🌟 [ 28 ] 4 Years of Markups Finally BROKE the Car Market! [ @ ]

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( 302274 viewed : 6561 like : 1610 comments ) 4 years of greedy dealership tactics have officially BROKE the car market as we know it. The huge markups, ADMs, addendums (whatever you want to call them), led to people overpaying for their vehicles. This has driven up the national average of negative equity substantially. People feel stuck, they owe more than what their vehicle is currently worth and banks aren't handing auto loans out like candy anymore. Dealer inventory levels are to the moon... to the point they're having to turn away allocations and deliveries. Something has got to give, and soon... or else a car market crash will be inevitable.

Topics I discuss in this video:
5 years of dealer markups finally BROKE the car market! [UPSIDE DOWN]
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Supply constraints drove dealership greed…
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Dealers were quick to put revenue over reputation… now they’re kicking themselves.
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Chip shortage being a lead driver [semi-conductor chips]
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Desirable trimmed vehicles were impossible to find… many coming with $10-30K markups
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Even normal cars would cost $1-5K over…
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3-5 month window where deals were to be had…
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Interest rates were sooo low (money was cheap)
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Loyal customers got the shaft
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Returning customers were flicked
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Used vehicle prices were hugely inflated
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Inflation got out of control
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MSRPs were hiked 42%
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Lenders were issuing inflated loans… 135-150% LTV.
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Now supply has far exceeded demand
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Discounts are now huge… Bronco Raptor example $123K… now $73K… $50K gap.
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People who have been paying for their 5-6 year loans still owe huge amounts
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Negative equity is $7200
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G63 AMG… Porsche 911 GT3… C8 Corvettes… Ford F150 Raptors, Bronco Raptors, Toyota 4Runner, Tundra, Sequoia, Tacoma TRD Pros… RAV4 Prime!
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Banks would roll negative equity into their new loan.
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Repo rates have skyrocketed 23% in 2024
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Repo men are backlogged 6-7 months in many parts of the country…
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3.8% average end of 2022
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7.7% average end of 2023
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Now average is 7%… 11% used
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17-25% interest rates for people with poor credit. See it from Carmax.
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Now people are stuck
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Luxury vehicles being offered by non-luxury segment manufacturers like Jeep. Grand Wagoneer… $105K
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1.6 trillion in debt across the US… car loans
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Inventory levels have seen unprecedented growth rates. 120% over last 2.5 years..
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Depreciating assets… we often forget that.
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Doesn’t help that modern vehicles have seen a huge decline in quality and huge hikes in price
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Lots of outsourcing to cheaper labor countries… Mexico, India, etc…
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A paid off vehicle is the best type of vehicle!
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Do research before committing to a deal.
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You are in the driver seat!

What comes next? Will we see dealers slash prices even more before going belly up? Let me know your honest thoughts of the impending car market crash. If you found ANY value in this type of content, please consider Liking and Subscribing. Your support means a lot, thank you!

-Stay Untamed...

#carmarket #carsales #marketcrash

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🌟 [ 28 ] 4 Years of Markups Finally BROKE the Car Market! [ @ ]

Checkin Camera app for android

4 Years of Markups Finally BROKE the Car Market!