Car Market Crash of 2024. What will I do?
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The car market needs to drop paying 100k for a pickup is ridiculous
100k for a truck aint much for the people buying them. The people who buy those luxury toys see 100k as a rounding error.
Its like complaining that people are still buying Ferarris for a mil.
Look. Interest rates are up. Repos are up. Defaults on the rise. Banks trying to work it out with those in default rather than repo. They can't find enough repo men to go pick up the cars. Tighter lending. Increasing incentives. Younger folks simply can't afford new cars due to pricing. Days of inventory way up. Deceptive pricing by new car dealers. The list goes on and on. I've recently been on new car dealer lots on really nice days. I'll tell you what I've witnessed first hand...tons of inventory, idle salesmen, and no customers. If you walk on a lot, the salesmen are hungry and jump on you before you can get out of your car. Yet, the auto sales sector ISN'T on the decline? 👍🏻 I'll wait until the fire sale to buy. Love ya Mike, but you're in the business and that hardly qualifies as "unbiased". Peace and all the best to you.
Joe Biden says everything's is fine too.
@@oleradiodudea.m.4735 It is way better than during Trump's years. I can find whatever food I want and toilet paper is plentiful. Food costs are higher than 2019 but way under 2020 prices.
@@batsonelectronics If the measurement of the good life is food and toilet paper I would not have any comment to that. Enjoy life my friend.
@@oleradiodudea.m.4735 so you can't argue facts ? For a large % of people, things are much better than 4 years ago. The fact is, it will never be that 100% of the population does well, we can only hope most do. I personally had the best years when Bill Clinton was president and taxes were higher then.
@@batsonelectronics😂😂😂😂😂
High car/truck prices and high interest rates .
Consumers need to hold off on buying if they can .
Adjust the market.
I’m in the market for a new pickup. The model I’m looking at $75k-$88k depending on options. Overpriced by $10k-$15k and interest rates are 6% plus .
I’ll hold onto my current truck .
Greedy car/truck manufacturers will hopefully be sitting on lots of inventory .
Ram dealers in my area are advertising 20% discounts. Unfortunately, the truth comes out once you're in the showroom when they hit you with thousands in high profit "mandatory" add-ons. F 'em! I hope they go out of business.
Results of Bidenomics.
NOBODY CARES THAT YOU PAID, AUCTION FEES, INSPECTION FEES, OR CONDITIONING FEES. PEOPLE HAVE A BUDGET. THAT IS YOUR COST OF DOING BUSINESS BUT THE PUBLIC IS NOT GOING TO OVERPAY.
Im going to be laughing in December when Dealers are giving customers their first born to sell cars that were previously "non negotiable".
Local Honda dealer has almost all new models marked 1000-1300$ below MSRP. With no bs hidden fees ect.
I'm a Manheim employee, last week a local Honda dlr in my area STILL has a $5k markup stickers on new vehicles.
@bderryberry4987 would someone please tell Ram they are f**ked if they don't start dropping prices and selling trucks? They act like it's still 2021/2022 and the dealers in my area are still playing bait & switch games that evaporate those advertised big discounts.
Where’s is this happening ??in your dreams?? Honda and Toyota are gouging like it’s still they’re still the pandemic days.
Your lucky, cause here in the Chicago area, I recently visited a honda dealer and they had a $5,000 Markup on all new crv and hrv.
@@javier7717 he’s not lucky he’s lying
What you dont realize is people will demand cheaper cars into future .first there will be auctions eliminating dealers then pressure from china oems make very cheap cars
No longer trading “for something different” and beginning to get use to the idea that I will never again! Will be keeping my current cars until I just cannot keep them going anymore. Honestly, it is getting to the point that I cannot even afford the full coverage insurance premiums required to finance a car anymore because that has gone up so much, too.
I agree with you. These TH-cam channels have been predicting a market crash for two years now.
They are way ahead of their time.
Sadly it's the over hype click bait that has ruined TH-cam for me. I miss the old days when the goal of TH-cam wasn't financial gain.
Yep. The likes of Car Questions Answered are pushing this every week.
Then go out and buy em all up!
We are seeing some normalcy in market trends, but I agree guys like CarEdge & others have been screaming crash for 18 months & people are still buying. Say it enough & say it long enough & it will eventually come true.
It's not at what it was pre covid but its gotten a little bit easier to find inventory. Additionally, Dealers actually have cars on lots now.
Love your videos. Can you comment on concern about so-called lot rot? With the market day supply being even a couple of years for some vehicles; I would be worried about the long term effect of a car sitting on a lot for a couple of years. Especially some of the EV’s out there that are sitting around for a couple of years. Will be interesting to see how this impacts their batteries.
I truly appreciate all these videos and getting straight answers from someone who knows. Wish I could just buy a car from your lot lol
The only reason some used cars are staying high is because new car prices have squeezed people out of their previous brackets. It starts and ends with new car prices, so as manufacturers start to offer rebates (e.g Stellantis offering 15% off on some vehicles), used prices will continue to go down.
For example, people that previously would have bought a new family vehicle for 30K are now looking at 3 year old vehicles at the same price. The same folks that would have looked at a lightly used vehicle (2-3 years old) for 20K are now forced to look at 5 - 6 year old vehicles. The biggest squeeze is in the 15 - 25K used bracket because a lot of manufactures abandoned affordable sedans just as Covid hit.
This! Exactly this! 👍🏻
Thanks, I've been looking for a GOOD floor mat.
Oh I’m watching this video I didn’t see the laser fit mats gona check them out
It's nice to hear the other side of the story. I guess time will tell. May God bless you with a profitable sales year. Catch ya later!
You are spot on Mike!
What you're really saying is that car dealers are STILL trying to *ape customers as much as possible IN SPITE of the fact that they are all broke and in huge debt.
If an actual "crash" does happen. It isn't going to happen until the dealers can't *ape customers anymore no matter what tricks they pull.
This point where customers can't over pay for cars anymore is still at least a few months away. They still have credit cards to max out.
But once they reach their limit and banks won't give them more credit..........................THAT is when the car market will actually "crash".
But banks take the hit for the dealers bad debt, then pass it off to their customers
As long as these greedy dealer get banks to stretch out loan terms they can sucker dummies into over paying.
All they do is focus on payments these idiots think they can afford and they stick all kinds of extra money into loans. People don’t read what they sign.
When fuel prices rise the pickup trucks are moved to the rear of the lot. When fuel drops, or we get used to fuel prices over time those pickup trucks get moved to the front of the lot. I’ve seen this happen for decades now
I’m wanting to buy a truck soon. So I guess with the rising fuel prices it might help me get something for a decent deal?
@@brandonb390hell no lol, a truck fully loaded/with kits, add ons, your talking 70-100K ish with tax, in Canada “
@@eaglechopper I’m in the US
Love your show! I do think we're in for a pretty Big price correction just based upon the interest rate increase. Curious what that car sells for. Keep up the great work.
One thing I sense when all the car seller content creators post their messages is that everyone seems to talk about their area of the country and project that as the norm everywhere.
Thank you for the balanced, factual report.
Some Independent dealers are willing to lose money on the front end to make it on the backend (finance). So the Wholesale numbers are going to be skewed based on the fact the buyer is relying on selling car at cost or slight front-end loss to turn the car quick & make the backend money. So dealers that are running a traditional model relying on mid size front end & mid size backend profits (if any) can't make sense of the auction values. Just my opinion of course.
In my area Jeep is selling high end $62K Gladiator Rubicons for $44K with 5% interest rates. One year ago these cars would have an ADM on them. Maybe not crashing but resetting for sure. Even Toyota who is artificially keeping supply down to prop up prices is seeing reductions now off MSRP on most models.
Two issues to discuss. Is the uptick at the auction due to higher defaults and repossessions? I believe the "canary in the goldmine" is insurance. My rates are skyrocketing with a clean driving record. So how can someone afford a 300 dollar a month insurance bill on top of a 500 dollar month car payment. They can't. The car industry is one of those industries that operate within the lines BUT one foot is always scraping the line.
Totally agree, Ray & Zach/CarEdge every day the sky is falling. It's becoming obvious they are in it just for clicks.
I just bought a "new" demo Lincoln 2023 Nautilus with 4k miles end of Feb. $70,688 marked down to $57,500 and 0.9% for 5 years. The market is very much correcting itself.
So basically what it would have sold at before the post-pandemic price hikes.
@josephoberlander yes. Exactly what I said. The market is correcting itself.
I like how you said "normalizing" . What's crashing is the greed of getting $10,000 - $20,000 over MSRP. Hopefully what will be crashing is the pre-sale over inflated dealer added accessories.
I agree with you. I see that motorhome still there.
can you make a video on the top 10 states or cities to purchase a vehicle from? i would love to have your opinion on purchasing vehicles from out of state
I like that old boxy Pilot at the beginning of the video. I want to find one, like a 2015, last year for the boxy body style, but they all have high miles.
Yeah we sell these Gen 2 pilots a lot
100% agree, here in Southern California I have not seen anything that says the used car market is crashing like all these other TH-cam channels. The dealers here are not discounting much if anything, at least for Honda Civic's.
Ok so I'm not crazy. I'm in LA and have been seeing TH-cam videos about the market crashing for at least the last 9 months, yet I see no changes
Lots of people here that don’t mind debt. They care more about keeping up with the Joneses. I drive the LA freeways every day and I see thousands of 60-80 thousand dollar vehicles everywhere. I’m happy in my $7000 Honda civic. I don’t have any debt.
What are your thoughts on high negative equity and tight lending standards?
Nice video. When you were outside the sound was pretty good, what kind of mic do you use?
Depends on rhe vehicles. The 1st Tesla CyberTruck that went to auction brouhht $244,000, the nexr week 2 more only brought $195k and $189k.
Lots of fools with more money than brains
Awesome show my friend.
You might not be wrong. We've all seen the market crash predictions for the last year or so, but I've seen an interesting trend in the shop lately. There are customers spending good money to fix their current car, 2 weeks ago, I did $5k worth of repair on a 2014 Chevy cruze with 250k miles. And that hasn't been an isolated case. So it will be interesting to see how the market corrects, but I wouldn't predict a crash.
If you can’t pay cash. YOU CANT AFFORD IT.
This is not true at all, dumb take
I'd be happy if Stalantis went by by
Maybe Toyota could buy Jeep.
The auctions in the Southeast would have that same Acura at $8k.
It’s down for sure I bought a 2020 expedition last year for 22,500 at auction that same x is closer to 10 to 12000 today
My 10 year old used car blue booked for $4k more today with 30k more miles than it did a year and a half ago
The market will rebalance itself depending on what you are looking for. Gas guzzlers will really hit a brick and are as both new and used. Used cars are going down as people are starting to get off of leases but it is not a crash more like a rebalance. However, as government regs roll into the market and start forcing certain types of cars on the market would could drive up the used car market as demand more reliable ICE engines. Right now rebates are strongest on less reliable cars. People are spending too much money on new cars and so they want them to last.
He says the markets not crashing, but an average car with the interest rate is going to cost you $1000 a month. Full-size trucks are over $100,000.
I am glad the market is coming down a little, and yes if people bought a car in the last 18-24 months its tough because some people are underwater. I think due to the inflation we won't be back ever where we were or even close to it.
Kia, Hyundai, some Honda cars and dodge chargers and challengers are back to 2019 prices
But it varies from dealer to dealer and state to in the Midwest, for example in Illinois you can get rt challengers and chargers for around 34k which was they were in 2017, but they are around 40k in Wisconsin. You can get Kia, Hyundai, and some Honda cars for low to mid 20k which was normal pre c19.
@@diegoharo7943I wouldn’t touch a Kia or Hyundai for any price. They are absolute garbage!
What style Ray Bans are you wearing on the Malibu episode, like to get a pair
Chevy Bolt price seems to have tanked, the whole battery issue I'm sure. They look like a bargain now. Please buy one and tell us what its like selling them!
Is there any negotiating on new vehicles beyond the gm family discount?
there is not! plus the most they can charge for a Doc fee is $75
@@ChevyDude thanks for your reply
The used car market is crashing where I live the biggest problem a lot of dealers overpaid for stock and they can't put them back through the auctions again the prices have fallen that much the only cars that sell quickly are the ones 5k and less then then the 10k or less anything 11k to 20k and above aren't selling quickly
Where do you live? I need to buy cars.
@@ChevyDudeI heard it’s tough for you guys to get cars at decent auction prices right now
It’s not crashing! I lost $20,000! 😂
Higher interest rates are taking a toll on car sales.
Used car dealer in Northeast College Town. 20 vehicles mainly Toyotas and Hondas from 2011 to 2021. Mainly Camrys, Corollas, Civics, Fits, and 2008 to 2016 Versas (Fits and Versas popular in College Town. ) $9,000 to $27,000. Out 4 pickups sit for a long time.
Any car we get that is $5,000 to $7,000 doesn't last long. Weekly get calls asking for $3,000 cars, which we don't have.
Tax time doesn't really affect us. We get cash buyers (no financing, no Floorplan) People here are frugal, people use their tax money for repairs.
Weather has been above normal temperatures, and we have been slow. It is easier to save $5000 than $10, 000. We have slowed buying from auction until we clear up inventory as we have 25 economy cars (plus 5 expensive SUVs) in the back of the shop.
You may not see a "rebate" on a Toyota. I walked on the lot of my local dealer and was offered $7500 off sticker without evening negotiating, for a Platinum Tundra. Local Ram offered $10k off a 1500 limited, once again without me even asking. If they are at that point now. I'll just wait until Q3 or Q4. Especially on the Ram. Stellantis already let people go.
If I'm wrong. I'll keep driving my paid off Sienna.
Here in Orlando, prices have fallen 50% from there high.
I watched a You Tube video about the slowest selling vehicles. Dodge & Chrysler 300 were in the top 10. Not popular, dealers loaded with vehicles, overpriced . Ray & Zach had an informative video on the Stellantis situation. The market may not be crashing but Stellantis is circling the drain. What will happen with thousands of vehicles that no one wants? These are of course new, with poor reliability records and depreciating over time.
I'm calling bull the market is crashing especially top end cars
Tax time hit hard this year, been busier than I've ever been the last month
Market is not ok ... if in tax season low cost dealer can buy cars this year first time ever... it is abnormally. second on auctions are show up floor plan companies and independent dealers ... which means that regular dealers avoid these car because either it is not fixed properly / price was too high on lot/ not desirable model ... which indicates that if this car is bough for resale ... it is no go to much possible problems. there will be exclusion case when person buy a car for himself via dealer (there are ways to pay small commission to bid on dealer auction for retail customer, but it will be very few cases)
So it would be better to buy a Gladiator Rubicon at the super inflated 71K as opposed to the more realistic 48K??
I just bought my a 2024 RAV4 LE with just under 10,000 miles from a Toyota dealership clean car fax they owned it as a loaner in the service department.
Still has factory warranty
23,900$
What trim?
@@user-cp8wn3oc1n le
I'd say a $20K loss in value isn't a good thing on that truck. The market is taking a big correction in any event. When the rebates bloom it's not a good selling market for new vehicles.
hello Chevy Dude
Correction-There isn’t a standardized definition, but the commonly accepted definition of a correction is a drop of more than 10% but less than 20%.
Crash-A decline of 20% or more.
People often refer to a decline of less than 10% as a dip or pullback, and the difference comes down to a matter of degree.
So when you’re wondering what’s happening to the market, just be sure to ask,
How deep is the decline?
Your answer will help point you in the right direction!
Don't do it! As a 20-year Honda guy, I bought an ILX (2016, 58k) in May... and traded it by November! It was small, rough-riding, the dual-clutch transmission was clunky, it had Bluetooth issues, more creaks and rattles than my '04 CR-V, and my (blue) car had paint peeling in multiple locations! I took a big loss trading it in... but it was better than paying $300+ a month for a car that I was quickly beginning to hate.
What is the actual manufacturer cost per unit? I’d guess 1/8th of the msrp
Depends on the car itself. Something like a Camry costs about 18k to build. Something like a Tundra would run about 23k to build. Hybrids add about 2-4k to the cost.
Missing your weekly videos
Buying these cars is one thing…keeping them is another which is why repos are and have been wayyy up
Correct
You lost 20k in value of your truck, which is close to 30% of its value in ONE YEAR and that’s with you negotiating a lower price…you can justify the personal value you got off the car, but you still lost way more value than expected on that car. Most people like putting money down on a car because of depreciating value on a depreciating asset, so you’re not under. There’s got to be tons of people who have bought trucks like yours who can’t write them off as a business expense like you can.
Lol dealership isn't biased. I am seeing alot of packed dealerships and Facebook market place used vehicles coming down in price
Wait are we not supposed to pay over msrp for used cars?
I thought it was inevitable because the dealers need "to make a profit"
People have over spent for many years now. Intill they have payed of their depth new cars, other than economy, will not sell. Good used quality cars will.
Yeee Yeee
When 2024 F150 Raptors and Bronco Raptors are being marketed and sold at Invoice Pricing, yes it's crashing. The guy really wants you to think there is no hope of a crash and just go buy now. He's a dealer, remember that.
My Wife's family owns a CDJCR dealership in KC and they predict a market crash within the next year and they are prepping for it.
The real secret is stop buying from car lots used or new buy only from private person to person.
How exactly would that benefit anything?
I would NEVER buy a car from this dealership!!!!!!!!!
Please articulate why? If you don’t like short transaction times, transparent prices, best used car inspection in the industry, no crazy fees or BS cost, a dealer that helps the community, or the best after sale service in the industry I fully under why. But I would love to hear your Reason…
I am still waiting.
A random annecdotal example does not make a solid argument, In fact the models you criticize predict such examples.
For example in a collapsing housing market, "starter type" homes actually slighly go up in value, while mansions lose up to 70% of their value, it is all about supply and demand, when people exit the top tier of anything and go for the affordable mid and lower levels, those levels rise or stay stable n a falling market, the people getting the bargains will be at the high end of the market due to a lack of buyers and there will be next to no bargains to be found where most people are now shopping for something that they can afford. Repos are well up, and bank financiing rejections are as well, so no this is indeed a declining car market, especially if you want an used EV, if you are not being able to offer your customers bargains it is most likely because you don't sell high end vehicles to begin with and judging by some of your past videos, especially that rusty GMC you had to take back, you are not an upscale seller!
I never bought a used car , reason is because I can shop around and get a good deal on a brand new car vs a 1-2 year old car. I don't mind spending a few thousand dollars for a new model vs a 2 year old model. I need to save alot of money before I buy that 2-3 year old car. I'm on my 9th new car and drive alot and try to keep them (2 of my cars were totalled at a young age).
I prefer to buy used cars that are well taken care of for ten grand. They’re out there and way better than spending 50-60 grand for a new one
I work at an auction a these dealers are buying anything and everything here, but 3/4 of the cars are just straight trash
If prices stay the way they are I’m done buying new cars. I’m also done buying cars from dealers.
Will there be used C8 Corvette price crash?
I am seeing them lightly used now in the high 60s. There is hope!
No crash is coming.
I remember in 2006 when they said there would be no crash and laughing….
Dreamer
Bought a new Jeep GCL, at MSRP 8/21. Was told we were nuts by you and all TH-cam. Wait two years.. Well, now it’s 20k more, world is worse. Best Buy we made. Now trade only a 10k less than we paid.
Challenger scap pack selling for 70k here in California same car was 45k a few years ago ago
I agree, but it comes down to perception 🤔 The more people think there's a crash coming, the longer they may wait to purchase. The tipping point, becomes a reality. Let's see what happens after tax time.
So,when do the car prices really come down? 😂
Chevy Dude…why do rebates instead of just marking down the selling price? As a buyer, I’d rather have a lower out the door price as opposed to getting money back on the back end.
A rebate comes off the out the door price.
The people on those platforms are all crying about their high-end exotics and so on losing a ton of value. Which they are. Oh well. But at the bottom, it's still super hard to find anything that is in good condition for under $10K.
You're funny dude. You have loyal viewers and you have given decent advice over the years. But you're spinning here. I won't go into it all. Too long. But you started a new business right in the pandemic, selling late model used cars. It was great then but you know you're not going to survive another year in this market. You're getting hammered the most. Good luck but this video is HS in a very funny way.
Do the math , new cars overpriced, high interest rates ( especially used) . Insurance rates are up 35% over the last 2 years.the math is this a 20000 used car with above average credit will cost you 750.00 a month ( the note , tabs , insurance , gas ). And maintainence and upkeep not included . Average rent 1200.00 month soo a car and a 1br apt is 1950.00 a month the average buyer has been priced out soo all said 2700.00 a month is what it costs to live now 20.00 dollar an hour job nets 2600.00 what are people doing cutting the car out is what they are doing they take an Uber for necessary trips , lots of bicycles are being sold , also electric bikes and mopeds , car pool to work with a friend and give them some gas money and a little extra, cars are to expensive for the average consumer . Net 11% less buyers than just a few years ago , now they want everyone to by EV's at 45000 to 65000 each been to some dealerships those EV's are collecting dust ( the hybrids move though ). Affordable gas cars move .
Difficult to get anything online worth much so NO way would I trust ANY of this or anyone
You’re living in your time and think it’s going to be okay I think it’s going to get worse 😊
There still over. Priced, 20 to 30 % .
NO way would I buy a car now
It’s not the spring selling season it’s called income tax selling season and it happens every year because everybody’s got a big old down payment that they can get on their taxes and they buy a car they can’t afford. That’s why the best time to buy a car is in June July, August all the way until December, that way you got the negotiation not the salesman because he’s got all kinds of idiots here with their income tax in hand or paperwork. They do their income tax for their down payment and I’m sorry the car market is going down. People can’t afford them cars and besides them either poor quality.
"100% with a non-biased opinion"
You're in the business. That makes you biased. That's OK, but you need to acknowledge that.
There won't be a car market crash. Too many people have been priced out the market and will flood the market once rates decrease.
It’s the economy you haven’t seen nothing yet it’s going down save your money 💰 😊
8000 and under exsist. Brandon dealer ship is all 5000 and under.
Hey… He sold a car during the shooting of this video. He started at 11 and it went to 10