I cashed out and downsized from 4 vehicles to two and pocketed nearly 50k (both originally purchased new with HUGE discounts). What you've said is absolutely spot on, however the bigger question is WHEN will dealerships finally bust .I've got no mercy for the dummies paying 5-20k over stick for new hyped up vehicles like the GV80/70, Palisades, Sequoia/Tundra, CX50, GLE350, etc. Many vehicles are no longer hard to find at a discount if you search harder. People are just being lazy and wanting to purchase locally.
My car got totaled a couple months ago... been driving one of my dad's old beaters ever since because the market is so trash :| I need people to stop buying at stupid prices or I'm just buying a motorcycle and gambling my appendages
I’ve been looking to buy an FJ Cruiser for the past 3 months. Obviously, the prices are way too damn high and I also can see the market is going down. Thankfully I can tell the difference between a want and a need. Great video and thank you for the transparency.
One of this biggest take aways I get from watching your videos, is how much you are constantly adjusting your strategy to adapt to the markets. You are constantly trying new approaches to stay flexible as things rapidly change. I feel that's an important skill to be successful in any business.
@@jonsaircond8520 only business where you can go stagnant is medical, no one cross shops a hospital, and when you're unconscious you are not asking about the prices.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
An uptick in volatility is not necessarily a bad thing, there are opportunities to be found even in this whirlwind. Best advice just get yourself a coach to guide you in this current market
There are a lot of strategies to make tongue-wetting profit especially in this down market, but such sophisticated trades can only be carried out by proper market experts
@@piercejordan5335 I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging and I could really use some guide, but are they really that effective though?
I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel. These are crazy times we all need help .
When I got out of college my wife and I bought a condo. It was at 11% interest. So I had to laugh about the current rate being so high. You could buy cars and motorcycles at normal prices. It's greed that's causing the current issues
@@recyclespinning9839 I don't know where you live and what you drive. We pay $1100 a month for apartment rent for a luxury 2 br which includes all expenses including internet, electricity and heaat included heated underground parking, pool hot tub, exercise facility and handball courts. Our car only cost $12,000 and it runs and drives great!
Some dealers overpaid for vehicles and aren't budging on prices. At some point they will have no choice. For some reason dealers believe that Toyota Highlander and Toyota Matrix are worth more than than other similar vehicle's. Looking at the free carfax reports, these 2 models are sitting for months not selling.
@2:25... Craig, kepp in mind, this affects the car market both directly in that car loans are more expensive, but also indirectly in that if someone has a variable rate mortgage, they're payments are going up, which means less in the family budget to buy a car. @13:30... You know MMR lags behind the market. It's a function of what MMR is. The MMR won't drop until vehicles actually sell at lower prices. "If"s don't lower MMR. This is also why stuff was selling above MMR... Because MMR lags. MMR is only a good indicator of the market when it's relatively stable. @15:28... Now is NOT the time to sell asstes unless you're in financial trouble. The downturn is when you hold assets. You hold and wait for the crash then buy the crash. Then sell at the top of the market, after the recovery. I sold my house two years ago 'cause I saw this coming. I plan on buying another when the bottom hits.
I am a truck driver been rolling for the past 7 years never seen anything like this and I am a owner operator of my own truck prices on Diesel are crazy high and prices to move fright is low or nonexistent
Demand for everything is way down. At the height last year, shipping lines were charging up to 20,000 USD for a 20' from Shanghai to Long Beach or Oakland. Historically this was always within maybe 3 k (and this is being generous). this week? USD1350... even from June this is down 10 fold almost.... This is exacerbated by rail issues in US but even shipment to east coast for 4-6 times less than a year ago. So a recession looks quite inevitable .
It's ridiculous. Here in Texas the homes are selling for at least 3 times the price they should have. Rent has increased over 100% of what it was a couple years ago. It is not sustainable when the majority can't afford it.
Hey Craig, I dig the no bullshit way you do your videos, you're sharing some painfully honest information about the current real business climate. I've been watching your vids the last couple of years during the great asset bubble, often astonished at what people were paying for cars when inventory was scarce. Here comes the crash, in almost every asset class.
A lot of valid information and I appreciate the transparency. I agree and have been seeing what your seeing and I have a finance background and you pointed out to signs of a coming crash, good job on being well informed and sharing with the masses who don't have the same insight.
I buy and sell cars and want to get into more expensive cars but am making $1000-$2000 off cheap cars weekly but when I try to sell a nice car for $5000 it takes a month or more to make $1000 it drives me nuts. I figure I will just stick to buying and selling cars in the $3000 range. I also think the market will stay the same once people know how much they can get the prices won't come down.
Funny you should mention car washes. Where I live in Florida there sprang up a half a dozen new car washes in the last 2 years. They all had a basic car wash and free vacuum for $3.00. Last year they raised the basic wash to $5.00, last week I went to the same place and the basic wash is now $10.00. If you want the fancy wash with the " wax" and under spray and tire shine the price is $22.00. Inflation ? or Greed ?
I follow YAA. And they do coverage on the car market and they are saying the same about the collapsing care market. Craig you telling the truth and thank you
Lots of car lots are buried in high priced vehicles in my local areas. They were such pricks in the last few years that I don't feel sorry for them. All those used pickups at 30K plus are gonna have to drop 10k before anyone will consider them.
The perfect way to show how inflation and the market crashing has effected the higher end vehicle market is the Mercedes G-Wagen market….they were selling for 100-125% over window price… a certain dealership bought up like 60+ G-Wagens at a ridiculous markup already, and now that the market for expensive SUV’s has crashed they could be stuck with every one of them, and they are in each one for at least 90% over sticker! Lol actually quite funny
The Going Out Of Business sales will be starting in a few months as their $$$$ is eaten by expenses they cannot pay. Patiently waiting on the sidelines.
Started a dealership and you have been a lot of help. I sell semi trucks but started to do both. semi truck world is a roller coaster ride. you never new what next month or season would bring now its every 3 days.
All those people who paid over msrp for new cars are in really bad shape now. Car prices will drop like a rock, people will start loosing jobs, repossessions will flood the market. Cas will be king for the next couple of years
I'm also a small car dealer owner, The sales are down this month I was selling 12 to 17 vehicles every month not October so far only 4 I also have the same problem listing cars at the auction no bids every week and they are listed 5 % under MSRP. I believe the problem is our dealers name scare buyers because we are not a big dealer or banks . I have been thinking about selling under a different name or using Westlake
I'm South of Houston & never buy from a dealer. I own a 2002 Blazer ZR2 (super clean from a garage kept Grandpa) and another garage kept Grandpa 09' Ford Escape for my Wife that I paid $2k for that still looks showroom condition. Only reason they were selling was the electronic steering was going out. So I bought a new OEM steering column & installed it myself. Now she has a perfect new condition 28mpg Escape. (Non-Hybrid) I just can't afford car payments. I save & pay cash. I paid $3k for my very clean ZR2 6yrs ago & both fuel bank fuel trims are reading 0.0 to 0.1 Still getting the 2002 sticker mileage. So 2 cars like new condition for $5k & zero payments
As a realtor in California we are definitely in the same boat. We in sales especially are going to have to hold on tight and be the best in your business. If you are you can still make a living even with things crashing and burning around you.
@@joshuagraham3222 things are stagnating in texas a bit as well.. the main reason property taxes are going up every year.. sellers have inflated home prices by 20 to 40 percent, the banks wont loan full amount, even for new homes, because they know they are inflated.. builders cant make a profit because they paid 20 to 40 percent more to build them,, so they sit. used home prices are dropping a little, slowly, but are still overpriced. 90 percent of potential buyers cannot put the 30 percent down that the banks require. average price is 215.000 and nobody has 30 grand to put down on top of a 7 percent 30 yr fixed loan. if the prices dont come way down, the banks will end up with ALOT of repo houses.. that is what I suspect will happen in the next 12 months. banks will have to either auction them off cheap, or file bankruptcy. if the banks fold, it will be hell trying to get the title deed for the house. they will sit vacant for years, with no upkeep. you see the fed is made of 12 central major banks.. there are alot of branches.. the branches will be left to rot on the vine, while the big 12 live on.
Very practical and upfront ..you have courage with running business providing us all the true colour of market ahead...thanks from edmonton alberta Canada
I would say that the right thing to do now is to live in the $2000-$6000 range, and work that market while the market is adjusting. People spending that kind of money are usually cash buyers that are not affected by % rates. The other inventory? I would probably try to sell at cost or slightly above (if you can) to avoid losing money if the bottom falls off.
I might add that by selling even at a 5% loss, and cashing out, EDIT: you will save money in the long run by doing this, since if prices are headed way down, you could lose 10-20% by sitting on the inventory, plus the added benefit is that you will be sitting on a mound of cash when the market hits bottom, primed to reap the benefits.
@@doronstauber7285 What do they say? "Your first loss is your best loss". I remember someone low balling me on a 15 passenger van. I felt insulted, and turned him down. I sat on that van for six months and ended up selling to another buyer for that same low-ball price. Ouch!
@@stevechance150 There is no benefit by being insulted by a lowball offer. Your objective is to sell high, the buyer's objective is to buy low. Taking emotion out of any monetary transaction is a win.
Craig, I love your videos. And I save a lot of money! I'm not out there buying cars, you're doing it for me. I love the toys, and I check your inventory all the time. My daughter and her husband live in NH. You spent $15 for a Big Mac Meal? Brother, honestly, get the app. It will save you a ton. Turn your receipt over and do the little survey, you'll get a free sandwich. Now I know you might not want to be bothered with all that, but man I'm telling you, that's where we are. We're saving $3 here and there. My grandmother had a Great Depression mentality, and I'm see it all around me. Keep up the great work!
I needed a reliable used car 6 months ago. Something older cheap for commute $5k-$10k. I gave up with the inflated prices of cars that were $3k a year earlier. Now I'm looking again, and 90% of the cars I saved in Auto Trader, Car Gurus, etc are still for sale on the lot at same price. I was shocked so many dealers are still sitting on them.
The cheaper cars on lots are not floored and usually are bought for 2k so dealers can sit on them as long as they want it's the expensive newer cars that have to be moved or else they pay fees
This car market and the 2008 housing market show a lot of the same parallels. People over exstended, banks over extended, and the government helping/hurt all of it.
Craig, I would clean up your inventory and just wait for the market bottom and then restart your business. In the meantime, you can focus on your projects ;)
@@123andme I think he mentioned numerous times that he has few income streams. Anyway, he still have a garage and everyone need to have car fixed at some point. Just not to be caught with overpriced assets that can be sold with a loss.
I just went car shopping with my wife on Christmas eve. I went to 4 dealerships. I've noticed a major increase in supply. Especially certified used. All the salesmen we dealt with seemed worried about the future. Worried about rates.I think if people hold out for 6 more months😱
We were doing good, until recently. I was able to maintain my vehicles and everything and then when inflation started happening I can barely get tires for my car. Then with my daughter's mental health problems she prepped my recently deceased mother's car into the neighbor's house. Either I nor the homeowner have insurance to cover it. So now I've got to pay out of pocket just to get a house fixed. I had to let the car go because it was totaled.
there is a reason why that repo car sold 5000 cheaper..those cars are usualyl beat the hell out..most of dem have bad transmissions or damaged drivetrains from being hauled and towed incorrectly
I feel sorry for those people that paid $60,000 for that truck that's only worth $40k or them people who bought that hellcat that's only worth 60 Grand but they paid $100k those are the people that are going to default first
Feel bad for them? Why? None needs a 100k vehicle. They made a stupid decision, and they'll be the first to demand the government subsidize their stupid decisions when It all comes crashing down. Makes me sick 🤢
Here in Australia the constant complaint is that nobody can find employees for the normal jobs (not the specialist things), like Maccas, builders, plumbers etc. So I ask, where the hell have 200,000 people that used to do these jobs gone? They sure the hell have not died of Covid. Are the wages too low? Do they have other jobs? Who knows. Comforting to know we are not the only ones affected by this. I reckon a lot of businesses are thrifty because they are worried about inflation throughout the world, and are waiting for the other shoe to drop.
changing culture, changing economy. used to be guys would knock up a girl and have to learn a trade. trades suck to work in. people avoid physical work like the plague
You explain everything very well, especially for someone as young as me who hopes to own my own business one day, the market right now is uncertain but I’m hopeful that if you play the game smart you can use the market to your advantage.
This is actually a great video. The only thing u didn’t mention is the car repo markets booming, huge inventory at the auctions but the banks are trying to trickle the vehicles on the market to keep the price high and banks aren’t giving loans to the people to pay for these overpriced cars as much! Lots of negative equity in cars now
The Velocity of Money has gotten slower and slower.........I am in the Florida panhandle area...prices are Bat Shit Crazy !!! II gave up attempting to buy another Car..... Thanks .....You do great videos......Best of luck to you and yours......
Well I've been seeing videos and posts that say that the bubble is about to burst. Repositions are skyrocketing with interest rates and inflation raising. I thought all this was fear mongering but if you say the same it makes sense that prices are going to go down.
Nothing? No purposeful demand destruction? No purposeful shutting down of domestic energy production furthering unprecedented inflation? No forced masking, “vaccines”, etc? No new policies in schools exposing kids to who knows what? Questionable elections? I don’t know. Seems to me people have lots of reasons to be angry.
Mostly commenting to help the algorithm, but this info is gold. I was able to buy a baby bronco off lot at MSRP. A few weeks later they called me back and offered to buy it back at the same price I paid. For the first time in my life, my car appreciated(is that right) after I drove it off the lot.. lol Now I have sales people calling me asking me if I want to replace it with a new car. It's been a little over a year.
Great Video Greg! Very informational! You’re my idol. Thank you very much! I don’t know how I’ll ever be able to repay you for all the free great information. Thank you!
Lenders are actively not reporting defaults as much as possible and trying to get those underwater to "See about refinancing." Vehicles already at auction? You aren't buying them at a price the bank wants...thus the lots are full and banks don't want more vehicles to try & off. Next comes the real estate dips
Been seeing it with cheaper vehicles just bought a two a suv and a sedan both for $1000 together both run and drive no body damage and hood interiors just been parked awhile.
Inflation guarantees the price of new vehicles will be higher. So the price of used vehicles will also be high. I.E. Everything you need will cost more.
If you don’t get an offer on something that is in demand like a vehicle or house your price is to high. The market isn’t wrong. The ONLY exception I can think of is the 2010 flash crash that was caused by hackers rerouting all market bids into the stock “BID”. Little side note: the share price went from something like $45/share to $90,000/share in about 10 minutes… The auto market isn’t wrong it has just adjusted DRASTICALLY lower. I bet that the $20,000 vehicle priced at $8,000 at the auction will probably sell. One exception… if people buying from you know that ANYTHING they buy is in perfect condition from bumper to bumper you could potentially get more. Good luck.
Went in for a first time home buyer loan this month, graduated college recently with not much debt and have a really great job that pays very well. I got slapped with a 8.2% interest rate on a $150,000 loan for 30 years. That was with $25,000 cash down... Do the math on that, that $175,000 house I am looking to purchase will end up costing me $1,122/ month for 360 payments. I will have paid $428,000 for a $175,000 house... So here's what I'm doing instead, I'm buying land in cash, buying a tiny house in cash, and plopping myself into a very cheap means of living until the housing market collapses once again.
Sir appreciate you taking time and explain what really going on in market I’m trying Saale my personal home buyer have credit issue so in up no sale I interest rates are definitely to high keep videos coming watch from Louisville, Kentucky
I had no choice, but to buy a car during this mess. As bad as it was I think I came out ok in the end. I got almost as much trade in on my 2015 Fusion SE than I paid for it 3 years before so after pay-off I was able to walk away with a 2020 Camry SE with 20k miles for 24k and that was about a year ago. The Camry was almost 30k used and new they were 35k-36k with market adjustment prices. In the end I wanted a new Camry SE and had to settle for used because of the market adjustment price. I will remember them doing that going forward so its going to cost that dealer big time because he will not get any future purchases from me. I am going to refuse to do business with them because of the market adjustment greed. That is something I can control and its going to cost him more long term than it would have to sell the car at retail. I know I am not the only one that is going to do this I have read a lot of comments with people saying the same thing so that market adjustment is going to come back and bite dealers in the rear.
It's the end of February at this time of writing and I haven't noticed much of falling prices on used cars (and certainly not new cars). So I am going to keep driving what I have. Boycott the dealers. Your car need some repairs? So do it. Spend $1500 on repairs. That's two car payments if you dare to buy a new car. Talking about payments, have you checked those rates recently? Keep what you have.
Even if a non dollar-denominated asset sees no real gains during inflation that's still much better than holding cash and seeing your real purchasing power undermined. In other words, sometimes you have to chose between the lesser of two evils.
One thing I always have at the back of my head is the Rockefeller's advice on how to earn during times like this; while others are panicking and selling or holding, just go a different route and invest right now, there's no better time.
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
@@philipparker9893 These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
@@mobstrickland515 I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfolio-advisor for guidance.
I was offered $26,200-$26,600 august 28, 2022 for my low mileage 2018 Colorado. It’s Oct 20, 2022 and the same two car lots offered me only $20,000! I’m in TN, so why?
Difference today versus the 2008 is inflation was nil to marginal. Inflation is out of control even month to month. If I sell everything and keep cash on hand my cash is worth less next month. My $1 today worth .98¢ next month and then 96¢ after that and so on. But no one knows the answer to the problem. We’re all going to take a hit and hopefully bounce back soon. Love your videos by the way
Everyone is crying about inflation but I am not seeing it at all. I live in one of the largest cities in the US and prices are lower than the covid gouging. Interest rates are the only thing higher.
@@common_c3nts if u run a business you'll know everything is 20-25% higher than pre covid. Heck even fast food is probably up that much, look at your grocery bills
The price of cars will return to normal.........which means everyone who overpaid for their car, now owes more (unless paid cash) than the car is worth. Those people will get tired of paying $1500 per month for a car that is worth less than HALF of what they paid. So they default and we will see the REPO market explode.
If your out financing new or a used ride right now,your a fool ..with the rising costs of fuel and groceries just to name 2 things you don’t need a car payment…keep what ya got…it’s not 5e end of the world if you vehicle doesn’t have all the new techy stuff inside -we drove them in the 80’s and 90’s without them…
I was looking for a used car. Called a dealer to ask about a vehicle and was quickly informed that the car had sat on the lot for eight months. He offered me $1000 off over the phone if I would just come in and look at it.
Since the dealers as of now, are charging a 30 to 35K dealer fee on top of the high price for many vehicles, I suspect people are going to start coming to see you for those pickup trucks.
I cashed out and downsized from 4 vehicles to two and pocketed nearly 50k (both originally purchased new with HUGE discounts). What you've said is absolutely spot on, however the bigger question is WHEN will dealerships finally bust .I've got no mercy for the dummies paying 5-20k over stick for new hyped up vehicles like the GV80/70, Palisades, Sequoia/Tundra, CX50, GLE350, etc. Many vehicles are no longer hard to find at a discount if you search harder. People are just being lazy and wanting to purchase locally.
Totally agree!
My car got totaled a couple months ago... been driving one of my dad's old beaters ever since because the market is so trash :| I need people to stop buying at stupid prices or I'm just buying a motorcycle and gambling my appendages
@@tumortime549 Stop trying to tell people what to do. We will buy what we want at at the price we want.
I’ve been looking to buy an FJ Cruiser for the past 3 months. Obviously, the prices are way too damn high and I also can see the market is going down. Thankfully I can tell the difference between a want and a need.
Great video and thank you for the transparency.
Oh great I'm glad to sale my
ᴛᴇxᴛ ᴍᴇ💬📲
ɪ'ᴍ ᴀᴠᴀɪʟᴀʙʟᴇ👆⬆️👆
Excellent credit mortgage rate is 7.2-7.5% right now. 5% sailed away months ago
Closed in April.
4.125% fixed
We still have 4.95
Buying points down doesn’t count. High 6s/low 7s is very real.
That was in April, it is now October, rates changed tremendously got 2.75 a year ago
Hearing they plan to push rates to 9% around the new year. Scary times..
One of this biggest take aways I get from watching your videos, is how much you are constantly adjusting your strategy to adapt to the markets. You are constantly trying new approaches to stay flexible as things rapidly change. I feel that's an important skill to be successful in any business.
You absolutely have to, to stay alive
The days of business doing the same thing for decades is over. Almost every type now has to adjust
@@jonsaircond8520 only business where you can go stagnant is medical, no one cross shops a hospital, and when you're unconscious you are not asking about the prices.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly-which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
An uptick in volatility is not necessarily a bad thing, there are opportunities to be found even in this whirlwind. Best advice just get yourself a coach to guide you in this current market
There are a lot of strategies to make tongue-wetting profit especially in this down market, but such sophisticated trades can only be carried out by proper market experts
@@piercejordan5335 I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging and I could really use some guide, but are they really that effective though?
@@piercejordan5335 Mind if I ask you to recommend this particular coach you using their service?
I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel. These are crazy times we all need help .
When I got out of college my wife and I bought a condo. It was at 11% interest. So I had to laugh about the current rate being so high. You could buy cars and motorcycles at normal prices. It's greed that's causing the current issues
my mortgage in 1991 was 10% and car loan in 1980 was 16.5%
I don't agree. It's not as simple as greed. It's what happened o0n 1/6/21 that I believe is causing the problem.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
@Ole Radio Dude A.M. yes but now your car is 50k and your house is 400k. Less interest but the bigger numbers, the banks 🏦 still making bank
@@recyclespinning9839 I don't know where you live and what you drive. We pay $1100 a month for apartment rent for a luxury 2 br which includes all expenses including internet, electricity and heaat included heated underground parking, pool hot tub, exercise facility and handball courts. Our car only cost $12,000 and it runs and drives great!
Some dealers overpaid for vehicles and aren't budging on prices. At some point they will have no choice. For some reason dealers believe that Toyota Highlander and Toyota Matrix are worth more than than other similar vehicle's. Looking at the free carfax reports, these 2 models are sitting for months not selling.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
@2:25... Craig, kepp in mind, this affects the car market both directly in that car loans are more expensive, but also indirectly in that if someone has a variable rate mortgage, they're payments are going up, which means less in the family budget to buy a car. @13:30... You know MMR lags behind the market. It's a function of what MMR is. The MMR won't drop until vehicles actually sell at lower prices. "If"s don't lower MMR. This is also why stuff was selling above MMR... Because MMR lags. MMR is only a good indicator of the market when it's relatively stable. @15:28... Now is NOT the time to sell asstes unless you're in financial trouble. The downturn is when you hold assets. You hold and wait for the crash then buy the crash. Then sell at the top of the market, after the recovery. I sold my house two years ago 'cause I saw this coming. I plan on buying another when the bottom hits.
I am a truck driver been rolling for the past 7 years never seen anything like this and I am a owner operator of my own truck prices on Diesel are crazy high and prices to move fright is low or nonexistent
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
I bought a 850 dollar 05 cavalier for shits and giggles in 2018 and 70k miles later it still runs great as a backup
Demand for everything is way down. At the height last year, shipping lines were charging up to 20,000 USD for a 20' from Shanghai to Long Beach or Oakland. Historically this was always within maybe 3 k (and this is being generous). this week? USD1350... even from June this is down 10 fold almost.... This is exacerbated by rail issues in US but even shipment to east coast for 4-6 times less than a year ago. So a recession looks quite inevitable .
It's ridiculous. Here in Texas the homes are selling for at least 3 times the price they should have. Rent has increased over 100% of what it was a couple years ago. It is not sustainable when the majority can't afford it.
Hey Craig, I dig the no bullshit way you do your videos, you're sharing some painfully honest information about the current real business climate. I've been watching your vids the last couple of years during the great asset bubble, often astonished at what people were paying for cars when inventory was scarce. Here comes the crash, in almost every asset class.
i'v seen videos about car market crashing sinec last year..prices still high
Craig, you should be an Economics professor! I would sign up for your classes in a New York minute! Way to go!
Best video you’ve done in a long time and you didn’t try to sell anything to us
A lot of valid information and I appreciate the transparency. I agree and have been seeing what your seeing and I have a finance background and you pointed out to signs of a coming crash, good job on being well informed and sharing with the masses who don't have the same insight.
Last week McDonald's was closed at noon paper in front door read not enough of employees will open tomorrow
Good honest advice! I just sold my home for more than three times the purchase price in 2017. Now I'm watching interest rates climb, and I'll wait...
I buy and sell cars and want to get into more expensive cars but am making $1000-$2000 off cheap cars weekly but when I try to sell a nice car for $5000 it takes a month or more to make $1000 it drives me nuts. I figure I will just stick to buying and selling cars in the $3000 range. I also think the market will stay the same once people know how much they can get the prices won't come down.
The perfect number for me is $3500 any vehicle over 5k is sitting longer
If it ain't broke, don't fix it.
A 3500 car is about basic transportation level these days. Scrap, Catalytic converters and junkyards scoop up anything less.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
5000 is not a nice car. its a boring below average car
Starting your business when the economy was down was a good move. If you can make it when things are down then you can make it any time.
Always appreciate your comments gord
Funny you should mention car washes. Where I live in Florida there sprang up a half a dozen new car washes in the last 2 years. They all had a basic car wash and free vacuum for $3.00.
Last year they raised the basic wash to $5.00, last week I went to the same place and the basic wash is now $10.00. If you want the fancy wash with the " wax" and under spray and tire shine the price is $22.00. Inflation ? or Greed ?
Prices are still inflated like 30% for the vehicles I look at. Let's see where we are in 6 months.
That is what I see.
I follow YAA. And they do coverage on the car market and they are saying the same about the collapsing care market. Craig you telling the truth and thank you
ᴛᴇxᴛ ᴍᴇ💬📲
ɪ'ᴍ ᴀᴠᴀɪʟᴀʙʟᴇ👆⬆️👆
Lots of car lots are buried in high priced vehicles in my local areas. They were such pricks in the last few years that I don't feel sorry for them. All those used pickups at 30K plus are gonna have to drop 10k before anyone will consider them.
Totaled chevy pick ups , that will absolutely not be brought back to life ,are bringing up to 11k today ,here in Texas
You were right pre-covid about inflation, and i will listen to you this time, but dealers are still on 6 months to get you a new car
The perfect way to show how inflation and the market crashing has effected the higher end vehicle market is the Mercedes G-Wagen market….they were selling for 100-125% over window price… a certain dealership bought up like 60+ G-Wagens at a ridiculous markup already, and now that the market for expensive SUV’s has crashed they could be stuck with every one of them, and they are in each one for at least 90% over sticker! Lol actually quite funny
The Going Out Of Business sales will be starting in a few months as their $$$$ is eaten by expenses they cannot pay. Patiently waiting on the sidelines.
Started a dealership and you have been a lot of help. I sell semi trucks but started to do both. semi truck world is a roller coaster ride. you never new what next month or season would bring now its every 3 days.
All those people who paid over msrp for new cars are in really bad shape now. Car prices will drop like a rock, people will start loosing jobs, repossessions will flood the market. Cas will be king for the next couple of years
I'm also a small car dealer owner, The sales are down this month I was selling 12 to 17 vehicles every month not October so far only 4 I also have the same problem listing cars at the auction no bids every week and they are listed 5 % under MSRP. I believe the problem is our dealers name scare buyers because we are not a big dealer or banks . I have been thinking about selling under a different name or using Westlake
I hope most dealers tucked away money for a rainy day when times were good because it's about to start raining and it looks like a long down pour.
I'm South of Houston & never buy from a dealer.
I own a 2002 Blazer ZR2 (super clean from a garage kept Grandpa) and another garage kept Grandpa 09' Ford Escape for my Wife that I paid $2k for that still looks showroom condition. Only reason they were selling was the electronic steering was going out. So I bought a new OEM steering column & installed it myself.
Now she has a perfect new condition 28mpg Escape. (Non-Hybrid)
I just can't afford car payments. I save & pay cash. I paid $3k for my very clean ZR2 6yrs ago & both fuel bank fuel trims are reading 0.0 to 0.1
Still getting the 2002 sticker mileage.
So 2 cars like new condition for $5k & zero payments
As a realtor in California we are definitely in the same boat. We in sales especially are going to have to hold on tight and be the best in your business. If you are you can still make a living even with things crashing and burning around you.
Most of your clients are moving to Texas And Florida
@@randy1ization
Well definitely some you are right. California is getting harder and harder for the working man.
@@joshuagraham3222 things are stagnating in texas a bit as well.. the main reason property taxes are going up every year.. sellers have inflated home prices by 20 to 40 percent, the banks wont loan full amount, even for new homes, because they know they are inflated.. builders cant make a profit because they paid 20 to 40 percent more to build them,, so they sit. used home prices are dropping a little, slowly, but are still overpriced. 90 percent of potential buyers cannot put the 30 percent down that the banks require. average price is 215.000 and nobody has 30 grand to put down on top of a 7 percent 30 yr fixed loan. if the prices dont come way down, the banks will end up with ALOT of repo houses.. that is what I suspect will happen in the next 12 months. banks will have to either auction them off cheap, or file bankruptcy. if the banks fold, it will be hell trying to get the title deed for the house. they will sit vacant for years, with no upkeep. you see the fed is made of 12 central major banks.. there are alot of branches.. the branches will be left to rot on the vine, while the big 12 live on.
Very practical and upfront ..you have courage with running business providing us all the true colour of market ahead...thanks from edmonton alberta Canada
I would say that the right thing to do now is to live in the $2000-$6000 range, and work that market while the market is adjusting. People spending that kind of money are usually cash buyers that are not affected by % rates.
The other inventory? I would probably try to sell at cost or slightly above (if you can) to avoid losing money if the bottom falls off.
I might add that by selling even at a 5% loss, and cashing out, EDIT: you will save money in the long run by doing this, since if prices are headed way down, you could lose 10-20% by sitting on the inventory, plus the added benefit is that you will be sitting on a mound of cash when the market hits bottom, primed to reap the benefits.
@@doronstauber7285 What do they say? "Your first loss is your best loss". I remember someone low balling me on a 15 passenger van. I felt insulted, and turned him down. I sat on that van for six months and ended up selling to another buyer for that same low-ball price. Ouch!
@@stevechance150 There is no benefit by being insulted by a lowball offer.
Your objective is to sell high, the buyer's objective is to buy low.
Taking emotion out of any monetary transaction is a win.
Unironically a simple way to digest often deliberately obfuscated financial mechanisms, thank Craig from flying wheels 🤗👍
Craig, I love your videos. And I save a lot of money! I'm not out there buying cars, you're doing it for me. I love the toys, and I check your inventory all the time. My daughter and her husband live in NH. You spent $15 for a Big Mac Meal? Brother, honestly, get the app. It will save you a ton. Turn your receipt over and do the little survey, you'll get a free sandwich. Now I know you might not want to be bothered with all that, but man I'm telling you, that's where we are. We're saving $3 here and there. My grandmother had a Great Depression mentality, and I'm see it all around me. Keep up the great work!
I needed a reliable used car 6 months ago. Something older cheap for commute $5k-$10k. I gave up with the inflated prices of cars that were $3k a year earlier. Now I'm looking again, and 90% of the cars I saved in Auto Trader, Car Gurus, etc are still for sale on the lot at same price. I was shocked so many dealers are still sitting on them.
Lol ive see jeeps now sit for almost a year because dealers paid to much for them at the peak.
Let them sit. Don’t cave in to dealer’s price gouging
One issue is they are not producing enough vehicles since 2019, production is still slow
Go in and lowball them. Then they'll realize their price is too high.
The cheaper cars on lots are not floored and usually are bought for 2k so dealers can sit on them as long as they want it's the expensive newer cars that have to be moved or else they pay fees
This car market and the 2008 housing market show a lot of the same parallels. People over exstended, banks over extended, and the government helping/hurt all of it.
It more closely mirrors what happened when Carter was president and the catastrophe that ocured on 1/6/21.
Craig, I would clean up your inventory and just wait for the market bottom and then restart your business. In the meantime, you can focus on your projects ;)
Assuming he can afford that.
@@123andme I think he mentioned numerous times that he has few income streams. Anyway, he still have a garage and everyone need to have car fixed at some point. Just not to be caught with overpriced assets that can be sold with a loss.
Great episode. Ground floor perspective...
Great video Craig, doesn't matter what business you're in, the cycles are real.
I just went car shopping with my wife on Christmas eve. I went to 4 dealerships. I've noticed a major increase in supply. Especially certified used. All the salesmen we dealt with seemed worried about the future. Worried about rates.I think if people hold out for 6 more months😱
Nobody really works from home! In my pajamas drinking vodka at 8am .
Good video, my local Toyota dealership have many trucks labeled Toyota repo on the windshields.
We were doing good, until recently. I was able to maintain my vehicles and everything and then when inflation started happening I can barely get tires for my car. Then with my daughter's mental health problems she prepped my recently deceased mother's car into the neighbor's house. Either I nor the homeowner have insurance to cover it. So now I've got to pay out of pocket just to get a house fixed. I had to let the car go because it was totaled.
there is a reason why that repo car sold 5000 cheaper..those cars are usualyl beat the hell out..most of dem have bad transmissions or damaged drivetrains from being hauled and towed incorrectly
I feel sorry for those people that paid $60,000 for that truck that's only worth $40k
or them people who bought that hellcat that's only worth 60 Grand but they paid $100k those are the people that are going to default first
Well, they didn’t have to buy those 😮
Im sure most of us can manage with something cheaper than those, unless you're self employed and require a truck to move trailers
Hate to break it to you but brand new hellcats are still going for under 80 at the dealer
believe it or not those cars are holding thier value.., try to buy a challenger scat pack at MSRP..
Feel bad for them? Why? None needs a 100k vehicle. They made a stupid decision, and they'll be the first to demand the government subsidize their stupid decisions when It all comes crashing down. Makes me sick 🤢
Brilliant realistic information! Thank you.
Here in Australia the constant complaint is that nobody can find employees for the normal jobs (not the specialist things), like Maccas, builders, plumbers etc. So I ask, where the hell have 200,000 people that used to do these jobs gone? They sure the hell have not died of Covid. Are the wages too low? Do they have other jobs? Who knows. Comforting to know we are not the only ones affected by this. I reckon a lot of businesses are thrifty because they are worried about inflation throughout the world, and are waiting for the other shoe to drop.
changing culture, changing economy. used to be guys would knock up a girl and have to learn a trade. trades suck to work in. people avoid physical work like the plague
@@MrKongatthegates actually trades have the highest satisfaction rate.
You explain everything very well, especially for someone as young as me who hopes to own my own business one day, the market right now is uncertain but I’m hopeful that if you play the game smart you can use the market to your advantage.
Good eye-opening content. I'm still not sure if I'm going to stay in the car business another year but your video gives me the
needed info.
This is actually a great video. The only thing u didn’t mention is the car repo markets booming, huge inventory at the auctions but the banks are trying to trickle the vehicles on the market to keep the price high and
banks aren’t giving loans to the people to pay for these overpriced cars as much! Lots of negative equity in cars now
The Velocity of Money has gotten slower and slower.........I am in the Florida panhandle area...prices are Bat Shit Crazy !!!
II gave up attempting to buy another Car.....
Thanks .....You do great videos......Best of luck to you and yours......
Well I've been seeing videos and posts that say that the bubble is about to burst. Repositions are skyrocketing with interest rates and inflation raising. I thought all this was fear mongering but if you say the same it makes sense that prices are going to go down.
Thank you so much for your honesty and insight about what's going on with the market.
1986 Alpha, wow. Where do you even get parts for a 36 year old Italian car?
Absolutely correct Craig, People are angry. I work in the er and people are triggered over nothing
Nothing? No purposeful demand destruction? No purposeful shutting down of domestic energy production furthering unprecedented inflation? No forced masking, “vaccines”, etc? No new policies in schools exposing kids to who knows what? Questionable elections?
I don’t know. Seems to me people have lots of reasons to be angry.
Mostly commenting to help the algorithm, but this info is gold. I was able to buy a baby bronco off lot at MSRP. A few weeks later they called me back and offered to buy it back at the same price I paid. For the first time in my life, my car appreciated(is that right) after I drove it off the lot.. lol Now I have sales people calling me asking me if I want to replace it with a new car. It's been a little over a year.
We're honestly thinking of selling one of our cars as we rarely drive separately. Times are absolutely insane right now.
You are very honest and smart all you said is 100% accurate and truth of whats going on now god bless you bro
So honest and so right, thanks for bringing reality and explaining it so clearly !
CRAIG a lot of knowledge you speak fast had to watch twice. THANK YOU
Great Video Greg! Very informational! You’re my idol. Thank you very much! I don’t know how I’ll ever be able to repay you for all the free great information.
Thank you!
You always have excellent content Craig 👊🏼
Lenders are actively not reporting defaults as much as possible and trying to get those underwater to "See about refinancing." Vehicles already at auction? You aren't buying them at a price the bank wants...thus the lots are full and banks don't want more vehicles to try & off.
Next comes the real estate dips
ᴛᴇxᴛ ᴍᴇ💬📲
ɪ'ᴍ ᴀᴠᴀɪʟᴀʙʟᴇ👆⬆️👆
Been seeing it with cheaper vehicles just bought a two a suv and a sedan both for $1000 together both run and drive no body damage and hood interiors just been parked awhile.
Good job on the videos. I subscribe and watch you on a regular basis. The continent is fabulous keep up the good work.
I haven`t seen prices come down. I am waiting for that to buy a nice used car.
I’m seeing it in classic cars the prices are coming down on some . Especially on project cars .
Thanks for the video Craig!!!
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
Thanks for the update.
Love your videos very much from canada ,quebec .
Yeah small working dealerships have to look under stones to buy resellable cars now. It's tough but you are smart 🤓👍
Great video. I love watching your channel
Inflation guarantees the price of new vehicles will be higher. So the price of used vehicles will also be high. I.E. Everything you need will cost more.
If you don’t get an offer on something that is in demand like a vehicle or house your price is to high.
The market isn’t wrong.
The ONLY exception I can think of is the 2010 flash crash that was caused by hackers rerouting all market bids into the stock “BID”. Little side note: the share price went from something like $45/share to $90,000/share in about 10 minutes…
The auto market isn’t wrong it has just adjusted DRASTICALLY lower.
I bet that the $20,000 vehicle priced at $8,000 at the auction will probably sell.
One exception… if people buying from you know that ANYTHING they buy is in perfect condition from bumper to bumper you could potentially get more.
Good luck.
Went in for a first time home buyer loan this month, graduated college recently with not much debt and have a really great job that pays very well. I got slapped with a 8.2% interest rate on a $150,000 loan for 30 years. That was with $25,000 cash down... Do the math on that, that $175,000 house I am looking to purchase will end up costing me $1,122/ month for 360 payments. I will have paid $428,000 for a $175,000 house... So here's what I'm doing instead, I'm buying land in cash, buying a tiny house in cash, and plopping myself into a very cheap means of living until the housing market collapses once again.
Craig your the shit, you tell it like it is. Great info. People need to hear this. Clueless!
Thank you! I love your videos especially Ferrari flip….. do not buy a Ferrari right now but keep goin with that $400 series
Thanks Dude !Good to know.
The lake is a good reflection (pun intended) of the economy.
Sir appreciate you taking time and explain what really going on in market I’m trying Saale my personal home buyer have credit issue so in up no sale I interest rates are definitely to high keep videos coming watch from Louisville, Kentucky
It is hard to predict if things will get worse or slowly get better. Motor homes are definitely expensive to drive and maintain just like boats.
ᴛᴇxᴛ ᴍᴇ💬📲
ɪ'ᴍ ᴀᴠᴀɪʟᴀʙʟᴇ👆⬆️👆
I had no choice, but to buy a car during this mess. As bad as it was I think I came out ok in the end. I got almost as much trade in on my 2015 Fusion SE than I paid for it 3 years before so after pay-off I was able to walk away with a 2020 Camry SE with 20k miles for 24k and that was about a year ago. The Camry was almost 30k used and new they were 35k-36k with market adjustment prices. In the end I wanted a new Camry SE and had to settle for used because of the market adjustment price. I will remember them doing that going forward so its going to cost that dealer big time because he will not get any future purchases from me. I am going to refuse to do business with them because of the market adjustment greed. That is something I can control and its going to cost him more long term than it would have to sell the car at retail. I know I am not the only one that is going to do this I have read a lot of comments with people saying the same thing so that market adjustment is going to come back and bite dealers in the rear.
It's the end of February at this time of writing and I haven't noticed much of falling prices on used cars (and certainly not new cars). So I am going to keep driving what I have. Boycott the dealers. Your car need some repairs? So do it. Spend $1500 on repairs. That's two car payments if you dare to buy a new car. Talking about payments, have you checked those rates recently? Keep what you have.
Love your valuable info you provide! Thanks for all your great videos
Used cars are still expensive up here in Canada :(
good video, thanks for keeping us updated behind the scenes
Even if a non dollar-denominated asset sees no real gains during inflation that's still much better than holding cash and seeing your real purchasing power undermined. In other words, sometimes you have to chose between the lesser of two evils.
Yes Strickland. I would rather lose 3% on a stock due to inflation than lose 10% on cash due to the same inflation.
One thing I always have at the back of my head is the Rockefeller's advice on how to earn during times like this; while others are panicking and selling or holding, just go a different route and invest right now, there's no better time.
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
@@philipparker9893 These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
@@mobstrickland515 I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfolio-advisor for guidance.
I was offered $26,200-$26,600 august 28, 2022 for my low mileage 2018 Colorado. It’s Oct 20, 2022 and the same two car lots offered me only $20,000! I’m in TN, so why?
7:40, why does that alpha look like it's crooked on the hoist????
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️.
Love the videos…but who is doing your pop up captions? Lots of grammatical errors.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️.
Difference today versus the 2008 is inflation was nil to marginal. Inflation is out of control even month to month. If I sell everything and keep cash on hand my cash is worth less next month. My $1 today worth .98¢ next month and then 96¢ after that and so on. But no one knows the answer to the problem. We’re all going to take a hit and hopefully bounce back soon. Love your videos by the way
Early 80s all over again
Everyone is crying about inflation but I am not seeing it at all. I live in one of the largest cities in the US and prices are lower than the covid gouging. Interest rates are the only thing higher.
@@common_c3nts if u run a business you'll know everything is 20-25% higher than pre covid. Heck even fast food is probably up that much, look at your grocery bills
@@common_c3nts Do you not buy things..lol
Maybe your rich and just swipe swipe swipe regardless idk
@@common_c3nts have you been to a grocery store lately?
The price of cars will return to normal.........which means everyone who overpaid for their car, now owes more (unless paid cash) than the car is worth. Those people will get tired of paying $1500 per month for a car that is worth less than HALF of what they paid. So they default and we will see the REPO market explode.
If your out financing new or a used ride right now,your a fool ..with the rising costs of fuel and groceries just to name 2 things you don’t need a car payment…keep what ya got…it’s not 5e end of the world if you vehicle doesn’t have all the new techy stuff inside -we drove them in the 80’s and 90’s without them…
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️
Yupq0,1+ 0 did it oyuz
Thanks Joey B.
Thanks for watching and commenting...
☎️Hit me up on my helpline👆
👆⤴️⤴️⤴️⤴️⤴️.
I was looking for a used car. Called a dealer to ask about a vehicle and was quickly informed that the car had sat on the lot for eight months. He offered me $1000 off over the phone if I would just come in and look at it.
yup.. do "not" buy a car yet. Car prices are dropping "Daily"
Since the dealers as of now, are charging a 30 to 35K dealer fee on top of the high price for many vehicles, I suspect people are going to start coming to see you for those pickup trucks.
Crazy times for sure. Economically and socially.