Car Dealers Don't Care That Inventory is Growing
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- เผยแพร่เมื่อ 27 พ.ค. 2024
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00:00 - Intro
What's up, you guys! In today's video, I will discuss dealership inventory levels and incentives and where these metrics are trending.
00:39 - Inventory Data
01:33 - Dealership Incentives
03:25 - Education is the Problem
06:00 - Dealership Mark Ups (Good & Bad)
07:35 - Conclusion
08:04 - Closing
I hope you guys enjoyed this video; make sure to hit the like, subscribe, and the notification bell, and I will see you guys in the next video.
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#CarMarket #Inventory #Incentives
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Tell this to the 5 dealerships I visited today, Wednesday, March 2024. They would not negotiate with me AT ALL. Their attitude was pretty much, "The price is the price. If you don't like the price then you can take a hike." Seriously. And I wasn't asking for anything big. They would not budge AT ALL. And they let me walk right out the door. Like, "Okay, bye. Don't let the door hit you in the butt on the way out."
New car or used ?
former car salesman. open your buying radius. try another state. FL, LV LA are tough markets. get on the phone and email. it is a big investment. if it takes a flight to pick up the car or sign paperwork it is worth it. car can be shipped as well. there are deals out there open you buying radius.
Good. Walk. Be smart
@@marccddiaz used
True
I have a 1999 Toyota Avalon with 255k miles on it, still running strong💪. I keep up with the maintenance on it. I'm keeping it forever.
The car dealerships have destroyed their business model. Greed has taken future customers out of the game.
Could you imagine paying a $100,000 for some cheap American made vehicle and then a year later it's only worth 25,000 ,, People are starting to finally realize how cheap this garbage is made.
Those deep discounts of 10k+ is textbook bread crumbing. This truck was 60k, now 49k but we paid 30k for it and thats really the value/msrp of what the truck was in 2019.
If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Dealers need to do better than 2019 incentives. Even though the average days' supply is the same it's far more expensive for dealerships now due to floor plan interest rates. They're paying way more to keep expensive paper weights on their lots than they were in February 2019.
Always appreciate when someone talks with there ✋️ 😂
Tesla purchase experience will never make you turn back!
Tesla and rivian are not dealer ships
Auto manufacturers are not allowed to sell directly
Lincoln does not have the highest inventory, that goes to Chrysler, Dodge, Jeep, and Ram, per the box I the right of the graph. 6:27
It's hard to trust the inventory and incentive numbers on a national scale. Stellantis alone warps any inventory average. Their inventories are gigantic and growing. And if they're offering any incentives, these haven't been adequate for their situation. So they even manage to fuck up THAT stat.
Buyers can get unadvertised $15K-$20K below MRSP for most RAM trucks. But it's not enough for many buyers since RAM MSRPs are nuts. Hornet is a catastrophe.
It's add one paint protector, nitrogen tires dent repair on and on.
Dealers will care a lot as soon as banks refuse to loan them more floorplan money until they lighten up inventory.
it makes no sense. supply out the door and dealerships not budging. let the cars sit and lot rot. you have been robbing people for years.
Banks will still loan them money as long as they pay what they owe
My 2013 Jeep Wrangler was $26,000. I was looking to replace it but I refused to pay $42,000 for a new Wrangler. I bought a 2023 Subaru WRX for $1,000 off sticker and got 2.9% financing instead. I couldn't be happier.
Excellent analysis and breakdown of the current market 👍
I’m in Canada and targeting RAV4 Hybrid since January, 2023 and here’re my findings:
- June, 2023 some dealers were selling
* RAV4 Gas C$ 8k over MSRP
* RAV4 hybrid C$ 20 k over MSRP
* RAV4 Prime C$ 25 k over MSRP
- March, 2024 if you’re welling to travel 300 km, you can find
* RAV4 Gas @ MSRP
* RAV4 Hybrid C$ 7 k over MSRP
* RAV4 Prime C$ 5 k over MSRP
Bottom line is that prices are going down, but not as fast as we hope, however as dealers will experience higher inventory for “longer periods”, they’ll be forced to reduce prices ..
- It’s just a process time until we get back to the car affordability (not prices) levels of the pre-COVID era.
I hear both. adms coming off and stealerships calling incessantly and cases like yours. depends on the location I think.
I found the same here in Canada. In Ontario dealers are still over MSRP, usually on extras. I am holding out. Their loss.
@@bernie6355 sold cars throught college. Northern NJ here. expand your buying radius. may have to go to another providence. email. call. if you have to fly, fly. if you have to ship the car, ship it. Fedex docs. If you can save 2k 3k 4k do it. the phone and email puts you there no?
@@bernie6355 yes, please don’t rush as RAV4 Gas is almost selling for MSRP in some cities Alberta and I expect the hybrid to follow in a few months too … it’s all about echoing what’s happening in the US as both versions are available there for almost MSRP.
The funny thing about Toyota is if you looked at a model-by-model level, you would see that there are a TON of Tundras sitting on the lots. Several models are very difficult to get, notably those that are hybrid or PHEV's.
Female graham slowed down her pace and transitions. 😂 good job.
MSRP went up 35% to 40% from 2020 to 2024. Even if a dealer is willing to go 10% below MSRP its still a ripoff.
2020 Tundra TRD Pro $50k (with dealer incentives)
2024 Tundra TRD Pro $76k
john, the big question is if stealerships charged 50k today, would oem's and stealerships make money?
Nothing wrong with going out of state to buy a car. In 2004 I wanted to buy two Mini Cooper convertibles. My local dealer in Sterling Virginia was asking too much money and I ended up buying them both in Charleston. Made for a great road trip.
New sub here. Good video Aubrey. Looking forward to seeing more videos. Thanks
Good facts but you need to do more research on what is behind all of this. In case you haven't noticed, the buyers aren't there, dealer lots are FULL.
At some point people will say " Hey this is a really bad deal paying 50k plus for something that will depreciate daily and i only use it less than an hour a day ".
I don't buy from dealerships
Most people always want the newest vehicle or whatever. If consumers would hold fast for a year, vehicles prices would come down tremendously.
17 year old camry. i am happy it keeps me out of the market.
@@subaruamazon 2000 F150! I'll drive it until the wheels fall off or I die , whichever comes first.
What you missed on that Cox chart is that there are 4 other brands with even HIGHER days' inventory than the ones you circled: Dodge, Jeep, Chrysler & Ram. They are OFF the chart (see the box on the right side). I would not recommend those brands to anyone, but if your point was that higher inventory should equate to higher incentives and discounts, then you omitted the heaviest hitters in the batch of manufacturers.
Dealerships, don’t give a shit about consumers. All they care about and react to is profit and loss. Once you know that, you can buy accordingly.
Female version of Graham Stephan
Yuuup she copied his style!
@@ricklp1861 And apparentely she hates black people... I've asked her questions on another video and didin't get answered but others who did got answered.
@@Bronco2Cj everything is racial, stop crying !!
@@phillyfathead Thats racist!
Yep but she slowed down the way she talks than in previous videos and same with the trasition.
Dealers will care when their curtailments come due. The typical 10% curtailments will be tough to deal with but mangable, at least for most dealers. When the full balance comes due, based on aging, it will drain most dealer's cash reserves. Floorplan lines of credits are very easy to manage when there is a good turn rate of inventory. When sales slow and inventories bubble, floorplans can be ball busters. Not just the interest carry but as previously mentioned- principal curtailments will put some dealers out of balance. Stellantis (CDJR) dealers will be impacted the most...... Dealer's mindset for the last 3 years is to hold out for the sucker consumer and get the full money. Prior to COVID- Dealer did much better managing their inventory but can't seem to grasp the concept of strong inventory management - due to greed. Wouldn't surprise me if a we see a Manufacturer (Domestic) file BK in the next two years and ~10% of the dealer base go out of business or consolidate......... Times are a changin!
Well if they don’t care, that’s fine with me, I don’t care either🏖️
I say buy used FB market and CL.
I wonder if Toyota’s strategy is to not have high inventory on hand to mitigate cost?
Dealers are gonna be hurting soon. I mean they already are but once the scmucks are tapped out who are they going to turn to?
Ford and GM are getting ready for all these migrants
They are made in Mexico!😆
I’m guessing you were being sarcastic but you’re not wrong, they work hard and save money
Until the financial hit them.
I will not be buying any new car for the next two years. If we all do that, that will get their attention and they will eventually lower their prices, or a company will eventually make affordable cars. Stay strong!
if everyone adapted that attitude, oem's and stealerships would change real quick. people must have self gratification with a new car NOW. my 17 year old camry is keeping me out of this mess thankfully.
Car dealers make money on service and body shop car sales never made dealers much money dealer are in great shape they make more money on used cars
A whole of rusting & rotting on dealer lots. As there should be.
landlord here. if i price a rental too high - it sits. let them sit and lot rot. the ripped enough people off.
US production runs have started out 2024 Calendar Year very very *VERY* strong and the economics of "car" are odd in that there really is no limit to demand in the USA is the argument anyways...and probably why BYD of China is pounding on the door to be let in. Still US Housing and Das Auto are linked at the hip so if housing demand doesn't see a sudden recovery particularly in USA Southeast excluding Texas and trying to move upwards of 16 to even 18 million vehicles produced as new will not be some type of slam dunk absolutely true. Tesla remains by far the biggest wildcard as they are pushing in fact being a volume producer they might actually succeed at that this Year in the US market. Ford and Rivian are a distant...but very solid...number 2 to Tesla USA in pure play bev. If that type of platform takes off in the USA this Year the impact upon ICE platforms could be pretty dramatic as pure play BEV is now selling in every market segment and offering up very compelling value options. Hybrids have been the only thing keeping Big ICE online and on top going on more than a few years now but again...once I buy a PHEV do I ever want to go back to a pure play ICE platform? I doubt it. Plus Germany and China are geared almost wholly and totally for exports. Luckily for Germany Inc. they have a material production presence in the USA! China has Volvo and Polestar which basically is nothing. Meanwhile Japan Inc has a truly awesome manufacturing presence in the USA taken together far larger than Ford, GM and Stellantis. Even 100,000 Tesla Cybertrucks sold this Calendar Year 2024 would be a huge number. Add to that 100,000 plus Ford F150 be bevs and 100,000 Rivian R1T and that is a truly awesome amount of Big Battery hitting the most valuable vehicle segment in the World. At least Jeep can *OFFER* a hybrid system as can Ford for the F150 but that's the best that can be said for that. Ford and Rivian are already big into the delivery Van market as well for pure play BEV now. These latter two are definitely starting to have a big impact on the US economy. Long $osk OshKosh strong buy.
That title is bull
First