IT BEGINS! Inflation has DESTROYED the Car Market
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- Опубліковано 10 чер 2024
- Inflation has destroyed the car market... and it took out the Middle Class while it was at it. New and Used vehicles are stacking up on dealership lots right now. Inventory is through the roof, forcing dealers to slash prices substantially to actually sell vehicles. In this video I provide some staggering details, stats, and facts that are quite alarming. Something has got to give... and soon! The average American household cannot keep up.
Some of the details I discuss include:
- Average American pays over $1000 more a month to for regular necessities… rent, food, insurance, etc… due to inflation.
- Cost of living comfortably in US has gone up by 80% since 2020... while actual income has only increased by 23%.
- Car market is similar to the housing market EXCEPT the housing market has supply constraints, people are holding onto their low interest homes. Not the case with vehicle inventories.
- No surprise that we're seeing the highest level of repo rates.
- Americans are having to pull back…
- Middle class has been stretch too thin!
- Owning something has become a luxury… No longer a realistic American Dream.
- Cheap options are becoming much more prevalent… Chevy Trax outsold all of Cadillac Q1 2024.
- Highest levels of negative equity… Average is -$6K per auto loan out.
- Highest interest rates. Seeing 7-10% for Excellent Credit for New Vehicles, up to 15% for Used Vehicles.
- MSRP hikes... gone up 36% across the board since 2019.
- Full-size pickup average sale prices $65-67K. Remember when they were $40-45K?
- Loan payments for new cars set new record at $712 per month, up from $576 in 2021. Used cars have an average monthly car payment of $515 per month versus the previous $413.
- Prices paid are going down… $47,200 average transaction price, was just under $50K during pandemic.
- Reputation matters now for dealerships. Which is good! The way it should be!
- Remember who took advantage… don't pay them any business now.
* Middle class: The income range is $55,001 to $89,744.
* Upper middle class: Incomes between $89,745 and $149,131.
* Upper class: FTop 20% of incomes of $149,132 or more.
This does vary by location… For instance, there are 3 U.S. cities where people making a $150K income qualify as lower middle class (2 of which are in CA).
Thanks for watching as always, I sincerely appreciate your support. Please consider Liking and Subscribing if you found any value in this type of content... I greatly appreciate it! Thank you.
#carmarket #marketcrash #dealerships
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@untamed_motors - Авто та транспорт
Apologies. I didn’t clearly state my opening point… the average American spends over $1000 more for regular necessities PER MONTH compared to 3 years ago.
Correct. And the vast majority of wage earners have not seen a 1500 rise in monthly income. If anything they make less money now than 3 years ago.
I have 823 credit and they wanted 11.64% to finance a used truck and i told them to pound sand! I just paid cash. Screw them!
@@Starwarsgames66 isn’t it insane!? Smh… good call to avoid those rates
just beginning OF inflation is transitory hahaha SOFT LANDING
Trump 2024
Inflation since 2020 is 20%. Some MSRP price increase up to 38%. Yeah I see more greed than just inflation. Same with insurances.
Bingo 💯%
Greed? How about a government that dumps money into the economy. Basic supply and demand. The government continues to add regulations and restrictions on companies making it more expensive to do business.
Vote for socialism, congrats, it’s rolling in!
I wish prices had only increased 20%.
@@joegrahe3958 I believe the average is 20%. I think most of the things we actually use have blown up tremendously.
It’s such a scape goat for these companies to blame inflation. I don’t see how people are buying these vehicles…
The days a 10k downpayment was “good” is over… now u can put 10k down and still barely make a dent in your auto loan term
Dunno. I put $30k down and paid $1800 a month. My car is paid for next month. Just took 21 months. Car will last about 20+ years and I drive 300 miles for just $9! It should last about 750k miles. That is a good investment.
@@davidbeppler3032bullshit!! Your batteries are NOT going to last that long buddy!!! You’re as delusional as the people pushing this crap!
Yeah that’s the unfortunate truth… =\
Agree I bought a new 4 runner last year w 12k down my monthly came out to almost $600 a month ended up buying it cash on the spot ridiculous what’s happening
Yes, but no more mean tweets.
Lol you’re just so damn stupid.
I have a 770 credit score and got denied for 12 thousand dollar 2009 Ford Ranger, so I just paid cash
That’s because banks will not finance anything older than 2014
Yes our country is absolutely falling apart and the idiots in these government jobs have no idea what it's like for the American people
Makes me sick!
The US Government and the new emissions standards are partly to blame for the higher costs but most are from manufacturer greed.
I just went to an auto loan calculator and was not surprised to find that a $60k vehicle loan with %10 down for 60 months is almost $1000 per month. And not much less for 72 months. That puts me out of the market, I absolutely refuse to pay that much every month for a vehicle.
Lease a new Tesla Model 3 for 3 years for just $299/mth. You are welcome.
If you can only put 10percent down on a car loan you should not be buying anything.
@@edvozar9948 it was more of a point of reference
A lot of people feel the same way.
They don't want you or anyone else to drive. There's alot more than inflation going on .
“A good honest dealership” 🤣 something beyond rare there.
thats for sure dealer added bs options with no future resale value
That’s a fact… though they do exist. Just harder to come by is all!
@@UntamedMotors shop farther from the home base
Dang I pay 1300 for my 2 GX’s. So glad I got them when I did. Hopefully this nightmare is over next year. Love you showcase that REAL tundra in your videos
Financial literacy is seriously lacking in this country. Nothing should be financed with the exception of a mortgage which shouldn’t exceed 28% of your gross monthly income. Save up and pay cash for your vehicle. If it gets you from A to B it’s good enough.
Who lives like that lol
Look up the average car payment in America. It’s crazy. I hope people understand how to invest and what compound interest does for their retirement.
@@suplex57 I know plenty of people with that “you only live once” mentality. Making a six figure salary, up to their eyeballs in debt and living paycheck to paycheck.
@suplex57 you have to work hard. Which is very rare. In my household we own our house and 3 cars. No payments. Too many people live well beyond their means and think it have to do it. Debt isn't normal. It's accepted, unfortunately. Discipline takes work as it doesn't come overnight and never ends.
@@elche1976 Thank you…
If you raise your prices by 30% then slash prices by 10% you’re not doing anything. You’re still over priced by 20% . As far as interest rates being 7%+ that’s crazy !! This has to stop . We can’t keep going in this direction.
This isn't your average everyday inflation, this is... advanced inflation.
Yeah it’s extreme… people can’t keep up.
Imagine how affordable a new vehicle could be if the government didn’t dictate it’s economy and safety features. The brands can only do so much with what they’re being forced to make.
like the japanese, i want to see a barebone car. like the olden days of honda accord 4 cylinder LX model frorm the 90's. they were really reliable cars and cheap
A base corolla is 23k which is ok but with the interest rates its just under $500 a month.
I’ll take a barebones S10 or Ranger.
1990 Honda civic $11,000. And I was taken. Lol
@@RFJersey I dream about those early '00 trucks little single cabs that can get shit done for the average person.
24 base ranger 4x2 is $35k locker optional for $500.
You need over 200K to live comfortably now and save some amount of money.
Yes
Depending on where you live. Self control and discipline are required.
Bro me and my wife 32 in Houston and by what you said are considered to be upper class but things are still high we like to save and glad we can but if we bought the average house and had average car payment and other average payments we would be almost be living pay check to pay check
in America to do the "AVERAGE" housing and auto purchases at these rates would need to clear 155-200k a year to be lendable on paper. thats two 100k jobs.
I'm in houston too, and it just has gotten dramatically more expensive since 2021
@@chrispriester1647 dramatic is not the word for it we made more last year than ever by a long shot and in 18 and 19 we made 120 and lived like kings I had a 2gen raptor and all and we still put plenty in the bank
I'm in Dallas Ft Worth and inflation highest in nation here and I'm sure Houston near the same. I feel ya
I will never step foot in a Hyundai/Kia dealership again after the pure arrogance they displayed in marking up their vehicles when we were shopping for a Telluride/Palisade in early 2023. And they weren't afraid to tell you about it. I had one manager at a Kia store in West Palm Beach FL tell me that he could sell all his Tellurides to other dealers for 7000.00 over msrp. To this day whenever I see a Telluride or Palisade I wonder how bad that driver got bashed over the head in buying that vehicle.
Always great content.
Southern California here.Appreciate your view on what’s going on with the present time.Always appreciate the heads up.👍🏼🇺🇸
Appreciate it brother! 🙌
Your Tundra looks so good with the paint matched bed topper👌
I think there are going to be some major layoffs in the Big 3 , if they keep producing these overpriced vehicles . Even we who could buy one , don't because of Price and RELIABILITY !! Pretty sad what the american brands have become ! Another great video ...
Your videos are well thought out, well prepared and very well presented ,thanks for not running around like the rest of the car UA-camrs screaming the sky is falling …. Thank you Sir!
Thanks for the positive feedback man. I really appreciate your consistent support of the channel. Thank you! 🙏
As always, great work man. Completely agree with your perspective on our current conditions.
Appreciate it Brad! 🙏
Nice video and stats.
Thanks brother 🙏
Hey, good load of information right there. I'm looking at getting a truck this coming winter and am hoping things slow enough I will see some mark downs.
Thanks man, I think deals will be even better come early 2025.
Great topic and very interesting. Kinda sad situation we’re in.
Sorry but price gouging is going on here with inflation being used as smoke screen. The level of greed going on is insane.
Just got my insurance notice, 50% increase 2 500.00 a year on 20 year old car no tickets no accidents. My landlord just increased my lot rent 200 a month. Gas went up again 5.50 a gallon here.
That's insane
You need to replace the word inflation with the word Greed
Definitely interchangeable, you’re right. 👌
@@UntamedMotors Yes, and before people get their political hairs up, it's largely everybody in the manufacturing, supply logistics and delivery chain (of cars or whatever) sensing an opening and taking advantage--beyond any legitimate costs, "actual" inflation--wanting theirs. Some segments more (and for sure some "more legitimate") than others depending on what commodity. It's a dominoes effect and also ends up in an endless loop. Every part of that chain needs to be examined and dealt with, held to account.
Edit: politics certainly play a part, especially regarding those in elected office who look the other way regarding their (likely) pet segment of the above, and who then make additional political brouhaha as a misdirecting smokescreen regarding their (in)actions.
Thank you, greed is the problem.
@@springertube this is just inaccurate. The source of inflation is the result of money printing. Everything that happens with inflation is downstream of money being devalued by the printing money. That means it is ultimately the effect of what the government has down. So your order of responsibility is backwards. It's government printing money 1st, the results second. But, people were stupid and voted for pedophile Biden for president and don't want to take responsibility for what their stupidity wrought!
@@springertubedoes that include the UAW?
It’s annoying how much the MSRP of new cars are, but the quality seems to be lower. I’m going to be looking at a 1/2 ton later this year and I’m just waiting to see what happens with the market. Not sure if I go used or new yet.
I haven't seen any price breaks here in Tennessee on Automobiles
I wish I could have you negotiate for me. I am headed to a Toyota dealer this weekend to possibly buy new tundra. First dealer purchase so not sure what to expect. What would be a good deal on a 23 or 24 sr5?
Enjoy your videos.👍
If you have a 2nd gen tundra the used car market is still hot lol. I just bought 2019 TRD off road 4x4 double cab not to long ago. And the same dealership told me they will give me what I paid for it, if I want to get rid of it, even gave me a we owe in writing for the next 6 months. And then I got a letter saying they're willing to do 20% above blue book trade in on it. Which is almost 2k above what I paid for it lol. I just bought this thing a month ago and they want it back lol. Not selling the new tundras so well.
Facts another great video! Where can I get your UM hat! SnapBack?
Landmark has 2023 “New” vehicles on their lot. The oldest navigator has a sticker of over $100,000 and has been there since August.
They rather leave them there to rot than reduce the price.
It also has to do with greed in the car market on the part of the manufacturers and dealers. For a Japanese mid size car I need AT LEAST a 20% discount off MSRP before I would consider buying. In late December 2011 I got 23% off MSRP when I bought my new Japanese mid size car.
It’s mostly greedflation in the car market as well as many other businesses. They charge more because they can get away with it. Problem is they are pricing more people out of the market.
Hoping the manufacturers adapt since dealers will not/ cannot discount their profits margins. Solution seems make cars with fewer frills that provide reliable transport. A $15,000 vehicle perhaps. Make up the loss in volume.
BTW I watch your blogs from time to time from New Hampshire where I retired with 2 paid-for vehicles in the garage.
I would like to be on one of your videos as a industry expert I can explain a lot of different things with car values and explain how everything works with the banks and important information that everyone should know now!
People's reckless spending and debt has contributed to these prices also
Chilling with my 06 Gx470 and 2015 Camry for the long haul. Went from upper middle class to barely middle class in 3 years. Sigh.
VOTE!!
Smart !
Few days ago my Toyota dealership offered 12% discount on new 24 Tacoma MSRP and $5k more KBB trade value on my 22 Taco TRD sports. Is this a good deal?
Yeah that’s a solid deal 👌
No, new truck prices are 18-20% over the already high inflation of the last five years
Fortunately my wife and me live in Alabama where things are bad enough but not as bad as other areas of the country
Very stange market. My 2023 tacoma 4x4 sport jumped over 4k in value months ago (offers from carmax for 39.5k almost matching what the msrp was 42k) to dropping back to 36k.... very strange market
Defining the middleand upper classes in my opinion has NOTHING to do with income. It has EVERYTHING to do with MEDIAN net worth. There are a lot of upper income people who are basically broke as far as net worth is concerned.
Untamed, you’ve figured out that people LOVE more than anything to complain about prices. Lol keep em comin.
I’ve worked very hard and now I’ve went from living paycheck to paycheck to living direct deposit to direct deposit
You’re not alone brother. It’s crummy how that’s become the “new norm”… =\
No one should buy any thing new or used if they can afford not to for the rest of this year.
@Untamed Motors: We can afford the truck but not the damn insurance, which is up 22% year over year
And my hometown of Honolulu is the other city. For a single to live ok one needs $112,000, in 2020 HUD considered $93,000 low income
We have found ourselves getting new quotes for insurance every year. Rates are extremely volatile. To play, I think you need a good driving record and so forth.
Folks have no idea what is coming. Anyone who bought a house or car in the last 2 years is going to regret that very much. Folks that are patient (because we are not there yet) will get everything at least half off. My time horizon 6 to 9 months. There will be so many cars for sell we will get them for a song and a dance! To know when the time to buy is correct. Look at the VIX if it is above 75 your good to go to buy almost anything including a car or truck.
WTF.... is that... snow?
I 💯% agree with you !🇺🇸💔
I’d like to get a nice discounted Highlander hybrid
Middle class has stretched themselves too thin for 2 decades.
What you meant to say is wage growth has not kept up with infaltion and the decling purchasing power of the dollar. Agree that folks buy crap they don't really need (stretched too thin) on credit and that will prove to be very bad going forward.
Your thought of the new GX550
I like it better than the new Land Cruiser 👌
@@UntamedMotors 2024 4Runner 5th Gen or 2024 Gx550?
Excellent video 👍! US economy will fall apart 2024
Thanks man! 🙏
Middle class in NY/NJ $250K/year
I know these thumbnails are fantastic for traffic but they’re becoming redundant at this point
The car market is a choice, not a necessity. You don't need to go beyond your means to buy a car you can't afford. I had a lot of expensive cars in my garage but sold all my expensive ones while the market was booming. I kept my 2006 LS430 with 260K miles and my wife's Kia, they're both bought for $2000 each by shopping carefully and knowing how to fix cars helped. Guys, please wait out this greed, dealers will have to lower their prices eventually if no one is buying. I'm waiting until there is a big discount on a new Sequoia then i'll get that as a family car.
They stopped making them last month, because there is a model year switch over. The Mach-E for 2024 has new in-house motors.
That can’t be. Biden supporters told me the economy is doing great!
Trump did his part to get us into this dumpster fire. Don't just blame Biden. This type of hateful, blaming thinking is why America is in trouble in the first place. No one know how to question the real problem they just regurgitate what they hear on main stream news like Fox or CNN. Come on man. The disaster that is coming is 40 years in the making. We still have to pay for the GFC.
Micky-you really should do general economic commentary, a new channel co-branded with this one could be called Untamed Economics. You could publish 'white papers' with an automotive spin or real estate focused. You can send me a hat if you'd like. Thank you for coming to my TED talk.
$1000 more per month 😳 Holly Shit Untamed. Never really thought it would be that much
Yeah it’s a bit ridiculous… getting much harder to just stay afloat.
@@UntamedMotors That is just capitalism. Why do you hate capitalism?
@@Mark-jb9hx No one hates capitalism. Just inflation 😉
@@mikeyID Greedflation caused by capitalism. Op is confused.
@@Mark-jb9hx is that what you call hyper inflation due to political moves? Interesting.
Not struggling if your at upper middleclass
Build back better!
Todays economy has NOTHING to do with politics. It has everything to do with GREED.
Yes with Trump
BBB 666
Trump, lost his neighborhood 9-1.
Build Back Responsible. stop deficit spending on crap 💩
RFK Jr 2024!
That car insurance just blows my mind- I pay $312/year for full coverage on my Escalade.
I hope you never have to use that insurance. If you are paying that little, they are cheating you.
What state and what insurance company? I highly doubt thats what you're paying
@@vict1036 Doubt all you want, Friend- I'm in Indiana and have State Farm. The yearly premium for my wife's 2022 Lexus GX is $385.
@@davidbeppler3032 It's State Farm and I hope to never have to use it as well.
@@vict1036 Indiana and State Farm. Doubt all you want, Friend- my wife pays $385/year for her '22 Lexus GX 460.
I guess were screwed.
Reputation is everything. Love the videos.
You are so right and the first to say it this way .
The lockdowns ruined what was left of the good life.
Actually, it started with the dipshit in office....Everything costs nearly double.
Untamed Motors is the automotive equivalent of the financial outlets claiming the recession is here. Lol
copper next cocoa )))
Brother I always love how comprehensive your analysis is made, on how and why we are here.
The cool thing is, when people can't pay their car payments and their vehicle is repossessed, that same vehicle is re sold at the same debt creating, high payment and high interest rate which again gets repossessed from a different person. Whatever happened to restrictions limiting predatory lending? It's perfectly legal to sign on the dotted line, overextend yourself financially and fault on loans given by home grown companies. Yet it's not allowed by our government for me to buy other cheaper vehicles made in other countries(Jimny, Hiace/Proace, the 2 seater Stout flat bed truck...) that would eliminate this entire problem. God bless America. A country that won't allow us to buy the vehicles we could actually afford and limits our choices to overpriced vehicles beyond our means that don't last.
Yup, inflation Likely 12-15% (a year) if the truth be told last 3 years.
This is the cost of spending more than twice what the wealthiest country in the world takes in taxes.
The effect is that the money printed and given to the poor and Ukraine costs the middle class.
As it turns out, turning off the global economy for 2 years and instead printing money to hand out, wasn’t such a great idea.
Kind of weird to blame the govt, and interest rates, on poor sales, who wants to pay $60k for a scrap jeep worth ,$30k
It's so weird to me that everyone blames the government for everything and we never look at ourselves. Yes the government printed out a ton of money during the pandemic but us Americans spent it all. We caused the inflation by spending all the money on buying everything. I see new SUVs and trucks driving everywhere and at an average price at almost 50k, I always wonder how so many people could afford to purchase these vehicles.
@@TheDanny23rivera lol delusions at it's best. This current administration is the main cause for all of this. You can not give hundreds of billions away and have open borders and still have low inflation and prices , doesn't work
Dealers, not inflation is to blame.
Have you seen the sticker prices? Dealers deserve plenty of blame. Not everything. MSRPs up 36% since 2019.
Our expenses up $1,000 per month.
Keep that old car.
I would say a bit of both.
Why the uncle Rico thumb nail?
Wages aren't even close to keeping up with inflation. You need to be making at least 100,000$ to even consider owning a home or getting one of these overpriced vehicles. MSRPS need to come down or most of these vehicles are going to rot. Rates are not coming down in 2024 until unemployment goes up. Consumers tend to KEEP spending when they need to stop spending to put pressure to make prices come down. Rates should be closer to 10% they are just trying to keep propping up the economy when they need to let it crash. We are STILL feeling the aftermath of covid policies.
This may be more due to the Middle Class tired of getting screwed every direction they turn! The dealers and manufacturers can just eat these cars...
We have new construction homes for rent now.
Nothing new, it's just starting to catch up.
Not just the car market, you can’t get a house in California under 1 million dollars, I make about 80k granted it’s not much here but i can’t find a home!
The beginning… really?
Listen to the PBD Podcast to get informed.
“The best vehicle is a paid off vehicle”…
~Untamed Motors
If we buy their trucks, suv and cars, we will work 2 jobs to afford Toyota corporate vehicles. I am not corporate slaves.
FJB
I make 300k a year and my wife makes 200k and I don’t live lavish at all. I drive a Toyota and my wife drives a 12 year old Cadillac
Problem is people are not satisfied with what they already have😂
God can fulfill your needs, but never your wants! 🤷♂️🍀 ppls
Amen to that 🙏
I feel very blessed then. I don't really want anything except for my family to be happy, shelter and food. I guess I am doing okay.
Votes have consequences!
Not really ... both sides are garbage.
But Biden says everything is just fine 😅
Slow down
Limit camera movement
I think you should work for a financial instution!
Bidenomics at work 🤦🏼♂️
Maybe if Trump didn’t add 7 Trillion in debt to the American people when he was in office???? The most debt incurred by any president so far!!!!!
He raised prices all over the world. Can’t believe he raised prices for curry in India . /s
It’s called normalizing. The last 15 years should be the anomaly not the norm.
Trump literally transferred over 5 trillion to the rich which caused inflation, idiot. Then Biden had to raise interest rates to offset the inflation, but obviously couldn't fully be done.
Trump did his share to get us into this mess too. It is really 40 years in the making. Americans love to hate and name call. I wonder where they learned that from? It's sad really. Just remember we still haven't paid for the GFC. We haven't seen nothin yet.