Here’s how the Car Market BOTTOMS OUT in 2025…

The car market is being flipped upside down right before our eyes. Great deals are to be had in 2025 as dealers begin to feel the heat of overflowing inventory levels and lack of consumer interest. Dealerships are getting desperate to move the metal.
In this video, I talk through the following points:
The American Dream is becoming less and less realistic for people.
Vehicle manufacturers have priced the average American out of the market. Even brands like Toyota and Honda that have historically catered to the blue collar working class… have priced out their target demographic.
Trade in values have plummeted over 20% over the last 9 months. Will continue throughout 2025.
84 day supply… 60 is considered healthy.
120% growth rate in vehicles available over the last 2 years. Unprecedented.
400K more than the start of 2024… 1.4M more available than start of 2023.
Supply has far exceeded demand.
Buying a new vehicle has become luxury only for the top 50% of Americans.
Average price $48,405… 64,262 trucks…
$760 monthly… $525 used. $1000 trucks.
Repos continue to surge in the US. 25%
Many banks are on tow truck back logs… repo men are backed up 3-7 months.
People’s wages have not kept up with inflation. The cost of living has far outpaced average wages.
30% of Americans are living paycheck to paycheck. With 80% only have sufficient savings to last them 3-4 months unpaid.
Yet through all this, CEOs are getting paid $15-30M per year to move production to cheaper labor countries.
Shareholders are rewarded but American workers are punished. Less jobs for us and more expensive vehicles. Smh…
Quality continues to decline while prices continue to skyrocket. Make it make sense.
As if the astronomical prices of vehicles and insane insurance premiums weren’t bad enough… now many auto manufacturers are stiffing customers with subscription based creature comforts that have historically been “free”…
BMW… heated seats, Mercedes offers up subscription for their EVs, remote start, traffic camera information, adaptive cruise control, lane keep assist, collision warning, WiFi hot spot, navigation services.
This aligns with gps tracking and remote kill switching… lenders can turn off your vehicle and track it down to repossess.
The old saying “you will own nothing and be happy” is starting to feel eerily true. Nickel and dimed for the rest of your life.
Highest levels of auto loan delinquencies since 08-09 recession. 30,60,90…
Negative equity crisis. 25% people have negative equity. $7200 average… 1/4 of them owe more than $10K.
People can’t justify trading in their vehicle.
People overpaid.
Bronco Raptor owners are completely upside down… now -29K off.
40% of EV owners are upside down in their loans.
People can no longer live above their means… they just can’t.
Banks are clamping down. 1/5 denied.
Interest rates haven’t loosened up over the last 3 years… National average New 7%… Used 11%.
Why is Used higher? It’s a greater liability for the bank.
No more markups. Dealers can’t get away with it since banks won’t fund those artificially inflated loans.
Insurance premiums over doubled 2.5 years.
Insurance average $2700.
Banks are getting references… to call if you get repossessed.
Many auto manufacturers are pushing smaller turbocharged motors and hybridizing them. Cashing out on green credits at the expense of the longevity of the vehicle.
Auto manufacturers are pushing “throw away vehicles” Land Cruiser, gone. V8 Tundra, gone.
Dealers can’t incentivize EVs enough. They’re just sitting on lots.
Dealers for the first time in a very long time are turning away vehicle allocations.
Flooring costs are killing dealerships.
Dealers lost the trust from consumers… I’ve heard many testimonials from people who went to the same dealer for decades, only for that dealer to flick them like boogers.
Wholesale market is down 20% over last 9 months (effectively driving trade in values).
Buying used is sketchy right now, the likelihood of you buying a previously repossessed vehicle is extremely high.
Many dealers won’t report repos on the vehicle history… so people are buying vehicles that were likely hugely neglected.
So between saving $15K off a new vehicle or 20-25K off a used example, the new one often makes more sense.
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