Why you should be terrified of the 2024 used car market
HTML-код
- Опубликовано: 6 янв 2024
- Don't buy your keys from the dealer. Save up to 90% by using Tom's Keys. It's who I use. Use this link to get the best savings! tomskey.com/?ref=ChevyDude
2024 will be bringing some tough challenges to the used car market. Get ready. It's gong to be rough for a long time to come.
▬▬▬▬▬▬▬▬▬▬▬▬▬
Get your Swag chevydudestore.com/
▬▬▬▬▬▬▬▬▬▬▬▬▬
𝘊𝘢𝘳 𝘉𝘶𝘺𝘪𝘯𝘨 𝘛𝘪𝘱𝘴 𝘢𝘯𝘥 𝘮𝘰𝘳𝘦 𝘪𝘯-𝘥𝘦𝘱𝘵𝘩 𝘥𝘪𝘴𝘤𝘶𝘴𝘴𝘪𝘰𝘯𝘴:
𝗙𝗮𝗰𝗲𝗯𝗼𝗼𝗸 𝗚𝗿𝗼𝘂𝗽: / carbuying101
𝗗𝗶𝘀𝗰𝗼𝗿𝗱: / discord
▬▬▬▬▬▬▬▬▬▬▬▬▬
FOLLOW ME everywhere:
ChevyDude.net
#Chevrolet #Louisville #mikescarstore
I am the owner of Mike's Car Store In Georgetown, In. We sell used cars near Louisville Ky and ship nationwide. we look forward to helping you. mikescarstore.com
Buying a Car Doesn't Have to Suck™ 
Авто/Мото
Don't buy your keys from the dealer. Save up to 90% by using Tom's Keys. It's who I use. Use this link to get the best savings! tomskey.com/?ref=ChevyDude
Don’t buy your cars from the dealers, save up to 50% by buying from private parties.
@res887 where can I buy these cars for 50% off??? 😂😂
Tom's key doesn't sell keys for Mercedes. 😢
not bad price. does Tom Really cut by photo?
Except they don't work, the controller does, the key doesn't
The answer is to buy a vehicle and keep it for more than 5 years. Never have to worry about negative equity. Be satisfied with what you have not the latest and greatest thing.We do it to ourselves.
The only issue is if you have an insurance claim and need to replace the vehicle. If you have negative equity, you'll not be able to replace the vehicle with a new one.
People with nicer cars are just simply better that’s why they buy.
5 years? lol mines 12 😮
Still have my 2002 honda accord and 2009 dodge grand caravan no issues here
With four drivers in the house we have five cars among us. The average age is over 18 years, and the average miles is pushing 170K.
This is why I have never purchased a new car. I'm 60 yrs old and have paid cash for every car I've owned except the one I bought at 16 yrs old when I needed help getting the money. I've never regretted this, not having a car payment. My newest car right now is a 2014 and I'll keep repairing it for another decade. What I'd really like to do is buy a 1970's pickup with a manual transmission... that is reparable basically forever.
@@Skopper1 I've owned every one of my "new to me" cars for well over 10 years and have taken very good care of each of them. In doing that I gave FAR less of my hard-earned income to the Bank and the Insurance company. 😁
@@Skopper1 The only time you should buy new is if you plan to keep it forever. Not 10+ years, but literally forever.
Anything else you absolutely let the other person eat the initial depreciation. My dad always bought 3-4 year old cars from people who felt they HAD to upgrade, then ran them another 10-15 years. The cost of the repairs over that time never even equaled the depreciation the original owners had to deal with. 40K car now 25K - that's three transmission replacements just right there, let alone anything minor like a water pump or some brakes.
@@josephoberlandertime has changed, cars don't depreciate that much at this time. I'm looking at a car which depreciated only 15 percent after 5 years of use and an accident of 5000 dollars. You can imagine how the old mindset does not apply any more.
With ya there. Only new cars I ever had were from my place of employment - either a stipend or they gave me a limited choice of cars they bought me to use. Used cars are the only way to save money. Don't buy flashy, sporty cars. Keep it simple and you will make bank from day one. Buy in bulk. Get a tall freezer live within your means. Only fools get loans for expensive cars.
I took a loan out on my 401k now I pay myself back not the bank and I will own the car once I can find it.@@darkerbinding6933
Spoken like a car salesman, just remember that they will squeeze your money out of you no matter how much their trying to help you
I been telling people about him
They can only do that if you’re an uninformed buyer and you allow them to bend you over.
I bought my daily in 18. wanted a camry or an accord used. went to dealers and private. the one thing about all dealerships is they are unabashedly greedy. it was tough to find a decent car for about 5k but went with camry private sale. nothing like speaking to the owner and getting the low down on the car.
@@subaruamazonevery time I've bought something privately it was something they were selling for a reason
They’re 😂
Negative equity is mostly a problem for dealers because they want to sell you a car. Owners can just keep their current car until they aren't underwater any more. It's not like you have to park your car and take the bus if it's worth less than your loan.
Or it's totalled in a collision and you don't have gap insurance
@@raiden031that’s a huge problem for many and some insurance companies use wholesale rather than retail and that HURTS.
Bingo!
Most people have negative equity either through really bad financial decisions, or they just wanted that new vehicle so badly that all sense went out the window. I've watched people fall so in love with a vehicle that there was nothing that was going to stop them from buying one. I saw this 25 years ago when the C5 Corvette first hit and dealers wanted $$10-20k over sticker for them, and people paid it! Everyone I knew who did, complained that that they couldn't recover their over sticker money back when they went to sell it a few years later when the next hot model came out.
I've had negative equity one time in the past and it hurt, you either keep what you have until it's paid off, or you eat that negative equity in a new loan, or write a big check to cover it with your trade. I learned my lesson from that one time and never repeated it.
Unless you can't afford the payment, or could only barely afford it when you got the car. As the car ages and goes out of warranty, gets damaged, or normal wear and tear items add up, people that can't afford to take care of their car properly are going to be in trouble. I've seen plenty of people trade a car in just because you tell them it needs a set of tires and brakes and they don't have the money to pay for it.
@@AutoXerWgn610 Don't forget auto insurance. My coverage on 3 older cars went up $1000 in the last two years, same cars, same clean driving record. $2900 a year for full coverage for a 2014 and two 2007s.
I did get an excuse sheet from my insurance company along with my renewal "explaining" that cars cost more to buy, replace, and repair.
Oh, and my property taxes combined with homeowners insurance went up $200 a month this year, I now have to set aside $500 a month or my taxes and insurance.
Those who bought vehicles they can't really afford in the last few years are feeling the pain now, it costs hundreds if not over a thousand dollars a month more in expenses today than it did in 2020 when you count all your costs.
I’m so glad I just pay cash or write a check for my cars. It’s amazing not owing other people money.
Wow lucky you Jeff bezos
Last two cars I did too. only used cars and in good condition. may never own a new car. oh well, I will live lol.
I have empathy for young people, just married, working and having to buy a new car.
Good for you. I haven't bought a new car since 2006. I too prefer to buy used cars and fix them up like I like them.
Preening on the internet for likes. Nothing screams beta more than that.
It is hard to feel bad the industry since they screwed themselves with the over msrp sales. As you said it right sizing and fixing the negative equity just means people have to hold onto them longer.
So it's OK for the housing market to explode but not the new/used car market? 🙄🤔
@@jasoncrandall73 I don't think that they were similar situations when comparing the two. Housing went up with the cost of new houses also going up astronomically. The price of new vehicles also went up fast, but then the above market price set.
Then look at if you paid over appraisal price of a house you have to pay that cash. It is a safe guard to protect everyone. Auto so many people as Mike said roll negative equity you don't have that. A house will at least maintain its value as well much better than a vehicle. A house is an asset that will hold or gain value generally speaking as an auto is always a depreciating asset so if your behind unless you can pay it down fast you will always be behind.
I personally don't think paying over appraisal or msrp is ever a smart choice house or vehicle. But the way it works for both is different and one more so has safe guards to help it. It explains why most people have little in the bank as well as ok credit to bad credit. If your good with your money make smart choices you will be ok.
Example we purchased a vehicle for my wife during the pandemic but didn't pay over msrp. It's two years later and we still have 20k positive equity if we traded it in today. My one truck is almost paid off and is a 2018. When I buy a new truck soon even if values crash more ill never be negative. I can add tires to a vehicle and additions but it doesn't increase the value or very little. Do the same thing to your house and it increases in value 90% of the time.
@@jasoncrandall73 Already happened back in 2009. Also Car Makers had the same problems as now.
@@erwinpadgett1050
There will be a reduction in new car production from all the manufacturers going forward. 2009/10 was more to do with loose leading with home mortgages that eventually affected all lending.
The winners are car repair shops.
I was kicking some tires at a dealership not long ago and the salesman started trying to get me to make a decision about a car I was looking at and I said, "The problem here is that I can afford your new car on the lot but you cannot afford the car I want to trade in". LOL
What was their response?
@@tonycj7860 "Take it to CarMax, punk."
Pissy pants…serves him right!
😂😂😂😂😂
You can't be infamous for reliability. You can be famous for reliability.
the bmw m5 v10 is famous for unreliability not infamous for reliability
You're right that he misused the term, however Honda and Toyota have been absolute garbage cars for a at least 20 years and I have no idea how they could have gotten a good reputation as reliable. Former owner speaking.
Being infamous or famous for something is likely subjective. Famous for reliability? Sure, for the owner. Infamous for reliability? Likely not, unless you're a shady mechanic.
@@user-lv7mm5vr9i If Toyota has been "garbage for the past 20years" then all the US built cars and trucks have been the slurry underneath them. 💩
if honda and toyota are garbage then what isnt@@user-lv7mm5vr9i
Great point on dealer service rates - took my Highlander in for inspection and fluid changes, and was told I needed brakes/rotors all the way around (72k miles). OEM parts costs for everything was around $600, but labor was almost $900 on top of that. I bought the parts myself, and did all four wheels (new brakes and rotors) for ~$300. I refuse to pay $250-275 per hour for dealership labor, but feel bad for people that can't do service themselves or who don't have a good 3d party mechanic.
Yeah, those rates are ridiculous.
I try to do as much work as I can to save money. Plus I like tinkering with my car. However, sometimes the project is too hard. Or not economically viable.
I've found a local shop near me that will most of the time do a repair for about half what the dealership charges. And they'll use OEM parts/fluids/filters if requested.
You know who doesn’t have issues? Me with my 2000 Toyota Siennna. 200k miles and still running strong
I got me a 1989 toyota pickup only 320000 miles😂 still runs good though.
Did you just call yourself the number one auto RUclipsr? That's not a stretch that's a trip to Mars.
Must mean total subscribers.
I recently made further purchases. Saving for a market slump is also a bad idea. There are different perspectives on recessions and depressions; we cannot always expect significant rewards; and taking risks is preferable to doing nothing. The bottom line is that by diversifying your portfolio and making sensible judgments, you will accomplish exceptional outcomes. In just 5 months, my portfolio's raw earnings increased by $608k.
Despite my conviction in your direction, my recent stock purchases, and the fact that I am an AMC shareholder, I have not been able to amass anything. I had been in debt for far too long before the collapse. What are the steps required in investing?
I completely agree, which is why I think it's important to delegate decision-making responsibility to an investment coach. Underperformance is essentially unimaginable given their specialized experience and education, as well as the fact that each of their skills is focused on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable events.
Working with an investment coach for over two years, l've made over $1.5 million.
Samuel Peter Descovich that's whom I work with
SAMUEL PETER DESCOVICH
GOOGLE the name
he's mostly on Telegrams, using the user name.
Thank you for the warning AND the heads up Mike: Appreciate all the information you throw out there for everyone willing and interested in learning/bettering themselves dealing with vehicles. Have a Great New Year!!!!!!!!!!
Buy 2-3 years old. Pay it off. Drive it years loan free for years. Maintain it well, because if you treat the car well, chances are it will last and you'll be happy with it for years. Too many people buy cars too often.
Buy Toyotas
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
Sure, investing is plain-sailing with the aid of an invt-specialist, thus I've always delegated my excesses ever since the rona-outbreak in January 2020 using a shrewd advisor, and my investments have compounded by at least 300%, summing up $820k ROI as of today.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’AILEEN GERTRUDE TIPPY” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
*sniff sniff ah the putrid odor of another SCAM THREAD shilling some hack investor*
I was at a Toyota dealer about six months ago looking at a new Highlander with a market adjustment of $2000. added to the sticker price. Saleswoman told me that it was the only profit they made on the vehicle, and they paid what was on the sticker for the vehicle. HAHAHAHAHAHAHAHAHAH. Have a wonderful day sweetie and I walked off into the sunset. I have no mercy on these individuals and their employers.
What is your experience in negotiating a sale?
My 17 Impala is paid for and has never given me a problem. I'm keeping it!
Bought a part for my 10 year old chevy at my local chev dealer last year. I tried to make an appointment to have it installed but they told me the car was too old and that they would not work on it. So much for great service ! 😅
I bought new because the price on a used, 5yo with 60K miles was the same price. I do not understand how this can possibly be and I do not understand why anyone would buy used when one can get new at the same price. Makes no sense to me. I my mind 5yo with 60K miles should be priced at most, 50% of what that car was new. When I offered half of their asking they got all pissy with me all I could do was walk away. I do not understand any of this but I assure you I am not going to participate by paying new price for a 5yo with 50K miles.
I am in the aviation business, as you are in the car business. Think about this, the same issues with car parts and repairs, is the exact same in the aircraft world. Fly well
I doubt I will ever buy anything newer than 2017 again. It seems like once they went more than 6 speed in automatic transmissions and to CVTs, there has been nothing but problems. I am going to be on the hunt for old grandmas' cars for my daily drivers and just hope Incan find a decent truck when it comes time to replace my RAM. Haven't had car payments in many years and don't plan on starting now.
good move. 07 camry here. my next one will be a 12 to 14 or 15 or 17. older the better.
True. Older = less complex and more reliable (assuming good maintenance by the prior owner).
Agree that six speed seems to be the limit for a good auto trans. Older now equals better. No desire to buy anything made after 2016.
@@robertbell525 the eights dart but I can live with that. cvt, no thank u.
I agree! I don't want anything with CVT. I might be forced to get a car because of a check engine light. I currently drive a very old vehicle that I love and runs super well. What would you suggest looking at for used car brands?
I can definitely see the shortage of vehicles. Dealers around my area are pack to the top with inventory that no one is buying. 😂😂
Mechanics are nuts for repair prices which makes things worse. I was quoted by several shops $1200 too fix a $50 power steering pump
DIY that ffs, you're nuts for going to a mechanic
Happy New Year Mike. 2024
This why when you buy a car you drive it till the wheels fall off. I have never understood the buying a new car every 2 or 3 years.
it comes with how you are raised. My parents bought new always, but, they drove the cars into the ground. my friend has a used car every two years. I stick with used cars for ten years plus. Today, best advice is to avoid the car market period until it comes back to normal ie dealers with healthy inventories begging for the sale. that will take years.
It's an extension of the immature popularity contest based on materialism you saw in high school or sooner continued to the adult years. People buying new cars and homes that they do not need when they are leveraged to the eyeballs or people living paycheck to paycheck despite making six figure salaries. They buy the latest, greatest, and most expensive in order to impress people who don't care about them or matter at all.
@@subaruamazon you’re absolutely right. We actually just bought a new truck last month. Have one car that is at about 214k it is only used for work back and forth. Will continue to drive it that way until it meets its end. The new truck will be used for the family making it last for an extended time period.
Some guys are short and balding
It seems to me that most people are buying a new/newer vehicle not because they Need one but mostly out of Wanting one. This makes the dealer's job of selling so much easier.
Want > Need. Sounds about right when you want a new "toy" to enjoy on weekends or just want something newer. Honestly, newer cars don't have many tech different to cover cost of their prices. Heated seats? I'd plug in a low watt heating pad or similar. I think newer cars best thing is their warranty & I'm speaking mostly on Kia/Hyundai cause that 100k/10yr. I have an 05 civic & can easily bring it up to date with applecare play/andriod auto, fog lights, back up camera could all be had for less than $1000 with labor included. Only thing better about newer cars is again warranty & likelyhood of parts going bad are low
You are exactly right Mike. I work for GM Corvette and I see and hear about these issues with different models and manufacturers every day. When I'm in the market to buy a quality used car I will drive up and see you.
Great information sir
I disagree on the used vehicle costs coming back off Marketplace, where I am, I recently sold a 2000 Dodge Ram 1500 and struggled to get anything over pre 2020 prices, and have actually bought a couple used vehicles for pre 2020 prices. The pre 2020 prices are going to come back for private party sales
Private-party sales of cars that are 20+ years old have always been bargain-basement... until 2021.
@@dennislippert8875 They;re back there. I also saw a 2016 F250 local to me bring just $16K this past weekend. That was the best offer received. Pre 2020 prices are coming in again and it's a welcome sight for the people who pay cash for their vehicles
I have several used vehicles saved on marketplace and I've watched people drop prices because nobody wants the car or nobody wants to spend the money right now.
Other youtubers talk about this. Lucky Lopez, carquestions answered, caredge and flying wheels all talk about this, repos and the car market all the time. It would be great to see you make videos with those 4 guys.
Great information Mike.
Thanks for sharing your professional automotive business knowledge and experiences with us all.
I hear nothing but issues about third party extended warranties - so many loopholes and exclusions. Seems very scammy unless it’s an extended manufacturer warranty (e.g. CPO).
If the warranty company is over state lines.... forget it!
Endurance covers absolutely nothing that they say they cover. It's a complete rip off. Dropped them the first time I had to use they. What. Joke they are. And don't expect to get a refund you ain't getting it.
TRUTH!
I've been saying this for some time - when the dealers charged $1-20k over MSRP, when it comes to trade-in, or on-selling, their customers are going to expect that premium to be offered - and it just passes down the chain.
Worse, not only are manufacturers happy with their dealers ripping their clients off, at least one US manufacturer's CEO said she would cut production if their trucks weren't selling. It was [edit] GM [/edit]!
It was mary barra ceo of gm
@@garynicol4852
Thank you - must have been the Ford Barra connection in my brain shorting out 👍
It's fixed.
"Cut production" so they can raise prices or not reduce prices... basic supply and demand. There's nothing great about that if you're the consumer
Who the heck pays $20K over the MSRP?? 😳
You will get thru this my friend.
Happy New Year
I used to sell cars too and this is completely true. A lot of people had a lot of negative equity in their trade ins. Obviously the only way to get rid of the negative equity is to pay down the loan. With a decent credit rating,
Maybe do a four year term instead of 5, 6, or 7.
Never going to work with the increased prices of vehicles, especially trucks.
48 month term equals higher monthly payment, which majority can’t afford.
At our location trucks are still moving at a slower clip than usual, but the smaller suvs aren't which is typical the opposite. I'd estimate about 30% of the recent customers are negative equity and are shocked by what the vehicle values are. Biggest issue is even if it's a possible deal they still won't put money down and now will compound their negative equity with a higher interest rate were stuck in now
Also, some folks have it worse when they want a new vehicle so badly and still owe money on their trade in and that balance is added to the new finance amount. Clearly not being in control of their finances.
Most people though are sold on the monthly payment, not even on the term. They'll do 7 years if they can get the payment they want and they won't think any further than "How can I take this home today?"
I've had to argue with dealers in the past trying to negotiate a vehicle. They ask me how much I'm willing to pay a month and I won't tell them, just give me the out the door price for the vehicle and I'll decide if I'm willing to pay that. Many dealers I walked out from because I won't negotiate a monthly payment.
"How do I get out of negative equity?"
You get out of it by not paying 20, 30, 40k over sticker. I still can't believe the mark-ups some people were willingly paying for cars a couple years ago.
Dude
Thank you for being honest and straightforward
I hope you get you Chevy dealership in the not to future
I’m gonna buy my chevys from you
*New Subscriber* That was great ! Just the right amount of energy for us Europeans. packed with knowledge and insight. What applies there, usually applies here. Great !
When you buy a vehicle, think about how it would be if you had to live in it.
Sobering but very true. Thanks Joe. Now, go back to smelling girls hair.
1:17 if you have 20-40% of the price sitting in the bank to make that down payment, you can also wait til you are in a negative equity situation and then use then use that cash to pay the difference. They key is 1) dont overpay on a car, and 2) always be prepared for the possibility of negative equity and being forced to pay off the loan.
Most people aren't in that position though, that's the real problem. Negative equity isn't an issue until you go to trade and don't have any money in the bank.
Not sure why people seem to continue to do this. It’s not hard. Put down a small to reasonable amount down. Take care of it. Keep it for a long time. I’m not talking about keeping it for ten years. 5-7. That’s it. It’s not difficult.
@@josephsantangelo2801 They will last longer than that 5-7 years though, buying a new vehicle every few years keeps people poor. I also wonder, is a 5 year auto loan even the norm anymore? I hear 84 month loans have become common now with vehicles costing $40k and up.
My newest vehicle is a 2014 that is daily driven and my oldest registered vehicle is a low mileage 2007 that still runs great and is in good shape with 84k miles on it. All my vehicles are paid off.
I plan to drive my 2014 another 5-7 years, putting several thousand into it if necessary to keep it going that long. I will likely buy one more vehicle in my lifetime, just before I retire. That's the plan at least.
I have an 18 CRV LX AWD. It’s almost paid for. Debating on when I should get rid of it. Thankfully, I believe there still is a market for base models because people don’t want to spend a crapload of money on a used car.
People have to remember that buying or leasing a vehicle is a lose, lose situation. They only go one way in value...down. Period. Thank you Captain Obvious for telling us that "the only way to reduce debt is to pay it off". Words of wisdom.
We Renton bought a 2009 Sante Fe limited with 100k miles. We go it for $8k OTD so it was a good price. But we did do an inspection before hand and found some engine issues and something wrong with an axle. The dealership decided to fix them for us so we would buy the car. They also gave us a second key (with a second remote) as well. I have a great mechanic who is very thorough (used him for many years). The great thing about old cars like this is that they essentially don’t depreciate any more. In two years, at 130k miles the car will still be worth almost what I paid for it.
I will never pay at over MSRP for any car - ever. With these prices, I probably will never own another new car ever again. There's just too much equity loss. Gently used turned in leases are where it's at. No destination fees, lower taxes, etc.
We bought a used 2018 Subaru Forester Touring XT in 2021 for 29K. Also bought, for the first time in my life, the extended warranty. It's already paid for itself.
i never was lucky enough to buy a new car. perhaps in years when I retire.
Always best to pay cash. If you can’t afford the new car you want, buy certified pre-owned, or basic transportation if can’t afford certified pre-owned. Just because you can afford the monthly payment on a car loan or lease, doesn’t mean you can afford the car. Car loan interest is big money thrown away and you will be far better off in the long run if you invested that money into your savings account and retirement account rather than hand it over to a lender.
Might want to add that most credit unions offer gap insurance, extended warranties and insurance that makes your payment if you become unemployed, sick or die.
@@oleradiodudea.m.4735
Gap insurance is a huge ripoff. Less than 1% of cars get totaled during the loan period, and if people are $10k underwater at most then the value of the insurance is like 100 bucks. But like all insurance, it prevents people from losing a lot at once.
Why is it people don’t turn in both sets of keys when they trade their car.?
So true on the trim levels. I have been looking for a Mega Cab Ram 2500... All new ones are in Laramie or Longhorn Trim. Can't find a new one anywhere in the Country in Big Horn trim.
Ram does not make the Big Horn trim with Mega cab....starts with Laramie and above
Insurance companies always come out ahead or they'd be out of business. Extended warranties are insurance policies
Most are outright scams.
The ones that do not demand a pre policy car inspection are scams. Most across state lines are scams. The dealer issued ones are scammy in that they limit the payouts and can refuse most payouts if they want to.
No way I would buy any used car manufactured during the Covid era. That part is accurate. And no, used car prices are falling. Just wait…… cascade effect is coming. Be patient. New inventory building, incentives are returning and that will help push used lower.
The electronics in my Mitsubishi key went bad, which pretty much means I needed a new key. The dealer quoted me between $400 - $500 for one key. I bought an aftermarket FOB and Batteries and Bulbs programmed the thing for me for $40. So, it was about $70 total.
On a side note: These so called lock smiths that "specialize" in programming car keys.....Your mileage may vary with them, but none of them could do it.
Have extended warranties improved over the years. I only ask cause I use to work in the parts depth at a small chevy dealer a few years ago. We had alot of problems with ext warranty. They never seemed to want to cover anything. I don't remember the warranty companies. But we stopped even pushing em. Cause it always came back to bite us. Always some excuse not to cover the issues.
I will be holding on to my 2013 Subaru Outback for another year or 2... it's paid for, easy to work on (brakes, oil changes etc) and has no overly complicated electronics. When the interest rates drop back to 3% i'll probably pick up a Crosstrek... 75 in stock at the big Subaru dealer in my area.
lawn, most people are not that smart. they have to have a new car now. they get ripped off with adm's and obscene rates and wonder why they are in their predicament. I buy used with cash and especially in this marked will drive them into the ground. and I only buy toyota.
@@subaruamazon I agree... i mean some folks do need a car "today" due to accidents, major repairs etc. I usually buy new (50% down) and keep for 10 years. Right now I am on year 6 without having a payment.
Same here with my 2013 Camry!
@@GetOffMyyLawn I would hold what I had. It will take years for this to play out. will we ever get back to dealers with healthy inventories willing to negotiate?
I don't know how we'll ever see 3% auto loans going forward unless they are subsidized by the manufacturer, in which case the real cost will be hidden in the price of the vehicle's sticker. You can't borrow money for 3% today.
I'm a bit older and remember when 10% was a good rate on a car loan, and I barely remember from childhood when we had double-digit mortgage rates. The last twenty years of artificially low, near zero interest rates has had the effect of making consumers think this was the normal, and it helped sell very expensive luxuries like $100k trucks and SUVs bought on 7-8 year, 0% loans that most people couldn't have bought on a 36 month loan at 10%.
We're just starting to wake up from what will be a very bad post-party hangover.
I know Mike said this before but, Always research and find your own extended warranty through your insurance company or other companies. Do Not buy the one from the dealer with the dealers mark-ups in it.
Mike sells them for $500. over cost. They are Allstate I believe.
If you can't afford the extended warranty from the manufacture then don't get one from a third party. Most repair shops don't want to mess with them cause they don't want to pay the same amount a customer would and demand that they tear an engine down to look for a reason to deny the claim and then leave the customer on the hook. You can negotiate the manufacture warranty if you buy at the right time. I went at the end of the month and originally they said it was going to be over $3k for extended warranty and GAP. I kept declining and they kept marking it down and eventually I got both for $840.
I think what you say is accurate for the next 3-5 years. Manufacturers will have no choice but to build more "basic" models, which will eventually become used cars. It is going to take a long time. Hold what you got if you can folks.
I think the trim level desirability will change. As consumers continue to fall behind, the cheaper cars will become more desirable. If you look at the late '70s to the early '80s, the consumers were tapped out by a decade of inflation and high gas prices. That opened the door for the Japanese car companies that built reliable, inexpensive cars. Then came cars like the K car. Nobody looked at a Reliant and thought they were good-looking, but they sold tons because they were cheap. The first manufacturer that focuses on the lower end of the market instead of the highest margin vehicles will dominate. The same will happen on the used side. Whatever is cheapest will sell.
I think Mike is a great guy and pretty honest but people just need to learn how to save to buy a 5-7k car in cash that’s perfectly fine and not deal with dealer BS and fees
Those cars are not around anymore, unless you mean a fine 2003!
@@mitchhedberg4415 Those cars around absolutely around, you just have to buy in the right markets, they're not everywhere, but you get what you put in, if you want to just go with what's nearby, then that's what you'll have. If you find a solid deal seventy five miles away and are willing to get out there for it, then that's your reward for the effort.
Those days are gone
Watched until he pitched the extended warranty... This guy is indeed a used car salesman. Also basic supply and demand is telling everyone prices will come down due to high supply. Too much inventory out there!
I disagree. Extended warranties, gap insurance,credit life and disability and insurance that pays your monthly payments if unemployed are all ok if you fear any of that happening. I'm not a car salesman. I've just experienced all these things and collect several times.
@@oleradiodudea.m.4735gap insurance is only necessary if you don’t have enough down because you’re upside down immediately. Gap insurance covers that gap if something happens to it.
Extended warranty is an insurance policy. There is probably no where in writing on the paperwork that says extended warranty. Just says what it covers and mostly what it will not cover. Some policies are good some are a total waste of money.
From the ages of 16 to 49 I always purchased gently used cars and maintained them. I always felt I was getting ripped off at the repair shop. Even a simple oil change they try to upcharge you. Cars aren't built to last for decades like they used to be.
For my 50th birthday I leased my first car (toyo corolla). I fell in love with leasing and I'm entering my third lease this fall.
It's amazing. Once I leased a car I didn't have to worry about the car getting totaled. I don't have to keep a car maintenance account. I don't wonder if I'm getting ripped off on a repair. NO ONE tries to upsell me at maintenance time - LOL LOL. I always knew I was getting ripped off on repairs 😅😅.
Hi Mike. I've been watching C7s for a while now. Do you know why so many have open recalls? Wouldn't the dealer fix it for free?
If you needed a car during the debacle and bought one, you really had no choice. I usually buy my vehicles new and provided that it’s a reliable vehicle, I’ll drive it for 15 years or so.
I had a 2013 Acura RDX that needed a wheel bearing. Fortunately it was under warranty but the “bill” would have been just over $1,000.
dave, people didnt "need" cars. they "wanted" cars and got the harmone ie ripped off. they will have to settle this eventually. they will be stuck with their car for seven years and will have something worthless and hopefully still running by then. either way they will be upside down big time.
@@subaruamazon
In many cases I agree with you, but I worked in the auto collision repair industry for 25 years. I saw many cases where someone had their car stolen and totaled or wrecked. I do know of several people though that just “wanted” a new vehicle. I have finally gotten to the point where I would rather keep the money than buy a vehicle. So soon we get old, so late we get smart!
@@dave1956 You are right. there are people who needed to buy a car - totaled, big repair bill. a lot didnt. I want financial security and a monthly payment is not it. keep money. get decent car. 07 camry here. a few problems but been pretty good. bought in 18 with 106k. now 145k. Will keep it for five years. imagine these people buying new bmw 7 and losing their shirt with depreciation. not for me.
@@subaruamazon
My best friend grew up in a household where dad couldn’t wait to buy the next shiny new dream. My friend realizes the importance of saving your money, but we both laugh at his older brother, who I went to high school with. The older brother’s wife worked in auto leasing so hence they lease their vehicles. Right now they have a 2022 BMW X7 SUV with the M package and a 2023 BMW 4 series with the M package. I’d love to know what they are paying out in lease payments. They also downsized houses and used the equity to buy a $180,000 Porsche. Sounds like sound financial planning to me!
This is so true, vehicle my brother just bought was missing high beam bulbs, fog light bulbs and front turn signal bulbs. Wheel had a chunk missing. This was purchased by a reputable Volkswagen dealer. But its a Subaru, in other words a used car. They refused to add bulbs! I remember, when I was a tech at Honda. They would do the basic change oil, change air filter, cabin filter. Tires were bad they would replace it. Needs pads and rotors they would change it. Even change dead bulbs! And this is all on a used car! It's to the point it's not worth buying a used car at a dealer that isn't the same brand. It'll get treated like a car of marketplace.
I could see this coming, kept my paid off cars and now I’m going to buy what I want at a reasonable price!
When I see high doc fees I walk away unless I get something for it or a even discount…🤪🤪🤪
good. stick with what you have for now. seems to be foreign to the general population that must have it now at any cost. that spells a recipe for disaster but will take seven years to figure out. lol.
Bought two new Chevrolet in 2022 both have issues, one engine issue at 12,000 miles (warranty repair for 3 months) other looks to transmission issue. Should kept my Kia’s lol
night camry here. I hear nothing but problems lately with the big three especially ford. were the parts made during covid defective?
My wife and I bought her a new 2023 hyundai tucson just last year. I played it smart and bought through a program through work that gave me a lifetime powertrain warranty. So the engine and trans are covered for life.
LOL, good luck getting them to honor that, it is pretty much voluntary for them to do so
They will find a reason to not honor the warranty
What Honda Engine Issues are you referring to? I have read the 1.5T have an Oil Dilution issue....seems like it may be manageable if you change your oil more often?
extended warranty hahaha, right
That's what bothered me the most about people overpaying for new cars in the last couple years -- there was a false sense of valuation/worth in the vehicles, and you know those people were going to become badly upside down. I saw the same thing in the boat market, which is even worse than cars for depreciation, with higher interest rates and longer term loans.
jack they already are upside down. people seem to have to buy new . they cant keep what they have for a while. dealerships ripped them off with adm's but to be fair, the consumer allowed it.
Negative equity is the same whenever you pay it, now or when you trade. Aftermarket warranty's are not worth the paper they are written on. Loads of vids on youtube showing the nightmare of warranty's. I buy base vehicles almost exclusively, they break less and cost less. It is just transportation.
This is exactly right. Pay a big down payment and it’s gone. Pay zero down and owe it. Same difference really. Best thing to do is find a really good deal on a reliable vehicle that you love enough to keep for a long time. I bought a 2020 Nissan Frontier SV Crew Cab 4x4 in June 2023 for $23,500. KBB private party value on my vin number right now is still $27,500. I owe $16,500. It will probably be completely paid for by the time it reaches the $23,500 value that I paid for it. I plan to keep this truck for just as long as my last one. 16 years. So, I really don’t care what it’s worth. I love my new truck, it’s everything I could have wanted and more. But also, as you say, it’s just transportation. But I must say I love my transportation.
We should be terrified? Dealers should be terrified. People will make priorities and keep their old cars. Dealers be scared, mechanics, buckle up.
No such thing as negative assets. Those are liabilities.
Finally someone gets real!
They are expenses
NEVER pay doc fees. If they Demand it... WALK.
How are they going to pay for the toner in their printer?
Those bogus fees are meaningless. Just make an out the door offer and let the dealer figure out where to put the fees. If they can’t meet your OTD offer, walk.
They have to charge every customer that or it can be discrimination. They will just add it to the price elsewhere genius. if they "take it off" your sale/
@@user-xk4vt9ye8j💯 exactly. The consumer should feel good about it if it's a reasonable OTD price. Otherwise you can beat yourself up all day trying to haggle the dealership with "add ons"etc.
Also extended warranty’s are not worth the paper they are written on! Local news found out a lot of 3rd party extended warranty’s are not covering repairs due to vehicle has prior condition. Example need new transmission. Extended warranty says no because fluid was never changed or no history of other being done. They also found some extended warranty companies will deny repairs due too cars age or having what they claim as extreme milage
I have a good friend that works for a dealership in finance. The dealership was sent notices of banks and finance
were closing their business in auto finance. Most of the financing were from second chance or very shady high
interest loans. I wasn't aware of what was happening in the finance. I had to turned at 5 deals because of this.
If it doesn't turn around soon we will be closing our doors as well.
Negative equity not only applies to those that purchased a vehicle, but also there is another segment of consumers that leased vehicles and the buyout is significantly higher than current market value. While it’s fairly straightforward to turn in the keys and walk away, it would be helpful to get your insight on negotiating a buyout with the lender. Keep up the great content!
Then they can just turn the car back in when the lease is over.
My experience (this was a few years back though) was no negotiating the price. Pay it or turn it in. The only negotiating is what time of day to turn it in. YMMV
My son just bought his lease for 22k, to buy the same used car on the lot was 28k
I was fortunate to trade my vehicle, didn’t lose any money on it and decided to do a lease until this car bubble settles. I appreciate all your advice though out the years
I believe lease payments were inflated as well.. sounds like you're putting off the inevitable
New Year. I won't look at any vehicle newer than a 2018. Usually depreciation has peaked, and there were less QC issues pre-pandemic. Happy Hunting y'all 😉
Cannot believe you advise EXTENDED WARRANTY PURCHASE. What a terrible nightmare this is causing many owners.
This guy could not be more wrong. Prices absolutely will come down.
It's not so much car prices will come down. It's the fact the used and new car markets are going to have problems with customers who can't afford loans and are upside down with their current vehicles.
@@davidpick1076 Too bad for them.
@davidpick1076 You must not be familiar with how financial cycles happen and/or are manipulated. Prices will absolutely come down.
@@logophile Spot on!
@@luvworldpeace Prices yes. Buyer momentum maintain or go up any time soon, doubtful.
A wheel bearing should take a mechanic maybe 2 hours
im happy i havent bought a new car since 2008 :) my 2001 regal is running great and will continue to do so till i die!
You are absolutely correct on negative equity. I've been looking for over a year to buy a used F150. Everyone selling on local online classified, local facebook classified have their vehicle listed far above the high end Kelly Blue Book value. They also indicated "Money is owed on this car". Most have incredibly high mileage and not in good or eye catching condition. I've seen the same vehicles sit there for near a year before they give up. Some post a small price decrease but still way over priced for this economy and their condition.
You missed a big part of the negative equity situation which is these 7 year loans. When you are only making 1/84 of a payment at a time you cant outrun the depreciation once you account for the interest. If you put little to no money down, finance in the taxes and fees and then take out a 7 year loan there is no other mathematical conclusion.. you are going to upside and probably substantially. You better really like the car. It owns you.
since you will be upside down when you drive off the lot, you are married to these cars for seven years. better take care of them.
P@@subaruamazon
4:32.When a car salesman tells me to buy anextended warranty, I move on to the next salesman. Those warranties are nothing but additional profit generators for the dealership. Also, good luck with trying to get the dealership to honor and/or make the actual correct repair.
I sold cars in college. I think a high end bmw or mercedes warrents an extended warrenty. otherwise no. my manager always said on high end cars go with a warrenty.
Wrong. They are legitimate ways to fund unplanned expensive repairs. Repair bills have skyrocketed and recently manufactured cars and experiencing lots of problems.
Eh, I've always been pitched it but I just say no and they stopped pressing.
Good video....
That's why I bought all my cars cash at the auto auction...
Financing is for people that have careers/jobs/401k and great consistency financially..
The only thing worth financing in life if you have to is a home..
Still going around with my 1999 Ford Exploder, like its owner it sags a bit and has some holes but still good for me. In the 8 years of ownership I have put 1800$ in repairs + normal costs tires batteries, economy at its finest!
I have no negative equity because I don't waste money at car lots
Literally being talked about, all over.
I am glad I bought my Camry in June of 2020 at 2.9% for a 2019 Camry. I owe less than $5,800 on it right now. I plan to drive it until 2030. This will be my car for almost the entire decade of the 2020s! Keeping fingers crossed that it is! :)
My son's GMC was built about 4 months before Covid and is decent. But I would not buy anything made in the last few years from pretty much anyone.
The reason is because during Covid almost every industry got rid of about half of their workforce. Sometimes more. They then decided to not re-hire the older more experienced workers ( read: more salary ) to save money. Meaning that they went from a normal 75-80% experienced to a 50/50 mix or worse. So now half of the entire company's workers on the production lines have 2-3 years experience at most.
It will be until about 2030 for this to fix itself as it takes time to get an entire workforce trained to an expert level again. There is no magic fix - just hours on the job, and to be an expert in most fields, it takes 5-10 years of daily work.
So, trust us on this - get something used that was built pre-pandemic and hold onto it for another 5-6 years.
My cars are paid off. Being a mechanic, I will be able to maintain it. So I will not a new car anytime soon.
Great video the car market is a wreck
I work at a Honda dealer and honestly the cvt is the biggest problem we see right now I’ve done 10 or more in the past 4 months at least 2-3 a month tons of recalls between fuel pumps,radio noises, battery terminals and it’s crazy how hard Honda has fallen
Conveniently leaves out all the problems with Chevys! lol
I listened until you recommended everyone buy an extended warranty, now you’re just like any other used car salesman. Why would anyone want to pay to fix problems before they arise. I’m done with you.
I have a 2012 Hyundai Genesis with a 4.6 liter engine. Best car I’ve ever owned. I maintain my vehicle to a crazy extent, and it runs like a top. It has only 67,000 miles. It doesn’t burn any oil, either.
Might be a bit off topic but it's the economy. The more money people have, the less they live paycheck to paycheck. The less they live paycheck to paycheck, the more often they want a "new to you" car instead of waiting until the wheels fall off... aka NEED a car. I drive a 2009 Honda Civic Coupe when I rather be driving a long bed pickup and with my income + pre-bad economy prices, I could be. Not just car prices but car related prices like insurance and gasoline bit also non-car related prices like food, bills, etc.