Banks & Car Dealers SCREWED Customers, Now They’re Paying the Price
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- Опубліковано 9 вер 2024
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Today on the Daily News You Can Use, Ray and Zach review what has happened to the car market over the past 3 years which is leading to one of the largest debt crisis in recent memory. Tune in to learn more!
I could buy a new truck. BUT. I got a older 1. No payment. The prices are nuts !!! No way will I pay 70. 80. 90000 for a new truck. That's a mortgage. Not a payment
Nothing says low IQ like a truck with loud pipes. Lol
My home costs less and it's not a dump.
dont buy a new car. things are going to get crazy once the dollar collapses.
I’m in the same boat. I can afford anything I want with hefty down payment. I drive a 2007 Ford F-150 pickup with a V6 and just enough options to keep me satisfied. Bought the truck for $1475.00 used with 170k miles. Trouble free 5 years of ownership (I only drive it 5-6 K miles a year). No way am I paying $60-$70K for a truck. Get me 0% financing for 5-6 years on a $45-$50K 10% under MSRP V8 nicely optioned 4WD quad cab full size truck with a simple sign and drive transaction and no add-ons and I’d think about it. Otherwise I’ll just stick with what I have for the next few years. I really used to want a new truck but after visiting a few dealerships and sales staff that can’t deal in a straight forward manner, I have no problems waiting and investing that money elsewhere.
@@biff5856 what craphole area do you live in where a house is less?
If you're upside down on your car, why are you buying a new car? Heck, if you still have a loan, why are you buying?
Sometimes repairs cost more than the cars value
In that case buy a beater for a year or 2@@Jstielo
The customer is the market - not the product. Too many businesses don’t understand that. As for banks, they’re in the business of making profit from other people’s money so expecting anything honest from this industry is nothing but a hope and dream.
I doubt that I will ever buy a new car again. The last time was a gift to myself for a significant birthday that had a zero. It was a beautiful, zippy BMW that I still have. I also have a couple of trucks and an AWD Subaru for practical use on my farm. I also refuse to buy new tractors. And I'm willing to replace a transmission. I realize I'm an old fart now, but these prices are simply insane.
My wife and I went to buy a Porsche and they informed us there would be an up charge of $10k to $25k….we walk out and felt disrespected when they said they would not even try to talk about reducing it……….they Loss a customer for life! We have had 4 Porsches in the past so their lost!
Porsche dealerships are the greediest and most corrupt in the industry. Other higher end brands don’t need to upcharge their new cars but Porsche does so at $250,000 - $300,000 on a regular basis.
I assume your bank acct. has some heft. If that's the case, shouldn't be too hard to go online and locate another regional Porsche dealer whom you can work with. Course you may still have to get service over at the first dealer, but hey.
And there is many dealers. To go too
Good for you to Not bow down to this !
They don't care for the simple reason that if you don't buy the car somebody else will. Porsches are not the commodity that most new cars are.
Imagine paying 100k for truck that won't last to 100k miles
Problem IS It May Not Last Until The Payments Are Finished!
Nissan
Pent up demand is gone for: cars, Trucks, RV, houses….during the pandemic the demand increased for a few years now everyone is tapped out….car dealers are horrible!
Think you're right.
I simply will not buy from a dealer who has "dealer markups" on their cars. My start point for negotiations is "dealer invoice" which I know gives them a reasonable profit.
I agree 💯 and everyone needs to stick to it.
But people won't do it ,they will pay o er sticker and then whine that they got screwed
When is the last time you bought a new car? How long are you willing to wait to buy your next one? What make and model do you expect it to be? Are you willing to buy a junky car of a brand you know is bad, just to avoid overpaying a bit to get what you want, and know is way better? Finding a discount is easy if you don't mind driving junk. Holding out for a bargain is good, but it also proves you really don't need to make the purchase. Some people do need to, and that's why they have a new car and you don't, even if they had to pay more than you would.
i really like the tesla way of doing business no fucking bull shitting and only for you my friends stuff. just a plain simple straightforward takenit or leave it out the door price. how hard can it be to achieve that?
I still see addendums…on used cars. Wtf.
I have 2 paid for cars and haven't had a payment in about 9 years. The way that I would recommend people handle negative equity is wait to buy another car. Pay off the current loan first. Seems simple.
Correct.
Don't buy a vehicle you're going to want/need to get rid of before it's paid off. Then whether you have positive or negative equity in it, completely doesn't matter. You're buying something to drive, not an investment, not a toy. For a lot of people, car buying is just a form of "shopping therapy" to get rid of any excess income or assets they have, and it is a very effective way of doing that. If they think they're buying luxury or prestige or keeping up with the Joneses, they're not fooling anyone. Ask any old person whether they wish they had back all the money they wasted on stuff like that. 40 years from now, someone who is 30 or 40 now, will see how little value they got out of spending an extra $25K on option packages or trim levels in 2024, and features that in the end, really don't matter. How many people really need room for 6 people in a work pickup truck? How many pickups are even used for work? Is it worth spending all that gas money to feed a V-8 just to commute and haul the family in, when some 4 cylinder engines have 400hp now? Who really needs 400hp anyway? My 1998 pickup truck had 120hp and did just fine, towing a 6x12 trailer even when the trailer and bed were both technically overloaded. I paid $5600 out the door for it brand new, after getting a good discount, qualifying for a couple of rebates, and using $4000ish of "GM Card reward dollars". A month later, a guy drove into my open tailgate, which I replaced with a cargo net after collecting $1000 insurance. So I was into it for only $4600, and worked the truck hard, plus got 23mpg (OK then, terrible now) when I drove it to keep from piling miles onto a much more expensive car doing business-trip commutes.
Yeah, it was a standard cab, had just a 4 cylinder, manual tansmission, and crank windows. But it had AC, was a workhorse, got good mpg, looked nice, cost me almost nothing, and got me and my stuff anywhere I wanted to go.
I used it for years, and sold it for more than I'd paid. That's not happening with these $85K pickups with payments higher than a mortgage. Then people pile a couple of dirty dogs into it, and it smells like wet dog fur. So, of course they then want something new in 2 or 3 years, because they don't buy something sensible, and they don't take care of it like it cost them a fortune, when it actually did.
@@EfficientRVer Agreed. Also, no matter how much you spend, it's worthless in a few years. Someday it will be be scrap. In fact, the more you spent, the faster it depreciates.
It’s funny how the over msrp for market adjustment is just fine for the dealer to demand. Then when the market supply is way above the customer demand you are not suppose to use the same market adjust to lower the price . That of course would make you “unreasonable”.
I was shocked at the Bloomberg graph that interest on mortgage payments are now being exceeded by all other interest payments. This doesn’t bode well for our economy.
I've never seen anything like that myself. We have some folks in deep financial mule muffins.
How does it not bode well, that people are sticking with their crazy-low interest rate mortgages?
If you have a 30-year fixed rate mortgage at a really low rate, there is a HUGE incentive to stay in that house for a very long time, with a guaranteed lower housing cost than if you move and have to pay a much higher mortgage rate, or crazy rents.
Housing cost is normally most people's largest expense, by far. Keeping a mortgage which over the years will seem more and more like paying peanuts for housing, is a GOOD thing. People are locking in that bargain for another 15, 20, 25 years by not moving. You can't do that with a car loan. The loan is shorter term, and the life of the car is shorter than that of a house.
The economy is roaring account to the number crunchers in our government
Interest rates are about where they were in 2002 which were the lowest since 1980. We just came through a borrow and buy period of consumership. We may be moving back into a sell and save period. That's all.
Remember what mortgage rates were after Carter?
@@EfficientRVerbingo. I bought a house in 2021 at 3.125%, my wife and I want to move back home now (Cincinnati) but we’re essentially stuck in our starter home in RVA because not only can we not touch the same kind of rate again at the moment we can’t even come close to a similar home at the price we bought ours for.
It’s the car business it takes three to tango, consumer, dealer, lender. Car dealers don’t sell cars anymore, they sell loans. The consumer ALWAYS has the final say. And a lot of the time that answer should be NO thanks!
Well said😊
2 to tango. I pay cash. But…. Although my trade in has a free tittle and I am a willing buyer…. The Stellantis lot is dicking me around.
@@andoverwarren6392
Why on earth would you buy any Stellantus product?
They keep buying. Look through the comments over time. They are full of people talking about what they just bought. Most of them bragging that they bought at MSRP. A few years ago nobody paid MSRP. They are suckers that keep the prices high. The dealers know these idiots will come along sooner or later.
the consumer lacks the impulse control to say no. How 700$ is the average car payment is beyond me.
250 is high for me over 24 months lol
Bought a new used car 6 yrs. ago still driving it so glad I didn't fall for that high priced autos in the last 5 yrs.
Wow! Prices are way too high. The most I ever paid for a car is 10k back in 2010. I am still driving that car...
The hidden fees on used cars are crazy. I just left a Honda dealership because they wanted to charge me over 2000.00 in fees then told me if I was paying cash I would have to pay 700.00 more. That’s just crazy to penalize me for not wanting car payments.
Don't pay it. Buy a used car from a private seller, and have a good mechanic check it out. Used car dealers by definition do shady things. To some extent, they have to, because not every car they get is a perfect car that they got at a bargain. Paying cash takes away one of their big sources of profit, getting a cut of the financing profit from the bank. If they advertise a price, they should honor it, whether cash or financed. But if they don't want to negotiate down as much from their advertised price if you pay cash, that is understandable. Fees are BS, but you can ignore them and just look at the total price and decide if it's worth it to you. Often it won't be. If you haven't walked out of many dealerships over price, you haven't used your most powerful negotiating tool, saying NO.
I always ask for a complete cost breakdown prior to purchasing a vehicle and I warn them in advance if they try to add anything on at the end I will just walk out the door.
You can always finance and then pay off worth first payment. Still get hit with 30 days of interest, but if it's cheaper than the $700 and you still want that vehicle then it's a better deal. Unfortunately for me, whenever I look for a used vehicle it always feels like a rare find.
@@EfficientRVeryeah but then you have a car that was probably abused/poorly maintained with seats full of other peoples farts and boogers under the seat. Used is only ok if it’s way cheaper than new. None of this 70% after 3 years nonsense.
I'm not in the market for a car, but if I was, I wouldn't be playing their con game. If they show me a car at advertised price then tack on thousands of dollars in fees, I walk. Even more so if they charge me more for not wanting to put myself in slavery to the moneylender. To hell with that.
And I’m loving it. Everyone out there thought $1k car payments/month were normal
$0. loan payments best.
I agree! My payment is $569/month and I think that's high
Correct! So much of the market prices are controlled by the consumer. It just ticks me off that so many people felt they needed to overpay, wildly, for the previous auto market. I get into arguments at guys who paid waaaaaaay over MSRP for a truck. Their answer is "but I needed a new truck" just doesn't fly with me. I am still driving a 2003 model SUV I bought used in 2007. I need to upgrade bad but it's just not worth it to overpay. And now even the new vehicles have turned to crap. When I do finally go to buy something newer I'll go with an approved loan in my hand from my bank(credit union) and no trade-in to negotiate. The biggest question is what is the current fair market value of a used vehicle you're interested in.
Maybe they DID need a new truck. In any case, they paid up, and you didn't. So it's only right that they're driving what they paid for and you are not driving what you did not pay for.
More people have more money than you think. It lets them live where they want and drive what they want. Welcome to America, the land where money talks.
Greedy selfish humans are everywhere.
@@EfficientRVerUm, have you not watched at least the first 25 minutes of this stream? The premise is that people did NOT actually have as much money as they thought. Hence the rising negative equity in their cars, payment delinquencies, and increasing demand for repo-men.
Repo driver wanted-unlimited overtime available!😎
The market has plenty of repo guys
I put myself on the list for a cyber truck and took myself off when the second tier truck jumped from 49k to 79k
Nah. You took yourself off the list cause if you join currently you will be waiting minimal 3-4 years rn
What a dumb vehicle. Why buy it? For what usage case?
@@woodrmp1 I have a short commute and could charge at work while working my 12+ hour shifts running a cement plant.
I put 50% down for 36 month financing last year. The 48 month financing would have fit what I could afford better but it was at least 2 points more expensive so I upped my down payment in order to get a payment of $500 at 5%, and in less than three years it will be 100% paid for.
A month or two after I bought the car, the dealership was advertising 2% on 48 month loans. I was pretty mad for a week.
Look at it this way, it was a month or two not the next day. Lol
Haste makes waste. But we're not born with crystal balls. If it had gone the other way and prices or interest rates zoomed up, you'd be looking like a genius. You did fine. Maybe the interest you saved, will pay for a massage after it's paid off.
4:17 humbled and grounded 😂😂😂 thank you both SO MUCH for all the valuable information.
I just started watching this to get more educated to help my daughter buy a vehicle, but I have to say, your dad is HILARIOUS 😂 😂 Love it!!!
Keep trying. After over a year of looking, I finally got a 2023 CX5 Turbo with 11k miles for 31.5k otd. Took a lot of haggling but they finally caved.
Good job. Hopefully the Mazda meets your needs for a long time. Life after car payments end, is pretty sweet.
That doesn't feel like a deal to me.
Years Ago My Uncle Owned And Ran a Big Construction Company And NEVER Wore Suits At Work,
But Did Wear Clean Good Work Clothes.
He Went To a Mercedes Benz Dealer And Everyone Ignored Him,
So He Finally Went To The Manager And Complained About Being Ignored; Then He Left And Bought a Big Cadillac.
Compound Interest leads to wealth for you if you are earning it or for your bank if you are paying it.
I tested the waters on a 2023 Buick Envision Avenir fully loaded. I did all the steps you guys talked about in your videos and got it down to 42.5k OTD before even mentioning a trade in lol. There were 2 dealers who tried to offset the rebates with mandatory elite packages but once I had an offer the others were essentially competing to undercut each other further.
I am still going to wait for prices to crater further, my 2021 Rav4 Hybrid won’t lose much value but those Buicks on the other hand, oof.
Please people, take your time and don’t be afraid to walk.
Who buys a Buick!
@@jeffgardner8579 The 2023 envision Avenir is very nice to drive, comes loaded with tech, and I am not trying to spend 55k for a base luxury vehicle with nothing in it. I know what I am buying with a buick.
I never bought it. Its a 38K OTD kind of vehicle anyway.
We have a 2015 Buick, love it, no problems.
@@denise8242 Buick is so underrated for the value you get. I am glad there are still idiots parroting old talking points.
More cars for me!
Those Cybertrucks are ugly as F.
Zach is correct, Ray is making the case this is a free market. It's not really free market when the consumers are using other peoples money. It's the job of the bank to say no since it's "their" money that funds the fantasy
Last time I checked, the min wage country wide was less than $8.
The American dream was built on credit.
Ummm, did you read my post before you replied. The dealers abused the customer and the banks facilitated it. Period!
@@MrElvis640the minimum wage should be zero in a free market.
The banks should make loans on vehicles like home loans. LTV should never be over 100%.
The problem isn't banks lending too much money to people with good credit. The problem is people with OK credit being stupid about how much they spend on cars, and wanting a new car much sooner than the loan is paid off. Being underwater on a loan for a while is fine, if you either have the income or assets to cover it when you want to get out from under it, or you have the self discipline to buy the car you need rather than the car you fantasize about. Just stick with that car until it is paid off. Underwater or above water DOES NOT MATTER if you keep the vehicle until it is paid off.
I'm 66 and have bought probably 15 or 20 new cars. I kept all but one of them until the term of the loan was over, and often 2x, 3x, or in the most extreme case, around 5x as long as the loan term. The one that I sold sooner, I had put 80K miles on in 2 years, and sold for a good price (more than the balance of the loan) giving me a depreciation cost per mile of $0.12 per mile to be driving a fantastic new car for its first and best 80K miles.
My current car, I paid $22.8K for (MSRP $28.2), and took out a 75 month loan for. The loan balance is currently under $500, which is one month's payment ($361) remaining, plus some extra interest caused by taking a couple of payment delay offers during the pandemic. For my purposes, that was better than paying cash, better than taking a 36 month loan, better than not grabbing a bargain on the exact car I needed, which would meet my needs for probably 15 years.
The LTV was over 100% the day I bought the car, with the loan covering sales tax, title, registration, and everything else. The LTV pretty quickly went below 100%, and in fact the car is currently still worth probably 80% of what I paid for it. 2 years ago, it was worth more than I paid for it. It was not a Jeep, traded for an F150, traded for a Challenger, traded for a Bronco. Nope, just a Prius Prime, still almost like new with 116K miles, still getting 60+mpg without plugging in, still making me the equivalent of 1/2 gallon of gas for $0.79 each night that I do plug it in at home.
If someone figures out what they really need rather than want, and refuse to get robbed when they buy it, and they stick with their plan, then they really shouldn't be trading it in while underwater. A lot of people just don't have a good plan, or don't stick to it.
The banks and stupid consumers created the 2008 housing crisis and they are doing the same thing here. No bailouts!
You guys helped me a lotttt. And that ending was sooooo sweet and heartwarming. I’m a 38 year old woman who can relate more to Dad then Son 🤣🤣 BACK IN MYYYY DAY I MADE $4.25 an hour at the swimclub snackstand!! Swimclub is now a soccer field lolllll
Your dad is so adorable… laughed so hard about the soft ball joke
I am so thankful for your videos. I learned so much and it helped me when I had to go out and buy a new car. I made sure I wasn't getting ripped off and I negotiated a good deal. It sucks that so many people are willing to purchase vehicles over MSRP because they're screwing over the average person by raising the market price. I compromised by buying a new vehicle still left on the lot from last year and got it below MSRP.
We lucked out this year. In 2021 We had purchased a new Dodge Durango that we bought during the chip shortage for MSRP, in 2023 we traded that Durango for an Infiniti QX60 and we were underwater for just over 14K 😅, we started having issues with the QX60 and Infiniti purchased the vehicle back as a lemon…. We ended up getting a check this week from Infiniti for just over 20K
If you got out with your shirt, give thanks. Try a Corolla or Civic next time. g
@@NVRAMboiThey pretty much went from one lemon to another lemon.
@@MOCave7😂😂😂😂😂
my 2007 Elantra was a rental I got with 28K miles in 2008. I just traded it in and it never left me stranded and the only non wear item was the coil pack for $100 2 years ago. It was mint condition when I bought it. I would not hesitate to buy a rental again if it was very clean.
Ray and Zach, I've been debating this with friends who overpaid for their vehicles. I told them if people stopped overpaying prices would come down. They said people need vehicles so they are going to buy over priced vehicles as long as they can afford the payments. People are not shopping price they are shopping payments. Then they wonder why they are upside down when they want to trade in for something newer. I am a hold out and refuse to pay over inflated prices.
Your friends and the rest of us need more people like you. More new cars for the rest of us. Doesn't sound like it will be too hard to outbid you the next time I need a car. Which shouldn't be for a long time. I bought in 2017 and am sitting pretty with it still running like new.
Good for you.
Yes, the FORUMS are great
If I have to live in my car, can I write off the loan as a home mortgage payment?
No. But now that you mention it I'm sure someone w/find a way to charge 'property taxes' for that.
In 2022 I "bought" a 2020 Nissan frontier. They screwed me, and didn't even let me out lipstick on. Granted I signed. I was desperate. I'd been walking back and forth to work for a few months. I had an 830 payment with 17% on a 30000 truck. This was WAY to much money for me. Now my credit score is 540 and I can't get approved for a 8000 truck with 3000 down. I'm going tomorrow to look at an 83 grand wagoneer from a guy who said he'd work with me if I need to make a couple payments. But tbh I'd rather have no car payment anyway. The one I'm looking at seems like he only took care of it mechanically and not the interior or exterior. Wish me luck guys.
I'm sincerely wishing you luck. Learn from it. Keep working, keep fighting and things will get better if you push yourself. Everyone gets kicked in the teeth now and then.
Don’t do it. Get an older SUV that will last. A Highlander or Pilot may not be flashy but you won’t be dealing w/Jeep heartache.
No one dragged customers to buy the cars!
Every day that goes by I’m glad for my 16 Jeep Rubicon. Ordered it when I had positive equity (paid off) in my 12 Sport when I traded it in. (Took that loan for 48 months paid it off in 42, the new one I took for 60 and paid it off in 48) it’s been so dependable I just kept driving it. 8 years later and 185k miles I definitely got my money’s worth. Now I’m actually just thinking about keeping it as a summer toy and just sitting back and biding my time and wait for a good deal on either a used or new full size truck. It’s so weird to me that people were willing to pay over msrp so regularly for vehicles they were taking loans for. I get there were people in a bind that were simply stuck having to buy something, but I think the majority was just a case of lack of discipline and wanted to “keep up with the Jones”.
you guys are awesome, so glad I found this channel .
Ray, why didn't they "open the customers eyes" BEFORE they made the deal??? Let the banks clean up their own mess...... they created it.
No one wants to pay the high sticker price, also the high interest rates. Interest rates are more for me right now
I’ve been trying to buy a new car and at today’s negotiations they said they wouldn’t budge on the listed price. Of course they had about $4000 in add ons like etching and protection. All of which I didn’t want. Ended up walking out because they couldn’t give me a reason why they couldn’t remove their tracking device to help monitor when the car needs oil changes and where it’s located. This was $2000 Ummm. What? Sheesh.
Keep talking and negotiating with other dealers, you are the customer, you have the money they need to stay in business.
@@kennethmasihdas1316 I just came out of a Honda dealership selling a 2018 Honda crv and their markups for a listed $27k car brought the cost to $40k! I was really flabbergasted.
Went to Toyota to test drive a 2023 Camry se hybrid and that only included about $2k in dealership upgrades. Quite a bit of a difference.
The kicker is Honda and Toyota are owned by the same owner. Hmmmmm
Actually I just order a new car Tuesday, I'm putting down $11,383 cash down plus $1900 for my trade & financing an even $20,000 at 3.9% for 48 months! My payment is $450.69 which I will pay off early, only reason I'm financing is my CD's at my local FCU are paying 5.10% & 5.35% interest, I'm making about $800 a month in interest right now at least through May 2025. I also retired early at 55 two years ago, I have no debt other than normal monthly bills, my house is paid off, I pay my credit cards off monthly & I'm planning to pay off my new car in less than 2 years!
*WARNING!* Never buy a car with software that reports your driving habits with insurance companies !!! They are both working in tandem to drain your pockets dry.
Supposedly Ford actually purchased that cybertruck from the Porsche dealer for testing.
I can trade in my 2019 Tacoma TRD Sport, long bed right now, for no less than $32,500. I have $7,000 left in payments. I purchased this baby, brand new, for $36,400. It depreciated less than $4,000 in 5 years. Can't beat it.
I keep looking for one but still too much so I’m using a family members car, have been for over a year now.
@@AnimalFarm341- As long as we all keep 1 thing in mind. High priced cars/trucks and SUVs are WANTS. They not NEEDS. If many of us can remember that 1 truth, we'll put manufacturers and dealerships in their place soon enough.
I'm done with that rat race. When the market was so crazy that a dealer offered me more from my Camry than I had paid for it 3 years earlier I knew things were so far out of whack it couldn't continue. I traded it for a fully paid off 2011 Silverado.
I did the same. I bought a new Buick from the same dealership I purchased my 2 year old Buick from, and they paid me more than what I paid them for it 2 years before! And I got the new Buick at a discount with 0% financing for 4 years. I couldn't pass the deal up.
I work for a pricy insurance company, and a majority of the calls I get are people concerned about their premiums when they're looking to get a new/ used car. So my strong recommendation to everyone is to look at your budget, look at what your net income is, analyze how much of your paycheck you can spare to a car. Any car. Between the cost of insurance, finance payments, maintenance, gas/electric/both, etc, people are screwed in that way as well. Risk is a common denominator in any industry. How often do you need to drive? Or are you a homebody who drives only on an as-needed basis? How much money that you're bringing in can go to one vehicle and all that goes into it?
Just a little food for thought.
I wanted to trade in my 2020 Camry XSE for a v6 or a hybrid. I found a v6 XSE I loved that was the same price after fees as what they were offering me for my car. I told them of course I would trade in for a better engine and 3 years newer. Then they tried adding an $18k markup over MSRP after we had an agreement. So I walked out and still have my 0% APR!
My local Ford dealer has 32 new 2023 vehicles still on their lot 75+ 2024 models and 75+/- used vehicles in surprised they are still in business
A very big factor in our economy is the hidden inflation that isn't documented by the government in the cost of everyday purchases on credit cards. I would wager that the vast majority of people with excessive credit card bills are near to their credit limit and only paying the minimum payments along the way. So that $60.00 tank of fuel ends up being repaid at 20% or more interest over several years. Same with groceries; clothing, etc.
I own my trade free and clear … with high value. I have cash in hand… and Stillantis still jerking me around.
Stillantis is junk., good luck
Such a fun episode, as usual, & always learn lots, keep em comin guys thanks!🙏
47:02 Ray is doing a Scotty Kilmer impression, eg “Crappy JatCo transmission”
Rates are going up to fight hyperinflation. This time it's different
Lets go Brandon!
I don't call it hyperinflation with gas being $2.739 and a can of name brand tuna being $0.99. Last week I got 25x 28oz bottles of PowerAde for $1ea minus $5 off $25 purchase of Coke products, so $0.80/bottle. Hyperinflation my ass. Learn to shop.
When I bought my first house in 1982 at age 24, the going mortgage interest rate was 17.9% variable. After 6 more years of Reaganomics budget deficits, I sold the house for 2.5x what I paid, and put the profit toward building a new house. So, a bit of inflation can be a good thing, especially if you own a house and don't buy a new car every 2 or 3 years.
@@EfficientRVer I don't know where you are seeing those prices but it is NOWHERE in the USA ... sorry. Gas is nearly 4 bucks a gallon, a burger and fries for 2 people at Red Rodin was 50 bucks. It does not really matter what the interest rate on a house or a car is now because based on price alone they are both way out of reach of normal people. Democratic shill much?
@@EfficientRVeryou rolled profit into a house you couldn't afford? Doesn't sound like a wise use of "profit" that is really just currency debasement
I bought a used 2023 Kia Niro EV with 3000 miles on it….i brought it to the Kia dealer for a potential trade to get into a hybrid as my wife would like to take road trips across the state this summer…was told the trade value was 24k…the car was 48 grand 6 months ago…astonishing. Glad I only paid 30k for it, but still half the price as soon as its used
They're not worth the price to start.
The price of cars in the U.S. is artificial.
They raised prices several times to prevent ownership by black people and the poor.
*Buy From An Auction For Used Cars!*
I drive a 2017 Tacoma 4x4
119k on it- it’s a peach and a great vehicle. I don’t see any new 60,70,80k monstrous rolling IPad in my future
I see two problems still on-going: 1. dealers are low-baling trade-ins 2. Lenders are STILL wanting to use high APRs for both new and used cars. New cars apr ranges from 3.99 to 8% with 700+ credit rating for new cars, and 5.99% to 12% with 700+ credit rating for used cars.
That’s right i went to a credit union i been approved but 6.45% with 822 credit score is insane i just gonna keep my old car😅
@@jhonatanmeza2710 I know! Just last year in February I bought a car and got 3.99% and I thought that was high back then 😅 This year they WANT 7% and up??? Screw that! I tell the dealers they can keep their cars and they'll decorate their parking lot lol
I’m one of the thousands who got stuck buying a car during early 2022. Had no choice, came back from foreign assignment, owned no vehicle in US. Was renting at >$75 daily, didn’t enjoy walking so I leased rather than purchased. A Toyota Dealer in KC lied to me about my credit rating and was almost suckered but luckily had a contact who helped me, but still took his pound of flesh too.
Lease ends 3/25 and hopefully there will be opportunity to return to some logic in this insane industry of crooks.
excellent information and when you guys who know the real score of things take the time to share the truth of things - thank you for your time and information.
Man I never thought I was being stupid using my stimmies on trade school and ammo, at least I didn't get a car note with it
I don't understand Dealer finances. I ride my E-bike past new car dealers. I see salesmen. I don't see customers. Sometimes, I stop and talk to the salesmen. They typically don't know much about the vehicles they are selling. Most have business cards that have the previous salesman name scratched out, with theirs hand printed in. They are paid commission only.
My son visited, he decided to fix my 1998 F150 rear brakes. Shoes, wheel cylinders, drum (only one). $100. Good for another 25 years.
It’s true most salesmen have their heads up their asses.
For the last ten years I've been saying that the ultra low interest rates at the peak of economic boom would come back and bite us at the next recession. Am I a genius, or the people in power knowingly creating this chaos? I'm not a genius.
So, I bought my first financed car end of last year. I always owned them outright before. My mortgage is financed at 2.125%. OF COURSE my car payment is higher than my 15y (13 years left) mortgage - I bought the house under market value and have about 40% of the value now financed. My car was under $30k, but the interest rate is 4.9% - so despite the difference in what I need to pay, my mortgage payments are lower. Not with Escrow - Texas has high property tax in lieu of income tax - but the mortgage alone is under $400, the car is just shy of $530. It all does not matter if your income can easily cover both.
The mortgage and car loan were both great deals. It sounds like you are well on your way to a very responsible life without financial problems. Having practical, reliable transportation is one of the requirements for making that last.
I just came across your channel for the first time. You guys are great and offer honest information about the car industry. You guys also make e nostalgic for NJ.
17:31 I’m a bank teller and I can’t speak for auto-loans (we don’t provide auto-loans) but I can say that we’ve already RAISED our mortgage rates once so far and we still have 3/4s of the year to get through 🥴
If the average person has $6,000 of negative equity, that means there must be millions upon millions of fools who trade in their vehicles every couple of years. If they simply held the vehicles for 4 or 5 years, they wouldn't have negative equity anymore. This leads me to believe that the entire dealership model is built on nothing but lunacy.
I recently bought a car from toyota dealership. They did not like that I was indeed NOT financing inside their office. But directly at the bank. They had a relationship with that same bank that they lost, due to fraudulently giving me a PO that had the giant word PREVIEW written over it.
At $18000 interest payments for a car when I bought my last car it was $9000 for a 2013 VW Beetle in 2019 with 31000 miles on it so for me never will I ever buy a new car because the debt isn’t sustainable
Post covid economics can be explained very simply. The generation of kids that were taught common core mathematics became adults and started buying stuff. These numbers were so big that it got cumbersome to draw enough lines, or do the many smaller math problems to add up the price. Because post covid people were paying over asking for houses as well as vehicles. Who looks at the price and offers more? At least with a house you may stand a chance. But if you paid markups. You deserve your negative equity problem. Nobody cares about the special high end trim when you trade it back in. KBB does not ask about the markup you paid. That was your own problem. The only person i feel bad for is the auro accident victim who's car is totaled through no fault of thier own. My heroes are the ones that went from buying new vehicles to fixing up older vehicles.
Lots of ppl hoping to get a Honda civic type R, but even though the nat'l inventory has gone up 2-3X at 1500 in usa, and the cars are moving slowly... how can we convince dealers to lower markups? The cars are sitting, but the dealers have dug in.
Sometime I feel that cars such as the cyber truck you mentioned are bought at actions at a bogus inflated price just to raise the prices that dealers can sell them for.They can tell a potential buyer of this type of truck that although the Mrsp is 100K but look at what recent sales at actions have been,well over MRsP.For years wealthy people have been selling and buying Arabian horses horses this way and its a scam
Anyone buying a car for more than it's worth, to try to prove it's worth more, is a fool. Car dealers are not that dumb. In fact, they probably have specific buyers waiting to get one at an agreed price, before shelling out crazy money.
They want to establish a frenzy and force the public to make irrational buying decisions because they don't want to be left out
Also your transaction total cost sets your insurance price. So the less you pay also means the lower your yearly insurance is! My full coverage 2 mill commercial policy is $994cad
I buy cars with CASH ONLY (usually bank draft drawn on solid savings) example I bought a 2012 Chevy 1500 WT with 111,006km (68,976 Miles) for $10,000 ($7,383.95 USD) with cruise, tilt, air, P-locks
I'm in the Mower trade all through 21 -22 even when we couldn't get enough mowers to sell we sold them at MSRP. WE DID NOT add to the MSRP, we sold ALOT of mowers and did well but we didn't SHAFT OVER the customers.
I wanted to pay off a loan of $8000 over 4years Paying $600 a month ..i wasnt quoted an interest rate..They said no you have to pay it over 7 years.. Quick calculation $54.000...Whats the interest rate??
13:05 people need to not go to university and instead go to trade school. Stay away from college where the debt burden will keep them from buying a car
And trade jobs generally aren't as vulnerable to offshoring.
But, the banks agreed to it also, and to their own detriment. In the housing market there was a big deal made of "predatory lending". This is a far more egregious example of that same thing, preying on the poor and ignorant. Dealers will of course try and sell every car they can, but the people on both sides of the finance desk bear responsibility, and both should suffer the consequences...
Not sure why people think it’s the bank’s problem. If a person has good credit, strong income and wants to pay $100;000+ for a 1986 Hyundai Pony, it’s not the bank’s fault.
If the person can reasonably afford to pay it back, do you think it’s the bank’s job to be the sanity check for the purchase? They don’t loan money to the car, they loan money to the person.
Taxpayers should not have to bail out either banks or car dealers.
Like we have a choice😂😂😂...
Ray is right why is everyone in the comments trashing the dealership when it’s the stupid people that are buying cars that can’t afford and then selling them within a couple years and buying something even more they can’t afford. We have some of the dumbest people who have everlived on the earth right now buying cars and then complaining about their situation.
Like they say a fool and their money are soon parted, I refuse to pay these prices.
Yup, kept my car for 20 years, so I didn't have any financing left.
I went to auto nation North Phoenix yesterday to look at Jeep Wrangler Rubicon x or the 392. OTD for the 392 was $121,000!!!!! Then the sales manager would not tell me a price on the Rubicon X unless I committed to buy that day! I walked.
Prices on homes and vehicles in the 80's were also not 300k to 800k and neither were vehicles.
I’m not a savvy UA-camr… your program is fantastic and I’d like to try to watch it live and post questions (I’ve got plenty) if you see this please let me know when you live stream. Regardless your program is fun and informative. Thank you.
Can you talk about dealers getting rid of affordable cars for people who are starting out.
I remember getting a 13 month CD for 11% in 1987. At renewal it had dropped to around 9%.
In the early 1980`s I was getting 18% for 1 year CD. The rates are not bad now in REALITY, but convincing the spoiled is futile.
What's your take as to why there are so many new trucks on the market with ridiculous amount of miles. I was taught, not to buy any vehicle, especially American made with over 100 thousand miles.
Thinking about a Mazda 3 Hatchback Premium (manual transmission). What do you think?
Very sensible car, and fun to drive. I hope you plan to keep it a long time, because unlike 40 years ago, the manual trans really limits who you can resell it to down the road.
I bought new manual cars in model years 79, 85, 93, 94, 97, and 98. Plus used manual cars from 66, 70, 70, 73, 84. There used to be a lot more people who knew how to drive them. Though I would love to drive a manual, at age 66 now, I know that if my sciatica comes back, or my knee goes out again, it is painful to use the clutch. Plus I'm hooked on Prius. Not many young people even know how to use a clutch. So, if you tear the ACL or MCL in your left knee, good luck finding a buyer, because you'll be needing a different car for a year.
I hear you can get premium fora standard car!
4 vehicles ago I put $5k cash down. Since then I have put not 1 penny cash down and have been able to build equity in my vehicle up to around $7k. Every other vehicle I seek out a dealer demo, they are still brand new on paper, warranty doesnt start until titled to a buyer so it has "extra" warranty length when you go to sell it and they are heavily discounted. Let the dealership eat the initial depreciation on a new vehicle.
my hsb mowed our lawn today in Tacoma WA --67 degrees in the shade, just had to rub it in Ray!
Is it a waste a time to go to a dealer and shoot a price $40k less than sticker? like on a 80k pickup
Most certainly. But now I'm thinking you should do it just to see the look on his face. Then ask him how his floorplan is looking for the month.
Don't lose your time going in person. Send an email with your conditions & wait. They play tough but they will cave in at one point if they don't want to close shop.
Ray: "We as buyers set the market" and to resist the desire for the shiniest new thing to drive down prices.
In an episode last week Zach shared he owns a bike. Ray? A 2023 Mini.
I love you Ray, but really?
our household is top 10% , own 10 cars no loans, we can afford a 90k new vehicle, wont do it, keep looking but doesnt make sense to pay 60k for a 2022 with 70k miles, will wait
Dave Ramsey will tell anyone who listens, never pay retail or worse, over retail, for anything that depreciates. I bought a new RAV4 TRD in late 2021. I simply told the Toyota dealer, one of the largest conglomerates in the country, what I was willing to pay. If they didn't like my offer, I would simply leave. Since they kept me there all day, I knew I would get the vehicle for my original offer price, which was more than just a couple thousand off the sticker.
That was quite the rant from Ray, but all worth it. Love him! ❤
Great show tonight …I enjoyed it very much …
In 2020 and 2021, I saw people get BRAND New Cars, that never had a new car in their life. They were getting approved for high purchase prices, because the Bandempic gave $1600 more than their usual income monthly, while they were not even working at all.
The customers are tickled to death for this to be possible. If they are upside-down on their car loan and they are allowed to transfer that to the next car, they will do that in a heart beat, rather than lay that $6,000 or whatever it is, out of their pocket.