Car Dealer SALES CRASHING! They're In SERIOUS TROUBLE!
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- Опубликовано: 30 апр 2024
- Car Dealer SALES CRASHING! They're In SERIOUS TROUBLE!
Alex's Channel - / @alexpmo
My name is Brandon and I am a used car dealer. I created Car Questions Answered to share the ins and outs of the used car market from my perspective. I share with you updates on car prices, what's happening at the dealer auctions, and what it's like being a dealer. My goal is to share information to help you make the best decisions while buying a car to save you money. I do not want car dealers taking advantage of you.
Thanks for watching and please feel free to leave any comments you may have in the section below!
And make sure you don't forget to LIKE, SHARE AND SUBSCRIBE FOR MORE!!
*None of this is meant to be construed as financial advice, it's for entertainment purposes only.
#UsedCarMarket #CarPrices #carmarket #usedcarprices 
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Thank you for having me, Brandon! Always a pleasure
Thanks for coming on man!
What’s your dealership location??
@@trulyhappy8855 Bachman Subaru in Louisville, KY
@@alexpmo thank you, that’s not far from me in eastern Kentucky
I wanted to buy a Ram 3500, but I'm on an eBike budget. So ... I ended up getting a 2000 Subaru Forester, and I'm the 5th owner of this vehicle. I spent $300 on it and did about $1,500 of repairs. Now everything except for the radio and AC works!
I'll keep driving my 21 year old ford ranger. Only has 109,000 miles. Im over 65, it's the last truck I'll ever need.
Bought a 2000 ranger new out the door for 11k back then.....nothing special ..XLT 2WD with air and cd player.....Great truck
You are wise man sir. Enjoy the tens of thousands of dollars you are saving. I do the same thing. Older Explorer. Everything repaired and in perfect condition. Will NEVER buy new!
I'm also over 65 and driving my 2003 ranger edge with 94,000 miles and will not part with it. Every where I go someone wants to buy it!
My 2020 Durango that I bought brand new in 2020 has 132,000 miles…
@@johnmoosey8173 2011 Ranger XLT 4x4, loaded. Bought it new, hanging on to it. Just had the full 100k maintenance done on it (yes, dealer serviced since Day 1)
That guy couldn't look more like what you would picture a Subaru dealer looking like if he tried.
Not gonna like, really like his demeanor. Most salesmen at dealers I have been to are slicked hair guys in cheap suits and awful cologene wearing fake designer sunglasses.
😂😂😂 facts
I'm a salesman at Lithia Toyota in Billings MT and we had a record breaking month last month 110 new sold and 190 used but I will say there is massive discounts where a year ago there was none.
Define massive.
Discounts based on what? 50% price increases in the past 4 years and additional "market adjustments"?
@GSPirosaki $12,000 off a new hybrid Tundra and I still have some left if u want one the discount was $0 a year ago and a wait list
Lots of Californians using their sales proceeds from selling their 3BR ranch homes for 1.4M
What percentage of monthly sales were fleet sales?
Prices need to come down at least 30%. Manufacturers are going to need to cut costs and jobs until they can get the prices down to that level.
Gonna go out on a limb and guess that the number of people who care what Subaru does for the community when considering what brand of car to spend $50K on is near zero.
Stilll seeing a 2018 Toyota suv for 28k in the market . Dealers still ignoring obvious
I’ve been seeing used models with 30k+ mileage going for 2-3k less than a brand new option of the same trim. It’s as though they are dealing with customers who never do any research
All that free covid money, student loan and rent forbearance combined with people paying way too much for cars and buying everything in sight and now it's time to get back to normal life and most people are going to struggle to live within their means.
Add Trumps unsustainable tax cuts into the equation....
I took my SS retirement a year before covid started. I got nothing extra for working through the pandemic. I got paid for working, no cc or loans in 10 years. Everything cash.
Agree. I didn't fall for any of it. Still driving my POS truck.
@@user-sf7kl9uh7k How does that make things worse? Are you saying if we pay more taxes everyone would have more money? Think about it.
@@user-sf7kl9uh7k oRaNgEmAnBaD
I traded my 62k mileage Subaru for a Toyota. I dodged a huge maintenance nightmare. You should have asked about the $3000 fix for a simple oil leak due to silicone gaskets. Not to mention the CVT sudden failures that will cost you $8000 to replace IF you can find someone to do it!
19 year car guy here and there is a reason I have spent most of my career at Toyota I'm very glad you joined the Toyota family I'll never buy anything else
I was going to comment on the silicone nightmare. Cheers
Meanwhile, their customer's from 2023 are watching their credit ratings CRASHING.
who forced them to pay market adjustments and buy a new car?
@@chrisschultz6129
I have no idea (?)
I suppose everyone had a different motivation
A fool and his money are soon parted. Especially if they are foolish enough to buy a seventy thousand dollar new truck.
Mine has stayed over 800 for years now.
Rare to see an Honest car salesman, so I'll say congratulations to him for treating people like he would want to be treated .
I can promise you salesmen seldom see an honest car buyer either.
@@OneOut1 Maybe so, but I'm honest, and my uncle owned a ford dealership for 25 yrs. He told me EXACTLY how car salesman are trained to DECIEVE a customer into Believing the add on, so-called Mandatory charges, fees, and other B.S we hear are actually true. On top of that I know the FTC rules and laws. Ur not fooling me with that comment sir. Save it for idiots.
Went woke and now going broke. Nice electric mustang
Spent the last 3 days trying to lease an Elantra. 840 credit and I have a long purchase history from Hyundai. They laughed me out of the building when I wouldn’t take the worst lease deal I’ve ever personally tried to negotiate. Wasn’t even close. These people are smoking crack.
Asking 500 to 1000 off? Are you kidding?!
I just watched a negotiation yesterday which happened last week at a Toyota dealership where a man talked the sales manager from 29,500 down to 26,800... Out the door. It was a new Toyota Corolla hybrid, one of the best-selling cars today I think, and the car wasn't even delivered to the lot yet.
If he can get 2,700 off the best-selling car in America today, you can negotiate way more than 500 to 1,000. That is such a salesman suggestion. 🙄
Whatch vid again.That was off otd price with a 2k market adjustment. Dealer still made over msrp.
I will never get rid of my 2016 WRX w/ 6 speed manual. Best car I've ever owned.
Head gaskets
I had no option but to buy last may and i decided just to pay cash for a 2018 ram with 72k miles. I could have put that money as a big down payment on a new one but i just couldnt stomach the high cost of new
GOOD MOVE!
I work at the subaru factory and production hasn't slowed down so far.
Unionization is killing domestic auto production jobs.
@@oleradiodudea.m.4735while at the same time providing a living wage and benefits. If companies’ full time employees have to be on government benefits then they are being subsidized by the government. THAT fact is rare discussed.
@@oleradiodudea.m.4735 Disagree. GREED on the part of auto manufacturers and dealerships is what's hurting the car industry.
Tell subaru to put a manual transmission in the 2.5 liter crosstrek please
@@hughmungus2465 Yeah, I'm with ya there. It should be an option in all of them. At least if it goes out it doesn't total your car.
Yesterday I went and shelled out $90K for a new truck.
😂 🤪🤥 NOT! Got an oil change in my 25 yr. old Toyota. 😂 Not even close to looking for a new vehicle. Maybe someday.
I weep for those poor bastards,used car dealers,they will smile and give you some sweet talk then put a giant stiletto in your back.....
Never cared for the look of Subaru cars
I hear ya friend...hard to impress your date with an outback🥹. Think of you as an . l.g.b.t. member🎉
I don't care for the boxer engine.
@@jvolstad I looked into the subaru boxer engine and came away thinking it's just not long term reliable.
to each their own. I'm a big fan of Subaru's, but I'm not a fan of their electric model (or Toyota's electric model that they sell)
The current boxer engine is reliable. Toyota has a stake in Subaru.
I only care about what Subaru is doing for me specifically. I do not care about what they do for other people, birds, wildlife or the homeless community. I only want to know how they are going to sell me a new vehicle for the best price with the lowest financing costs. All this other stuff is fluff.
I was interested, but not for a CVT transmission.
yes, my thoughts also, how well will things work out for me directly, not indirectly through some supposed trickle down effect
Hi! Love your videos. Your guest seems like a nice person.
Negative equity = past dealer profits ( market adjustments)
Customer got the same thing. A car that was really worth 10k 4 years ago was worth 15k during Covid. IDK why people act like it was just the dealers lol customers were doing the exact same thing it’s just how the market was. I had seen some people buy a brand new car and take it to Carmax or Carvana and sell it for more than what they paid for it.
Dealers don’t need car sales. The service dept. is a gold mine.
Exactly. This is why I support my local mechanic with both of our family cars. Cheaper and I get to talk to the person working on my car unlike at the dealership
Lower cost automobiles will weather the coming storm better than the super high cost monsters. I feel sorry for sales people now.
No matter what you say, Subaru has a huge and very loyal fan base. They excel in harsh conditions. Overall the dealer network gets good ratings. Other manufacturers should be envious but too greedy to care.
I helped a friend shop a new crosstrek, and she got it below msrp. It was a great deal, and it was actually exactly what she wanted. It's a dog hauling grocery wagon, and it fits her style.
Got approved Saturday for a 2024 Equinox with a 690 credit 8 miles on it. There’s some dealers out there with rebates so advice to people KEEP looking and maybe hold off for now.
I don't need AWD where I live
Hardly anyone does unless it's over 350 Hp, Yes I live and Daily drive in Wisconsin, It's really nice on a AWD Ridgeline for snow days.
I left the big three and 2018 it was a wise decision. Subaru builds what people want all-wheel drive naturally aspirated cars.
LOL, its like these dealership clowns are trying to payoff their floorplans with just 1 sale.
This was different and great!
Awesome show Thanks
It's not about whether the car is propelled by electricity, petrol, or a combination of the 2 of them. It's the PRICE!!!!!! It always comes down to what they cost. Why can Toyota, Hyundai, Kia, Nissan, Subaru, etc sell a car or cars at around the $25,000 price point but the traditional US car companies have 1, made by Chevy, and Ford doesn't even make a car anymore?
I'd have to think that a lot more people can afford a vehicle costing between $25,000 and $30,000 than can afford 1 costing $50,000, $65,000, $100,000 and up.
There's a huge ownership cost difference after you buy the vehicle dependending on the power source.
Thank you.
Thank GOD, finally, FINALLY - a new topic.
Loved our Subie's. Too bad CVT. Had to go with a better tow vehicle. If you are looking for a solid SUV it is a great choice. Went with a 2017 GC trailhawk hemi. Now we can tow and go.
My local dealer is cutting wages in Atlsnta of the employees
Dealer expectations are going up while customer expectations are down.
Good interview. Hopefully, you can get someone from Ford or GM soon!
Went with a 2020 Forester. We love it to pieces.
Symmetrical awd first appeared in the 96 Legacy. My 91 Loyale was push button 4wd. Just prior to that they were lever pull 4wd. Subaru nerd here.
As a middle aged man, I’m not interested in who Subaru supports.
I am interested in quality, reliability, cost of ownership, and resale value. Price is important, but not high on the list.
Thank you for your candid intervie.
The trend is more towards economy cars and motorcycles the days of cheap gas are over with and they’re not coming back to look for anyone.
Where I live in Reno, Nevada there are lots of Subarus, I just went to Bend, Oregon for a week and there are way,way more there. My granddaughter has one and she loves it. They seem to be good cars, but I will stick with my Camry hybrid and Honda CRV.
Told y’all!
"Never buy new if used will do".
"Make depreciation your best friend".
Drive someone else's hand-me-down with an unknown history. Own the worst portion of the vehicle's life. Take a chance on maintenance and expired warranty.
I've long known about Subarus more consumer friendly practices. I just wish their cars had real transmissions and more power. I'd love a crosstrek with a manual (or even a conventional auto( if I'm being realistic) and about 250 hp minimum.
Think for last year most everyone has said they are in trouble but prices don’t really reflect they are in trouble.
You can't give the solterra away.
Earnings are down sales are up. I work at a Toyota dealership and this was to be expected. During the inventory shortage it was what it was there was just no inventory therefore we weren’t discounting. The market right now is just back to the normal which is discounts due to high inventory but we are selling way more inventory. Been in the car business for 8 years and COVID time was not normal but what’s happening now is very much normal and to be expected. Trust me dealership are doing just fine unless you’re working for GM, Hyundai or Kia.
"Just no inventory" is bullshit. Toyota held back cars to artificially keep charging way over MSRP, even two years after Covid. They're scummy and overpriced.
Apperantly not, i've seen 20 year old salvage titled high mileage vehicles getting sold for over 10k
Huge new car dealerships are going up all around St. Louis. I don't know how they stay in business. What am I missing?
Wait until the last day of the month. It always works as there is always that extra incentive. Stick to Subaru, Toyota, and Honda , and all the subbrands, and you will be in a better position
One thing i have learned is. THe Car market and the TRUCK market are polar opposites. 2 completely different markets. Sadly, I am more interested in the Truck market. But start listing the numbers specific to cars vs. Trucks. It's crazy
Subaru is a great car I have one 239k and still going but maintenance cost are crazy
That's any car these days thanks to Bidenomics.
20’s for mpg is not good enough for a car anymore. If that’s all Subaru gets on most of their cars, they have a problem. My truck gets those numbers and even into the 30’s on the highway.
He started to say , "we don't know what it's worth". They don't just trade for those cars and then send them to auction with their fingers crossed they will get their money back. What many do will get a firm buy figure from a wholesale buyer. Some may then not tell the wholesale buyer they got the car traded for and run it through the auction hoping it get's a higher bid. If it doesn't then they call the wholesale buyer who gave them a firm buy number and tell them to come get the car they bid.
So the wholesale buyer who gave them a firm buy figure and made their new car sale possible is expected to pay for the car at his bid price.
So they used him to make their sale, then tried to sell him out for a higher price after using his bid to make the deal. Unethical as hell but they do it often.
I drive a 2012 Prius C and I just went over 80,000 miles on it. I'd like to get Prius a few years newer but ones that are 3 or 4 years old cost almost as much as a new one.
So buy the new one
Subaru is dog friendly
Been looking at an Outback as a possible next car
I’m just gonna continue to drive my 2014 Toyota Avalon that has 138,000 miles on it. Still runs great and payed off as well. Eventually the car market will crash and us who were waiting and saving our money for a new car/ used car will get the last laugh in the end and get what we want.
It’s barely broken in.
@@dave3657 how do you figure?
It looks like ur flipping me off with ur beard. 😅
That’s awesome! Haha
According to Steve Ramsey, Subaru is also one of the most popular cars owned by millionaires; smart people would rather be rich than appear rich. I just resealed the EJ253 from my 2009 Forester. Subarus are absurdly simply cars to work on yourself, single-point electrical disconnect when pulling the engine, very few specialized tools required. I also replaced the radiator, power steering, transmission, heater core, and vacuum hoses. I also replaced the engine and transmission mounts, replaced CV boots, ball joints, wheel bearings, timing belt, idlers, water pump, etc. I replaced the intake and exhaust valve seals, and ground the valve seats. I am very mechanically inclined (engineer by trade) but am not a licensed mechanic. The new FA and FB 2.5's don't have head gaskets but they present different set of problems; I'd rather deal with the devil I know than the one I don't know. Because of oil leaks my Subaru is rust-free in the front despite spending its entire life in Michigan. I may take a vacation down south this summer to pick up a rust-free rear subframe from a wrecked car. I plan to get another 15 years out of my Forester; glad to not have to deal with all of the absurd pricing and planned obsolescence of modern cars. One bit of advise from someone who has been wrenching on their own vehicles for a long time: buy KYB suspension parts, auto parts brake pads/rotors; and OEM (i.e. subaru) for everything else.
Sound like your car is a poorly made machine if it's needed that much work. My Tundra has had no large problems and it's a 2006.
@@OneOut1seriously - I’ve had a tundra for eight years and zero repairs ever.
@@JA-zh5xi Years are irrelevant. Miles and conditions are what take their toll.
I'm 70 get it the MOST i ever spent was $600 on a repair.😁😁😁😁😁😁😁😁😁😁😁
If Subaru made a PHEV Outback with a regular auto trans instead of the CVT I would be first in line.
Prices are insane. They need to come down about 80%
We have 2 cars, mine is a 2013 Ford Fiesta paid off and my wife car is 3 years old because the old 9 year old car was totaled, we paid cash for hers. I would like a pick-up truck but the prices have risen crazy since the last crash and chip shortage, I'll wait until the dealers and auto makers are crying blood and trucks are back to the back in the 30K, until then I'll enjoy No car payments lol
Not into the bleeding hearts when I’m shopping for a car. I’m looking for value and reliability.
They can drop the prices 50%, still too expensive!
Subaru AWD are the best out there hands down.
If you can't pay cash for a car then you can't afford to buy it, borrowing money doesn't make it affordable. The sun keeps coming up every day and it still wasn't affordable.
The only thing almost all the folks I am hearing from are saying is...PRICE. PRICE. PRICE. The manufacturers must come in and begin giving huge bucks. This especially applies to full size trucks. They are insanely overpriced. Take the so-called avg sell price of around $63k for a full size truck. That needs to come down about $18k - $22k, minimum. Even then financing incentives may be needed. PEOPLE ARE BROKE! Prices MUST COME DOWN, or they are going to be sitting on them until they do what I have just said. PRICE is the key.
Seems to me like dealerships are pushing new cars that have turbocharged engines and all wheel drive neither of which I want or need. All I want is a reliable car that has front wheel drive and an inline 4 cylinder engine.
Too bad no one makes those. Oh, wait, they're everywhere. What are you complaining about?
When the greedy CEO"s and the greedy investors start selling the cars for what they are worth then maybe we will start buying them again. When you try to sell a 30000 dollar car or truck for 50000 dollars and then add junk charges to the MSRP then they deserve to go under.
people are moving to cars that are more reliable in order to keep cars longer.
Subaru boxer engines SUCK! Started burning oil at 66k miles and dealership blew me off!
So why are 4 wheel drive vehicles more costly to insure than all wheel drives.😮
Suspension and drive trains cost more to repair in the event of a crash. Also people tend to get dumb in bad weather if they have AWD. It is just an algorithm that plugs in past experiences to projected outcomes.
Subaru's are pretty price insensitive because of their quality and customer loyalty. You also need to look at scale.. Subaru's arent the production giants that the big three are. The only reason my daughter didn't buy a Subaru when she bought a car this year is that there wasn't inventory on the color/model she wanted and she had stalled so she needed a car quickly because of insurance.
What did she end up with?
Subaru are the favorite of many many gay men
@@kennyweeks9014 I thought Volkswagen was favorite gay car.😂
Color is the least important decision factor when buying a car, except for women.
@@OneOut1 I like a flat white exterior. It stays relatively cool to the touch, even in midsummer sun, so the paint doesn't weather nearly as fast as most other colors. Also, the AC doesn't have to work as hard to get the car cooled down. On the same note, I really don't understand why all black interiors are so popular, even in the American south. They get absolutely scorching hot in the summer sun and again, they make the AC work harder to get the car cooled down.
Most new franchise dealers are incorporated so no personal financial obligations exist. These dealers are NOT likely to drop prices soon but run the business into the ground. The big shots will make sure that they get paid until the very end. The end comes when the floor plan companies come in to repo the cars on the lot or when the franchise dealer stops paying rent for the lot or BOTH. One is likely to get a TSUNAMI barring some sort of govt. bailout with a LOT of franchise dealers going OUT of business all at the SAME time.
Even if it is a business organized as a corporation it's seldom a publicly owned Corp. So there is a potential large loss of personal investment.
since people can't afford these overpriced trucks, here"s the best way to clear the lots. Send half the trucks over to Ukraine, give the other half to the illegal migrants. the govt can pay for their insurance and give them unlimited pre-paid gas cards. everyone's happy and problem solved.
Unfortunately some people on here will think you're actually serious - like me!...hahaha...
Dude I like your videos but that weird flavor saver thing you've got going on look ridiculous lol
@19:31
😂😂😂😂😂
Who is he trying to fool!
Spoken like a true salesman!
If you are only getting a $1k discount off msrp you are being SCREWED!
Im curious how are car salesman surviving 🤔
Go Subaru Go love my crosstrek
It's never 1 thing
Subaru - lesbian machines!
Let's go Brandon!
Ford will never learn.
So basically if someone wants front-wheel drive instead of all-wheel drive the salesman will still try to run over the customer with what he wants to sell rather than what the customer wants.
What choice does he have working for a dealer whose brand is one of the best in the business in all respects? Right now, other than Tesla, they’re the best in the business for their buying experience.
@@EMichaelBall If you're ramming a product down the customers throat that they DO NOT want immediately after they clearly expressed what they DO want then that clearly is NOT a good buying experience. It is the reason people hate the car buying experience.
Subaru buyers are weird.
Yeah, why would anyone want an off-road capable car that isn't the size of a dump-truck?
Good that what greed get you
Great idea Americans, pay double for a new car by borrowing money to buy it, great investment.
You’re thumb nail is missing that we are in trouble if the cars are not selling
Why do my comments keep getting removed?
Does this mean Bideonomics is NOT working then, lol??
Look at Subaru clientele
They enjoy the flavor of carpet?
Boooooming right now here
Maybe 10-15% of the population has money and credit?
Great Reset! You will own nothing and be 😁