@@LuckyLopez777 Come on man. I had a dealership try to sell me a bone stock maverick for 45k. The dealerships got their grubby hands into this mess too.
When you go to a dealership and they have 5 or 10k packs on top of sticker price I don’t have any sympathy for them . They allready make plenty at sticker price . The millennials seem to think the sticker is the price .
Debt based monetary system = no such thing as living within your means (you can live within your means on an individual level but as a whole, it can't)
This is a classic short term vs long term situation. I don't believe the banks would stop lending for the years it would take to really help. If they went decades without loaning it would eventually help a lot of families, but short term it is going to be a hell of a wakeup call for a lot of people. 10 years ago it would have been a wakeup call for Me. Banks control the economy more than any government does.
They’ll get you back when their assets go bust and their bankruptcy causes your bank account to get frozen. People don’t realize how much personal exposure they have to all the bad loans out there. Auto loans, commercial real estate, mortgages, it’s all in trouble once credit markets tighten up, and all these assets back the bank’s depositors. People have no clue how high the risk of frozen accounts is right now.
@@RedShiftedDollar That's ok, Uncle Sugar will dole up to $100k in monopoly money for your insured deposit accounts. More if you happen to be a foreign investor as we saw with the SV Bank collapse.
@@ironclaw6969 but that would help regular everyday people, and the world doesn’t work like that. The most likely scenario when the FDIC is about to go bust is that the banks will simply stop failing. If they halt your withdrawals when they are on the brink of failure, they’ll never fail and FDIC won’t even come into play. You won’t lose your money, it’ll just be “temporarily” frozen. Once inflation erodes 90% of your purchasing power they’ll be ready to unfreeze your account.
wtf do you know about “proper value”? Lmao smh. The world is changing and it’s here to stay. You sound like those tards in California that kept claiming home values would “correct” etc and it never happen. This is the new world.. you better accept it and prepare yourself
If banks stopped lending we'd have a much, much bigger problem than car values. 75% off mean everyone would be underwater and many many more repos trashing credit.
Anyone that is denied for an auto loan today hit the jackpot. You don't want a $700 - 800 a month car payment. Plus insurance, tags, tax, registration fees, road tolls, repairs, gas, etc, etc, etc.
@@ericasquez6187 new sienna will cost 812 a month for 60 months, thats what hes talking about and my insurance in nyc is 220 a month for my 2013 camry, imagine a new sienna
Just a quick note from a former auto analyst on Wall Street - you speak incredibly well and convey a great deal of information succinctly (and intelligently) Thank you for your content
I am a car dealer.. I have always made good profit and moved inventory with ease. It seems like a light switch was switched about 4 months ago. I have been losing money the past 4 months. I pre inspect everything. The market is just this bad in my area. Everything needs tons of work or goes for retail at auctions. I also got alot of aged inventory I have no clue how I am going to get rid of. No worries though I own my lot , all my inventory and plenty of money in the bank. But working 70 hours a week to lose money is getting ridiculous. I have never even came close to having a negative month until the past 4 months. I am in the process of switching to buy here pay here to get back to turning good profit. I feel if I don't switch something the next 4 months will be the same. I strive to sell good clean vehicles at good prices. Anything nice sells for more than the banks will even lend on the vehicles.I believe alot more buy here pay here is going to be the only way I am going to get back to turning profit. I pay attention to your videos and I also believe if I do not start doing more bhph I am just going to keep spinning my wheels and be left in the dust .
Lucky is right!! My friend just bought a car. He has excellent income and credit and still got 9% apr. his plan is to pay an extra $225 per month which equates to a 5% rate but this will not work for everyone.
@@2_Bike_is_Life here's a tip if you are ever gonna buy a new or used car from a dealership. You don't HAVE to finance with them. If you have a checking account you can get one from your bank. There are also many other banks you can apply for an auto loan with. Some people even have something called a credit union usually through having a job. They also give auto loans. There are many options. Most times though you aren't going to get much better of a rate on your own. If you car to know more about the reasons way feel free to ask
These are the lenders who were all too happy to give auto loan for a vehicle selling at $5000 to $15000 over MSRP. What did they think would happen. The buyers of these vehicles were not bright enough to say no to the dealers.
it's not hard to figure out, easy credit blew up the price of college, cars and homes we need higher skin in the game, i.e. down payments and higher interest rates so people will buy what they need and also SAVE for the future
Credit is so misused today. We were raised to use credit wisely. Cards are to be used in an emergency only, ie: the fridge or washing machine go's down, ect. Buy only that which is within our means such as an automoblie which is purchased to serve our needs only. Never a borrower or a lender be was the golden rule. Do everything we can do to stay out of debt. My parents were truly wise indeed.
Underwriter for a credit union in Texas here. Although we’ve been more careful with proof of income, residence, etc… we are DEFINITELY still going a lil too crazy with ltv’s, even on that low paper 😬 scary stuff!
Ending my 10-year career in the car industry at the end of this month. After tax season business dropped off the radar. Managers are pulling all the strings to get people into cars including some sleezy old school tactics. Lots of pressure on F&I to make huge backend to try to compensate for the lack of front end profit. Talking about 10-15k worth of backend products plus whatever they get on the interest rate bumps. I sell cars the honest way and when I can no longer do it that way. Its time to find another line of work. Good luck out there and remain vigilant
Yes, it is an unfortunate business reality that I am in as well as an independent dealer doing business in good conscience so as to sleep well; last July, it was too evident and have been preparing to close. Before the end of May of 2024, I will retire from business in the auto industry as it is changing too much and we are competing with exponential costs of living in food, rent, and every day household are not matching peoples income--not to mentioned the outragous cost of auto/home repairs-- so much so that even my Buy Here, Pay Here clients are begging for mercy because they are trying cloth, feed, and house their kids, while my bills get backlogged with corresponding late and interest fees working on chasing down defaulted or struggling clients. This is in a metro, Texas market. The miracle would be if the cars were pennies on the dollar (most people are smoking the pipe dream that they can sell their used car for way more than its worth because of what they paid on it, then), for prudent margin after recon fees/investment to be applicable for the buyers market, not buyers dream! Best blessings, JP
This all a good thing !! People shouldn't buy cars with no money down and poor credit. Loans should only be for 36 months like the 70's. I bought a new Honda last summer and got 2.9% for 5 years and still got $3000 off sticker price. I have a 800 plus credit score. All my life was like If I can't afford it I don't buy it.
Banks will never stop making automobile loans. However, they might stop lending money to people who have a minimal prospect of making the payments. Not to mention bringing back what used to be normal, 20% down payments.
@@jonfromsyracuse sorry I wasn't clear enough for you; while some banks may pull out, banks, in the larger sense, will always offer automobile loans. Understand?
Well, of course. Why would they loan money with the prospects of losing money? Banks are businesses, in the business of making money just like every other business. They have no obligation to the public to make loans just because people apply for them. Loans are a privilege not a right, I think a lot of people take that for granted because it's been so easy to get them until now.
You can't get Auto loans from my local bank, The Vise President of the bank told me that personally but I did one with them otherwise He says they Don't in most cases, I could because I didn't overpay in the first place.
So today i went to get a used 22 wrx with my lease being up. I ended up with a new 23 wrx premium. They already lowered the price 4k and offered me 2.9 interest. Told him ill sleep on it and he slammed his hands and said what do i have to do to get you in one now. He gave me some deposit back and a 1.9 interest lol. They had more 2023 on the lot than 2024 so they were giving them away. Ty lucky
Good to hear you got a good decent deal on a WRX. I still have 2005 WRX with only 139k in good shape that I enjoy driving. I am holding off on buying a new one when Subaru brings back a WRX wagon or hatchback and if I can afford it.
In the 70s I worked at Chrysler. Was 21 when went to work there in the collection department. Did not have all the modern ways to check credit and it could be 3 days or longer to get approved plus you had to have perfect credit and max term was 36 months. Remember when we extended terms to 48 months and we all thought was the end of time. In early to mid 70s we went from trying to talk people into giving up their vehicle when past due to the late 80s trying to talk them into keeping them. Now terms of 84 months is crazy. I just traded two weeks ago for a new Dodge Charger GT and my wife and I have a really high income, high credit score and little debt but F&I guy said credit union want both on the loan. A week later traded our 17 year daughter’s car for a new 2023 Charger SXT same credit union instantly approved me only for the loan. Great video. By the way most cars I personally repossessed in a month was 47 and worked my butt off that month. Oh and if we repossessed a vehicle within 120 days of due date it went back to dealer and they paid us off.
820 credit score here…. Never been “late” or missed a payment in my life (36yrs)….. I’ve had my current used vehicle (21 Bronco Sport $28k OTD) since November , and inflation is catching up to me…. For the first time ever, I’m having to eek into my banks “15 day grace period” just so I can keep up with the payments and everything else…… went from paying early, to paying on time , and now using grace periods to keep up…. If inflation continues, I’ll have to bail on this vehicle for the first time ever …..
@abel4776- You’re not every bright smh. You mean you’re shocked that banks and credit card companies do not want to work for free?? lol. Do you still believe in Santa ?
It sounds like you’re struggling. If you can get out of the loan without taking a loss you could get yourself a 2022 Toyota Prius and have cheaper gas and auto insurance.
I visited my CDJR dealer today. The used car lot was FULL. The new car lot was FULL. Lot of RAM trucks. Lot of Jeeps. Lot of Wagoneers. A handful of overpriced Hellcats marked up to $100,000 or above. This is going to get really ugly for them. My Cadillac Dealer by the way has over 75 Cadillac Lyriqs and the next dealer over does too. The auto market is about to lose a fortune but it will still be around. I wouldn't say "decimate". It's a market correction.
Geez, the ponzi scheme that is the American banking system is hurting. Geez, the auto dealership industry that bent people over to take advantage of a temporary supply problem is hurting. Both coudn't have happened to better industries.
Just got back from a flagship dealership to buy a TRX everything was good until I saw they added $3500 for a “servicing/transport” fee when the car literally had dirt all over, outside needed a detail bad, floor mats in trunk caked with mud as well. At the lot since 4/04/24 so it wasn’t a just in. They also had about another 750-1200 worth of BS fees that they “couldn’t” remove. Short story, I shook their hands and said thank you for your time and walked out on the deal. You need to cover all this dealer junk fee BS.
Yeah. Making 3.5% doesn't work because you can literally buy a 3 month t-bill and make over 5% doing nothing. We need this process to take place in order to get inflation under control though. As we can see from the latest inflation data, we're still struggling to hit the brakes on the economy.
@@Have.An.AmicoDay 5% for the year so on 100K 5% is $5,000 then divide that by 12. 5000/12=416 so for a 3 month bill its 416x3 months for a little over $1,200 profit- not $5,000...that would be awesome. They way it works is you buy a 100K "bill" and pay $98,800 for that 100K 3 months in the future.
@@jonathantaylor6926T-bills are nice but HYSA are still giving 5% or a little over and that money is still liquid considering they pay out per month as well. As long as inflation is up I see the HYSA % staying the same
Been watching religiously for almost a year and it’s the typical the sky is gonna fall……eventually vlog. Well I held off for months waiting but I wanted to get a new truck. I’m just a midwestern average Joe that purchased a 24 Sierra Denali 1500 that was marked down 17% and financed thru GM @ 2.9% for 72 months no money down. Folks do your homework and you may get lucky with a solid rate/term. Work an angle that benefits you!
That was not luck it was smart delayed gratification on your part. If more people would follow your plan then prices on every thing would start to decrease. Enjoy the new truck.
This sounds exactly like the housing crisis: Sell people houses they can't afford and then combine these time-bomb mortgages into highly rated bundles. Sell these mortgages and bundles like crazy so they make millions of dollars, and then keep all that up-front money when the pyramid falls apart. Then just wait for the mortgage holders to fail on their payments and take everything back, leaving everyone out living (or walking) on the street.
Yep. Then when you consider credit card debt, student loan debt, etc, it's pretty easy to draw parallels to 2008. We're one event away from another great buying opportunity :)
Yeah lending is tighter for sure We got lucky at Mazda with a 3.9% on a 655 score but my previous history with Toyota Motor Credit helped since they underwrite Mazda loans now.
My 2021 Dodge Challenger 1320 was stolen back in March. I had a 0% rate on that car. I went yesterday to look at a new Challenger in the same model. Was a $53,000 car. My credit is a 700, and got quoted $978/84 months @9%, and $1032/75 months @11%. I told them they were crazy, and walked out. Another quoted at 14%, but wasn't told the terms..
After my car was stolen it was a wake up call to install a hidden cut off switch when it was recovered with minimal damage. I highly recommend everyone to install a hidden cut off switch or a similar system by an aftermarket company security system.
I recently borrowed alot...Towards a used pickup. I was concerned I was going to have to prove a bunch of financial stuff..which isn't easy for me. My credit union I've worked with for the last 9 years actually approved the loan..without a credit pull..or at least not a hard pull. They told me anything under 45 no pull. I was very surprised.
🎉🎉🎉 Oh my gosh 😮❗️ I didn’t realize that you were getting so close to 500,K subscribers 😮❗️That’s awesome. You explained this scenario so well. Very easy to understand the way that you present it. No wonder you’re growing your channel so fast 💨! Btw, How’s your project coming along? Blessings,Carlos ✝️🙏❤️😊🇺🇸
Credit Acceptance is doing 15-20% interest, my Neice bought her first car through Credit Acceptance last year. (bad move). She doesn't have bad credit, she wanted to buy her first car on her own and didn't talk to her dad on how to buy a car, so now she's stuck with crazy interest. My brother ended up paying the car off so she didn't get stuck with all the interest. BUY HERE PAY HERE is not new, the south if full of those dealers.
Thank you Lucky 👏🏻 You are 100% correct car dealerships are a barometer on the economy . And it’s going to get bad and too many people are still buying like the money is an endless well .
I have a good income, over 750 credit score, low debt and the banks were only offering me high interest rate or high down-payment for a used suv. I couldn't believe it. I switched gears and went for a lease on a brand new Acura. No problem. Was shocked by the timid used car lenders.
I feel dealers are more firm on the prices. I just takled with a dealer for a 2019 Porsche, and I was willing to put 50% down to make sure the deal would go through on bank's end. But the dealer was not willing to move the price even a bit. And it was not just one, but multiple of them. I live in MI.
Porsche's Sales in the US are down 20+ per cent. Porsche's have always had higher prices comparatively but they do hold their value more. But lately I think they gone a bit too far. Hopefully reduced sales will make them think and affect change.
Same thing I'm experiencing right now. Spoken to a few Mazda dealerships 50 miles distant from each other. No one is willing to reduce prices at all (1-owner used car).
@boyantrifonov- what “reduced sales”? lol certain brands such as Porsche Ferrari McLaren etc the economy doesn’t really affect their sales. My friends and Newport McLaren are doing perfectly fine as well as BMW Irvine etc
@@Behemoth66 First of all I said Porsche specifically. Second the data is for all the US You are mentioning other brands and specific dealerships and dealership locations. The comparison is not apples to apples.
Im so glad that when i got my car in 2020 they didnt ask for apay stub. I had gotten laid off and was working somewhere new. But the HR team was a joke and i didnt get access to the portal to view my paystubs until Nov/Dec. I wouldnt have been able to pull that out
I just bought a car and I have perfect credit so no issues there. But I had some great exchanges with the salesperson. He was telling me how difficult this year has been even with the auto prices coming down. So many people coming in are upside down with bad credit. So once they got through negotiations, then these same customers had to leave cause they could not qualify for financing. He would spend a lot of time showing them the car. Driving the car. Negotiating the car. Only to find out, they did not qualify to purchase the car.
My experience, currently buying a 2024 wrx TR at msrp. My local credit union would do 4.99% up to 54 months. The lowest the dealership could do was 4.9% at 36 months. I have 800+ credit score with above average income. Couldn't be approved by dealership but credit union approved me for up $60k if I wanted (crazy). But the credit union is a little more aware of my finances 😅.
I have a co worker that had bought a used 2022 WRX at a ridiculous rate that he ended up having to turn in. I personally still have a 2005 WRX sedan with only 139k miles in great shape that I can maintain myself. I would like to get a new GR Corolla or a WRX wagon if Subaru decides to bring it to the US but there is no way I can afford it with my current debt and high interest rates.
I'm glad they can't buy scat packs or hellcats. The dealers have marked these things up so much that a scat pack is 2016 Hellcat Money ($77,000) and a Hellcat is sold for S-class prices ($105,000+). That's ridiculous. for these PLAYED OUT, PLASTIC CARS. The banks SHOULD BE DENYING THESE LOANS. Banks denying these loans FORCES dealers to reduce the prices.
I got lucky. On black friday, the wife and i got a 2024 Civic Sport hatchback from Findlay Honda in Henderson, for 0% interest (48 mo) and no paymentz for 90 days. That same dealership has that same promo until the end of the month (0% interest for 48 months).
I bought 23 bronco sport from team ford in north las vegas, in December got 3.9 on it and then bought a 23 f150 in January got 1.9 for 72 months. I traded in a 2018 f150 which i was paying 15 precent ( i got yoyo scammed on it from ford county in Henderson in 2021.) My payment was cheaper on new truck then what i was paying by a couple bucks but in finance i got gap and tire warranty so my payment is 814 my old payment was 788. Between the bronco and f150 i financed over 100k. And no proof of income or money down. And my credit score was 668.
Hoh much are you paying for ins on 2024 Civic Spor a month or every 6months or a year? I heard car ins is cheap in Pahrump .Pahrump is 1hr 24min from Las Vegas .
I got an auto loan last week. My wife and I got a car over 40k. 2k down, 6.74%, 66 Months. We plan to pay it in 33 months. I expected to have some trouble getting a loan but it was easier than ever. This wasn't a new car either. It was used 2021.
I have never had a bank ask for proof of income when I buy a car. Not for me, not for my husband. And we both bought cars this year - Feb 2024 and March 2024. When I used to go with my parents as a child to the dealership to buy cars, they were never asked for proof of income either (called to ask my mom, who verified). This whole concept of ‘income verification’ is very foreign to me. Maybe it’s because we have always purchased new cars from franchise dealers and they aren’t as stringent. Not sure.
Bought a $20k used accord about a week ago (23k after taxes/fees). 720 FICO. Only put 2000 down. They didn't even ask for my paystubs and when I told them I was surprised, they said it was because I had good credit. 8.1% APR. I live in the NE US. Dealer went with M&T Bank
I live in NE and I just bought a 2022 Ford Ecosport with 11k miles for $17,500. I put $1,000 down, but my APR was 8.09% through Navy Fed and my credit score is 750. I'll pay it off in 2 years, so I'll probably pay like $1,200 in interest.
@cyrusthegreat3081 Yessir! Well it was like $1,500 under others around like 20,000 miles and they were even 2020s or 2021s. They listed it at $17,910 but I talked them down to $17,500 and I knew I had to jump on it for basically a brand new SUV. I do gigwork as a side hustle so this is my new gig car and it'll help for the snow lol.
Like the Orange Cheetoh, “King of Debt”, “I won in A Landslide”can fix anything….vote for the insurrectionists, the anti-abortion wack jobs and you ain’t seen nothing…
@@LuckyLopez777 That's never stopped them before. The only thing that scares a politician more than an educated public is bank failures. They'll just get the government to change the laws and feed at the public trough again.
@@LuckyLopez777 respectfully lucky the Supreme Court said Biden couldn’t forgive student loans and he said screw it I’ll do it any way. I could be wrong but I bet congress could just pass another law. Both parties are corrupt. But you are correct about the law they did pass.
In the Midwest things are a bit less fragile. More people can get loans here because of the huge increase in credit unions popping up over the last few years. Buy Here - Pay Here seems stable with low down but the payments are outrageous and the actual selling prices of the cars are sky high. Minnesota Attorney General is starting to focus in and crack down on car retailers of all kinds.
I sent Westlake a prime customer with great income and credit, a 60% loan to value loan, Big down payment. They asked him proof of everything, gave him an 11% interest rate and lasted 4 days to make an approval plus they charged the dealer with almost a 10% lender fee. And that is one of the few banks that may stay alive in the future.
This is a good thing. Cars should be a cash purchase and be priced accordingly. I bought a junk car and had it refurbished in Mexico with parts bought in the US.
I think that they are trying to phase out car loans to replace them with car leases. Car leases are short terms and you will never own the vehicle. For car manufacturers this is a win-win situation. Car loans allows for car ownership which means you don't have to purchase a new vehicle, but you won't have a choice with a car lease unless you want to buy the vehicle after 3 years but it makes the purchase price of the vehicle very high. The aim is to reduce ownership, it is not about your qualification for loans or leases in the long run.
What you have to remember now. Is that the vehicles that are on the road are not nearly as reliable or easy to fix as they used to be. Attempting to cause a car to run for hundreds of thousands of miles and twenty plus years is not as easy as it used to be
Just bought a F-250 Deisel last month. Sticker was $78k, got the dealer to $72k, but OTD at just over $80k. Got $22.5k for trade, $35k out of pocket, and Navy Fed spotted me $22.6k @ 5.3% and I've got Super Prime Credit Score (+800). Payments are $445/mon for 60m. Hate to see what other prime and sub-prime borrowers are at.
Crazy story of my own. The market is in the tank I recently wanted to buy my wife a one year old Mercedes GLE450. Paying cash not financing I had to go thru three dealers before a 4th dealer would finally shut up and take my money. I offered full price to the first three dealers and they wouldn't sell me the car I wanted. I have never had such a hard time getting a dealer to take 60k from me.
We live in a bubble. With today's government policies we cannot predict what will happen in next 6 months. I just put everything on hold, just making a simple living. I hope Biden will loose in November.
After waiting for almost 2.5 years, I finally started looking for a SUV. Usually I buy cash, but wanted to see how bad it is to finance a car. With my 770+ score, I got approved from 5.75 - 6.5 at three different lenders within 30 minutes. I don't know if this is market specific, but in the northeast financing doesn't seem to be an issue. But that means prices are still high
2 weeks ago I bought a car. I have a 790 credit score and apparently 2 banks didn’t want to do a 15k loan. I was well under the 20/4/10 rule for affordability. Hell, I can afford a car twice as expensive and have a job I can’t be fired from. It’s getting rough out there, really sorry to the people that need a car and can’t pay cash for it.
Well, we are back into the situation I experienced in the early 196's as a junior officer in a country bank. We just did not make 'em. The cost and trouble of 'chasing' non-payers could not be justified and management said 'No Car Loans' anymore. Even when we finally found and took back the auto, what profit we were to make just did not materialize.
Luckily the cars we have were bought before interest rates went crazy and my truck is 10 years old. So, gonna be holding onto the truck for a few more years until things cool down.
I hope the automotive industry in the United States understands that consumers are tired of getting screwed over. The consumer always lose in every deal. The auto dealership, the Bank and the insurance companies win. Never the actual consumer.
They're pushing for Manufacturers to Consumer's. No more sales at dealership, only take delivery of what you buy from Manufacturers and Service Center.
Just leased leased ‘24 G63 & ‘24 Maybach GLS600 With only the usuals down Mercedes Motor Credit, 24 Months, MB of Buckhead delivered to KY. We are MULTIPLE repeat buyers from dealers and have used MB MB Credit for 14 years with zero missed payments that weren’t a week or more early.
Doc what kinda monthly payments go with those leases. Good for you btw very refreshing to hear good news for a change In comments…. Lotsa pain in the economy right now..
I just bought a 2024 Mazda CX5 premium Plus at 1.9% for 36 months. I went in pre approved at 6.9% and Mazda financing beat it. I also bought the car at $4500 off MSRP.
Yea, loans are a huge part of the problem, and banks eagerness to loan makes matters worse. Car prices have been slowly climbing since the 90s, due to the ease of acquiring a car loan, but recent years have been out of control. All things have an intrinsic value, current car prices are no where near their intrinsic values. I’m seeing people take out 15,000$ loans for cars that won’t last 2/3s of the loan’s term without a major repair being needed. One bloke put 2500 down on a 9 year old focus, his loan term was 4 years and payments were 500$ a month. He’s paying 20,500 for a car worth 1500 when the term is over. 3 years ago, 2500$ would have been enough to just buy the car. Sure he got a subprime loan, but this still means the piece of shit had a sticker price > 10k
Geez that car payment used to be an old BMW payment. I can’t even imagine buying an old ford focus and then paying 500 a month for it…LOL I bet he will try to do rideshare with it.
Good morning, Lucky! I do agree with the majority of comments below. Here is SE, PA. I am seeing more and more high ends cars with more and more neglect. Wheels covered in brake dust, the shine is gone, chirping power steering pumps, and maybe one mismatched wheel. So these high self esteem drivers are now out of money and starting to sweat. They are not smiling any more.
Back in Feb this year we went to buy a dog from a local woman here in Phoenix. After talking for a bit, found out she was the sales manager at a large Ford dealer. We talked car sales and she admitted things were slow but told me they had a young lady come in to buy a car but the best loan they could get for her was at 25% interest. She said we tried to talk her out of it but the young lady said she had to have a new car for work so she took the loan. Sales manager said she definitely felt bad for her but that was the best they could do. Many years ago when I was around 20, I bought a used car at a BHPH lot at 18% for $1,500. I was making around $3.00 an hour. Took a long time to pay for it. Lesson learned.
Banks MUST lend money to make money. BUT, the borrowers must pay back the loans or they don't make money either. Loan applications are up. But loan volume is down because the applicants don't qualify.
True ,way more, don't qualify for loans. And with banks sitting on so many unrealized losses due to the rise and rates, especially the big banks per all insolvent and bankrupt...they simply don't have it to lend
And this is why we only buy used, only when necessary because the old one literally dies, and always in cash. Car prices are absolutely ridiculous now. I hate to think what my father would say if he was still with us, he was a car guy in his youth and he would be sad that the market is so dysfunctional that most folks can't afford to play in it anymore. It's going to have a devastating impact on car culture moving forward. On the other hand, maybe it will cause the manufacturers to actually make an effing affordable model again. I don't know how we got to a place where an average new vehicle is sold for a reasonable fraction of the value of my HOUSE WITH 5.5 ACRES AND THREE BEDROOMS. It's totally nuts, and if this makes it stop then I'm all for it.
I'm ready and have been ready to buy a 80k Chevy truck, but no deals yet where I live out in South Dakota. I think sometimes not only are most of us living in flyover states, but rurally we are not even considered. I am retired and as always I pay cash, but vehicle prices are also higher here or at least still and while I can go buy one a 1000 miles away, how could I then trust my local dealer to properly care for it? Right now my plan is to fix the stuff I can on my older truck and wait. I think this is just the beginning of the pain. Inflation data still looks high and there is even talk of another rate hike, and no cuts this year. Now take this with some grain alcohol, because political pressure during an election year may muff things up. They may pass on rate hikes due to pressure and may even have a cut of .25 basis points to get the president off their back, but if the markets are still sour, you will just see this for longer, like years longer. I haven't really heard you guys talk about insurance, but they want their pound of flesh as well, talk to any EV buyer. Gas... With all the wars on the horizon... Not lookin to rosy. Good time to not have a loan.
lot rot is not really that bad... if it was classic cars wouldn't exist. It may be true the modern computers drain batteries... and if a car sits in really hot sun the wipers could go bad.... but the rest is pretty much myth.
@@raymond_sycamore no not a car dealer, I had a Pontiac Fiero for 17 years that was driven very little, some years only 1 day a year to start it up and move it, change the oil ect and put it back into storage... and i've got a 2015 Mitsubishi Lancer that currently has only 2900 miles... most of those years its only been started up ect and driven down the street and back... I do unhook the batteries though... very little rot, but admittedly, they are stored inside.
I just got my step son a 2022 dodge challenger with a 565 credit score and one open auto with a 467 pymt , the gave him another auto loan at 11% with $3500 down at a Chevy store in Boca Raton FL income was $62k of course it was Santander but I was shocked they did it without stipping to trade open auto
Great analysis. I used my 2018 ram 3500 as collateral to pay for a 50k skid steer and I’m down to 1500 bucks. I can’t wait in two weeks when I walk into the bank and pay that off.
I have never had a problem purchasing a car and the last two vehicles were purchased at 0% interest for 60 months. There is truly a life changing benefit from maintaining a great credit score. Dont go to any car dealership begging to be financed for something you can't afford- especially with poor credit. The question how is the economy is a trick question. Those that are not over extended and have a good to great credit score will answer one way and those that are over extended with a poor credit score will usually have a negative answer .
Bottom line if you weren’t in the position to buy when the gettin was good you’re SOL for a bit maybe a couple of years … everyone has to remember economies are cyclical; it’s this bad because it was pretty good 2 years ago 😂 but it will stabilize.
I am not seeing any price decreases or car dealers going out of business here in Chicago. I submitted two bids at two different car dealerships for a BMW 745e and I was turned down. My bids were very competitive and not some stupied low ball offer. Here in the midwest I am finding dealers are sticking to the list price; and they have adopted the Car Max philosaphy of no negoitation, no hassle pricing.
Banks are never gonna stop lending. That is how they make money. But they are going to stop lending to people that camp pay their bills! And that is a good thing.
They will continue to loan, because there will always be people making foolish decisions to borrow money, to buy a car they can’t afford,to impress people they don’t know. I have to admit, in 1980, I borrowed $3000 to buy a,car at 18% interest. (Home loans were 13% then). Over the years, when I paid off a car, I made payments to myself. The last time I borrowed money to buy a car was 1997.
@@Behemoth66 If you have the means to do that, that is cool. Unfortunately I simply cannot get a high enough return on that same amount of money to keep up with an interest on a would be loan.
I just bought a 2024 C8 Corvette at MSRP in December 2023. I make six figures a year as a Portfolio Manager, and I have credit score of 825. I put 30% down payment and the best rate I could find after calling around to a ton of banks and credit unions in my state was 7.19%. As the dealership asked me to use their financing I decided to ask what rate they could get me out of due diligence. Turns out, they were able to get me a rate of 6.75% from Wells Fargo. That was the best I could find so I took it. I was not asked to provide paystubs or any proof of income. I believe cutting a 5 figure check as down payment probably had something to do with that.
I just completed my 6 figure car shopping; Excellent credit rating average is 833 among all three bureaus, and I earn over $200k. I normally go with my own credit union financing PRIOR to car shopping, but this ONE time I allowed the banks to run my application for their best rates. This ONE particular EV company had SANTANDER BANK take my application at 8% APR! 😮 I was so freaking mad at them! Then, they shopped my application to JP Morgan Chase at 7.49%… I called one of my credit unions that I’m a member of and asked their rate for my excellent credit rating and 0% DTI utilization. They came back w/ 4.49% and their competitor Credit Union offered 5.29%!! I ran away from that finance department and gave them a slacking of words!! NEVER again will I allow a dealer or finance department to shop my credit worthiness out to lenders again! If you’ve established a solid credit mix portfolio and hovering around the EXCEPTIONAL CREDIT RATING- it’s always best to have a few credit unions in your back pocket for car financing. Get the pre-approval notice/check and look at the dealer directly in the eye and say… “Not this time homie!!!” Try that 💩 with a young inexperienced buck, because I’m not the one for playing percentage games. Good luck everyone!
@@Behemoth66 Yeah, I’ve been monitoring the values and they are coming down. I saw a 2021 on FB marketplace that I was considering in September 2023 when I began shopping but they were asking for like $66K, which is almost what a brand new one at MSRP costs I decided to circle back just a couple weeks and they’ve dropped the price to like 60K. I don’t intend to sell so values don’t bother me too much.
I agree. Lucky I do business with Silver State schools Credit Union out of Las Vegas. They financed three Ford super duties for me. I tried to buy a 2022 used one on Saturday. My loan got denied on Monday and I had a cosigner and had plenty of income. Didn't really give me a reason just didn't want to give me the loan
If the banks wouldn't be greedy and let ppl pay what they borrow their wouldn't bea problem. What's sad is the government will bail these multi billion dollar businesses before help tax paying American citizens
The Mastercard millionaires are going to be crying that people will see them as the poseurs that they are. The sales of Chevy Tahoes and decked out pickup trucks will fall off a cliff, it’s already happening.
No sympathy for the dealerships, over pricing their vehicles in 2021-2023.
its mostly the banks
@@LuckyLopez777 Come on man. I had a dealership try to sell me a bone stock maverick for 45k. The dealerships got their grubby hands into this mess too.
When you go to a dealership and they have 5 or 10k packs on top of sticker price I don’t have any sympathy for them . They allready make plenty at sticker price . The millennials seem to think the sticker is the price .
@@cdzrocks Yeah on a previous video he was talking about how he paid 10k for a luxury watch.
Karma
What happens when banks stop lending is that people will actually have to live within their means and stop kicking the can down the road.
Debt based monetary system = no such thing as living within your means (you can live within your means on an individual level but as a whole, it can't)
Economic collapse. The entire country is built on debt.
@@r.d.9399no, it's not. Things just will get more reasonable. That's all
@@Milpile1Your right that is why it is going to fall.
This is a classic short term vs long term situation. I don't believe the banks would stop lending for the years it would take to really help. If they went decades without loaning it would eventually help a lot of families, but short term it is going to be a hell of a wakeup call for a lot of people. 10 years ago it would have been a wakeup call for Me. Banks control the economy more than any government does.
NOT one single tear for the corrupt banks!!!
Banks don't care because the Fed will print money or the government will bail them out.
They’ll get you back when their assets go bust and their bankruptcy causes your bank account to get frozen. People don’t realize how much personal exposure they have to all the bad loans out there. Auto loans, commercial real estate, mortgages, it’s all in trouble once credit markets tighten up, and all these assets back the bank’s depositors. People have no clue how high the risk of frozen accounts is right now.
@@RedShiftedDollar That's ok, Uncle Sugar will dole up to $100k in monopoly money for your insured deposit accounts. More if you happen to be a foreign investor as we saw with the SV Bank collapse.
@@ironclaw6969 but that would help regular everyday people, and the world doesn’t work like that. The most likely scenario when the FDIC is about to go bust is that the banks will simply stop failing. If they halt your withdrawals when they are on the brink of failure, they’ll never fail and FDIC won’t even come into play. You won’t lose your money, it’ll just be “temporarily” frozen. Once inflation erodes 90% of your purchasing power they’ll be ready to unfreeze your account.
If banks stopped lending, prices would return to normal proper value, 75% off.
Well said. Same is true for college degrees.
wtf do you know about “proper value”? Lmao smh. The world is changing and it’s here to stay. You sound like those tards in California that kept claiming home values would “correct” etc and it never happen. This is the new world.. you better accept it and prepare yourself
@@jjcoulterxxxGreat Point, and put Biden out of business.
If banks stopped lending we'd have a much, much bigger problem than car values. 75% off mean everyone would be underwater and many many more repos trashing credit.
Aka a Depression
Anyone that is denied for an auto loan today hit the jackpot. You don't want a $700 - 800 a month car payment. Plus insurance, tags, tax, registration fees, road tolls, repairs, gas, etc, etc, etc.
I just got a car only pay 420 no credit ever and 80 insurance idk what ur talking about
Depends what car you're trying to buy
@@ericasquez6187 new sienna will cost 812 a month for 60 months, thats what hes talking about and my insurance in nyc is 220 a month for my 2013 camry, imagine a new sienna
Just a quick note from a former auto analyst on Wall Street - you speak incredibly well and convey a great deal of information succinctly (and intelligently)
Thank you for your content
@@Hannibalmiles8494
Gosh you’re not a pleasant person are you
I am a car dealer.. I have always made good profit and moved inventory with ease. It seems like a light switch was switched about 4 months ago. I have been losing money the past 4 months. I pre inspect everything. The market is just this bad in my area. Everything needs tons of work or goes for retail at auctions. I also got alot of aged inventory I have no clue how I am going to get rid of. No worries though I own my lot , all my inventory and plenty of money in the bank. But working 70 hours a week to lose money is getting ridiculous. I have never even came close to having a negative month until the past 4 months. I am in the process of switching to buy here pay here to get back to turning good profit. I feel if I don't switch something the next 4 months will be the same. I strive to sell good clean vehicles at good prices. Anything nice sells for more than the banks will even lend on the vehicles.I believe alot more buy here pay here is going to be the only way I am going to get back to turning profit. I pay attention to your videos and I also believe if I do not start doing more bhph I am just going to keep spinning my wheels and be left in the dust .
Push repair capabilities. Mechanics are the busiest people in the auto world.
RUclips my man... youtube
. Car edge
Time to get a real job
@@JJ-mh3hb thats a real job what you talking about??
Best of luck to you Jason!!
Lucky is right!! My friend just bought a car. He has excellent income and credit and still got 9% apr. his plan is to pay an extra $225 per month which equates to a 5% rate but this will not work for everyone.
He's an idiot to take a 9% interest rate. The car industry is in deep shit
thanks for sharing
If the rate was sourced by the auto finance dept, you can bet they added points over what the lenders qualified your buddy at.
@@2_Bike_is_Life here's a tip if you are ever gonna buy a new or used car from a dealership. You don't HAVE to finance with them. If you have a checking account you can get one from your bank. There are also many other banks you can apply for an auto loan with. Some people even have something called a credit union usually through having a job. They also give auto loans. There are many options. Most times though you aren't going to get much better of a rate on your own. If you car to know more about the reasons way feel free to ask
Is there a penalty for paying off the loan early I wonder????
I shudder to think what is buried in the fine print
These are the lenders who were all too happy to give auto loan for a vehicle selling at $5000 to $15000 over MSRP. What did they think would happen. The buyers of these vehicles were not bright enough to say no to the dealers.
it's not hard to figure out, easy credit blew up the price of college, cars and homes we need higher skin in the game, i.e. down payments and higher interest rates so people will buy what they need and also SAVE for the future
Credit is so misused today. We were raised to use credit wisely. Cards are to be used in an emergency only, ie: the fridge or washing machine go's down, ect. Buy only that which is within our means such as an automoblie which is purchased to serve our needs only. Never a borrower or a lender be was the golden rule. Do everything we can do to stay out of debt. My parents were truly wise indeed.
They also had far cheaper prices relative to wages. Made things a lot easier
@@EMichaelBall They also had allot more discipline.
Welfare queens going to be mad they can't get their 7 year loans on their luxury cars
Underwriter for a credit union in Texas here. Although we’ve been more careful with proof of income, residence, etc… we are DEFINITELY still going a lil too crazy with ltv’s, even on that low paper 😬 scary stuff!
What is the largest LTV that your credit union is willing to do?
@@whiskers78753 depends on the unit of course but a typical 40k-50k unit we still push it sometimes to 135%
Smh we are doing 130% LTV and to me that is insane, it needs to be 80-100% but then how would the poor dealerships make money 😂
@@whiskers78753idk why my previous reply didnt go through but sometimes up to 135%!
@@ArisB21exactly!! It’s ridiculous
Ending my 10-year career in the car industry at the end of this month. After tax season business dropped off the radar. Managers are pulling all the strings to get people into cars including some sleezy old school tactics. Lots of pressure on F&I to make huge backend to try to compensate for the lack of front end profit. Talking about 10-15k worth of backend products plus whatever they get on the interest rate bumps. I sell cars the honest way and when I can no longer do it that way. Its time to find another line of work. Good luck out there and remain vigilant
$15k worth of back end. Lol. I've actually seen this at a dealer I use to work at.
Yes, it is an unfortunate business reality that I am in as well as an independent dealer doing business in good conscience so as to sleep well; last July, it was too evident and have been preparing to close. Before the end of May of 2024, I will retire from business in the auto industry as it is changing too much and we are competing with exponential costs of living in food, rent, and every day household are not matching peoples income--not to mentioned the outragous cost of auto/home repairs-- so much so that even my Buy Here, Pay Here clients are begging for mercy because they are trying cloth, feed, and house their kids, while my bills get backlogged with corresponding late and interest fees working on chasing down defaulted or struggling clients. This is in a metro, Texas market. The miracle would be if the cars were pennies on the dollar (most people are smoking the pipe dream that they can sell their used car for way more than its worth because of what they paid on it, then), for prudent margin after recon fees/investment to be applicable for the buyers market, not buyers dream!
Best blessings,
JP
Good luck to you! We are hiring at the local gov't.
I do vehicle loans . If your monthly car payment exceeds 12% of monthly income. we auto decline it regardless of your credit score.
This all a good thing !! People shouldn't buy cars with no money down and poor credit. Loans should only be for 36 months like the 70's. I bought a new Honda last summer and got 2.9% for 5 years and still got $3000 off sticker price. I have a 800 plus credit score. All my life was like If I can't afford it I don't buy it.
Banks will never stop making automobile loans. However, they might stop lending money to people who have a minimal prospect of making the payments. Not to mention bringing back what used to be normal, 20% down payments.
$$$$
There are several banks who have pulled out of automotive loans within the past 12-18 months... What are you talking about?
@@jonfromsyracuse sorry I wasn't clear enough for you; while some banks may pull out, banks, in the larger sense, will always offer automobile loans. Understand?
Well, of course. Why would they loan money with the prospects of losing money? Banks are businesses, in the business of making money just like every other business. They have no obligation to the public to make loans just because people apply for them. Loans are a privilege not a right, I think a lot of people take that for granted because it's been so easy to get them until now.
You can't get Auto loans from my local bank, The Vise President of the bank told me that personally but I did one with them otherwise He says they Don't in most cases, I could because I didn't overpay in the first place.
So today i went to get a used 22 wrx with my lease being up. I ended up with a new 23 wrx premium. They already lowered the price 4k and offered me 2.9 interest. Told him ill sleep on it and he slammed his hands and said what do i have to do to get you in one now. He gave me some deposit back and a 1.9 interest lol. They had more 2023 on the lot than 2024 so they were giving them away. Ty lucky
Good to hear you got a good decent deal on a WRX. I still have 2005 WRX with only 139k in good shape that I enjoy driving. I am holding off on buying a new one when Subaru brings back a WRX wagon or hatchback and if I can afford it.
Deal is a deal! Nice 👌🏽
In the 70s I worked at Chrysler. Was 21 when went to work there in the collection department. Did not have all the modern ways to check credit and it could be 3 days or longer to get approved plus you had to have perfect credit and max term was 36 months. Remember when we extended terms to 48 months and we all thought was the end of time. In early to mid 70s we went from trying to talk people into giving up their vehicle when past due to the late 80s trying to talk them into keeping them. Now terms of 84 months is crazy. I just traded two weeks ago for a new Dodge Charger GT and my wife and I have a really high income, high credit score and little debt but F&I guy said credit union want both on the loan. A week later traded our 17 year daughter’s car for a new 2023 Charger SXT same credit union instantly approved me only for the loan. Great video. By the way most cars I personally repossessed in a month was 47 and worked my butt off that month. Oh and if we repossessed a vehicle within 120 days of due date it went back to dealer and they paid us off.
Always informative without being dramatic , thanks
820 credit score here…. Never been “late” or missed a payment in my life (36yrs)….. I’ve had my current used vehicle (21 Bronco Sport $28k OTD) since November , and inflation is catching up to me…. For the first time ever, I’m having to eek into my banks “15 day grace period” just so I can keep up with the payments and everything else…… went from paying early, to paying on time , and now using grace periods to keep up…. If inflation continues, I’ll have to bail on this vehicle for the first time ever …..
Credits nice but it doesnt matter if you have no money lmao
I wish you the best. Hang in there.
Would they restructure the loan to extend the terms to make it manageable for you?
@abel4776- You’re not every bright smh. You mean you’re shocked that banks and credit card companies do not want to work for free?? lol. Do you still believe in Santa ?
It sounds like you’re struggling. If you can get out of the loan without taking a loss you could get yourself a 2022 Toyota Prius and have cheaper gas and auto insurance.
I visited my CDJR dealer today.
The used car lot was FULL.
The new car lot was FULL.
Lot of RAM trucks. Lot of Jeeps. Lot of Wagoneers.
A handful of overpriced Hellcats marked up to $100,000 or above.
This is going to get really ugly for them.
My Cadillac Dealer by the way has over 75 Cadillac Lyriqs and the next dealer over does too.
The auto market is about to lose a fortune but it will still be around. I wouldn't say "decimate".
It's a market correction.
It would just warm my heart to see many of these dealerships close their doors❤
Geez, the ponzi scheme that is the American banking system is hurting. Geez, the auto dealership industry that bent people over to take advantage of a temporary supply problem is hurting. Both coudn't have happened to better industries.
You sound ignorant and naive af.
Just got back from a flagship dealership to buy a TRX everything was good until I saw they added $3500 for a “servicing/transport” fee when the car literally had dirt all over, outside needed a detail bad, floor mats in trunk caked with mud as well. At the lot since 4/04/24 so it wasn’t a just in. They also had about another 750-1200 worth of BS fees that they “couldn’t” remove. Short story, I shook their hands and said thank you for your time and walked out on the deal. You need to cover all this dealer junk fee BS.
Yeah. Making 3.5% doesn't work because you can literally buy a 3 month t-bill and make over 5% doing nothing. We need this process to take place in order to get inflation under control though. As we can see from the latest inflation data, we're still struggling to hit the brakes on the economy.
🔥💯💪🏾
is that 5% for the 3 months, or an 5% for the year (if you did it 4 times in a row)
@@Have.An.AmicoDay 5% for the year so on 100K 5% is $5,000 then divide that by 12. 5000/12=416 so for a 3 month bill its 416x3 months for a little over $1,200 profit- not $5,000...that would be awesome. They way it works is you buy a 100K "bill" and pay $98,800 for that 100K 3 months in the future.
@@jonathantaylor6926T-bills are nice but HYSA are still giving 5% or a little over and that money is still liquid considering they pay out per month as well. As long as inflation is up I see the HYSA % staying the same
Been watching religiously for almost a year and it’s the typical the sky is gonna fall……eventually vlog. Well I held off for months waiting but I wanted to get a new truck. I’m just a midwestern average Joe that purchased a 24 Sierra Denali 1500 that was marked down 17% and financed thru GM @ 2.9% for 72 months no money down. Folks do your homework and you may get lucky with a solid rate/term. Work an angle that benefits you!
That was not luck it was smart delayed gratification on your part. If more people would follow your plan then prices on every thing would start to decrease. Enjoy the new truck.
This sounds exactly like the housing crisis: Sell people houses they can't afford and then combine these time-bomb mortgages into highly rated bundles. Sell these mortgages and bundles like crazy so they make millions of dollars, and then keep all that up-front money when the pyramid falls apart. Then just wait for the mortgage holders to fail on their payments and take everything back, leaving everyone out living (or walking) on the street.
I was picturing scenes from 'The Big Short' as he explained it
That’s happening now loan officers fudge people’s numbers all the time to give them home loans
No, people don't. @@1969bones69
Yep. Then when you consider credit card debt, student loan debt, etc, it's pretty easy to draw parallels to 2008. We're one event away from another great buying opportunity :)
Its alot different with 30 year notes on asset that have normally appreciated vs 6-8 year loans that depreciate
A provider of loans which gets its money from a hedge fund is a finance company. It is not a bank
I keep it simple for people of the internet
@@LuckyLopez777 I would prefer accuracy over dumbed-down content.
@@2_Bike_is_Life What do you want in 10 minutes, putz?
@@2_Bike_is_Life wrong channel for that
Yeah lending is tighter for sure
We got lucky at Mazda with a 3.9% on a 655 score but my previous history with Toyota Motor Credit helped since they underwrite Mazda loans now.
Yeah I got 4.9 on my Mazda CX-5 in 2022. That was through my credit union.
My 2021 Dodge Challenger 1320 was stolen back in March. I had a 0% rate on that car. I went yesterday to look at a new Challenger in the same model. Was a $53,000 car. My credit is a 700, and got quoted $978/84 months @9%, and $1032/75 months @11%. I told them they were crazy, and walked out. Another quoted at 14%, but wasn't told the terms..
Wise man!!! Wise move..
With a claim on your insurance for the stolen car, you should be making sure to find out how much a new car will run you with the insurance premiums .
After my car was stolen it was a wake up call to install a hidden cut off switch when it was recovered with minimal damage. I highly recommend everyone to install a hidden cut off switch or a similar system by an aftermarket company security system.
I recently borrowed alot...Towards a used pickup. I was concerned I was going to have to prove a bunch of financial stuff..which isn't easy for me. My credit union I've worked with for the last 9 years actually approved the loan..without a credit pull..or at least not a hard pull. They told me anything under 45 no pull. I was very surprised.
🎉🎉🎉 Oh my gosh 😮❗️
I didn’t realize that you were getting so close to 500,K subscribers 😮❗️That’s awesome.
You explained this scenario so well. Very easy to understand the way that you present it.
No wonder you’re growing your channel so fast 💨!
Btw, How’s your project coming along?
Blessings,Carlos ✝️🙏❤️😊🇺🇸
Thank you so much!!
Not sad for banks loaning over 80% of retail was stupid. Theres a reason you usually need 20% down in real estate. Stellantis should get 35% down!!
Credit Acceptance is doing 15-20% interest, my Neice bought her first car through Credit Acceptance last year. (bad move). She doesn't have bad credit, she wanted to buy her first car on her own and didn't talk to her dad on how to buy a car, so now she's stuck with crazy interest. My brother ended up paying the car off so she didn't get stuck with all the interest. BUY HERE PAY HERE is not new, the south if full of those dealers.
Thank you Lucky 👏🏻 You are 100% correct car dealerships are a barometer on the economy . And it’s going to get bad and too many people are still buying like the money is an endless well .
I have a good income, over 750 credit score, low debt and the banks were only offering me high interest rate or high down-payment for a used suv. I couldn't believe it. I switched gears and went for a lease on a brand new Acura. No problem. Was shocked by the timid used car lenders.
I feel dealers are more firm on the prices. I just takled with a dealer for a 2019 Porsche, and I was willing to put 50% down to make sure the deal would go through on bank's end. But the dealer was not willing to move the price even a bit. And it was not just one, but multiple of them. I live in MI.
Porsche's Sales in the US are down 20+ per cent.
Porsche's have always had higher prices comparatively but they do hold their value more.
But lately I think they gone a bit too far.
Hopefully reduced sales will make them think and affect change.
Same thing I'm experiencing right now. Spoken to a few Mazda dealerships 50 miles distant from each other. No one is willing to reduce prices at all (1-owner used car).
Buying at any dealer in Metro Detroit is a hassle.
@boyantrifonov- what “reduced sales”? lol certain brands such as Porsche Ferrari McLaren etc the economy doesn’t really affect their sales. My friends and Newport McLaren are doing perfectly fine as well as BMW Irvine etc
@@Behemoth66 First of all I said Porsche specifically.
Second the data is for all the US
You are mentioning other brands and specific dealerships and dealership locations.
The comparison is not apples to apples.
Im so glad that when i got my car in 2020 they didnt ask for apay stub. I had gotten laid off and was working somewhere new. But the HR team was a joke and i didnt get access to the portal to view my paystubs until Nov/Dec. I wouldnt have been able to pull that out
I just bought a car and I have perfect credit so no issues there. But I had some great exchanges with the salesperson. He was telling me how difficult this year has been even with the auto prices coming down. So many people coming in are upside down with bad credit. So once they got through negotiations, then these same customers had to leave cause they could not qualify for financing. He would spend a lot of time showing them the car. Driving the car. Negotiating the car. Only to find out, they did not qualify to purchase the car.
I work at Ford Dealership in Utah. Things are at a standstill, it’s weird watching it in real time… where’s the discord
My experience, currently buying a 2024 wrx TR at msrp. My local credit union would do 4.99% up to 54 months. The lowest the dealership could do was 4.9% at 36 months. I have 800+ credit score with above average income. Couldn't be approved by dealership but credit union approved me for up $60k if I wanted (crazy). But the credit union is a little more aware of my finances 😅.
I have a co worker that had bought a used 2022 WRX at a ridiculous rate that he ended up having to turn in.
I personally still have a 2005 WRX sedan with only 139k miles in great shape that I can maintain myself. I would like to get a new GR Corolla or a WRX wagon if Subaru decides to bring it to the US but there is no way I can afford it with my current debt and high interest rates.
@@evoman44 gr corolla was my first choice, but lack of availability and dealer mark ups made me decide against it
I'm glad they can't buy scat packs or hellcats. The dealers have marked these things up so much that a scat pack is 2016 Hellcat Money ($77,000) and a Hellcat is sold for S-class prices ($105,000+).
That's ridiculous. for these PLAYED OUT, PLASTIC CARS.
The banks SHOULD BE DENYING THESE LOANS.
Banks denying these loans FORCES dealers to reduce the prices.
I got lucky. On black friday, the wife and i got a 2024 Civic Sport hatchback from Findlay Honda in Henderson, for 0% interest (48 mo) and no paymentz for 90 days. That same dealership has that same promo until the end of the month (0% interest for 48 months).
Depends on how much you paid in “Total”.
If you overpaid, even this 48 month is not worth it.
@@Jora_Barguzinwhy are you assuming he over paid? Sounds like you recently got burnt. What happened
Because it’s true. They packed the front hard to where they don’t need to make back end money thus they can offer 0% lol
I bought 23 bronco sport from team ford in north las vegas, in December got 3.9 on it and then bought a 23 f150 in January got 1.9 for 72 months. I traded in a 2018 f150 which i was paying 15 precent ( i got yoyo scammed on it from ford county in Henderson in 2021.) My payment was cheaper on new truck then what i was paying by a couple bucks but in finance i got gap and tire warranty so my payment is 814 my old payment was 788. Between the bronco and f150 i financed over 100k. And no proof of income or money down. And my credit score was 668.
Hoh much are you paying for ins on 2024 Civic Spor a month or every 6months or a year? I heard car ins is cheap in Pahrump .Pahrump is 1hr 24min from Las Vegas .
I got an auto loan last week. My wife and I got a car over 40k. 2k down, 6.74%, 66 Months. We plan to pay it in 33 months. I expected to have some trouble getting a loan but it was easier than ever. This wasn't a new car either. It was used 2021.
Kids, the lesson here is to have perfect credit. It's one of the most powerful things you can have.
You also have to add the fact that insurance is to high too, so the whole cost of owning a car is now just way out of hand.
I have never had a bank ask for proof of income when I buy a car. Not for me, not for my husband. And we both bought cars this year - Feb 2024 and March 2024. When I used to go with my parents as a child to the dealership to buy cars, they were never asked for proof of income either (called to ask my mom, who verified). This whole concept of ‘income verification’ is very foreign to me. Maybe it’s because we have always purchased new cars from franchise dealers and they aren’t as stringent. Not sure.
Bought a $20k used accord about a week ago (23k after taxes/fees). 720 FICO. Only put 2000 down. They didn't even ask for my paystubs and when I told them I was surprised, they said it was because I had good credit. 8.1% APR. I live in the NE US. Dealer went with M&T Bank
Very interesting! My friend bought Mazda cx-5 with zero percent for 60 months.
Monthly payment calculation shows just 50$ more compared to yours
I live in NE and I just bought a 2022 Ford Ecosport with 11k miles for $17,500. I put $1,000 down, but my APR was 8.09% through Navy Fed and my credit score is 750. I'll pay it off in 2 years, so I'll probably pay like $1,200 in interest.
@@DasherStu 17500 out the door?! It is good price for lightly used nice suv!
@cyrusthegreat3081 Yessir! Well it was like $1,500 under others around like 20,000 miles and they were even 2020s or 2021s. They listed it at $17,910 but I talked them down to $17,500 and I knew I had to jump on it for basically a brand new SUV. I do gigwork as a side hustle so this is my new gig car and it'll help for the snow lol.
Bidenomics is SO MUCH FUN! WHOO HOO! Can't wait for 4 more years of this party!
Like the Orange Cheetoh, “King of Debt”, “I won in A Landslide”can fix anything….vote for the insurrectionists, the anti-abortion wack jobs and you ain’t seen nothing…
Why do they need to worry? the gov will bail them out like last time.
Gov cant bail them out. on 2014 there is a law where banks have to put money on the side
Small banks will fail and the insanely large banks will buy them all up. The corporate takeover of the country is nearly complete.
@@LuckyLopez777 That's never stopped them before. The only thing that scares a politician more than an educated public is bank failures. They'll just get the government to change the laws and feed at the public trough again.
@@LuckyLopez777 respectfully lucky the Supreme Court said Biden couldn’t forgive student loans and he said screw it I’ll do it any way. I could be wrong but I bet congress could just pass another law. Both parties are corrupt. But you are correct about the law they did pass.
In the Midwest things are a bit less fragile. More people can get loans here because of the huge increase in credit unions popping up over the last few years. Buy Here - Pay Here seems stable with low down but the payments are outrageous and the actual selling prices of the cars are sky high. Minnesota Attorney General is starting to focus in and crack down on car retailers of all kinds.
I sent Westlake a prime customer with great income and credit, a 60% loan to value loan, Big down payment. They asked him proof of everything, gave him an 11% interest rate and lasted 4 days to make an approval plus they charged the dealer with almost a 10% lender fee. And that is one of the few banks that may stay alive in the future.
This is a good thing. Cars should be a cash purchase and be priced accordingly. I bought a junk car and had it refurbished in Mexico with parts bought in the US.
Most serious car enthusiasts buy their sporty car of choice cheap because it needs work. Then they rebuild it just the way they want it themselves.
I think that they are trying to phase out car loans to replace them with car leases. Car leases are short terms and you will never own the vehicle. For car manufacturers this is a win-win situation. Car loans allows for car ownership which means you don't have to purchase a new vehicle, but you won't have a choice with a car lease unless you want to buy the vehicle after 3 years but it makes the purchase price of the vehicle very high. The aim is to reduce ownership, it is not about your qualification for loans or leases in the long run.
What you have to remember now. Is that the vehicles that are on the road are not nearly as reliable or easy to fix as they used to be. Attempting to cause a car to run for hundreds of thousands of miles and twenty plus years is not as easy as it used to be
Just bought a F-250 Deisel last month. Sticker was $78k, got the dealer to $72k, but OTD at just over $80k. Got $22.5k for trade, $35k out of pocket, and Navy Fed spotted me $22.6k @ 5.3% and I've got Super Prime Credit Score (+800). Payments are $445/mon for 60m. Hate to see what other prime and sub-prime borrowers are at.
Crazy story of my own. The market is in the tank I recently wanted to buy my wife a one year old Mercedes GLE450. Paying cash not financing I had to go thru three dealers before a 4th dealer would finally shut up and take my money. I offered full price to the first three dealers and they wouldn't sell me the car I wanted. I have never had such a hard time getting a dealer to take 60k from me.
This automotive lending cycle seems to be an example of alternating between fear and greed.
We live in a bubble. With today's government policies we cannot predict what will happen in next 6 months. I just put everything on hold, just making a simple living. I hope Biden will loose in November.
After waiting for almost 2.5 years, I finally started looking for a SUV. Usually I buy cash, but wanted to see how bad it is to finance a car. With my 770+ score, I got approved from 5.75 - 6.5 at three different lenders within 30 minutes. I don't know if this is market specific, but in the northeast financing doesn't seem to be an issue. But that means prices are still high
2 weeks ago I bought a car. I have a 790 credit score and apparently 2 banks didn’t want to do a 15k loan. I was well under the 20/4/10 rule for affordability. Hell, I can afford a car twice as expensive and have a job I can’t be fired from. It’s getting rough out there, really sorry to the people that need a car and can’t pay cash for it.
I wouldn’t waste my time financing a 15k deal either tbh. I don’t blame them
@@Behemoth66 but you WOULD waste your time commenting here ?? 😂
@@Behemoth66 I’m sorry that my story is too middle class for you lol
Well, we are back into the situation I experienced in the early 196's as a junior officer in a country bank. We just did not make 'em. The cost and trouble of 'chasing' non-payers could not be justified and management said 'No Car Loans' anymore. Even when we finally found and took back the auto, what profit we were to make just did not materialize.
Luckily the cars we have were bought before interest rates went crazy and my truck is 10 years old. So, gonna be holding onto the truck for a few more years until things cool down.
I hope the automotive industry in the United States understands that consumers are tired of getting screwed over. The consumer always lose in every deal. The auto dealership, the Bank and the insurance companies win. Never the actual consumer.
They're pushing for Manufacturers to Consumer's. No more sales at dealership, only take delivery of what you buy from Manufacturers and Service Center.
Dodge Scammed all of its customers
Banks stopped lending to Dodge Buyers. Dodges are overpriced by 20-30%
@@abel4776 I am surprised that Felony Stop isn't one of the model names
@@jamesrecknor6752that’s Nissans new line to replace the Ultimas.
Just leased leased ‘24 G63 & ‘24 Maybach GLS600 With only the usuals down Mercedes Motor Credit, 24 Months, MB of Buckhead delivered to KY. We are MULTIPLE repeat buyers from dealers and have used MB MB Credit for 14 years with zero missed payments that weren’t a week or more early.
Ain't buying if it's a lease. Js
So what... 7K a month in car payments? Wow!
Doc what kinda monthly payments go with those leases. Good for you btw very refreshing to hear good news for a change In comments…. Lotsa pain in the economy right now..
I just bought a 2024 Mazda CX5 premium Plus at 1.9% for 36 months. I went in pre approved at 6.9% and Mazda financing beat it. I also bought the car at $4500 off MSRP.
Even at $4500 off you still overpaid
They need to. It's the only way to get prices under control.
This is great. People should have to prove they have the means to show off their cars.
I drive a 21 Prius 👉 ….. now I’m trying to figure out how I can also acquire a 22 as well. Best car and generation ever made.
Yea, loans are a huge part of the problem, and banks eagerness to loan makes matters worse. Car prices have been slowly climbing since the 90s, due to the ease of acquiring a car loan, but recent years have been out of control.
All things have an intrinsic value, current car prices are no where near their intrinsic values. I’m seeing people take out 15,000$ loans for cars that won’t last 2/3s of the loan’s term without a major repair being needed. One bloke put 2500 down on a 9 year old focus, his loan term was 4 years and payments were 500$ a month. He’s paying 20,500 for a car worth 1500 when the term is over. 3 years ago, 2500$ would have been enough to just buy the car. Sure he got a subprime loan, but this still means the piece of shit had a sticker price > 10k
Geez that car payment used to be an old BMW payment. I can’t even imagine buying an old ford focus and then paying 500 a month for it…LOL I bet he will try to do rideshare with it.
Good morning, Lucky! I do agree with the majority of comments below. Here is SE, PA. I am seeing more and more high ends cars with more and more neglect. Wheels covered in brake dust, the shine is gone, chirping power steering pumps, and maybe one mismatched wheel. So these high self esteem drivers are now out of money and starting to sweat. They are not smiling any more.
Back in Feb this year we went to buy a dog from a local woman here in Phoenix. After talking for a bit, found out she was the sales manager at a large Ford dealer. We talked car sales and she admitted things were slow but told me they had a young lady come in to buy a car but the best loan they could get for her was at 25% interest. She said we tried to talk her out of it but the young lady said she had to have a new car for work so she took the loan. Sales manager said she definitely felt bad for her but that was the best they could do. Many years ago when I was around 20, I bought a used car at a BHPH lot at 18% for $1,500. I was making around $3.00 an hour. Took a long time to pay for it. Lesson learned.
Sad part is the buy rate probably 22% and Ford added 3% to the sell rate.
Banks MUST lend money to make money.
BUT, the borrowers must pay back the loans or they don't make money either.
Loan applications are up.
But loan volume is down because the applicants don't qualify.
True ,way more, don't qualify for loans. And with banks sitting on so many unrealized losses due to the rise and rates, especially the big banks per all insolvent and bankrupt...they simply don't have it to lend
And this is why we only buy used, only when necessary because the old one literally dies, and always in cash. Car prices are absolutely ridiculous now. I hate to think what my father would say if he was still with us, he was a car guy in his youth and he would be sad that the market is so dysfunctional that most folks can't afford to play in it anymore. It's going to have a devastating impact on car culture moving forward.
On the other hand, maybe it will cause the manufacturers to actually make an effing affordable model again. I don't know how we got to a place where an average new vehicle is sold for a reasonable fraction of the value of my HOUSE WITH 5.5 ACRES AND THREE BEDROOMS. It's totally nuts, and if this makes it stop then I'm all for it.
I just bought a Lexus TX500H, 78k, 15k down, 770 score. They didnt ask proof of income, Toyota Motor Credit
I'm ready and have been ready to buy a 80k Chevy truck, but no deals yet where I live out in South Dakota. I think sometimes not only are most of us living in flyover states, but rurally we are not even considered. I am retired and as always I pay cash, but vehicle prices are also higher here or at least still and while I can go buy one a 1000 miles away, how could I then trust my local dealer to properly care for it? Right now my plan is to fix the stuff I can on my older truck and wait. I think this is just the beginning of the pain. Inflation data still looks high and there is even talk of another rate hike, and no cuts this year. Now take this with some grain alcohol, because political pressure during an election year may muff things up. They may pass on rate hikes due to pressure and may even have a cut of .25 basis points to get the president off their back, but if the markets are still sour, you will just see this for longer, like years longer. I haven't really heard you guys talk about insurance, but they want their pound of flesh as well, talk to any EV buyer. Gas... With all the wars on the horizon... Not lookin to rosy. Good time to not have a loan.
lot rot apocalypse on the way!
facts!
New vehicle smell - rodent 💩
lot rot is not really that bad... if it was classic cars wouldn't exist. It may be true the modern computers drain batteries... and if a car sits in really hot sun the wipers could go bad.... but the rest is pretty much myth.
@@Have.An.AmicoDay nice try car dealer!
@@raymond_sycamore no not a car dealer, I had a Pontiac Fiero for 17 years that was driven very little, some years only 1 day a year to start it up and move it, change the oil ect and put it back into storage... and i've got a 2015 Mitsubishi Lancer that currently has only 2900 miles... most of those years its only been started up ect and driven down the street and back... I do unhook the batteries though... very little rot, but admittedly, they are stored inside.
I just got my step son a 2022 dodge challenger with a 565 credit score and one open auto with a 467 pymt , the gave him another auto loan at 11% with $3500 down at a Chevy store in Boca Raton FL income was $62k of course it was Santander but I was shocked they did it without stipping to trade open auto
I have never had my auto loan sold off to another bank it happens in the mortgage industry all the time
Great analysis. I used my 2018 ram 3500 as collateral to pay for a 50k skid steer and I’m down to 1500 bucks. I can’t wait in two weeks when I walk into the bank and pay that off.
Oklahoma here. Friends are in the car business, its slowed some, but everything else seems to be blow’n and going…
I have never had a problem purchasing a car and the last two vehicles were purchased at 0% interest for 60 months. There is truly a life changing benefit from maintaining a great credit score. Dont go to any car dealership begging to be financed for something you can't afford- especially with poor credit. The question how is the economy is a trick question. Those that are not over extended and have a good to great credit score will answer one way and those that are over extended with a poor credit score will usually have a negative answer .
I'm driving a 2005 Toyota Sequoia until the wheels fall off. Also own a 2006 Ford E150 and a 1996 Ford F-150. Not buying new any time soon
Bottom line if you weren’t in the position to buy when the gettin was good you’re SOL for a bit maybe a couple of years … everyone has to remember economies are cyclical; it’s this bad because it was pretty good 2 years ago 😂 but it will stabilize.
I paid off my loan early. They were not very happy when i did that lol. They only made like 2k in interest off of me
Best feeling. I got 0.9 for 36, paid off in 17months. They made like $280 :)
I am not seeing any price decreases or car dealers going out of business here in Chicago. I submitted two bids at two different car dealerships for a BMW 745e and I was turned down. My bids were very competitive and not some stupied low ball offer. Here in the midwest I am finding dealers are sticking to the list price; and they have adopted the Car Max philosaphy of no negoitation, no hassle pricing.
Banks are never gonna stop lending. That is how they make money. But they are going to stop lending to people that camp pay their bills! And that is a good thing.
Pittsburgh here,
Small dealerships are closing down. Banks are not making loans or are very picky. Cars are $15k for 180k miles.
They will continue to loan, because there will always be people making foolish decisions to borrow money, to buy a car they can’t afford,to impress people they don’t know. I have to admit, in 1980, I borrowed $3000 to buy a,car at 18% interest. (Home loans were 13% then). Over the years, when I paid off a car, I made payments to myself. The last time I borrowed money to buy a car was 1997.
Great time to buy with cash!
Yes indeed!
Toyota does a good job approving 600s with ok income. Possibly still tier 1 approvals
Sure glad I donated my last car over 20 years ago! This has more than paid for my house
Glad I did 100% down on my car :3
Car good, life good.
How much was your car?
@@JulianGonzalez1974 It was 15K back in Oct.
@@JulianGonzalez1974affordable
Only a fool wastes cash on a car. There are ways to give yourself a loan while keeping your money in the bank. That’s what a true wiseman would do lol
@@Behemoth66 If you have the means to do that, that is cool. Unfortunately I simply cannot get a high enough return on that same amount of money to keep up with an interest on a would be loan.
I just bought a 2024 C8 Corvette at MSRP in December 2023. I make six figures a year as a Portfolio Manager, and I have credit score of 825. I put 30% down payment and the best rate I could find after calling around to a ton of banks and credit unions in my state was 7.19%.
As the dealership asked me to use their financing I decided to ask what rate they could get me out of due diligence. Turns out, they were able to get me a rate of 6.75% from Wells Fargo. That was the best I could find so I took it. I was not asked to provide paystubs or any proof of income. I believe cutting a 5 figure check as down payment probably had something to do with that.
What trim & spec? What State? Curious to know, keeping my eye out for the right time.
I just completed my 6 figure car shopping; Excellent credit rating average is 833 among all three bureaus, and I earn over $200k. I normally go with my own credit union financing PRIOR to car shopping, but this ONE time I allowed the banks to run my application for their best rates. This ONE particular EV company had SANTANDER BANK take my application at 8% APR! 😮 I was so freaking mad at them! Then, they shopped my application to JP Morgan Chase at 7.49%… I called one of my credit unions that I’m a member of and asked their rate for my excellent credit rating and 0% DTI utilization. They came back w/ 4.49% and their competitor Credit Union offered 5.29%!!
I ran away from that finance department and gave them a slacking of words!! NEVER again will I allow a dealer or finance department to shop my credit worthiness out to lenders again!
If you’ve established a solid credit mix portfolio and hovering around the EXCEPTIONAL CREDIT RATING- it’s always best to have a few credit unions in your back pocket for car financing. Get the pre-approval notice/check and look at the dealer directly in the eye and say… “Not this time homie!!!” Try that 💩 with a young inexperienced buck, because I’m not the one for playing percentage games. Good luck everyone!
C8’s are now seeming below msrp left and right so your down payment is was saved you tbh.
@@RT-mv7df 2LT Non Z51. Pretty basic. I only specked out rims, engine package and color of brakes. I am in WI.
@@Behemoth66 Yeah, I’ve been monitoring the values and they are coming down. I saw a 2021 on FB marketplace that I was considering in September 2023 when I began shopping but they were asking for like $66K, which is almost what a brand new one at MSRP costs I decided to circle back just a couple weeks and they’ve dropped the price to like 60K. I don’t intend to sell so values don’t bother me too much.
I agree. Lucky I do business with Silver State schools Credit Union out of Las Vegas. They financed three Ford super duties for me. I tried to buy a 2022 used one on Saturday. My loan got denied on Monday and I had a cosigner and had plenty of income. Didn't really give me a reason just didn't want to give me the loan
You should just wait awhile or travel,. The trucks are starting to pile up on dealer lots.
Your content has application to the here and now. Very helpful Lucky. Thanks!
If the banks wouldn't be greedy and let ppl pay what they borrow their wouldn't bea problem. What's sad is the government will bail these multi billion dollar businesses before help tax paying American citizens
I am still overpaying smh. Insurance rates are ridiculous high as well now.
The Mastercard millionaires are going to be crying that people will see them as the poseurs that they are. The sales of Chevy Tahoes and decked out pickup trucks will fall off a cliff, it’s already happening.