carmax is notorious for this pricing🤦🏻♂️
Kind of crazy how times have changed?… it’s ridiculous that people have let it get this bad!😡🤬😡
Yup they’ll reap what they sow. Charging ridiculous mark ups over msrp.
Omg, the kids are beautiful. God bless you and the family.👍
Are you in Canada?
I noticed some of the Subarus front facia looking different that what I have seen in the USA
No car max in Canada I don’t think (not in ontario anyway where I live)
I've never liked Carmax anyway because of the fact they've always sold used cars at new car prices and you can't haggle on price doesn't help anything eather.
Yeah for folks with good credit, Carmax is rarely a good option. 👍
U R the best! Thanks!
Carmax appears to be selling to subprime. So they need vehicles that will last the term of the loan. Their customers don’t care about the price just the payment. I don’t know anything about CarMax comp plans but the GM of that lot isn’t hurt as much by having old inventory evidently.
I love your channel, mate! I'm looking to buy a new or almost new car for the first time in my life. This is REALLY helpful. Subscribed and thank you!!!
Thanks a ton, Lawrence! I really appreciate the support! =]
Another great video. You have a beautiful family, much love.
That is one great looking family you have. Congratulations.
Truck prices are absolutely insane. Who exactly do these people think can afford these things? I am in Canada and Toyota has had no inventory since 2020. I guess average people can’t buy cars. That’s depressing to say the least
Thanks for another great video! This industry is really in a mess right now.
Always great to see the untamed family enjoying themselves also glad you lost the baseball hat good move. Great video as always!!
I visited a Carmax in Renton and the place was nearly empty. Large main room with a dozen plus desk for paperwork, all empty.
How many videos can one man make about the car market crashing? Is that the plan here? lol
It’s remarkably boring and regurgitated from other platforms at this point…
They should change their name to "Price Max"!!!
Haha that’s a fact!
I really don’t know who do they intend to sell to at those prices in this crazy market with such high interest rate 🤔
Youre very rich with a big beautiful family brother. Respect.
Thanks brother 🙏
I’m extremely thankful for this wonderful family of mine. =]
@@UntamedMotors You're very welcome 🤝
I have been after a 2006 Tacoma @ a used car dealer in eastern MN. They won't budge off their price and of course their price is high. This is not a loaded rig. Extended cab with a 5 speed stick.
In my opinion you have to be a little crazy to buy a vehicle from Carmax. They have the total swindle price on all their vehicles.
I just bought a mini van, 2023 Sienna Le, 18k miles,from car max today,$39k, really good experience, I got 5.99% for 4 years,$450 Monthly. Plus they were the only one that offered me $23.5k for my Forester 2020… I can’t complain.
It’s wild to me that interest rates are higher when your credit is worse. Like, you’re already struggling so we’re gonna make it even harder for you to buy a car! What a wonderful system we live in
I think that too all the time… it’s like they want to kick you when you’re down. Wtf
It makes sense. If you have bad credit, that means you havent been good about paying your bills and loans. Lending you money is high risk. Getting a loan isn't a human right. If you don't pay your loan or bills, you're basically stealing and that's lame.
Higher interest rates are basically loan insurance against poor credit. The repo rate is why. Poor credit people don’t have much care if they get repoed. Some car have been repoed and resold 15 times.
When do you expect shareholders to ok price cuts?
I agree OP
Their prices are usually higher than average
They often prey on people with poor or subprime credit… big up-charge but can actually land you a loan approval. (Although ad a huge rate)
Fielding 5.5-7.25 percent off offers on 4Runner TRD ORP units on the front range of CO and surrounding markets.
Wow these prices are ridiculous. I got a good deal at CarMax during the pandemic because they were buying used cars from rental companies. Good price, car is reliable and payments are affordable. I was debating on trading it on for somthing newer because the car is starting to get mileage but forget it with these prices. Il just keep what I have.
Some of you in the comments fail to realize credit drops for people who manage their money well. Never miss a payment, pay everything off, stay out of unnecessary debt and you will get punished for it. Of course the system rewards debt addicts by offering lower rates, they want to keep their best customers coming back.
So a 2013 Sentra with an original MSRP of 17.5 is 12k more than 10 yrs ad 125k later?
Per CarMax, they are only wholesaling vehicles that don’t meet their criteria to retail. Supposedly if it meets the criteria to retail they don’t wholesale the car, they just let it sit on the lot :). Their typical wholesale car is >10 years and 100k miles per their annual report.
Beautiful family.
Thanks man! 🙏
Very cute family n little ones. Also good video
Anyone else looking at the GR rolla 👀?
Not a bad deal considering the current availability
Bet those are a blast to drive!
whatup dad aloha from hawaii 🙌🙌🙌💪💪💪💪👍
I've put off car purchases indefinitely. I'm taking better care of my current vehicle(s) 🤞
No haggle is just a nice way of saying "sorry that's the price, fuck you"
CarMax buys majority of their vehicle from Rental Car Companies and OEMs Program Fleets. Purchasing with cash 1000s at a time for dirt cheap. They have the highest Individual Transaction Price of any New/Used dealership in North America. They can easily afford to sit on even "old inventory".
How come that depreciation doesn’t translate to used car prices? How can they charge for near msrp when you lose so much when you drive off as the first buyer?
I wouldn't buy a car/truck with the kind of high mileage on some of these and I won't pay 9% interest. With good credit you can buy a new car/truck with less than 6% interest and the payments will be about the same.
In my opinion, these prices are so high even if they came down another 20% I personally don’t think that they would sell the mileage on most of these vehicles that I see from this video is way too high. That’s just my personal opinion. I just don’t see Carmax bending I think they’re gonna take a big hit.✝️☮️ Rest in peace…⭐️
The American dream used to be buying your home. That is out the window now the American dream is struggling to afford a vehicle. Rest assured it is by design, they know we need transportation, and they are going to make us pay for it… dearly!
2023 Prius XLE MSRP when new was ~$31k, and the 2024 Prius XLE can be had for about $35k in my area. $39k for a used one is highway robbery.
Why would CARMAX take a fall for dealerships, when they know cars are not selling being $10--20K OVERPRICED.? CARMAX is there to keep PRICE MONOPOLY GOING..
They’ll go bankrupt sooner or later if they keep this up. 15-20% interest rate for a used vehicle is suicide. You’re better off buying new car at lower interest.
$35,000 for that 2022 Forester Wilderness in Geyser Blue with 11k miles on it! In 2021 I was out the door for that exact same car for $36,948 plus a $199 doc fee. And mine was a brand new 2022 in that same color with Option Group 22 and the Wilderness package.
The new XLE Prius is around 32k new and has become more available. 38k makes no sense. You can get a limited AWD or a prime for that price (new).
Buying a FORD with over 100k is a death sentence too.
You got beautiful family, GOD bless you all.
You said the cars there need to come down 10% to move. I'm thinking 20% is a MINIMUM and some of those gotta come down 50%. All need to come down with this range. If not, they will soon have their liquidation sale and store closings. people seem to miss this economy is going down. Every month it gets worse. money is being sucked out of the economy. So soon, most won't be able to buy anything for 1K so if they don't get these sold in the next 3-6 months, it'll be over.
Competition is good! If bad dealerships go out of business, there'll be less incentive for the good one's to stay good- does that make sense to everyone?
More dealers are better for YOU; make the correct choice!
I will never shop a non negotiable car dealer. That say “we know more than you and are here to screw you”!
I paid 43k for my 2022 Tacoma TRD off-road 4x4 and that was 2k mark up for the dna stickers… carmax is wild
10:10 “…remotely affordable” , when we use euphemisms to make ourselves feel good…you know the situation (in this case, the economy) is reeeally bad. 😔☹️
Cut prices and financing rates.
Car market won’t collapse but Carmax will at their prices not too mention their cars are dirty not even prepared in Tn
Aaawww so cute! 🥺
Congrats 👍
You can actually get that Prius for around $3k less néw and that is still with a dealer markup to $36k MSRP is $31k!!
I can't imagine buying a new vehicle and then selling it a year later.
Never will I ever shop for a vehicle at CarMax. If I can't negotiate the price then it's pointless going there. Keep your business practices and watch how consumers will avoid it. How can you not read current market conditions and continue doing what you are doing? Overpriced metal.
Whit houses and apartments rents going high is difficult to prioritize to change my old car and buy a newer one
Let them keep all those cars.
Are they trying to sell these cars? Seems like anyone looking here would immediately start looking into new cars with much better financing
Is the new 4 cylinder unreliable? Boy, that was quick, what happened?
Their offer for my 1 year old low milage Tacoma is more than I paid for it new. I don't get it. Maybe just because the '24 is so spendy and unknown reliability.
That zl1 was the best deal there!
Peanut and crew❤❤❤❤
They can keep them.
The vehicle that we wanted used was between 45’000 and 50,000 and that was 4 to 6 years old the new one was 55,000. In my opinion, they used car prices are out of control. Don’t understand it the demands not there anymore.
Those prices are all too high
17:05 that gr corolla is terribly priced it's used with 8k miles and they're asking $42k for it when I could walk into a dealership and buy a brand new one for $38-41k and they're both cores.
When inflation is high enough, even typically depreciating assets, become apprececiating assets. That's what we've been seeing, with a tad of extra gouging for good measure.
I just bought a 2009 saturn aura xe from a dealership today with 61,000 miles on it. They were asking 8000, I offered 7400. Yes I know it was above fair market value but after looking at the market for a 15 year old car with only 61 k on it you bet I bought it! It will be my son's first car. I looked at cars 10 years newer with 2xs the milage and twice the price. I was willing to pay just a bit over fair market for this car...
Problem might be finding parts since Saturns are obsolete and there are not many out there. I had a chance to buy a Saturn about 8 years ago but passed because of that. Good luck though.
You might consider bringing an old windshield wiper swipe when looking at those prices.
Haha that would have been a good move 😂
Nissan Titan is discontinued. 24 is their last year.