The Affordability CRISIS JUST GOT EVEN WORSE
HTML-код
- Опубликовано: 28 май 2024
- 🚗 Buy your next car through CarEdge:
⮕ caredge.com
🚗 Sell your next car through CarEdge:
⮕ caredge.com/sell
🚗 Get your extended warranty through CarEdge:
⮕ caredge.com/extended-warranty
CarEdge Podcast: Daily News You Can Use
⮕ Spotify: open.spotify.com/show/5Mv58R6...
⮕ Apple: podcasts.apple.com/us/podcast...
Instagram
/ mycaredge
TikTok
⮕ / zachshefska
Today on the Daily News You Can Use, Ray and Zach discuss the latest data from the NY Fed which shows that more and more consumers are not paying their credit obligations. Plus repair costs skyrocket. Tune in to learn more! 
Развлечения
FINALLY!!!!! I've been saying this forever!! Stop buying stupid!!!
Not gonna happen just cause you say so!
@@nategohawks1535 obviously...😱
no one's buying for a while, but the prices remains high, these dealers rather choose to be unalived than to lower prices.
As long as people are only concerned about the monthly payment, manufacturers will simply extend the terms.
Ray is absolutely right these prices are inflated and people are still buying them why would you do that to yourself people
"gotta have it gotta have it gotta have it NOW.". personal image to impress others. that's a losing game.
It's a good time to own a repair shop. New vehicle sales are going to stall! And no way are trucks worth 80K, not even 50K. We need a real wakeup call for vehicle pricing.
I think we also need simple vehicles 🚗
Yes, get back to basics at sensible prices for those who just want a reliable car with maybe a radio/clock/outside temp display. No fancy electronics to distract drivers.
The cheaper cars, like trap or inexpensive Nissans simply aren’t selling. People do seem to prefer fancy cars that do more than they need, have more space than they need, and cost more than they need. The manufacturer CEO’s have overshot, but they are not getting the signal to build cheaper cars.
What about the stock market for Genuine Parts? They are probably a bargain right now. I grabbed some they are not a real mover but with replacement parts being needed might be a good investment.
Trucks are worth 50k
Ray's real-world assessment enhances his credibility. The facts prove the American auto industry is in crisis. To say otherwise would be incredulous.
Totally agree w Ray. Be frugal with money. Buy what you can afford and need. No debt.
Learn to distinguish between WANT and NEED.
$245/m for 2 cars (14+12 yrs old) in NW NJ.
Might need new cars in 10 or so years...
Definitely excellent advice
$0 for three cars. 2010 Mazda 6, 2012 Town & Country Van, 2017 Honda Fit. Plus our house is paid off. Packing cash away in savings.
Ray reminded me of the movie Goodfellas when Jimmy Conway said, what did I tell you, don't buy anything! One buys a pink caddy and the other a mint coat..LOL
Don't worry the government will bail them out, I mean the US taxpayers!!!!!
😮😮😮😮😮😂
They bail out Israel and Ukraine constantly, why not something in America for a change?
Yep, current administration has no problem giving away money unnecessarily.
Yes. They won't go back to making affordable vehicles because they don't have to. Bailout will be there.
@@lot2196 absolutely correct!
It’s like the industry thinks they will call the public’s bluff. Only thing is that it’s no bluff, as no one has money to waste on their ridiculously overpriced, unreliable products.
I have a 2012 accord 200k everything is great. No payments.
Cars and trucks still need to drop 20-30% !!
That figure is an absolute minimum , probably more like 50% .they need to go back to much more simple and get rid of all the tech and electrical crap that is totally not needed to bring cost down to a much more affordable price,otherwise, o.e.m.s are done the average person is beyond broke.there business model is done!
Big inventory b/c nobody want's Stellantis products? hmmm
Yep! Nobody wants overpriced unreliable junk!
Nobody wants EVs either. Its EVs & overpriced cars with tiny engines that no one wants. The problems with Government Climate Agendas & Inflation are 100% real & the facts don't change just because some Bureaucrat Agency writes a report. These Bureaucrats do not want to hurt there side in this Election so there is a ton of Spin happening & they continue printing Money.
@@TheCaptjamestkirk as someone who took a chance on a RAM last gen......I endorse this comment
People will buy them for the prices they were before 2020, at those prices they are currently selling very fast except for their jeeps…..those still are not selling even with 10k discounts
I just love your Dad's common sense with his exact solution to reeling in inflated pricing on new cars. I have followed his advice and have reaped the rewards on buying cars and real estate in my business. The market, by demand, can control the direction of our purchasing power and needs. Thank you for providing the guidance and wisdom of your services.
A friend was looking for a car and had a Toyota, Honda, & Nissan choices picked out. So, he called his State Farm agent, for insurance quotes, and the quote for Nissan was double what it was for either Toyota & Honda. His agent said that this happans with Nissan, but didn't know any explanation for it.
lol it’s not hard to figure out
Ray is 100% correct! I have said this to people since the pandemic, STOP buying…. This is the same for housing prices. Consumers can’t get out of their own way because they want something NOW, but think past Tuesday, then they complain how prices have skyrocketed.
We’d be in whole different market if people systematically stopped buying over MSRP on vehicles or paying $50K above asking on a house the last three years.
Credit is the sugar fix for so many that just cannot say no. If you really want to see change in car prices and other things that aren't truly a necessity, we have to learn to say no.
I left GEICO because their increases every 6 months for full coverage on a '18 RAV4 XLE hybrid was crazy (wanted 300 dollars more). I called them to give them an opportunity to "work with me" before I shopped around and here is what the lady told me and I am giving you her exact words as they are burned into my memory, "we don't care, the rate is what it is, you can leave if you want to." I DID!
I love this channel - great information and also entertaining lol. But it seems like the last couple of months have been predicting an upcoming buyers market for new vehicles because so many manufacturers had large unsold inventories... Now the prices are going up? Just goes to show that the car market never changes - because it's always changing. If you find a deal that you find acceptable, go for it and don't worry about the future - it's just a flip of the coin anyway.
You do realize these guys make money when people buy cars? The Car Market does matter but this isn't just about cars, it's about everything being inflated & everything having to come down. Sur if you have to have a car you buy one but there are good times & bad times & right now the entire Economy is inflated by Government Printing Money. No one in the automobile industry is gonna tell you not to buy a car because that's how they make a living. The best salesman convince you they are helping you while they sale you stuff.
@tomkatt2321 : This channel has proven to me that "A great price/great deal/good value" is 100% in the eyes of the buyer. I've read/heard "great deals" posted to this channel (over months//years) that, to me, weren't "good/great deals" at all - and a few of them were (imo) just plain horrible. OTOH, my circumstances/opinions are in the small minority. I realize that and keep it in mind. (Edit) I've also read/heard several good and very reasonable deals fwiw.
Good advice Ray 😎😎👍👍👏👏 stop buying over price cars!!!!
Even McDonald's is considering lowering their prices because people have stopped buying😮
Crazy repair cost, plus insurance up 23 percent in 1 year. I had to buy a different car last year due to lower insurance. I work at home still and hardly drive. I bought a Honda HRV EXL vs an Accord. In Texas my insurance world jump last year on a 23 Accord EX 445.00, A Civic was 440.00 jump and the HRV EXL was the least at 17:44 235.00 jump. My payment is 342.00, my insurance is 229.00 for full coverage.
Glad I don't have a car payment
I would encourage everyone who is able to do so join us.
Me neither. I have all 4 of my vehicles paid off & with minimum coverage for insurance. 75$/month for 4 cars 😊
Both of my vehicles are paid off. I paid both off early. I don't know how some can pay 800 bucks or more per month for a car or truck. I don't think they know either.
This is probably the best episode you guys ever made
The old man is Talking STRAIGHT UP and is trying to help people buy a car. NICE WORK my man!
Small CDJR dealer in my town went belly up.
Just bought my first new cae yesterday! Chevy Trax Activ great affordable car! I am happy! Thanks for the tps and tricks. I got a deal I can live with!
Being in collision business 20+ years. Parts prices are crazy. You may drive a cheap car but those headlights can run 1k plus. Did a small Mitsubishi Eclipse cross. Hit a deer. Front bumper lights and hood. Nearly 14k in damage due to parts
You barely can recoup the initial cost of a hybrid… and about when you do… it needs another $6k battery… will that engine & body last another 170k miles to recoup the cost of the new battery??
See, that's it. At the moment everyone is 'hybrid' crazy. If they plan on keeping their vehicle for a decade or more, a hybrid looks a lot different with a $3k to $6k battery replacement near the end of ownership. In effect, it's like replacing the tranny or entire engine on an ICE vehicle (very generally). *And this assumes no super expensive repairs in the middle. Naw.
That's longer than modern vehicle small displacement gas engines last. And a new engine and transmission for replacement will cost way more than six thousand dollars.
Most modern EV batteries will last 500,000 miles and the motors will last 1 million miles.
Tesla has sold over 6 million electric vehicles. Very few fail.
I love my but plug in hybrid.
96 month car loans are stupid and the people that sign for them are the dumbest of us all.
Advice when the used alternative is priced just as much as the new?
Patience and look online/search harder if you're not in an urgent pinch to buy "right now". I once took about 18 mos to find a suitable Toyota Tacoma that met my criteria. A slow, level-headed search.
Seems simple. Cut prices by 38%. Offer 10 year warranties on their junk. Offer no more than 2.9 financing for qualified buyers. Problem solved
Why should I offer you 2.9% when the federal government is offering to pay 4.5% on the money I lend to federal government?
Ray - I totally agree with you......
Good info, Ray & Zach! Unfortunately I just succumbed to “want” over “need” when I factory ordered an Individual BMW 440i xDrive coupé. Luckily, I fall into that Baby-boomer demographic.
My liability insurance is $138 every 6 months with 21st Century for a 42 year old car. I'm retired so my mileage is about 1000 miles per year.
A good aftermarket product would be something that tricks.The sensors and they think they're working or can turn off those systems
There was a sweet spot with Toyota at end of 2023, could actually get Tacoma’s under MSRP in CA. Got my 2023 TRD OR for 3500 under MSRP. Was looking for deals for 2 years. Couldn’t be happier.
You said it Ray and I stand with you…” STOP 👏BUYING 👏NEW 👏CARS!”
I was told.
After 5 years, a new vehicle can be written off.
Could this be why manufacturers are filling up lots full of vehicles? So they produce them and then write them off after five years
I had a branch during a recent wind storm hit my drivers side view mirror. Its camera stopped working. To replace the sideview mirror on my 2023 QX60 Infiniti was about $2300!!! Insane. Glad i had insurance on it.
I'll bet the extended warranties do not cover "wear" items like tires and brakes... AND A BATTERY! Unless it fails during the warranty period or burns down your house.
People paying over MSRP are letting everyone know how clueless they are about $. Hope they enjoyed the charity they gave the dealership, wait til the repo.
One more point, it is perfectly logical that auto repair costs would climb as new car prices climb. If you plot average repair cost as a percentage of average new car price over time, I suspect it would be a pretty flat line. It is basically the substitution effect. Repairing a car is basically a substitute for buying a new one.
Could you guys please compare the numbers for the past few years but make sure to compare the numbers before the pandemic to get a real good gauge on how things are doing
I like the watch! Congrats. Its always a good day when you get a new watch.
Price Increases, ha ha ha.
Mr. Ray, Young Mr. Zach et al.,
Tks., much appreciative.
I have my 2016 Jeep and I love it and with these prices it is easy to keep driving that
Makes my 1967 VW Beatle look like a smart buy. My memory was about $1,650 new. 4 speed manual transmission, radio, heater and roll up windows. Only extra was a manual sunroof.
A manual sunroof? You extravagant spendthrift! 😮
It had a little hand crank next to the sunroof. Looked just like the window roll up crank.
Ray you remind of salesmen I met in the sixties with my dad. Before they haggled they divined our needs and directed us elsewhere if they knew we shouldn’t be buying.
Happy Birthday me and Ray! May 25th!!
Those sensors/screens/cameras are dirt cheap for the manufacturer. A 12" screen may cost them $15 - $20. Those sensors are only a few dollars each. But they know people will pay hundreds for them because they see them pay $1000+ for a phone. A tech package the manufacturer charges $5,000 for might cost them $200 - $300 in material costs.
It's not considered overpriced until sales decline.
It’s not an “affordability” crisis. It’s a severe lack of financial literacy and fiscal discipline crisis.
Hearing how the cost of repairs is escalating, makes me feel I made the right decision to lease rather than buy. I calculated the cost of ownership and I was able to lease a car for less money per month than it would have cost me to own it.
Not only are they maxed out on their credit cards, they are paying record high interest rates on their cards. Many are at over 35% APR! Usury. Greed. Gouging.
"Student Loans" are no longer a popular subject, but....
@NVRAMboi student loan interest are very tame most years is around 5% or less
good one
Ray is right!!!!!!!!!!!!!!!!!!!!!!!!!!
You don't have to buy the batteries from the dealership. You can find these new or remaned starting at $1200 to $4k, depending on the specific model.
Can the public outlast the government? it's a lose-lose situation for America right now, there is no going back, you are on the edge of a financial precipice.
I agree with Me Ray. I'm NOT buying that expensive whatever car. I could afford it but there's no way I'm doing that! The problem is what do I do when I need another car? Hopefully that will be 5 yrs down the road.
The underlying issue is not the EV sector/push for EV, the real issue is the NHTSA rules requiring a fleet average of 49 mpg by 2026. Without EV's and hybrids, there is no way any automotive manufacturer can reach 49 mpg average across their lineup. The Mitsubishi Mirage holds the highest mpg for a highway rated ICE vehicle, with 36 mpg in the city and 43 mpg on the highway. The Mirage utilizes 1 Snowmobile/ATV/Motorcycle carburetor to generate a tiny 78 hp, with an 11 second 0-60 mph rating. These vehicles are a hazard on the road due to their limited ability to take off and get up to traffic speed. And even at that, the Mirage still doesn't meet the NHTSA rating requirements. At this point, the only ICE items reaching the requirements are motorcycles.
If the auto makers realize that their products have become too expensive, can we expect them to start making more affordable products? Wouldn't that be the expectation in a market driven economy?
I'm here for Ray 😃
If affordability has gotten even worse, then, that means prices of goods/products have gotten too high, something has got to give
I bought my daily driver new 16 years ago and it's still going strong.
Just a few more days and I join the CarEdge team! Super excited to be joining the team. Woohoo! 🎉 🥳🎊👏🙌
THANK YOU! I can’t believe people keep buying vehicles at these crazy prices. Amazing! Show some patience and discipline.
I am retired and can't afford my $16. a month renters coverage for my apartment...as my food bill is out of control...so glad I don't have a $1,200 payment on my nice new vehicle.....the American Dream is DEAD...no home buyers, no car buyers and my damn new Keurig is trapped on the Dali n Baltimore Harbor!
That's pretty high for renters insurance. Should only be about $115/yr. I'm 32 and moved into a brand new 5 bedroom house a few years ago. The American dream is far from dead.
Just bought a new Mazda CX-50 with your help got great deal. We traded in a Dodge Nitro 17 years of ownership . Dodge was rusting away underneath. Looked great but was not repairable. There are still good deals to be had under thirty grand.
Insurance payment is high on the car?
Hell ya Man hope u enjoy that Mazda! I wanted that suv but settled on a 24 Equinox
Dad’s Toyota had a rock hit the windshield no one but the dealer would replace it because they couldn’t reset the lane assistance for the new windshield it wasn’t inexpensive
Amen, preach it Ray " STOP BUYING OVER PRICED POOP 💩 "
Hit the nail on the head
Does economies of scale work in reverse?
How close are we to seeing much of the lot rot going over the auction block?
I needed a car this year and I’m very happy with my Toyota Corolla LE (hybrid). I refuse to spend money on cars, and I hate spending money on gas. 50 - 70mpg so far, baby
The new lithium hybrid batteries for Toyota are half the cost to replace.
I went to caredge to get a quote on a warranty. It said due to technical difficulties, we can not generate a quote right now
I “want” a tundra trd pro so bad, however, I ain’t no sucker! The asking prices are in a make believe world I’m not in myself. 🙃
Ha ha ha Zach! That's because vehicle repair contracts aren't worth the paper they aren't written on. We can't even get auto companies to honor REAL warranties. The fact the warranty prices haven't gone up, PROVE I'm correct.
Any advice for someone looking at a 4Runner? it’s hard to justify a used one when they barely depreciate!
I just got a good deal on a used Honda ridgline. Actually found a great dealership in sw Pennsylvania. Stuckey automotive did a good job.
If Chrysler started advertising 30% off on all of there models they may move some. And for loans on chargers and Chryslers they need to have atleast that off as banks loan on LTV now. If a msrp is 140% of LTV they won’t loan.
Ray 🤔 Our Birthdays are on the same day !!! May 25 !!! I’m going to be 57 !!! Happy Birthday 🎁 🎂 🎉to US !!!
I will never buy new again
I am 100% with you .vehicles are way overpriced, and reliability is at an all-time low,the way they are built ,I will never buy new
It's entirely subjective but my 07 escalade has almost the perfect amount of tech. Heated and cooled front seats, heated middle, dual zone ac, vvt but not afm, and backup camera. Just need Bluetooth. Also i wonder how much worse newer cars are for the environment vs the older 60s cars with regards to manufacturing. There was very little plastic outside the interior. Mostly metal which is easily recyclable.
What is getting crazy is auto insurance
It's the perfect storm of virtually everything skyrocketing in price - all at once.
You guys I don’t think have covered this one. I’ve heard it a few places. Ford is cutting production of its trucks so that they don’t have to lower prices or give rebates. They will bring numbers on lots into check to keep prices crazy.
There are two groups of people still buying expensive vehicles. 1) People concerned with image and ego, who want to flaunt the "lifestyle" and really shouldn't be buying these vehicles, and 2) People who have serious cash and a $1200/month car payment has a negligible impact on their finances. Unfortunately there are a lot of both groups still out buying cars. On any given day here in south OC, CA I'll see more 3 series BMWs than Honda Accords on my short commute.
I sold my Tacoma privately after Christmas hoping for some sweet Memorial Day deals..but the outlook isn’t looking great. Not looking forward to financing at 6+ percent. Was hoping for some manufacturers incentives to spice it up but they are holding out
Not such a slippery slope as much as a behavioral chain of events.
Being a frugal person I look at it this way. If I am stopped at a light in a 26,000 dollar Camry and the car next to me is a 60,000 Mercedes and the light turns green, will I get to the next red light about the same time in about the same comfort and safety and gas mileage. YES! You see I just saved 34,000 dollars. SWEET!
Same with my Corolla. I look at those people and wonder if they fell for the jig. It’s all a jig.
Get the but plug in hybrid. It's much more enjoyable.
You’ve never driven an S class if you think it’s even remotely in the same league as a Camry comfort or performance wise. I’m not even going into the AMG’s.
@@AJ56 I agree but my [point is that for 26,000 dollars versus 60,000 dollars you get the same results. It's like flying first class and coach. the plane takes off and lands at the same time and you saved the difference.
@@louisstennes3 and yet tens of thousands of people pay extra to fly business and first class every year. Value is subjective and the added comfort is well worth it to some and not to others.
Let’s just be blunt, this government and corporate greed is fucking us and hard.
🤣 195 lbs of fun.... hilarious! 👍🏼
What about those who were forced to buy new in 2021 because of shortage on used and overpriced vehicles. I wanted to trade in for older vehicle just because I never had a car payment until now
My son got an E bike to go to college instead of a car because the price of having a car n all the bills that go with it, just isn't worth it.
But that stuff isn’t as expensive as what’s charged Ray. There’s an element of gouging from design to repair and everywhere in between.
There's a universal problem for the consumer right now for most everything purchased. "Is this $4 loaf of bread so expensive due to inflation/costs, or is the grocer or baker just sticking it to ME?"
My family is growing by the end of the year, we’ll need a 3 row. Nissan has Pathfinders discounted by 8k around me. If I wait until July-Oct, will this 8k still be there? It’s not like by then a Grand Highlander will be discounted 8k by October anyways… Right?
3rd row used Honda pilot / Toyota Highlander. Save yourself 35k.
@sw6155: Don't let this circumstance (CONGRATULATIONS!) make you anxious or cause you to do something rash. There's already a good reply above mine. I don't think I'd buy a new Pathfinder or Highlander.
What part of the puzzle are the new UAW contracts? How about the new UAW union at VW?
Subprime loans should be illegal
I pay 52.50 a month for full coverage
630 a year.
But what are your coverages and what car are you insuring. 2023 rav4 hybrid, full coverage $1400yr 250k/500k/250k 25k pip, 5k additional medical
My 2004 ranger liability only is $400/yr
I want to get just liability now. Car is old enough I think.
I think much of the problem with young ppl is the fact that they seem to think they should drive the same priced car their parents drive. They buy the same types of homes it took their parents a lifetime to achieve. I’m your age Ray, I doubt you started out in the same type of home & car your parents had. I certainly didn’t. I never bought a new car until I could pay cash for it. It has taken me a lifetime to get that so called dream home.
I think young ppl should stop giving all their money to banks & mortgage companies, if they save & pay cash they don’t need to worry about the repo man coming. By doing this it brings there credit used amount down & it will also bring car & housing prices down. I brought my newborn son home from the hospital in a 1932 Studebaker with the entire side of the passengers side of the car bashed in. It wasn’t pretty & yes it was embarrassing. However,it was better than not sleeping worrying about how I was going to pay for a pretty,nice new car. Young ppl today need to learn patience.
Ray "doom and gloom" Shefska makes the show for me!