@_R3D_ …Or that something has gone horribly wrong 😑 Everything- and I mean EVERYTHING financially speaking, has gone in the direction of eliminating every Mom & Pop level of biz to crumbling sand piles. Why all these high prices? No fed bull is going to tell me that it’s just the way it is due to the rolling ball of fire we now know as the planned- emic. If we didn’t take part in causing it, why must we pay for this disaster?! They can at least come up with a better excuse than “the dollars value has risen due to us printing out trillions for a couple years.” Not my fault. That’s all I’m saying.
And you can't fix getting behind the curve either, no matter how hard you try. (In this case the economic curve). Its like trying to catch a falling knife.
When CarMax first came out you could buy a very decent used car for a very reduced price. Over the years I noticed that they kept raising the prices to the point where they were for almost the same price as a brand new car.
@Gary M. Russell Because it was more than a decade ago now that the program ended and every vehicle traded in under that program was effectively destroyed. It was required under that program that all vehicle traded in be salvaged. The program specifically forbid the resale of any vehicle traded in under that program.
The quality of cars that CarMax has historically sold seems to vary greatly from location to location. In my particular area, CarMax is well known for selling overpriced, unreliable junk and trying to skip out on their warranties.
We have purchased 3 cars from Car Max. Well priced, decent mileage cars, and a great experience. Looking for another car for my daughter soon and went on their site and the prices for the exact same cars we bought from them are more (same year and mileage we have on them now) are MORE expensive than when we bought them 4 years ago. Insane.
@Gary M. Russell Like others have said... the effects of that have come and gone and are ancient history. You make me feel old. Remember when they were trashin all those cars? dumpin shit in the oil and running them... just insane. Used cars and parts prices shot up predictably. Then alot of those idiots who bought got their brand new cars repoed. But in the end, the big banks win, and isnt that what America is all about?
I agree with you man. If you lower your prices enough people will buy those cars and even show loyalty and recommend others to buy too. People do need/want cars but no regular person is gonna jump the gun for the current interest rates now
yes im one of them but right now the use car market is insane, cars with to much miles for the price of almost as there are new, why im gona buy for example a Ford escape 2016 with 100,000 mile for 20 thousend when i can get let say a maverick which is basiclly the same car because the MAverick is base on the Escape plataform for 26,000 with 0 miles brand new and the APR will be as low as 3.8 to 9.8 % vs 8 to 28% depends on you credit score for a use one?
CarMax paid too much for their cars… nationally, they did this… now they have to sell them and still make a profit? No way it will happen… devastation ahead for them in 2023…
This is a deleveraging event caused by artificially low interest rates for years. Now that people can't do financially insane things, like finance a USED car, we will now discover the real value of those vehicles - where they would have been priced if we used real, legitimate money in the economy, as opposed to the Fabien socialist fiat ponzi scheme that was imported into the US circa 1890, and was adopted by a hand select president and bought and paid for congress in 1913.
I'm in the market for a Ford Maverick. There are dealers charging $46,000 for a truck that Ford announced would sell for $20,000 the greed is disgusting.
@@mrbee145 Like the old saying goes, one man's trash is another man's treasure. The Maverick is a great alternative to the standard sedan. It's affordable and has utility. It's perfect for me.
@@vincew.6905 Yeah, I routinely see the c8 priced at $90,000 and up. Despite the fact that the MSRP is $62,000. It's almost criminal what the dealers are able to get away with. Price gouging should be illegal. Only at auction should this be allowed. Auctions are a true indicator of what the market will bare.
I'm 62 years old and have bought tons of vehicles of all makes for my family! I am old school and would never pay MSRP or above for a vehicle like these crooks are doing today! I have always called car dealers, crooks, liars, dishonest, no integrity etc. But I just want to say, since I've found your channel I enjoy the hell out of watching it. I love how you show how much you pay for a vehicle and what your asking price is. This is incredible to see and very refreshing. You are doing a good thing and care about your customers. There is no doubt you have to make money to survive. But, what has happened typically and especially since COVID, the public has been gouged, raped and taken advantage of, just because they could. Because you can, doesn't make it right. Keep up the good work brother, and stay the course and never surrender your integrity. I wish you were in Florida, so when I need a vehicle I could buy from you. Happy New Year!
JT, Great comment. The price gouging of the auto industry during this time period is sinful. I was lucky and bought a car in October of 2019 for 24k. In 2022, a used version goes for 28k, a 2023 has a dealer mark up of an additional add on of 10k. My question to you is how do you know that the gentleman of these videos did not participate in the gouging?
I decided to put my SUV up for sale last year. I did quite a bit of research and determined that the fair market value was $28,000. I listed it for sale and only got a few "tire kickers." My neighbor suggested that I go to Carmax's site and put in my information. Without even asking me how much I wanted, they offered me $33,200. (I would have taken $26,000.) They even sent a truck and picked it up. (If I owned any Carmax stock I would have sold it that day!
He would have sold his stock after seeing just how ‘off’ they were with the offer. Great offer for the seller, but shows Carmax to just be financially stupid.
I was searching for a used vehicle for my 16 year old from Dec 21 to May 22. I wanted something to get her through high school and maybe some college so I was willing to spend a little. It was amazing at the prices I was given for the year, mileage and condition of the vehicle and no one would budge on price. I eventually went to Honda and ordered a civic for her that took 4 months to build. I normally am totally against anyone buying a 16 year old a new car. However, I now have a car with no miles and something I don’t have to work on. I get it that not everyone can do that but I refuse to pay a 40% - 50% markup on a used car. Insane!
Dealers were forced to pay the inflated prices too. I worked for a fairly large dealer group and cars were selling used at auction for more than MSRP because demand was so high. I bought a brand new 4Runner October 31st of 2020. 5 months later average MMR was $9k more than invoice minus rebate so I sold it. Don’t hate the dealers too much. Hate outsourcing chip manufacturing, China, and stimulus money for down payments.
you made the right decision and made right choice. The used car market now is completely nonsensical. One used to go to used car market to get value. Now it is upside down you have to pay premium for inability to afford new car. The maintenance and repair costs on poorly maintained used car are just ruinous.
Damn fine choice in cars though. You know she'll still have that when she's 30 married and maybe bring the first grand baby home in it. If you live where it snows undercoat that thing and keep it maintained. 12-15 years trouble free driving right there long run its not any more expensive. It's only more when you swap every 3-5 years. Buy new keep a long time.
@@666dynomax I drive my beautiful Honda Civic that I bought new almost 21 years ago. Never one problem with it. And it looks great inside and out. I love it.
I've been telling my niece to hold out a few more months. Our local CARMAX is PACKED with cars. They even have some sitting in the back bumper to bumper. It's not just them, I'm seeing a big influx of cars at lots of other used car lots. It's def time for a price correction back to pre-pandemic prices.
And that's why the dealership I used to do used vehicle inspections for is out-selling the local CarMax 10 to 1.... A car that was selling for $5000 before the pandemic, was still selling for $5000 during and since the pandemic. Dealers that aren't trying to rip everyone off are doing just fine selling used cars. Places like CarMax that openly try to rip off every customer are struggling. I bought a used car in September 2021. Curious as to how badly I got screwed in the deal, I checked pricing at Caravana and CarMax. Turns out, compared to dealing with either of them, I got a decent deal. They both wanted $4500 - $7000 more for the same year and model, but with higher mileage.
The carmax in my town is also packed …they even have a field in the back packed with cars which is crazy to see… at first i thought it was a junkyard but no it’s actually cars from carmax literally parked on a open field
First time I watched one of your videos. I am impressed by your knowledge of, "supply and demand" and it's effect on the used car market. Excess inventory will have a serious impact on every dealer. Bigger issue is those smaller lot owners who won't be able to weather the marketplace gyrations. Good thing is that you recognize it and are planning for it. Kudos!
Makes sense now that there’s a tech/mechanic shortage as well. A lot of people much rather fix their cars than pay much more for another one. Making shops crazy busy and needing help. Crazy cycle we’re in.
I just did that. Installed a new 6 inch android head unit with reverse camera and added LED headlights in my 2009 Camry. I would have got it done from a mechanic but they charge crazy prices. I can learn to do this stuff and save my money.
I’ll take the bus or use Uber and ask family members for rides and save my money before I get locked into a horrible used car contract with a high interest rate. Public transportation here I come 35$ monthly bus pass sounds better than 500$ car note for a car that’s not worth it.
After shopping for cars at Car Max a few times I found them generally higher than other smaller dealers and using high pressure tactics . Experienced buyers know how to see the red flags when high pressure tactics begin.
Come on, you can't believe CarMax's $2200 per car profit margin. I get trade-in requests all the time. My trade-in $ value is garbage, yet looking at similar vehicles in their inventory makes me go LOL. Nothing wrong in having a healthy profit margin. Claiming to have a slim one in order to get a one-up on the competition is not cool. Maybe $2200 on a $5K car. On a 20K vehicle, more like 4-5K
Sold Carmax a 15 year old Lexus LS430 in 2020, 103K miles, they paid me $6K, was good with that amount. Found out a Nissan dealership was selling my car (same VIN found on Google) less than 4 months later with a sale price of $8999. Car needed an audio amplifier, I told them it was dead. It was making a slight noise too in the front right wheel.
@@kevinhiggler2896 I don't know your situation but I probably would have held onto that little bute.. Very nice, reliable, extremely low miles and probably paid for car. Hope it worked out well for you!
@@lawless7859 Not always , I've bought some great cars off smaller lots , I've also got complete lemons off Dealer used lots. Tote the Note lots can be very risky that's pretty common knowledge.
I've been to CarMax a few times with friends who were looking but to me there over priced and my friends didn't buy... CarMax doesn't like to keep cheaper vehicles and now it's coming back to bite them
Dealers need not cry the blues, as this is just a pendulum swing. When prices skyrocketed, most if not all gouged the price on current inventory to take advantage of increased market value creating record profit margin. Keep in mind, that was all inventory purchased at lower rates. Consumers were trained to accept these prices making the number of cars sales to decrease slightly but margin $ continued for 3 years. Now, take the piss for a year to come back in line, and hopefully you spent the bread wisely with innovation instead of pocketing bonuses
I knew this was going to happen when I saw car lots filling up with used cars rather than new models. And, the salesman that sold my truck to me asked if I would like to sell my truck back to him...for more than I paid for it originally. Just crazy...
I'm in real estate mortgage management. I don't think people realize how much biz is down. A year ago industry was doing 1.3 million loans a month. Currently 400k a month. That's a 70% decline for a business that is worth hundreds of billions to the economy.
@@carquestionsanswered Yes I believe even before the pandemic they would pay more for used cars so they would have no choice to raise their prices in order to make that profit margin.
As someone who is in the market for a car, I'm glad I stumbled upon this video. Wouldn't be surprised if used car prices started to fall in a few months, especially with the whole Carvana fiasco going on as well. Thanks for this.
I've already seen prices drop for Private sales on FB marketplace. Popular enthusiast cars have taken a solid hit in price and it seems to take a while for them to sell which in contrast to the height of the pandemic they were selling at above average price and would sell fast. I think this is a good indicator of what is going to happen to the rest of the market. Also think a big part also for the slowing of sales is the fact that many people are beginning to see that we are very likely heading into a recession.
by june prices are going to tumble... this whole house of cards is falling, and dealers are not doing 130-140% LTV anymore, financing interest, bad debt, buying out your other cars loan and folding that in to the payments etc
@@snoodlegirl1794 Well I can't speak for others, but as someone who's owned a used Honda Civic as my first car, I can assure you that it was very reliable. A car is always bound to have problems whether you buy new or used.
I absolutely loved your video. As a mechanic I'm very fortunate to not only be good at it I enjoy it. I drive 2 nice vehicles paid for and reliable. I even own a supra I bought super cheap because of a blown engine. I couldn't imagine a struggling young family totally at the mercy of buying a car that cost what a small aircraft cost only 20 years ago. Used cars is the only option for some people and car max has definitely taken advantage of people I know. So my opinion and that's all it is would be " let them eat cake"
In some cases, they have lowered prices. Been looking for a few months for a small sedan(Mazda3 GT). Just found one that equally equipped with almost identical mileage for $3k less. Noticed local dealer prices are getting lower. Keep up keeping us informed.
Cool to hear that your making a impact on the used car market hear on RUclips for those that watch your channel. Such an impact that the giant Car Max is watching your content ! Your killing it ! Information is power and your helping to inform all of us which ripples out to family and friends to be able to make a more informed purchase of or next vehicle. Thank you !
Hell, I tried getting a used Dodge Journey for myself here in Las Vegas. I love my wifes' Journey and like how much room it has. I found one, low miles (19k), interior immaculate, all papers for oil changes etc. Price was $24k and they wanted to tac on another $6k to the price. Salesman wouldn't even tell me what my appraisal was on the car I wanted to trade. He even wanted me to have a famn co-signer! I'm 44 years old, I've paid off 4 cars so far in my life. Stupid, I walked out. So thank you for nothing Towbin Kia!
Bought a car at Carmax in high school many years ago. Rear brake drums were filled with grease so they wouldn’t squeak and grind during the test drive. Bought the car not knowing that. Ended up going back for service and instead of fixing the brakes they greased them up again. Eventually went to a Midas and found out what they did. Never will return to a a Carmax. Screw that shady crap.
Agree with the sentiment. They jacked up prices artificially high during the pandemic and then people got under water with their car loans because they paid too much for their car. Many are opting to not pay and let their car get repossessed just to get out of the loan. Then the market shifted the other direction and Car Max tried to hide their abundant supplies so they could keep prices high. Greedy crooks.
Checked the price of a 2013 Highlander hybrid the other day at Carmax. There asking price was 100% or double of the Kelly blue book cash value. No wonder their not selling cars.
As someone in the market very soon for another car, I appreciate your information so much. When do you think we will start to see big reductions in used car prices? Carmax would be wise to lower their prices and get rid of whatever inventory is clogging up their lots. That is a Retail 101. It costs more to manage old inventory.
@carquestionsanswered that is surprising. I was thinking spring. Just got the news I have a leaking oil seal, so really hoping to get on the good side of used car prices.
Man I need a truck/car just can’t afford it... I’m not the only veteran that can’t get by, I have brothers out here living on the street. I am blessed. God is good!
Because they plan to have us own nothing-so no such thing as a loyal customer to those who will mandate product usage. They will decide who will drive and what they drive and if you disagree you won’t drive. Imo. You will own Nothing and be Happy. Right? 🇺🇸
the answer is E A S Y : they've all drank too much CAPITALI$$$$$$M booze and are now puking it up .. their hangovers are soooooooooooooooo deserving ...
Any time you see fringe/new industry companies making huge profits when they first come out, a market correction follows where many don't survive. Carvana has never made a profit. Many "innovative" companies don't...and they fail. Look at all the ride share, food delivery, electric scooter, NFT, crypto, blue apron, simply fresh, artisan this and that, energy drink type of companies that seemed so great at first and are now struggling or gone. Many ride on investor money to look good until financial reporting unveils the truth. Then they lose investors and value until they die.
The Baby Boomers are the largest single generation Customer Base ever birthed. And will soon be extinct. Forever. Each generational customer base remaining is exponentially smaller. And the current future customer birth rate is plummeting faster than Building Seven. No customers born means a lifetime of lost sales. Death of a Salesman Starts with empty cribs and closed diaper factories.
Just came here from Dr Know-It-All's channel on RUclips. He has some great videos I've been watching for a couple of years now and he always interviews interesting people on EVs typically and when I saw his interview with you I was really impressed with your knowledge of an industry I've never dealt with. And your honesty is probably what has gotten you so many views.Anyway, I have a LEAF EV now but I also have an older Jeep Wrangler so I will be back to watch your videos even if I am no longer into ICE vehicles. Thanks!!! From a New Subscriber thanks to Dr. Know-It-All.
I agree with everything, you have said! Former military, Navy Finance just issue my friends and I the check for any vehicle we want, but the dealerships refuses to provide vehicles per the msrp, most are lacking option, due to unavailable chips , they are selling used vehicles for outragous prices 2019 selling for 80,000 while the msrp is 77 ,000 on a 2023 same car with a better warennty on the used vehicle, this dealerships are killing themselves!
Used dealers are trying to get 5k-10k over retail value. Many dealers will be out of business in 2023 & it's their own fault The economy will NEVER get better & that's a fact
i keep a 2008 Focus with 225k cranking along just because of the prices. Your words of the 2 buckets of money, repair or payment, is really interesting and I believe it. Looking forward to all of this cooling off in the next few months.
@@davidz1681 Not hard to keep a 2008 Ford Focus on the road. Just do the basic maintenance. I know of several that are over 200K just by doing basic maintenance..... Most problems with any vehicle come from an inept owner that doesn't understand or believe that any maintenance has to be done.
I remember when the chip manufacturer’s plant burn which halted the manufacturing of so many automobiles and the dealerships were begging for people to sell their vehicles to them offering crazy amounts of money for used vehicles. I kinda feel like that had an impact on these high prices.
Exactly. Nail on the head. With the chip shortage, used car prices were super inflated to satisfy the demand in the market, on top of the injection of all the printed "free money", where people were buying ,ALSO inflating the market, made for the perfect storm we are now seeing. I know guys that bought couple year old Toyota SUVs , put 30000 miles on them, and turned around and traded them in for a few thousand more than they bought them for.....crazy
So glad your channel appeared on my yt feed! What a huge confirmation that having my older vehicle repaired is a wise and best choice! Thank you for your insight and the useful information. God bless you and your family. Hope you're feeling like normal and even better by now.
The market is still inflated for sure. But I do believe supply and demand has been taking a small toll and they’ve noticed. I’ve seen prices drop a little not much but enough to know I need to hold off for 3-6 months and see where the markets at before getting another vehicle
Been holding on to my 2008 Scion XD not only because it spoiled me with it's reliability but BECAUSE of the absolutely insanely over priced new or used vehicles available. I really want a pick up truck but I don't need one that bad. I hate car payments too.
Yes, I have a 2011 Toyota Sienna bought “used” in 2011. Very dependable and, when the kids were small, a good investment. But, they’re grown and gone, and I’d like to average better than 20mpg. I got on line and looked at prices - WOW! Used cars cost as much as new; new cars are hugely over-priced! I’ll keep mine another year; January 2024 will be a better time to get into a new vehicle, I hope. No car payments, just maintenance and gas and lower insurance premiums… it seems silly to be driving around in a minivan by myself all the time, but hey! Much easier to afford than even a hybrid, all things considered.
@@OgunDaMan I hear ya. I'd rather have enough money left over for food on the table than keep up with the Jones. Honda's a Toyota's are the way to go and keep going.
I agree with you that it can backfire for Carmax to hold their margins in a declining market. As the consumer gets more educated and people realize the grim state of the economy the smarter dealers will try to stay afloat and many will fail as well. There will be fire sales, no question about it and don't forget the two million repo's that will be factored into the mix. My recomnendation is for the consumer to avoid buying from Carmax for a quarter at least and let's see how market conditions and dynamics change.
Just walked away from a 2019 4runner. It was beat up with only 46k, asking $35,700. Been on sale since August and $10k higher also. How long would you predict to pull the trigger?
People will still buy from carmax because it offers people with low credit to buy. It’s a known brand and people just assume they give good prices without doing any research on prices.
I had a weird dream once, where car dealerships were ripping up half their lots to till for crops, and locals were coming to get boxes of vegetables, while a few bought cars. The sales staff were very somber and quiet. Some cars were returned, and the person turning in keys was thankes politely and given the box of vegetables. Some parked cars and worked tilling the ground or tending crops.
As you said in another video. Their inventory is costing them money and is deteriorating from lack of use. They made loads of profit over the last three years, they need to wash this out and start over. It's not like they don't have the Capital. I think after the mid point of the year they will not have any choice because of repos to lower their prices. I wish you continued success. It looks like your cars are pretty fairly priced. Take care and Happy New Year.
No such thing as short supply The repo storage lots are jammed full & another estimated 25 million repo's are coming in 2023 Used dealers are trying to get 5k-10k over retail value. Many dealers will be out of business in 2023 & it's your own fault The economy will NEVER get better & that's a fact
People aren't trading in because dealers, not just Carmax, aren't giving anything for the trade in. I was offered $500 for my 2008 Rogue on a trade in (not at Carmax). Keeping the Rogue. Love it too much. Carvana offered me $200 for my 1999 Tacoma that just had 176,000 miles on it. Sold my Tacoma to an individual for $5000. Just bought a Nissan Frontier from Carmax. No trade in.
Just wanted to pop in and say that this is the first video of yours I've watched & I enjoyed it. I found the information very insightful. I'm not all that big into car dealerships or anything like that, but I love following trends across multiple industries - and just learning what I can when I can as a person who invests. Thanks for the great informative content, and I'm happy the algorithm sent your video my way. Definitely liked the video & subscribed to the channel. Kudos & keep it up!
When you have expensive taste and spend a lot why wouldn't you want more money. Every market is the same. I just feel bad for the poor and inexperienced people who pretty much donate to the whole thing. Walking these days is dangerous cars are a must nowadays.
Expect everyone in the Less-than-prime and sub-prime markets to hold their prices until Refund Season ends. Historically, this means April/May. Teachers and other government employees increase buying while school is out. Watch out for fluctuations in the construction labor industry.
Man, I can't believe the reasonable prices on your lot. Here in California, you could add $2000 to every windshield and you'd have people rushing to your lot to buy.
The wife and I have been saving for 18 months for this crash. We have a car that’s paid off and we’re ready for two new cars. We’re just waiting for the optimal time to buy.
Unfortunately it won't come. Unless your willing to buy electric. Everything is being pushed to switch over now quicker than ever. Pretty soon there will not be any manufacturing of any gasoline powered cars and we will be stuck buying whatever gasoline powered vehicles that are left out there at crazy prices. Its happening now. That is how its going to go. Pick up truck's, semi trucks and construction/farm equipment will be the last to get phazed out. Sorry folks but thats the reality of it.
I wanted to buy a used car so bad last year to save money and the prices were outrageous for the mileage of the cars. We had to go buy a newer used car at a bigger dealer because of it. No way I was gonna spend $15,000 for a vehicle with 150,000 miles on it. That's what I was seeing too.
@Rafael Hernandez I'm hoping they drop more. My 16 year old is saving for a car and I'd hate to have to start him off with a huge loan to get him a safe car that'll last him.
in my opinion, a car with 150,000 miles on it is wore out! I don't think their worth anything. My mazda blew up at 160,000 miles and I took good care of it. It would be risky even with a toyota, witch I consider the best. I never trust car dealers, there always up to no good.
@@sarita5572 look for a crown Victoria, mercury grand marquis, or Lincoln town car. All basically the same car just different names. They're stout as a tank, cheap parts readily available, and usually under 5k for one with under 100k miles. Every single one I've owned has gone past 250k with minimal maintenance (oil, transmission fluid, rear differential fluid, belts, spark plugs, and so forth).
@@sarita5572 A 16 year old isn't going to have a car "that lasts him". Most are going to use that first car as an education in how to care for a vehicle. If they don't wreck it their friends will. Never buy a nice car as the first one.
Bro, you should be putting down your dealership's info in your video descriptions. You put out honest information and people appreciate that. Not sure if you mention it most times, but you should always have it every description.
I really appreciate the interest and I get the question of where we are a lot. Right now as I'm growing my business and on youtube I'm not giving that info out. 1. Because my sales staff is working to the max as it is and does not have the capacity to answer questions from people calling from RUclips and 2. I want to make sure I can give the best and most honest advice I can on youtube and I think it might come across the wrong way if I look like I'm also trying to promote my business. Probably not the answer you wanted to hear but I appreciate your understanding and thanks for watching! Brandon
@@carquestionsanswered Nah bro, I understand. In a world of deceptive car salesmen, your honesty comes thru. You might as well get compensated for your YT efforts, but understand. It's gonna get crazy out there, hope you guys weather the storm.
I spent 25 years in the car business, mostly as an auction buyer for dealers, wholesaler. The used car business is nothing like it used to be in the 1980s and 1990s through early 2000s. The used car crunch we are seeing now has been in the works for over 15 years, it is finally now getting its attention. My prediction over the next 10 years is, you will see most used car dealers go out of business, the root cause will be the inability to acquire inventory. Also, the inability to acquire any Bank floor planning. In the end if you want to used vehicle, you will have to purchase it from a new car dealer.
@@nyeahgarner2420 Just look at the trend over the past 30 years. In the 1980's-1990's new car dealers saw trade-ins as a nuisance, they would wholesale most of them out and you would rarely see a used vehicle on a new car lot that had over 60k miles. In the later 1990's new car dealers totally changed the way they looked at trade-ins, instead of a nuisance they became more of a gold mine, they started keeping trade-ins for retail no matter how many miles, or sending them directly to an auction instead of wholesaling them directly to a local dealer/wholesaler. At the time this started choking out a lot of the wholesalers, who had been used to buying all the vehicles they wanted and able to pass on many that they did not want, on a daily basis. What happened to the wholesalers back then will sooner or later affect the used car dealers as a whole. Anytime you can choke off the supply, you can choke off the people who rely on that supply. I believe the Carmax model was built by minds that saw what direction the used car business was headed. Keep in mind, Carmax came to be in the early 1990's. Most, not all, used cars enter the market by being a trade-in at a new car dealer. Look at it as you would Wal-mart vs a Thrift Shop. Things will rarely make it to a thrift shop that had not been sold first by Wal-mart. Most used car dealers go to an auction or new car dealer to try and buy inventory, they will rarely go to another used car dealer to buy inventory.
@@Olde-Raleigh-Shoppe-NC historically it would seem to be heading in the direction you’re describing. It would seem to that as prices rise more people will be selling their car themselves, further reducing inventory for the used car lots.
Thanks for your input. Very informative. I was at car max the other day. (Was not impressed) I do prefer a small dealer anyway. Just be smart and take it to a mechanic to get checked out. Best of luck to everyone. Hang on to your used car.
@@carquestionsanswered So glad to hear a small seed car dealer representing the good ones. When you have a dealer you trust, you know you can go in with your list of needs and a walk out price. That person will work the paperwork backward to make sure you are not blindsided with an amount more than you can pay.
I'm interested in that silver Ford Fusion he keeps walking in front of. My mom leased several Fusions in late 00's and early 10's. Loved them, especially the 2012 one.
Very informative video. Thank you for posting this. In the NYC area there are many used car dealers that are switching and baiting customers with prices and doing what new car dealers are doing by putting ridiculous mark offs on used vehicles sometimes in many cases up to $5000 more than the advertise price it’s insanity. But I also blame the people who go and overpay for these used vehicles sometimes we have to take a step back and just let them wait it out.
My 2008 F150 was considered 'totaled' after I hit ice and slid into the mountain. She was 100% mechanically sound, just a little crashed up. My insurance offered me $11K, but considering down payment and interest rates on a new truck, I turned it down and bought it back as a salvage title. I only 'paid' $2K, so that left me with about $9K for repairs. I'm fairly handy with a wrench so I ran all over town gathering parts from salvage yards and finding deals on fb marketplace. I took the truck to my buddy's shop and replaced all the smashed parts, and even slapped some 35" BFGs on it. I feel like I have significantly upgraded my truck, with ZëR0 monthly payments, and cash to spare. 🙌🏼 🤑 🙌🏼
I'm still driving my 2001 Silverado. 230k miles and still running on original engine, trans and most everything else. Have been looking for a 3-4 year-old 'last truck before I die' truck but just can't justify the price.
We're driving 02 and 04 trailblazers. The 04 needed the trans rebuilt for 2k but we waited for nearly 4 months to get it back (small business, great work but takes a long time) We also have a 78 Chevy pickup for wood hauling. We just keep replacing parts bcs its still cheaper than a car payment. We are riding these ponies to the end of the line.
My own personal experience with Carmax was actually pretty damn good. We bought a Camaro a Buick, LeSabre and my sister bought a Jeep and we all drove those cars for more than 15 years with very little problems so I think it’s the due diligence they perform that is where you’re getting your bang for your buck.
I bought an SUV from Carmax at the end of June. It was put in the shop on July 2, 2022, and it was in the shop for over 2 months. It has been in the shop several times, and it is still not fixed. They keep lying, but I'm not worried. Once they get the lawsuit paperwork, there's nothing to talk about.
They're not getting trade ins because people are afraid to get rid of their cars for two main reasons. 1. It's cheaper to keep a car running than it is to make payments for a different car for the next 5 years. The old saying: "It's the economy stupid" needs to be repeated. 2. People don't want forced electric cars, so they're not going to sell their old gas powered cars.
I went to 7 different dealerships looking for a decent used car. I got bad feeling from each. Whether it was telling me I couldn't find anything safe under $10,000, blatantly lying about obvious sloppy repairs, pushing predatory financing to discourage a cash sale, and worst of all, that fake innocent look when they are busted lying (doesn't matter how much you practice. It's obvious you are lying. Don't do it.), I could not bring myself to spend money there. I found a father and son mechanic shop that sells cars on the side. I spent less than $5,000 and I'm really happy with what I got. And it's reliable. That's probably going to be most people's best bet.
Frankly The whole gouging during Covid just completely turned me off to purchasing a vehicle. Now I see the reset coming and the rebates from manufacturers coming back. It’ll be awhile before I consider buying a vehicle. They made their money off people at the worst time and people still remember this bad behavior.
That is good news that the prices of cars is going down. I have been waiting for that for 8 months. I want to pick up a 3- 6 years old minivan. I have not even really started to look other than on the internet. They are just too high right now. Thank you for the stories of what you think is going to happen.
I got lucky ( at least i think) got my newish car last year and don't have to stress about the crazy prices right now. Thanks for the informative video regardless!
Carmax's strategy to keep their vehicle cost and margins high is going to biow up in their face. When consumers get a clue and realize they are getting hosed on a greatly devaluating used car that could not sell for anywhere close to what they are paying, they are going to never walk into a Carmax and tell all of their friends to not buy, and round and round they go until nobody walks on their lots. The whole notion that they want to sell less units is a farse. They would rather sell less units at a higher margin is more like what they had in mind, otherwise, the entire operation is a sinking ship. They can't sustain the same infrastructure wity 40% less business. Note to content creator. I found your video to be very informative and you are 100% right that the call in question had lots of mission critical information in it as it relates to not only the used car market, but also the market as a whole. Thank you for the awesome work! You are spot on sir!
The fact that CarMax is still profitable is a huge sign they were ready for this storm anyone that is involved in the industry should have seen this coming I am interested to see what happens over the next few months as there biggest competitor is in serious trouble and I believe will soon file bankruptcy
Love your content. I have always been a used car and truck buyer, I never saw the value in buying new. For 30 years I've purchased through a friend who has his dealer license and like you, works the auctions. Every car/truck that I've bought from him has been a great buy and a great value compared with a new vehicle. That being said, I have purchased one MiniS and one GMC Sierra from CarMax over the years. Their sales process is seamless and very customer friendly. Their prices may be higher than other places but their lot is full and the cars are of high quality. And during and post covid, CarMax was the only lot in my city with cars. Even today, my local GMC truck dealer only gets a handful of new trucks per month while CarMax's lot has plenty of half ton pickups and Utes. Trust has a lot to do with buying used, trust costs a little bit more $$. CarMax offers the buyer the trust of a large nation-wide dealership. I can tell from your videos that you are also trustworthy, but your brand is limited to one city. Again, great content.
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I have always had a positive experience at CatMax. It definitely depends on which location you go to. Same with a bother establishment. Always stand your ground and don’t let them push you around for convince you to buy a car if you are not read. Look at some cars you a thinking about buying. Think about it for a couple of day (they might be able to put the car on hold for you). Then make your decision without having the salesperson with you.
I had a good experience with CarMax as well. They transferred a car from a neighbouring state at no cost and kept it on hold for me until I was ready to buy it. The price of the newer vehicle was much more reasonable than other dealerships with the same car, model, year and mileage.
Hi, I'm pretty new in USA and of course buying used cars, quick question why some times the person who is selling the a car advertised it as only cash?, Nice videos 👍
@Ivao h I own a very small rural used car dealer, (we only bought & sold 15 cars in 2018 as auto body repair is our main focus). We only take ‘cash’ or a cashiers check from the bank. The time & effort of financing is not worth it to me. If someone wants a car I will write up a quote. Just the car price, sales tax(6%), title fee($15), new plate/registration fee(varies $80-$150 on cars we sell) or plate/reg transfer fee($15). That’s it. Car, tax, title, plates. If a person need financing they take the quote to their own bank, credit union or whatever lender they want and get the loan. So for example ******* Car$8000.00 Tax$480.00 Title $15.00 Plate & Reg (new example $120). =$8615.00 ********* You take that quote to whatever lender you want and bring me the $8615.00(cash or check from bank). I don’t charge documentation fees or anything else, only what I wrote above. If buyer wants a warranty or service contract they will have to find one and purchase it on their own. This makes it easy for me and easy for the buyer. Could I make money by ‘selling the payment’ by doing onsite financing? Yep. Could I make money by selling warranties/service contracts, yep. But it seems more paperwork than is worth it for me. We are in Michigan and you can read the “Michigan Dealers Manual” on our state website. Just google it. There is a lot of info there that everyone should understand about car sales. Not every state has a Secretary of State’ website with a ‘dealers manual’ as well as a ‘repair facility’ manual like Michigan. Some states a person has to go to their state’s legislature & search for the laws directly. I think only 11 states are as thorough as Michigan in having manuals in an easy to understand documents for people businesses and the consumer.
I agree with this man. I knew that the downside of the car market is very real when my wife and I actually talked the dealer way down on a Honda. A certified Honda - we all know the resale value on almost any Honda model is crazy and it's hard to get a deal other than what's on that sticker. I think it's gonna get worse too. The real money today lies in being a mechanic. You got all the work you can handle as more and more people are trying to get more life out of their cars due to these crazy prices and the economy being so volatile.
Something else that could be affecting CarMax is that some buyers don't trust the cars that they are selling at high prices. It's easier doing a private sale and having a mechanic check it out for an hour to do some testing. CarMax seems to buy cars at cheap prices, try to pass off the Carfax and a cursory check as a diagnostic, and the sell the cars at high prices with a lot of money down.
Great video, well said and not bashing a competitor is always the way to go :) I was in the coffee and roasting business for a long time and I knew Starbucks set pricing eventhough I didn't agree with them.
I think a big part of this is just the pandemic woes - people who couldn’t buy cars normally went out after things settled and bought cars - then after that dip occurred you’ll get a recession - it happens in every industry - moreover the weather is the big reason - people don’t want to walk a car lot in December unless they have to - most people spend money during March through December then the market tanks through February it happens every year I’m not too worried by spring it’ll level out and hopefully fair trade will win
Ive been working with reputable Toyota dealerships across 2 different states for the last few years. And in my short time in this business, I've seen the market change so much and the feds increase APR so much too. Its places like CARMAX that are our competitors in the preowned car market, but I always tell people that their business structure is not designed to help or benefit anyone but themselves. The market isn't as good as it was 3 years ago, sure. But the dealership I'm at right now gets more new car inventory than any other Toyota dealership within a 2 hours drive without mark up. And our preowneed vehicles are priced at an average of 89% of the market (for every $1000 the car is being sold for elsewhere, we've got it priced for $890). I take pride in knowing that the greed and predatory sales structures of other locations have sent them into such a downward spiral, while we continue to sell record breaking amounts of units (even if the net gross on each is lower). I sold a gentleman a new Toyota Tacoma a few days before Christmas at our invoice cost. Good luck finding anyone else anywhere in the country selling new Tacomas at invoice. Moral of the story, screw CARMAx
They in so much trouble that now they are overpricing cars and charging our kids $500-$800 car payments smh on top of their over priced insurance that’s mandatory smh I never paid over $200 for a car note just ten years ago! Smh
I wanted to get a Challenger. They had one with 76,000 miles for 26k. After all is said and done with their nightmare APR it's gunna be around 34k. I got the same year, same color, same model, with all upgrades packages with 19k miles for 22k from a bigger dealership.
I watched, liked, subscribed and read +/- 75% of the comment's. You're an intelligent person with common sense and knowledge based on experience which is now wisdom at a young age. I live in Cali and yes it's another planet, the problem is not everyone lives in SF or LA but everything is priced like they do. Keep doing what you're doing which is being fair, decent, knowledgeable and informative. You are a stellar human being brother. 💯💯💯
Great video!! Best info I really see for me (truck driver with bad habit of fixing and flipping super cheap priced cars)is I better get on the ball and finish these cheap project cars I have an unload them all befor the house of cards collapses... then I'm stuck with extra cars in drive way , wife almost kills me and start sleeping in them to avoid mad wife!!
Good info, I think they're $2200 goal is a good idea as they seem to be creating a higher value brand with greater trust than smaller dealers. Personally wouldn't shop there, but people I know that do shop there often ignore basic market research on the value of the car and are willing to pay a huge premium.
The demand dried up because the dealers got greedy selling “brown gold” used cars during Covid, and to mention the interest rates are just ridiculous now, not including the dealers burying people during Covid in their car loans on the back end. Now, the buyer is just as responsible for being so stupid with their car buying decisions. And, we have people like myself that want to upgrade their vehicle, but the new prices are just as ridiculous, making me consider to just keep it. Thanks for the video.
Went to look at a Tahoe for my business. Online build and price said $67k (already high af) Went to dealership mf said $89k (since it’s high demand) I laughed and went and bought a Toyota Sequoia ‘23. For $68k instead. Atleast that Toyota will last forever and has more HP and better interior than the Tahoes
@@JohnDoe-ef3wo BTW, I encourage people to look at older 3.8L T&C's. Up north this 05 would be a rusted heap, but not in the south of course. Mechanically she's been a tank with flat floor sto/go and plenty of comfort options. Slide in a 4x8 sheet of PW and still close the hatch. It's a 20-24 mpg pickup wannabe. Also rated at 3500 tow..I've towed that weight on a 1400 mi road trip (I did take the title with me, and a fist full of cash, just in case:). Has 165K miles, paid $3500 3yrs and 30K miles ago at a used lot; replaced tires at Walmart, and a new rad at a shop along I-75 (plastic fan blade broke and went through the radiator). Burns less than a quart over 5000mi oil change intervals. It owes me nothing!
I just tuned in after seeing the topic. Honestly.... I make $26K a year and I'm 6'7" 389lb, it's no way I'm buying a small car nor a used full sized car, and pay for maintenance and full coverage insurance. Just had a dealership try to sell me a clean 7 owner 2006 dodge Charger r/t with 197k miles for $8500. I can honestly say, I can't afford anything to fit me do to my financial circumstances. Your video gets two thumbs 👍🏿 👍🏿 up from me. It's definitely approved
I hope they listen to you Sir cause I’ll be looking to purchase a car in the next few months and CarMax is who I’m looking too but if they won’t lower prices I’ll keep it moving cause I’m nowhere near desperate
If Mr. P is watching this video, while they may have a right to deny filming, it looks terrible IN PR on the companies behalf to ask for content to be removed. Thanks for mentioning about Mr. Ps request, it makes CarMax look unusually motivated and suspicious. That's going to net them a Streisand Effect if they're not careful.
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When used car prices rival that of brand new vehicles.. You know something has to give.
@_R3D_ …Or that something has gone horribly wrong 😑 Everything- and I mean EVERYTHING financially speaking, has gone in the direction of eliminating every Mom & Pop level of biz to crumbling sand piles. Why all these high prices? No fed bull is going to tell me that it’s just the way it is due to the rolling ball of fire we now know as the planned- emic. If we didn’t take part in causing it, why must we pay for this disaster?! They can at least come up with a better excuse than “the dollars value has risen due to us printing out trillions for a couple years.” Not my fault. That’s all I’m saying.
Exactly
@Karl with a K - I think the PEV market is about to explode if they don’t. Too bad that doesn’t help me get my kids to school.
People love to blame the Dealers.... Blame the people paying the big prices
That's correct.
These dealers are paying for their greed with Karma
Well said!
Thanks for the comment
No mercy whatsoever! Karma's a bit**.
Hello I am looking for a good cheap car for myself to buy and it is hard to find a good one
Let them eat their shoes for dinner 👞 🍽️
No matter how smart CarMax is you can't fix people being broke
Correct
And you can't fix getting behind the curve either, no matter how hard you try. (In this case the economic curve). Its like trying to catch a falling knife.
That’s facts
People are broke because they finance cars.
Feds gotta lower interest RATES
When CarMax first came out you could buy a very decent used car for a very reduced price. Over the years I noticed that they kept raising the prices to the point where they were for almost the same price as a brand new car.
@Gary M. Russell Because it was more than a decade ago now that the program ended and every vehicle traded in under that program was effectively destroyed. It was required under that program that all vehicle traded in be salvaged. The program specifically forbid the resale of any vehicle traded in under that program.
The quality of cars that CarMax has historically sold seems to vary greatly from location to location. In my particular area, CarMax is well known for selling overpriced, unreliable junk and trying to skip out on their warranties.
We have purchased 3 cars from Car Max. Well priced, decent mileage cars, and a great experience. Looking for another car for my daughter soon and went on their site and the prices for the exact same cars we bought from them are more (same year and mileage we have on them now) are MORE expensive than when we bought them 4 years ago. Insane.
@Gary M. Russell Like others have said... the effects of that have come and gone and are ancient history. You make me feel old. Remember when they were trashin all those cars? dumpin shit in the oil and running them... just insane. Used cars and parts prices shot up predictably. Then alot of those idiots who bought got their brand new cars repoed. But in the end, the big banks win, and isnt that what America is all about?
@Gary M. Russell because they were literally clunkers. They weren't valuable to the used market anyway.
I agree with you man. If you lower your prices enough people will buy those cars and even show loyalty and recommend others to buy too. People do need/want cars but no regular person is gonna jump the gun for the current interest rates now
Yup!
They Buy them for what they sale them for why they dont negotiate
yes im one of them but right now the use car market is insane, cars with to much miles for the price of almost as there are new, why im gona buy for example a Ford escape 2016 with 100,000 mile for 20 thousend when i can get let say a maverick which is basiclly the same car because the MAverick is base on the Escape plataform for 26,000 with 0 miles brand new and the APR will be as low as 3.8 to 9.8 % vs 8 to 28% depends on you credit score for a use one?
CarMax paid too much for their cars… nationally, they did this… now they have to sell them and still make a profit? No way it will happen… devastation ahead for them in 2023…
This is a deleveraging event caused by artificially low interest rates for years. Now that people can't do financially insane things, like finance a USED car, we will now discover the real value of those vehicles - where they would have been priced if we used real, legitimate money in the economy, as opposed to the Fabien socialist fiat ponzi scheme that was imported into the US circa 1890, and was adopted by a hand select president and bought and paid for congress in 1913.
I'm in the market for a Ford Maverick. There are dealers charging $46,000 for a truck that Ford announced would sell for $20,000 the greed is disgusting.
Yeah crazy
Try being in the market for a c8 used cars selling more than new wins for the last 2+ years!
What a turd the maverick is. At 20 k. Ok at 21 k. Forget it
@@mrbee145 Like the old saying goes, one man's trash is another man's treasure. The Maverick is a great alternative to the standard sedan. It's affordable and has utility. It's perfect for me.
@@vincew.6905 Yeah, I routinely see the c8 priced at $90,000 and up. Despite the fact that the MSRP is $62,000. It's almost criminal what the dealers are able to get away with. Price gouging should be illegal. Only at auction should this be allowed. Auctions are a true indicator of what the market will bare.
I'm 62 years old and have bought tons of vehicles of all makes for my family! I am old school and would never pay MSRP or above for a vehicle like these crooks are doing today! I have always called car dealers, crooks, liars, dishonest, no integrity etc. But I just want to say, since I've found your channel I enjoy the hell out of watching it. I love how you show how much you pay for a vehicle and what your asking price is. This is incredible to see and very refreshing. You are doing a good thing and care about your customers. There is no doubt you have to make money to survive. But, what has happened typically and especially since COVID, the public has been gouged, raped and taken advantage of, just because they could. Because you can, doesn't make it right. Keep up the good work brother, and stay the course and never surrender your integrity. I wish you were in Florida, so when I need a vehicle I could buy from you. Happy New Year!
JT, Great comment. The price gouging of the auto industry during this time period is sinful. I was lucky and bought a car in October of 2019 for 24k. In 2022, a used version goes for 28k, a 2023 has a dealer mark up of an additional add on of 10k.
My question to you is how do you know that the gentleman of these videos did not participate in the gouging?
like our gov
Florida sucks … little Mexico
IMHO the rona 19 release was cover for an economic collapse (or robbery)
add the fact there are so many shady new and used dealers as well as repair shots. its no wonder people hate car dealers in general.
I decided to put my SUV up for sale last year. I did quite a bit of research and determined that the fair market value was $28,000. I listed it for sale and only got a few "tire kickers." My neighbor suggested that I go to Carmax's site and put in my information. Without even asking me how much I wanted, they offered me $33,200. (I would have taken $26,000.) They even sent a truck and picked it up. (If I owned any Carmax stock I would have sold it that day!
Can you explain why you would have sold stock to me I don't understand but I am curious to know
He would have sold his stock after seeing just how ‘off’ they were with the offer. Great offer for the seller, but shows Carmax to just be financially stupid.
@@SadPanda1978 ok thanks
How did they pay you?
@@spoonsVSforks in marshmallows
I was searching for a used vehicle for my 16 year old from Dec 21 to May 22. I wanted something to get her through high school and maybe some college so I was willing to spend a little. It was amazing at the prices I was given for the year, mileage and condition of the vehicle and no one would budge on price. I eventually went to Honda and ordered a civic for her that took 4 months to build. I normally am totally against anyone buying a 16 year old a new car. However, I now have a car with no miles and something I don’t have to work on. I get it that not everyone can do that but I refuse to pay a 40% - 50% markup on a used car. Insane!
Dealers were forced to pay the inflated prices too. I worked for a fairly large dealer group and cars were selling used at auction for more than MSRP because demand was so high. I bought a brand new 4Runner October 31st of 2020. 5 months later average MMR was $9k more than invoice minus rebate so I sold it. Don’t hate the dealers too much. Hate outsourcing chip manufacturing, China, and stimulus money for down payments.
you made the right decision and made right choice. The used car market now is completely nonsensical. One used to go to used car market to get value. Now it is upside down you have to pay premium for inability to afford new car. The maintenance and repair costs on poorly maintained used car are just ruinous.
Damn fine choice in cars though. You know she'll still have that when she's 30 married and maybe bring the first grand baby home in it. If you live where it snows undercoat that thing and keep it maintained. 12-15 years trouble free driving right there long run its not any more expensive. It's only more when you swap every 3-5 years. Buy new keep a long time.
@Hoosier Daddy yep. I run yotas but use ws tranny fluid in the auto
@@666dynomax I drive my beautiful Honda Civic that I bought new almost 21 years ago. Never one problem with it. And it looks great inside and out. I love it.
I've been telling my niece to hold out a few more months. Our local CARMAX is PACKED with cars. They even have some sitting in the back bumper to bumper. It's not just them, I'm seeing a big influx of cars at lots of other used car lots. It's def time for a price correction back to pre-pandemic prices.
And that's why the dealership I used to do used vehicle inspections for is out-selling the local CarMax 10 to 1.... A car that was selling for $5000 before the pandemic, was still selling for $5000 during and since the pandemic. Dealers that aren't trying to rip everyone off are doing just fine selling used cars. Places like CarMax that openly try to rip off every customer are struggling. I bought a used car in September 2021. Curious as to how badly I got screwed in the deal, I checked pricing at Caravana and CarMax. Turns out, compared to dealing with either of them, I got a decent deal. They both wanted $4500 - $7000 more for the same year and model, but with higher mileage.
Our car max is empty sometimes.then full
The carmax in my town is also packed …they even have a field in the back packed with cars which is crazy to see… at first i thought it was a junkyard but no it’s actually cars from carmax literally parked on a open field
Idk, where I love new cars and used ar3 still not budging.
First time I watched one of your videos. I am impressed by your knowledge of, "supply and demand" and it's effect on the used car market. Excess inventory will have a serious impact on every dealer. Bigger issue is those smaller lot owners who won't be able to weather the marketplace gyrations. Good thing is that you recognize it and are planning for it. Kudos!
Thanks and welcome!
Makes sense now that there’s a tech/mechanic shortage as well. A lot of people much rather fix their cars than pay much more for another one. Making shops crazy busy and needing help. Crazy cycle we’re in.
There is no shortage if the pay is shyt.
I just did that. Installed a new 6 inch android head unit with reverse camera and added LED headlights in my 2009 Camry. I would have got it done from a mechanic but they charge crazy prices. I can learn to do this stuff and save my money.
"...as well."
@@martinbraden7110 Hush
So true! Plus the build quality of the newer cars aren't as good.
We appreciate the information directly from someone who is in the business rather than someone who is just reporting on it. Thank you.
Very welcome!
I like how honest he is
I’ll take the bus or use Uber and ask family members for rides and save my money before I get locked into a horrible used car contract with a high interest rate. Public transportation here I come 35$ monthly bus pass sounds better than 500$ car note for a car that’s not worth it.
@Car Questions Answered how I can I ask a question in private?
And it looks like fairly good prices on the cars he is walking by 😊 has a good inventory.
After shopping for cars at Car Max a few times I found them generally higher than other smaller dealers and using high pressure tactics . Experienced buyers know how to see the red flags when high pressure tactics begin.
Come on, you can't believe CarMax's $2200 per car profit margin. I get trade-in requests all the time. My trade-in $ value is garbage, yet looking at similar vehicles in their inventory makes me go LOL.
Nothing wrong in having a healthy profit margin. Claiming to have a slim one in order to get a one-up on the competition is not cool.
Maybe $2200 on a $5K car. On a 20K vehicle, more like 4-5K
Sold Carmax a 15 year old Lexus LS430 in 2020, 103K miles, they paid me $6K, was good with that amount. Found out a Nissan dealership was selling my car (same VIN found on Google) less than 4 months later with a sale price of $8999. Car needed an audio amplifier, I told them it was dead. It was making a slight noise too in the front right wheel.
@@kevinhiggler2896 I don't know your situation but I probably would have held onto that little bute.. Very nice, reliable, extremely low miles and probably paid for car. Hope it worked out well for you!
Yea, you go to those small dealers and buy a car and in a few weeks you'll see why it was a few hundo cheaper.
@@lawless7859 Not always , I've bought some great cars off smaller lots , I've also got complete lemons off Dealer used lots. Tote the Note lots can be very risky that's pretty common knowledge.
I've been to CarMax a few times with friends who were looking but to me there over priced and my friends didn't buy... CarMax doesn't like to keep cheaper vehicles and now it's coming back to bite them
They did say they want to try to get some cheaper inventory... I actually forgot to put that in the video
My local Carmax has overwhelmingly sub-$25000 cars so their manager must be ahead of the curve.
@@sprague49 Jesus. If I have to pay that much, I mise well buy new. ffs.
Dealers need not cry the blues, as this is just a pendulum swing. When prices skyrocketed, most if not all gouged the price on current inventory to take advantage of increased market value creating record profit margin. Keep in mind, that was all inventory purchased at lower rates. Consumers were trained to accept these prices making the number of cars sales to decrease slightly but margin $ continued for 3 years. Now, take the piss for a year to come back in line, and hopefully you spent the bread wisely with innovation instead of pocketing bonuses
My question to you is we’re your friends actually looking for a cheap car or looking for a car that they would hope to be cheaper?
I knew this was going to happen when I saw car lots filling up with used cars rather than new models. And, the salesman that sold my truck to me asked if I would like to sell my truck back to him...for more than I paid for it originally. Just crazy...
All hell is about to break loose in not just the used car market, but in all markets. Good luck people!
I think you're right
I'm excited haha.
A lot more sudden deaths are freeing up inventory, prices must fall
I'm in real estate mortgage management. I don't think people realize how much biz is down. A year ago industry was doing 1.3 million loans a month. Currently 400k a month. That's a 70% decline for a business that is worth hundreds of billions to the economy.
There’s still 2 years worth of car shortage… no, used car market is not going down significantly
Carmax I believe is not just a little bit more with their prices, they’re a lot more.
I was surprised to learn they only gross on average 2200 a unit... They have to be paying too much for their cars, which right now I can understand
@@carquestionsanswered Yes I believe even before the pandemic they would pay more for used cars so they would have no choice to raise their prices in order to make that profit margin.
Carmax want top dollar for their cars they need to go out of business
Yep. Pay the max at Carmaxx
They are. I'll say this though , I never brought home junk from Car Max! I can't say the same for Carvana!
As someone who is in the market for a car, I'm glad I stumbled upon this video. Wouldn't be surprised if used car prices started to fall in a few months, especially with the whole Carvana fiasco going on as well. Thanks for this.
"...as well."
I've already seen prices drop for Private sales on FB marketplace. Popular enthusiast cars have taken a solid hit in price and it seems to take a while for them to sell which in contrast to the height of the pandemic they were selling at above average price and would sell fast. I think this is a good indicator of what is going to happen to the rest of the market.
Also think a big part also for the slowing of sales is the fact that many people are beginning to see that we are very likely heading into a recession.
by june prices are going to tumble... this whole house of cards is falling, and dealers are not doing 130-140% LTV anymore, financing interest, bad debt, buying out your other cars loan and folding that in to the payments etc
I hate buying other peoples problems. Rather spend more get new
@@snoodlegirl1794 Well I can't speak for others, but as someone who's owned a used Honda Civic as my first car, I can assure you that it was very reliable. A car is always bound to have problems whether you buy new or used.
I absolutely loved your video. As a mechanic I'm very fortunate to not only be good at it I enjoy it. I drive 2 nice vehicles paid for and reliable. I even own a supra I bought super cheap because of a blown engine. I couldn't imagine a struggling young family totally at the mercy of buying a car that cost what a small aircraft cost only 20 years ago. Used cars is the only option for some people and car max has definitely taken advantage of people I know. So my opinion and that's all it is would be
" let them eat cake"
A supra,
You’re soooo lucky!
In some cases, they have lowered prices. Been looking for a few months for a small sedan(Mazda3 GT). Just found one that equally equipped with almost identical mileage for $3k less. Noticed local dealer prices are getting lower. Keep up keeping us informed.
Thanks, will do!
Cool to hear that your making a impact on the used car market hear on RUclips for those that watch your channel. Such an impact that the giant Car Max is watching your content ! Your killing it ! Information is power and your helping to inform all of us which ripples out to family and friends to be able to make a more informed purchase of or next vehicle. Thank you !
I really appreciate your support!
Hell, I tried getting a used Dodge Journey for myself here in Las Vegas. I love my wifes' Journey and like how much room it has. I found one, low miles (19k), interior immaculate, all papers for oil changes etc. Price was $24k and they wanted to tac on another $6k to the price. Salesman wouldn't even tell me what my appraisal was on the car I wanted to trade. He even wanted me to have a famn co-signer! I'm 44 years old, I've paid off 4 cars so far in my life. Stupid, I walked out. So thank you for nothing Towbin Kia!
Bought a car at Carmax in high school many years ago. Rear brake drums were filled with grease so they wouldn’t squeak and grind during the test drive. Bought the car not knowing that. Ended up going back for service and instead of fixing the brakes they greased them up again. Eventually went to a Midas and found out what they did. Never will return to a a Carmax. Screw that shady crap.
Agree with the sentiment. They jacked up prices artificially high during the pandemic and then people got under water with their car loans because they paid too much for their car. Many are opting to not pay and let their car get repossessed just to get out of the loan. Then the market shifted the other direction and Car Max tried to hide their abundant supplies so they could keep prices high. Greedy crooks.
Checked the price of a 2013 Highlander hybrid the other day at Carmax. There asking price was 100% or double of the Kelly blue book cash value. No wonder their not selling cars.
Wow
tell them to f off
Same goes for home and rental markets. The greed is off the charts! So is the delusion!
Kbb is not updated for current market and inflation
As someone in the market very soon for another car, I appreciate your information so much. When do you think we will start to see big reductions in used car prices? Carmax would be wise to lower their prices and get rid of whatever inventory is clogging up their lots. That is a Retail 101. It costs more to manage old inventory.
I think not until end of summer
@carquestionsanswered that is surprising. I was thinking spring. Just got the news I have a leaking oil seal, so really hoping to get on the good side of used car prices.
@@tzugrrl might be cheaper to just get it fixed
@@carquestionsanswered Is a Car watt any good and from WHO ?? I got 3 more on mine.
@@tzugrrl Try adding some AT-205.
It'll help stop the oil leak or at least reduce it significantly.
Watch a few videos on RUclips for how much to use.
Man I need a truck/car just can’t afford it... I’m not the only veteran that can’t get by, I have brothers out here living on the street. I am blessed. God is good!
A satisfied customer equals a loyal customer for life I have no idea why businesses don’t recognize this is crazy
I know
Because they plan to have us own nothing-so no such thing as a loyal customer to those who will mandate product usage. They will decide who will drive and what they drive and if you disagree you won’t drive. Imo. You will own Nothing and be Happy. Right? 🇺🇸
the answer is E A S Y : they've all drank too much CAPITALI$$$$$$M booze and are now puking it up .. their hangovers are soooooooooooooooo deserving ...
That's an old adage now. It used to be lived off but nobody really cares like that anymore.
Thanks for putting the time into these videos!!
CarMax, carvana, vroom… all in deep trouble.
Very welcome!
Any time you see fringe/new industry companies making huge profits when they first come out, a market correction follows where many don't survive. Carvana has never made a profit. Many "innovative" companies don't...and they fail. Look at all the ride share, food delivery, electric scooter, NFT, crypto, blue apron, simply fresh, artisan this and that, energy drink type of companies that seemed so great at first and are now struggling or gone. Many ride on investor money to look good until financial reporting unveils the truth. Then they lose investors and value until they die.
The Baby Boomers are the largest single generation Customer Base ever birthed. And will soon be extinct. Forever. Each generational customer base remaining is exponentially smaller. And the current future customer birth rate is plummeting faster than Building Seven. No customers born means a lifetime of lost sales. Death of a Salesman Starts with empty cribs and closed diaper factories.
Just came here from Dr Know-It-All's channel on RUclips. He has some great videos I've been watching for a couple of years now and he always interviews interesting people on EVs typically and when I saw his interview with you I was really impressed with your knowledge of an industry I've never dealt with. And your honesty is probably what has gotten you so many views.Anyway, I have a LEAF EV now but I also have an older Jeep Wrangler so I will be back to watch your videos even if I am no longer into ICE vehicles. Thanks!!! From a New Subscriber thanks to Dr. Know-It-All.
Awesome to hear! Thank you so much for the support!
I agree with everything, you have said! Former military, Navy Finance just issue my friends and I the check for any vehicle we want, but the dealerships refuses to provide vehicles per the msrp, most are lacking option, due to unavailable chips , they are selling used vehicles for outragous prices 2019 selling for 80,000 while the msrp is 77 ,000 on a 2023 same car with a better warennty on the used vehicle, this dealerships are killing themselves!
Used dealers are trying to get 5k-10k over retail value.
Many dealers will be out of business in 2023 & it's their own fault
The economy will NEVER get better & that's a fact
i keep a 2008 Focus with 225k cranking along just because of the prices. Your words of the 2 buckets of money, repair or payment, is really interesting and I believe it. Looking forward to all of this cooling off in the next few months.
15-20 yr old Toyota's for me from private owners
That's impressive for a Ford
You just be a mechanical genius to keep that pos on the road
@@davidz1681 Not hard to keep a 2008 Ford Focus on the road. Just do the basic maintenance. I know of several that are over 200K just by doing basic maintenance..... Most problems with any vehicle come from an inept owner that doesn't understand or believe that any maintenance has to be done.
I remember when the chip manufacturer’s plant burn which halted the manufacturing of so many automobiles and the dealerships were begging for people to sell their vehicles to them offering crazy amounts of money for used vehicles. I kinda feel like that had an impact on these high prices.
Exactly. Nail on the head. With the chip shortage, used car prices were super inflated to satisfy the demand in the market, on top of the injection of all the printed "free money", where people were buying ,ALSO inflating the market, made for the perfect storm we are now seeing. I know guys that bought couple year old Toyota SUVs , put 30000 miles on them, and turned around and traded them in for a few thousand more than they bought them for.....crazy
So glad your channel appeared on my yt feed! What a huge confirmation that having my older vehicle repaired is a wise and best choice! Thank you for your insight and the useful information. God bless you and your family. Hope you're feeling like normal and even better by now.
The market is still inflated for sure. But I do believe supply and demand has been taking a small toll and they’ve noticed. I’ve seen prices drop a little not much but enough to know I need to hold off for 3-6 months and see where the markets at before getting another vehicle
Or just low ball the seller....all you need is one to need to want to make a deal
Been holding on to my 2008 Scion XD not only because it spoiled me with it's reliability but BECAUSE of the absolutely insanely over priced new or used vehicles available. I really want a pick up truck but I don't need one that bad. I hate car payments too.
Yes, I have a 2011 Toyota Sienna bought “used” in 2011. Very dependable and, when the kids were small, a good investment. But, they’re grown and gone, and I’d like to average better than 20mpg. I got on line and looked at prices - WOW! Used cars cost as much as new; new cars are hugely over-priced! I’ll keep mine another year; January 2024 will be a better time to get into a new vehicle, I hope. No car payments, just maintenance and gas and lower insurance premiums… it seems silly to be driving around in a minivan by myself all the time, but hey! Much easier to afford than even a hybrid, all things considered.
Buy a used old body style chevy truck 90-98
@@Marty1857 Totally agree.
@@DJJDSKREWED bro, those trucks are getting to the point where people are selling 250k+ examples for like 7 grand.
@@OgunDaMan I hear ya. I'd rather have enough money left over for food on the table than keep up with the Jones. Honda's a Toyota's are the way to go and keep going.
This guy is pure information, no bs and he truly helps with the videos
Thank you so much for the kind words
he is also very nice and UNcomplicated ... down to earth like ...
I agree with you that it can backfire for Carmax to hold their margins in a declining market. As the consumer gets more educated and people realize the grim state of the economy the smarter dealers will try to stay afloat and many will fail as well. There will be fire sales, no question about it and don't forget the two million repo's that will be factored into the mix. My recomnendation is for the consumer to avoid buying from Carmax for a quarter at least and let's see how market conditions and dynamics change.
It's best to wait right now no matter who you plan to buy from
Just walked away from a 2019 4runner. It was beat up with only 46k, asking $35,700.
Been on sale since August and $10k higher also.
How long would you predict to pull the trigger?
@@RFJersey Thank you Sir.
@@SC-nw7nj They will never sell. Ego is keeping prices like that high.
People will still buy from carmax because it offers people with low credit to buy. It’s a known brand and people just assume they give good prices without doing any research on prices.
I had a weird dream once, where car dealerships were ripping up half their lots to till for crops, and locals were coming to get boxes of vegetables, while a few bought cars. The sales staff were very somber and quiet. Some cars were returned, and the person turning in keys was thankes politely and given the box of vegetables. Some parked cars and worked tilling the ground or tending crops.
And then the monkey hybrids with the guns and ammo stocked started killing everybody
@@jasonbare3472 wut
@@ThisTimeTheWorld 😳
Can I get summa that?!?
As you said in another video. Their inventory is costing them money and is deteriorating from lack of use. They made loads of profit over the last three years, they need to wash this out and start over. It's not like they don't have the Capital. I think after the mid point of the year they will not have any choice because of repos to lower their prices. I wish you continued success. It looks like your cars are pretty fairly priced. Take care and Happy New Year.
Thank you for the kind words! Happy new year!
No such thing as short supply
The repo storage lots are jammed full & another estimated 25 million repo's are coming in 2023
Used dealers are trying to get 5k-10k over retail value.
Many dealers will be out of business in 2023 & it's your own fault
The economy will NEVER get better & that's a fact
People aren't trading in because dealers, not just Carmax, aren't giving anything for the trade in. I was offered $500 for my 2008 Rogue on a trade in (not at Carmax). Keeping the Rogue. Love it too much. Carvana offered me $200 for my 1999 Tacoma that just had 176,000 miles on it. Sold my Tacoma to an individual for $5000. Just bought a Nissan Frontier from Carmax. No trade in.
Just wanted to pop in and say that this is the first video of yours I've watched & I enjoyed it. I found the information very insightful. I'm not all that big into car dealerships or anything like that, but I love following trends across multiple industries - and just learning what I can when I can as a person who invests. Thanks for the great informative content, and I'm happy the algorithm sent your video my way. Definitely liked the video & subscribed to the channel. Kudos & keep it up!
First time I have ever run across a comment from someone I know lol
We need content like yours, hope your channel blows up brotha!
I appreciate that!
“We won’t lower our prices” = We don’t want to sell cars for what they’re actually worth even though that makes more sense 😭😭😭
Yup
When you have expensive taste and spend a lot why wouldn't you want more money. Every market is the same. I just feel bad for the poor and inexperienced people who pretty much donate to the whole thing. Walking these days is dangerous cars are a must nowadays.
Looks like you have some decent prices for your cars. Wish you were here in Cali. 😅
Used car prices should dry up hard this summer post tax season. Expect huge price drops and low demand starting in May/June
Income tax refunds probably going to be lower than the past 2 years.
I mean it's been like that since forever ...you're not breaking any news here .
Expect everyone in the Less-than-prime and sub-prime markets to hold their prices until Refund Season ends. Historically, this means April/May. Teachers and other government employees increase buying while school is out. Watch out for fluctuations in the construction labor industry.
@@MikeMike-yc8gg You are correct with the exception of the last 3 years. Back to 2019 style economy.
Well I need something now 😭
I'll just say from this MBA - excellent analysis and consistent with things I've been tracking over the past two years.
Man, I can't believe the reasonable prices on your lot. Here in California, you could add $2000 to every windshield and you'd have people rushing to your lot to buy.
California is another planet
The wife and I have been saving for 18 months for this crash. We have a car that’s paid off and we’re ready for two new cars. We’re just waiting for the optimal time to buy.
Unfortunately it won't come. Unless your willing to buy electric. Everything is being pushed to switch over now quicker than ever. Pretty soon there will not be any manufacturing of any gasoline powered cars and we will be stuck buying whatever gasoline powered vehicles that are left out there at crazy prices. Its happening now. That is how its going to go. Pick up truck's, semi trucks and construction/farm equipment will be the last to get phazed out. Sorry folks but thats the reality of it.
I wanted to buy a used car so bad last year to save money and the prices were outrageous for the mileage of the cars. We had to go buy a newer used car at a bigger dealer because of it. No way I was gonna spend $15,000 for a vehicle with 150,000 miles on it. That's what I was seeing too.
They’re still about that high unfortunately it’s crazy I been watching numbers drop but not to what they use to be
@Rafael Hernandez I'm hoping they drop more. My 16 year old is saving for a car and I'd hate to have to start him off with a huge loan to get him a safe car that'll last him.
in my opinion, a car with 150,000 miles on it is wore out! I don't think their worth anything. My mazda blew up at 160,000 miles and I took good care of it. It would be risky even with a toyota, witch I consider the best. I never trust car dealers, there always up to no good.
@@sarita5572 look for a crown Victoria, mercury grand marquis, or Lincoln town car. All basically the same car just different names. They're stout as a tank, cheap parts readily available, and usually under 5k for one with under 100k miles. Every single one I've owned has gone past 250k with minimal maintenance (oil, transmission fluid, rear differential fluid, belts, spark plugs, and so forth).
@@sarita5572 A 16 year old isn't going to have a car "that lasts him". Most are going to use that first car as an education in how to care for a vehicle. If they don't wreck it their friends will. Never buy a nice car as the first one.
Bro, you should be putting down your dealership's info in your video descriptions. You put out honest information and people appreciate that. Not sure if you mention it most times, but you should always have it every description.
I really appreciate the interest and I get the question of where we are a lot. Right now as I'm growing my business and on youtube I'm not giving that info out. 1. Because my sales staff is working to the max as it is and does not have the capacity to answer questions from people calling from RUclips and 2. I want to make sure I can give the best and most honest advice I can on youtube and I think it might come across the wrong way if I look like I'm also trying to promote my business. Probably not the answer you wanted to hear but I appreciate your understanding and thanks for watching!
Brandon
@@carquestionsanswered Nah bro, I understand. In a world of deceptive car salesmen, your honesty comes thru. You might as well get compensated for your YT efforts, but understand. It's gonna get crazy out there, hope you guys weather the storm.
@@TexasNewMoney Right! Bring in more Biz for the team
Curious if you have a website with a list of cars and details??
Seriously. Dude would make bank, if you would tell people where your lot is. There was 2 cars in this video I would consider buying.
I spent 25 years in the car business, mostly as an auction buyer for dealers, wholesaler. The used car business is nothing like it used to be in the 1980s and 1990s through early 2000s. The used car crunch we are seeing now has been in the works for over 15 years, it is finally now getting its attention. My prediction over the next 10 years is, you will see most used car dealers go out of business, the root cause will be the inability to acquire inventory. Also, the inability to acquire any Bank floor planning. In the end if you want to used vehicle, you will have to purchase it from a new car dealer.
Thanks for the comment
not gonna happen bud
I'll keep this prediction in my curious head because I see the opposite happening. There are more used car available than there are legal citizens.
@@nyeahgarner2420 Just look at the trend over the past 30 years. In the 1980's-1990's new car dealers saw trade-ins as a nuisance, they would wholesale most of them out and you would rarely see a used vehicle on a new car lot that had over 60k miles. In the later 1990's new car dealers totally changed the way they looked at trade-ins, instead of a nuisance they became more of a gold mine, they started keeping trade-ins for retail no matter how many miles, or sending them directly to an auction instead of wholesaling them directly to a local dealer/wholesaler. At the time this started choking out a lot of the wholesalers, who had been used to buying all the vehicles they wanted and able to pass on many that they did not want, on a daily basis. What happened to the wholesalers back then will sooner or later affect the used car dealers as a whole. Anytime you can choke off the supply, you can choke off the people who rely on that supply. I believe the Carmax model was built by minds that saw what direction the used car business was headed. Keep in mind, Carmax came to be in the early 1990's. Most, not all, used cars enter the market by being a trade-in at a new car dealer. Look at it as you would Wal-mart vs a Thrift Shop. Things will rarely make it to a thrift shop that had not been sold first by Wal-mart. Most used car dealers go to an auction or new car dealer to try and buy inventory, they will rarely go to another used car dealer to buy inventory.
@@Olde-Raleigh-Shoppe-NC historically it would seem to be heading in the direction you’re describing. It would seem to that as prices rise more people will be selling their car themselves, further reducing inventory for the used car lots.
I am curious to understand how do dealerships determine the value of a car they put out for sale.
Thanks for your input. Very informative. I was at car max the other day. (Was not impressed) I do prefer a small dealer anyway. Just be smart and take it to a mechanic to get checked out. Best of luck to everyone. Hang on to your used car.
Well said!
@@carquestionsanswered So glad to hear a small seed car dealer representing the good ones. When you have a dealer you trust, you know you can go in with your list of needs and a walk out price. That person will work the paperwork backward to make sure you are not blindsided with an amount more than you can pay.
I'm interested in that silver Ford Fusion he keeps walking in front of. My mom leased several Fusions in late 00's and early 10's. Loved them, especially the 2012 one.
Very informative video. Thank you for posting this. In the NYC area there are many used car dealers that are switching and baiting customers with prices and doing what new car dealers are doing by putting ridiculous mark offs on used vehicles sometimes in many cases up to $5000 more than the advertise price it’s insanity. But I also blame the people who go and overpay for these used vehicles sometimes we have to take a step back and just let them wait it out.
Wow
My 2008 F150 was considered 'totaled' after I hit ice and slid into the mountain. She was 100% mechanically sound, just a little crashed up. My insurance offered me $11K, but considering down payment and interest rates on a new truck,
I turned it down and bought it back as a salvage title. I only 'paid' $2K, so that left me with about $9K for repairs. I'm fairly handy with a wrench so I ran all over town gathering parts from salvage yards and finding deals on fb marketplace. I took the truck to my buddy's shop and replaced all the smashed parts, and even slapped some 35" BFGs on it. I feel like I have significantly upgraded my truck, with ZëR0 monthly payments, and cash to spare. 🙌🏼 🤑 🙌🏼
I'm still driving my 2001 Silverado. 230k miles and still running on original engine, trans and most everything else. Have been looking for a 3-4 year-old 'last truck before I die' truck but just can't justify the price.
We're driving 02 and 04 trailblazers. The 04 needed the trans rebuilt for 2k but we waited for nearly 4 months to get it back (small business, great work but takes a long time) We also have a 78 Chevy pickup for wood hauling.
We just keep replacing parts bcs its still cheaper than a car payment.
We are riding these ponies to the end of the line.
My own personal experience with Carmax was actually pretty damn good. We bought a Camaro a Buick, LeSabre and my sister bought a Jeep and we all drove those cars for more than 15 years with very little problems so I think it’s the due diligence they perform that is where you’re getting your bang for your buck.
Same 2015 Prius I bought in '16 @8k miles now has driven solid still @248k miles daily driver diligent full synthetic oil changes every 6k mi.
I bought an SUV from Carmax at the end of June. It was put in the shop on July 2, 2022, and it was in the shop for over 2 months. It has been in the shop several times, and it is still not fixed. They keep lying, but I'm not worried. Once they get the lawsuit paperwork, there's nothing to talk about.
Wow
Did you buy a Jeep?
They're not getting trade ins because people are afraid to get rid of their cars for two main reasons. 1. It's cheaper to keep a car running than it is to make payments for a different car for the next 5 years. The old saying: "It's the economy stupid" needs to be repeated. 2. People don't want forced electric cars, so they're not going to sell their old gas powered cars.
Can you show a video of buying a car, transporting it to your lot, going through recon, to detail, and put to your lot?
Got to work on doing one like that... Lots of people asking for it
Great content Brandon! Love it. In my opinion buying a car at the end 2023 is going to be the smart option.
I think so too!!!
2024 will be better time to buy then 2023. This recession that Joe Brandon is going to be deep and will get worse and will last for ….. long time
I went to 7 different dealerships looking for a decent used car. I got bad feeling from each. Whether it was telling me I couldn't find anything safe under $10,000, blatantly lying about obvious sloppy repairs, pushing predatory financing to discourage a cash sale, and worst of all, that fake innocent look when they are busted lying (doesn't matter how much you practice. It's obvious you are lying. Don't do it.), I could not bring myself to spend money there. I found a father and son mechanic shop that sells cars on the side. I spent less than $5,000 and I'm really happy with what I got. And it's reliable. That's probably going to be most people's best bet.
Frankly
The whole gouging during Covid just completely turned me off to purchasing a vehicle.
Now I see the reset coming and the rebates from manufacturers coming back.
It’ll be awhile before I consider buying a vehicle.
They made their money off people at the worst time and people still remember this bad behavior.
Don't forget the massive gouging for gasoline by the damn oil companies.
They made all time record profits when demand was down.
That is good news that the prices of cars is going down. I have been waiting for that for 8 months. I want to pick up a 3- 6 years old minivan. I have not even really started to look other than on the internet. They are just too high right now. Thank you for the stories of what you think is going to happen.
Very welcome, thanks for watching!
I got lucky ( at least i think) got my newish car last year and don't have to stress about the crazy prices right now. Thanks for the informative video regardless!
Carmax's strategy to keep their vehicle cost and margins high is going to biow up in their face. When consumers get a clue and realize they are getting hosed on a greatly devaluating used car that could not sell for anywhere close to what they are paying, they are going to never walk into a Carmax and tell all of their friends to not buy, and round and round they go until nobody walks on their lots. The whole notion that they want to sell less units is a farse. They would rather sell less units at a higher margin is more like what they had in mind, otherwise, the entire operation is a sinking ship. They can't sustain the same infrastructure wity 40% less business.
Note to content creator. I found your video to be very informative and you are 100% right that the call in question had lots of mission critical information in it as it relates to not only the used car market, but also the market as a whole. Thank you for the awesome work! You are spot on sir!
The fact that CarMax is still profitable is a huge sign they were ready for this storm anyone that is involved in the industry should have seen this coming I am interested to see what happens over the next few months as there biggest competitor is in serious trouble and I believe will soon file bankruptcy
Still profitable and no layoffs like carvana!
Carvanas problem is they were buying cars for too much money barely even verifying their condition.
Love your content. I have always been a used car and truck buyer, I never saw the value in buying new. For 30 years I've purchased through a friend who has his dealer license and like you, works the auctions. Every car/truck that I've bought from him has been a great buy and a great value compared with a new vehicle.
That being said, I have purchased one MiniS and one GMC Sierra from CarMax over the years. Their sales process is seamless and very customer friendly. Their prices may be higher than other places but their lot is full and the cars are of high quality. And during and post covid, CarMax was the only lot in my city with cars. Even today, my local GMC truck dealer only gets a handful of new trucks per month while CarMax's lot has plenty of half ton pickups and Utes.
Trust has a lot to do with buying used, trust costs a little bit more $$. CarMax offers the buyer the trust of a large nation-wide dealership. I can tell from your videos that you are also trustworthy, but your brand is limited to one city. Again, great content.
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I love your videos. I'm learning alot
I'm so glad!
They are just to expensive for folks. Everything sells at the right price. Anyone in Retail knows this.
Thanks for sharing your insights. Happy New Year to you!
Happy new year!
I have always had a positive experience at CatMax. It definitely depends on which location you go to. Same with a bother establishment. Always stand your ground and don’t let them push you around for convince you to buy a car if you are not read. Look at some cars you a thinking about buying. Think about it for a couple of day (they might be able to put the car on hold for you). Then make your decision without having the salesperson with you.
I had a good experience with CarMax as well. They transferred a car from a neighbouring state at no cost and kept it on hold for me until I was ready to buy it. The price of the newer vehicle was much more reasonable than other dealerships with the same car, model, year and mileage.
Hi, I'm pretty new in USA and of course buying used cars, quick question why some times the person who is selling the a car advertised it as only cash?, Nice videos 👍
Because they don't finance, that's another way of saying you need full payment upfront here... Doesn't necessarily mean you have to literally pay cash
@Ivao h
I own a very small rural used car dealer, (we only bought & sold 15 cars in 2018 as auto body repair is our main focus).
We only take ‘cash’ or a cashiers check from the bank. The time & effort of financing is not worth it to me. If someone wants a car I will write up a quote. Just the car price, sales tax(6%), title fee($15), new plate/registration fee(varies $80-$150 on cars we sell) or plate/reg transfer fee($15).
That’s it. Car, tax, title, plates.
If a person need financing they take the quote to their own bank, credit union or whatever lender they want and get the loan.
So for example
*******
Car$8000.00
Tax$480.00
Title $15.00
Plate & Reg (new example $120).
=$8615.00
*********
You take that quote to whatever lender you want and bring me the $8615.00(cash or check from bank).
I don’t charge documentation fees or anything else, only what I wrote above.
If buyer wants a warranty or service contract they will have to find one and purchase it on their own.
This makes it easy for me and easy for the buyer.
Could I make money by ‘selling the payment’ by doing onsite financing? Yep. Could I make money by selling warranties/service contracts, yep.
But it seems more paperwork than is worth it for me.
We are in Michigan and you can read the “Michigan Dealers Manual” on our state website. Just google it.
There is a lot of info there that everyone should understand about car sales. Not every state has a Secretary of State’ website with a ‘dealers manual’ as well as a ‘repair facility’ manual like Michigan.
Some states a person has to go to their state’s legislature & search for the laws directly.
I think only 11 states are as thorough as Michigan in having manuals in an easy to understand documents for people businesses and the consumer.
I agree with this man. I knew that the downside of the car market is very real when my wife and I actually talked the dealer way down on a Honda. A certified Honda - we all know the resale value on almost any Honda model is crazy and it's hard to get a deal other than what's on that sticker. I think it's gonna get worse too. The real money today lies in being a mechanic. You got all the work you can handle as more and more people are trying to get more life out of their cars due to these crazy prices and the economy being so volatile.
Something else that could be affecting CarMax is that some buyers don't trust the cars that they are selling at high prices. It's easier doing a private sale and having a mechanic check it out for an hour to do some testing. CarMax seems to buy cars at cheap prices, try to pass off the Carfax and a cursory check as a diagnostic, and the sell the cars at high prices with a lot of money down.
Great video, well said and not bashing a competitor is always the way to go :) I was in the coffee and roasting business for a long time and I knew Starbucks set pricing eventhough I didn't agree with them.
Well said!
I think a big part of this is just the pandemic woes - people who couldn’t buy cars normally went out after things settled and bought cars - then after that dip occurred you’ll get a recession - it happens in every industry - moreover the weather is the big reason - people don’t want to walk a car lot in December unless they have to - most people spend money during March through December then the market tanks through February it happens every year I’m not too worried by spring it’ll level out and hopefully fair trade will win
Ive been working with reputable Toyota dealerships across 2 different states for the last few years. And in my short time in this business, I've seen the market change so much and the feds increase APR so much too. Its places like CARMAX that are our competitors in the preowned car market, but I always tell people that their business structure is not designed to help or benefit anyone but themselves. The market isn't as good as it was 3 years ago, sure. But the dealership I'm at right now gets more new car inventory than any other Toyota dealership within a 2 hours drive without mark up. And our preowneed vehicles are priced at an average of 89% of the market (for every $1000 the car is being sold for elsewhere, we've got it priced for $890). I take pride in knowing that the greed and predatory sales structures of other locations have sent them into such a downward spiral, while we continue to sell record breaking amounts of units (even if the net gross on each is lower).
I sold a gentleman a new Toyota Tacoma a few days before Christmas at our invoice cost. Good luck finding anyone else anywhere in the country selling new Tacomas at invoice.
Moral of the story, screw CARMAx
They in so much trouble that now they are overpricing cars and charging our kids $500-$800 car payments smh on top of their over priced insurance that’s mandatory smh I never paid over $200 for a car note just ten years ago! Smh
I sold a 2010 Taurus to CarMax last summer for 9500. They listed it for 19k. I bout it from them a year earlier for 10k. Just crazy pricing going on.
19K and Taurus never belong in the same sentence 😂
Thanks for the informative video. The writing is on the wall for a big recession/depression.
I agree
I wanted to get a Challenger. They had one with 76,000 miles for 26k. After all is said and done with their nightmare APR it's gunna be around 34k. I got the same year, same color, same model, with all upgrades packages with 19k miles for 22k from a bigger dealership.
That's just insane!!!
@dogwatcher144 honestly felt insane. Still feels insane. But patience pays off I was constantly searching for 6 months
I watched, liked, subscribed and read +/- 75% of the comment's.
You're an intelligent person with common sense and knowledge based on experience which is now wisdom at a young age. I live in Cali and yes it's another planet, the problem is not everyone lives in SF or LA but everything is priced like they do. Keep doing what you're doing which is being fair, decent, knowledgeable and informative. You are a stellar human being brother.
💯💯💯
Thanks for the info and pushing through even not feeling well ......we appreciate the video even if cmax didn't!
Any time!
Great analysis! Thank you!👍
Glad you liked it!
Great video, prices definitely need to come down.
Yes they do
Great video!! Best info I really see for me (truck driver with bad habit of fixing and flipping super cheap priced cars)is I better get on the ball and finish these cheap project cars I have an unload them all befor the house of cards collapses... then I'm stuck with extra cars in drive way , wife almost kills me and start sleeping in them to avoid mad wife!!
This is the second month I can't find a $4-$10k Korean or Japanese hatchback to buy. Who is in trouble or not they don't sell their inventory.
You should be able to find something like that in that price range
@@carquestionsanswered ive been trying to find a 2009 or 2013-14 Mustang GT manual convertible for a good price....but haven't been able to
Good info, I think they're $2200 goal is a good idea as they seem to be creating a higher value brand with greater trust than smaller dealers. Personally wouldn't shop there, but people I know that do shop there often ignore basic market research on the value of the car and are willing to pay a huge premium.
The demand dried up because the dealers got greedy selling “brown gold” used cars during Covid, and to mention the interest rates are just ridiculous now, not including the dealers burying people during Covid in their car loans on the back end. Now, the buyer is just as responsible for being so stupid with their car buying decisions. And, we have people like myself that want to upgrade their vehicle, but the new prices are just as ridiculous, making me consider to just keep it. Thanks for the video.
Yah I'm in the same position.
Interest is Not crazy or crazy high right now, it's halfway back to a reasonable rate and four times over and away from ridiculous.
Went to look at a Tahoe for my business.
Online build and price said $67k (already high af)
Went to dealership mf said $89k (since it’s high demand)
I laughed and went and bought a Toyota Sequoia ‘23. For $68k instead. Atleast that Toyota will last forever and has more HP and better interior than the Tahoes
I can't wait to see prices crash, so I can get a decent used car for my daudhter👍👍
Me too
Liking my '05 Town & Country a little more everyday. Florida sun is already burning off the $200 re-spray, but who cares:)
Hang on to that thing. These newer vehicles are insanely complicated and expensive to fix or even find parts for.
Who cares!!!
@@JohnDoe-ef3wo BTW, I encourage people to look at older 3.8L T&C's. Up north this 05 would be a rusted heap, but not in the south of course. Mechanically she's been a tank with flat floor sto/go and plenty of comfort options. Slide in a 4x8 sheet of PW and still close the hatch. It's a 20-24 mpg pickup wannabe. Also rated at 3500 tow..I've towed that weight on a 1400 mi road trip (I did take the title with me, and a fist full of cash, just in case:). Has 165K miles, paid $3500 3yrs and 30K miles ago at a used lot; replaced tires at Walmart, and a new rad at a shop along I-75 (plastic fan blade broke and went through the radiator). Burns less than a quart over 5000mi oil change intervals. It owes me nothing!
I just tuned in after seeing the topic. Honestly.... I make $26K a year and I'm 6'7" 389lb, it's no way I'm buying a small car nor a used full sized car, and pay for maintenance and full coverage insurance. Just had a dealership try to sell me a clean 7 owner 2006 dodge Charger r/t with 197k miles for $8500. I can honestly say, I can't afford anything to fit me do to my financial circumstances. Your video gets two thumbs 👍🏿 👍🏿 up from me. It's definitely approved
I hope they listen to you Sir cause I’ll be looking to purchase a car in the next few months and CarMax is who I’m looking too but if they won’t lower prices I’ll keep it moving cause I’m nowhere near desperate
Good idea!
If the prices do go down, do you think it will be this year? If so when do you think the consumer will be able to see these changes in price
Based on various replies in other comments I would say Q3 23 is likely.
If Mr. P is watching this video, while they may have a right to deny filming, it looks terrible IN PR on the companies behalf to ask for content to be removed. Thanks for mentioning about Mr. Ps request, it makes CarMax look unusually motivated and suspicious. That's going to net them a Streisand Effect if they're not careful.
I've heard of others being asked to remove other videos since I removed mine as well... Just company policy I think