The prices need to come down at least 30 or 40% especially in used trucks. I’m in the market and the prices are just stupid for specifically like three-quarter or one time. Ridiculous for a 10 year old truck. I refuse to pay it and so does anyone reasonable
People think the monthly cost goes down. Not so much if any. Dealers are already charging way too much and $10 less a month isn't moving people off their sofas.
Heya brother, U R one of the brightest dealer on the interzones. You & ur wife. Plus I know a bit of team building & you have some Top Shelf employees working/leading your auto group. Thanks for sharing ur business tips/tools. peace
No, we are not waiting for rates to come down. We are waiting for the price to come down. We are looking for two new cars and looking to pay cash. I’m in a 1999 Toyota Tacoma and my wife has a 2022 Honda CRV hybrid touring with no loan. We are looking to sell both and pay cash for 2 new cars.
Why would any sane person spend over $100K on a depreciating asset unless they really need it for business purposes and can receive tax credits? Only a financial fool would spend unnecessarily on a high depreciation asset for vanity reasons.
There is very little difference this rate cut will affect market prices for the average American. Those that’ll benefit are the banks and federal debt being used.
Yields went up after news of cut so it’s actually harder for people to borrow money if they don’t come down!! Yesterday was exactly the opposite of what the fed wanted to accomplish lol
Unemployment numbers are significantly higher than being reported officially and those numbers are rising. Finally, 90% of all full time jobs created went to non-citizens. Bad things are bubbling up through the system.
Buy used, stick with cash and buy what you can afford. Get your financing prior to buying and know you're buying power. These newer cars aren't worth the price they're pushing. (Automotive Technician and Automotive Hardware/Software Programmer)
Policy is still restrictive. It's just no as restrictive as before. A lot of areas of the economy are doing well but it's clear that employment has weakened and we don't want it to get too weak. My local Toyota dealership has been sending me an offer for a new Camry LE every month. Their ask is $31,500. They'd get me to bite under $30K. I'm a cash buyer and I have my price. MSRP is about $29K. I have two old Camrys and I could drive them for another 5-10 years. BTW, I'm a fan of higher interest rates as I'll just park money in T-Bills. It's easy to call for more pain in the market if you're not one of the people in pain. I do think that the move to lower and cheaper cars will be durable as people figure out that they made a mistake and change their behavior for the future.
I need an HD truck and after my experience with my 2020 and 2022 Ford F-350's with numerous quality control problems and endless recalls that I had to pay 5-$10k over the already overinflated prices im done with new trucks.
Love your content. It’s an election year if people can’t see that we are in bigger trouble than I thought. Really the average person is going to save 15-30 dollars a month on a car payment and the dealer is going to find a way to get that. I think someone got their arm twisted behind their back just waiting to see the next election adds
We lived in two different worlds during the pandemic. No where was hiring where I lived. Trust me, I was looking for work for a solid year before taking the gov money.
Lower rates wont do much for car sales. Not at least until they drop down to near zero. Need many more rate cuts to get there. Car prices need to decrease by a lot.
Half a percentage point wont matter for cars. This is more to get people to start buyign and selling houses again. That half a percent can add or reduce the price of a 500k mortgage by 500 extra dollars a month
Glad I bought the last new car in 22. It was affordable.. a chevy spark .. for 13.5 k msrp . Off the show room floor …. Where did all those cars go why not manufacture them it gets 40 plus mpg ….
Brandon, I enjoy your content and your take on the economy, and in regards to the effect of the Fed rate. you might like the following UA-camr, his thoughts may dd confirmation to your thoughts and maybe add a little to your view of the economy. disclosure - I have NO skin in the game in sharing the following link, just thought you might like to hear what he has to say ...
Are you talking about high end NEW cars? Lol, I just helped (did the financing) my mom purchase a 2018 Lexus RX 350. Low (61k) miles used vehicle for $27650 with an interest rate of 4.99%. I have a 800+ credit score and my mom has 728. Her rate would've been 9.25%. Mom put 10k on the loan before the 1st payment..
@@thein-famouselguapo15 Lol. You can stick to your 30yr old $500 car, no hate here. Yes, under (27650 OTD) 30k. The dealer was asking 34k.. 6yr old car should have around 100k, this 2018 is still under 62k and fully loaded with AWD. I know, you believe it should be 10k (You're logic all vehicles are 10-20k overpriced) but I live in the real world AND MY MOM CAN'T WORK ON VEHICLES. She needs something reliable and dependable. Sorry, but if you are poor, Just say so .
@Antares_451 Just a few years ago, you could get a new car for 30k, but hey, if you want to throw your money away, go for it. There's a sucker born every min.
@@thein-famouselguapo15 OK and?? Not all new cars are the same. A new Toyota Camery and new Chevy Imperial WON'T be the same price. . FYI.. In 2002, a brand new Toyota Sequoia Limited was 50k I still have my sticker.. Additionally, I purchased a fully loaded Tundra 1794 4x4 in 2020 for 42799 OTD. Only sukka is the ones that are always complaining and watching other money.. Stick to yah 500 car, nobody is hating you for what you can't afford..
You know, the interest rate is primarily to support business operating costs. We the people get a small, if any, trickle down benefit and they still won't lower their prices.
I could afford any new car I want. Bottom line new cars they are liabilities. Why would someone tie up their cash on a new car.I always buy nice cash cars. Only stupid people buy new cars.
And inflation will really take off. Be prepared people,its going to get real ugly really fast. There supposedly going to be another 50 point coming,probably right before the election.
Anyone can buy T Bills. I own some. It's for citizens if you want them; just buy some via a brokerage account or the Treasury website. Auctions are every week on Monday for 3/6 month durations, different days for longer/shorter.
Interest rate may go down, but vehicles are 20k more expensive than they were before the pandemic. With food price gouging and no one is making any more money. Who are these new buyers?
There are some things you should know. Jerome Powell is not an economist. He is a lawyer. That’s why he sounds like that. Also Fed does not control the rates the fed fund futures do and the fed has never deviated from those.
I respect your interpretation, but the fed cut rates because the labor market is softening and will accelerate rapidly. Significant Debt accumulation will lead to a mass defaults. You can look historically and see the start of the easing cycle by the fed all but confirms the recession on the horizon
Bro you’re the Q of the car market crash. It’s coming!! 2 more weeks! Hell we are coming up on ANOTHER red October. But brilliant marketing for your dealership bro. If I was in your area I would be one of your customers. I refuse to pay these inflated vehicle prices
No one wants to admit that the solution to lowering prices for cars is opening up the free market to include Chinese auto competitors into America. Everyone says they will sink our industry and its probably true, because they're overpriced, they're technologically dated in many respects, and they can't possibly compete. Hardly anyone can afford a car anymore, even with 0% interest. We need more competition!
Cheap money is what got us here in the first place. People need to learn to live within their means. $70,000 cars are only affordable with 0% interest and and 5+ year notes.
@@jackwilbur9419 Or a crooked Republican. (Look at the loans MGT had "forgiven" yet she yaps about student debt. Same with "Gropebert". ALL Republicans are crooks - only about half the Dems are).
50 BPS literally will do NOTHING for the average consumer Next, we have been in a recession since oct 2021, but they just change the definitions of things that have existed since 1930s
The problem with having interest rates high for too long is that it will LITERALLY crash the economy. High interest rates hurts the economy and will literally destroy it
I bought a used ranger (2021 lariat) for 38k. Only had 4k miles on it so felt okish about the price. Especially because i traded in my 2015 v6 mustang that i paid 28k for in 2016 for 18.5. I had actualyl troed just selling the mustang tonthe same dealership in 2018 and they offered me 10k. Price literally doubled for a used car with all the craziness going on
It’s not the feds job to lower prices for Americans. Their job is to keep inflation under control, which they deem 2% to be under control, and to keep unemployment under control. 2% inflation doesn’t mean prices get cheaper, they just don’t get expensive as fast. Decreasing inflation is not deflation. The slope of price increases just gets less steep, it’s still positive.
More buyers that have lost their jobs?? I fail to understand where folks are going to get funding for a car, new or used without a job. 'that pays a livable wage'
I’m driving my 2014 Toyota 4Runner until the wheels fall off. Paid for and best vehicle that I’ve ever owned. I’ve had new expensive cars before. My mind has totally changed. Paid for overrides new and overpriced!!! If cackling hoe goes in, things get way worse. People can barely eat must less buy an $80,000 ride. 😵💫🙅♀️😤
Game over man..GAME OVER!
I'm not paying 100,000 for a new pickup period. They just flat out ain't worth it!
They're selling them for double what they should sell for.
Just for it to depreciate as soon as you drive off the lot. It’s sad!
As long as they are approved for loans with barely manageable payments, they will buy buy buy
@@Flash413 With the interest rates lower they will be buying more.
Rates can go to zero and the price of a new vehicle is still out of reach for most.
Exactly. Too many buyers underwater or not having "disposable income" after inflation. Auto loans will still default, increasing ways banks cut risk.
Precisely friend
True sir. Greedflation.
If they sell you the 90k dollar ram 1500 classic for 360 months at 5% intrest people will buy it at 300 bucks a month for 360 months
Rates going lower is good.
This video was spot on. Cheap borrowed money means inflated asset prices.
POLITICAL ONLY
You could give me 0% on a new truck. I could afford the payment, but there is no way I am paying new or used truck prices.
The prices need to come down at least 30 or 40% especially in used trucks. I’m in the market and the prices are just stupid for specifically like three-quarter or one time. Ridiculous for a 10 year old truck. I refuse to pay it and so does anyone reasonable
People think the monthly cost goes down. Not so much if any. Dealers are already charging way too much and $10 less a month isn't moving people off their sofas.
Your words are blessings!
Ny state gas just went up to $3.70 a gal, from $3.50.
Wow in Vermont, it just went from 3.40 to 3.15
Heya brother, U R one of the brightest dealer on the interzones. You & ur wife. Plus I know a bit of team building & you have some Top Shelf employees working/leading your auto group. Thanks for sharing ur business tips/tools. peace
The rates going down will result in ppl trying to refinance... That's about it... $55,000 is still a ridiculous price for a Tacoma...
Very Good!
I agree, he should've raised it a whole point more last year
Average homes are 400k & Basic trucks are 100k. This is not a workable system
Absolutely Brandon inflation will increase.
It'll be worthwhile when the manufacturers CUT THEIR PRICES BY 50%
It won’t happen
No, we are not waiting for rates to come down. We are waiting for the price to come down. We are looking for two new cars and looking to pay cash. I’m in a 1999 Toyota Tacoma and my wife has a 2022 Honda CRV hybrid touring with no loan. We are looking to sell both and pay cash for 2 new cars.
Why do you want to sell a 2 year old car?
@@goldbrick2563 just looking to stay in new cars and have some resale value. I pay cash for my cars so no interest.
Building cars people can afford would be a good business plan to help offset all those trucks that aren't selling.
Why would any sane person spend over $100K on a depreciating asset unless they really need it for business purposes and can receive tax credits? Only a financial fool would spend unnecessarily on a high depreciation asset for vanity reasons.
Omg most of the united states is financial fools
If you lose your job and can barely pay your mortgage, a new car is off the table.
Tanking the market would be a good thing. Lower prices are good.
Until the prices DROP.......Nothing has changed.
There is very little difference this rate cut will affect market prices for the average American. Those that’ll benefit are the banks and federal debt being used.
People need cars no matter the price.
Make no mistake. These rate cuts are only being done to appease the brats on Wall Street
You should replace Jim Cramer, you make so much more sense!! Thank you for your analysis and insight in the used car market
Stock up on water and storable foods.
It's not really about the rates. It's about the companies price gouging us.
Yields went up after news of cut so it’s actually harder for people to borrow money if they don’t come down!! Yesterday was exactly the opposite of what the fed wanted to accomplish lol
Unemployment numbers are significantly higher than being reported officially and those numbers are rising. Finally, 90% of all full time jobs created went to non-citizens. Bad things are bubbling up through the system.
Buy used, stick with cash and buy what you can afford. Get your financing prior to buying and know you're buying power. These newer cars aren't worth the price they're pushing. (Automotive Technician and Automotive Hardware/Software Programmer)
New cars have too many problems, and too many dollars!
The data is all rearward looking and has various levels of lagginess in the different stats. That lag is very hard to adjust for on the fly.
Engineering inflation is easy. A government can do that without thinking past 10 a.m. Engineering deflation is difficult. Tricky. Dangerous.
Policy is still restrictive. It's just no as restrictive as before. A lot of areas of the economy are doing well but it's clear that employment has weakened and we don't want it to get too weak. My local Toyota dealership has been sending me an offer for a new Camry LE every month. Their ask is $31,500. They'd get me to bite under $30K. I'm a cash buyer and I have my price. MSRP is about $29K. I have two old Camrys and I could drive them for another 5-10 years. BTW, I'm a fan of higher interest rates as I'll just park money in T-Bills. It's easy to call for more pain in the market if you're not one of the people in pain. I do think that the move to lower and cheaper cars will be durable as people figure out that they made a mistake and change their behavior for the future.
I need an HD truck and after my experience with my 2020 and 2022 Ford F-350's with numerous quality control problems and endless recalls that I had to pay 5-$10k over the already overinflated prices im done with new trucks.
Love your content. It’s an election year if people can’t see that we are in bigger trouble than I thought. Really the average person is going to save 15-30 dollars a month on a car payment and the dealer is going to find a way to get that. I think someone got their arm twisted behind their back just waiting to see the next election adds
The feds are funny. They create all this bullshit and then try to fix it. We’re all being played a joke. Thanks for the videos. Have a blessed day.
Economy is really bad it’s been a year now and the fresh food volume is completely unpredictable this is worse than it was in the 07-14 window
Many have already said that these rate cuts will eventually reignite inflation. ☹️
They should have not cut the interest rate.. It will make things worse.. You have to know about business to understand this...
Fed needs to go higher not lower
This won't change a thing with car market, no one still wants to pay the prices on new cars.
We lived in two different worlds during the pandemic. No where was hiring where I lived. Trust me, I was looking for work for a solid year before taking the gov money.
Look it up : lag effect of monetary policy
Step one, lower the rates.
Step two, drastically reduce vehicle prices.
Step three, wave a magic wand and make the vehicles on the lots NOT JUNK.
Cars nowadays last longer, it’s a fact
As a kid a car with 100,000 miles was consider a lemon
Cars last so much longer that warranties are vastly better than the “good old days”
Theres also more cars than ever that break in 20k, 40k and 60k miles. Quality control is out the window!@diegoharo7943
@dave3657 the problem is step 2 didn't happen and the govt decided to go back to step 1. Prices creep ever higher while rates go down.
Everytimr fed started with 50bp we had hard landing likely next 6 months so prices will go down
Lower rates wont do much for car sales. Not at least until they drop down to near zero. Need many more rate cuts to get there. Car prices need to decrease by a lot.
The job market and wage stagnation is going to keep purchases low imo.
I'm far from a expert but my understanding that this rate cut was expected but also largely for show.
Half a percentage point wont matter for cars. This is more to get people to start buyign and selling houses again. That half a percent can add or reduce the price of a 500k mortgage by 500 extra dollars a month
We do need more pain in this market…a lot more pain… our local Ford dealer has a lot full of trucks and no one is buying them.
it does not matter if they put it to 0.. WAKE UP . PEOPLE HAVE NO MONEY. people are having a hard time buying groceries
Glad I bought the last new car in 22. It was affordable.. a chevy spark .. for 13.5 k msrp . Off the show room floor …. Where did all those cars go why not manufacture them it gets 40 plus mpg ….
Brandon, I enjoy your content and your take on the economy, and in regards to the effect of the Fed rate. you might like the following UA-camr, his thoughts may dd confirmation to your thoughts and maybe add a little to your view of the economy. disclosure - I have NO skin in the game in sharing the following link, just thought you might like to hear what he has to say ...
1/2 a point makes no difference dog. No difference. It's too little too late. It's not going to spur any car or house purchases.
The bigger problem is that cars are still 20k-40k overpriced. Idc if I get it at 0% Let them sit!
Are you talking about high end NEW cars?
Lol, I just helped (did the financing) my mom purchase a 2018 Lexus RX 350. Low (61k) miles used vehicle for $27650 with an interest rate of 4.99%. I have a 800+ credit score and my mom has 728. Her rate would've been 9.25%. Mom put 10k on the loan before the 1st payment..
@@Antares_451 6 year old car for just under 30k? Yeah. Super cheap.
@@thein-famouselguapo15 Lol. You can stick to your 30yr old $500 car, no hate here. Yes, under (27650 OTD) 30k. The dealer was asking 34k.. 6yr old car should have around 100k, this 2018 is still under 62k and fully loaded with AWD. I know, you believe it should be 10k (You're logic all vehicles are 10-20k overpriced) but I live in the real world AND MY MOM CAN'T WORK ON VEHICLES. She needs something reliable and dependable. Sorry, but if you are poor, Just say so .
@Antares_451 Just a few years ago, you could get a new car for 30k, but hey, if you want to throw your money away, go for it. There's a sucker born every min.
@@thein-famouselguapo15 OK and?? Not all new cars are the same. A new Toyota Camery and new Chevy Imperial WON'T be the same price. . FYI.. In 2002, a brand new Toyota Sequoia Limited was 50k I still have my sticker.. Additionally, I purchased a fully loaded Tundra 1794 4x4 in 2020 for 42799 OTD. Only sukka is the ones that are always complaining and watching other money.. Stick to yah 500 car, nobody is hating you for what you can't afford..
Historically if the first cut is a .5 cut there’s a 50% chance of recession. So 50% chance assets actually crash
We are looking at a bubble in the market for the auto market and the banks with all the repos so we about to bail out banks again
Lol .50% isn't going to change EVERYTHING... If you don't have a 800 credit score, you better still expect to get 9-18% if you're financing.
You know, the interest rate is primarily to support business operating costs. We the people get a small, if any, trickle down benefit and they still won't lower their prices.
I could afford any new car I want. Bottom line new cars they are liabilities. Why would someone tie up their cash on a new car.I always buy nice cash cars. Only stupid people buy new cars.
Mortage rates actually went up today along with auto and credit rates. Fed rate is for bank and govt debt payments, not citizens.
And inflation will really take off. Be prepared people,its going to get real ugly really fast. There supposedly going to be another 50 point coming,probably right before the election.
+1
Mortgage rates have been declining for months and prices were still decreasing
Anyone can buy T Bills. I own some. It's for citizens if you want them; just buy some via a brokerage account or the Treasury website. Auctions are every week on Monday for 3/6 month durations, different days for longer/shorter.
@@tHebUm18I manage our family office. We are about 85% 4 week T Bills and 6 month CDs.
I believe it's more for new housing buyers than all that other stuff you mentioned.
Seems like what I thought was my starter home will be my last home.
Interest rate may go down, but vehicles are 20k more expensive than they were before the pandemic. With food price gouging and no one is making any more money. Who are these new buyers?
Can anyone state when the Fed has cut 50, we didn't end up in a hellish recession shortly afterwards? Get ready for impact.
If I was rich, I wouldn't pay those absurd vehicle prices.
I would if i needed a car
It's not going to change jack all. People still have no money to buy anything. And prices are still way to high.
There are some things you should know. Jerome Powell is not an economist. He is a lawyer. That’s why he sounds like that. Also Fed does not control the rates the fed fund futures do and the fed has never deviated from those.
💯 agree
Damn Fed. I'm sure this will worsen inflation. :/
I respect your interpretation, but the fed cut rates because the labor market is softening and will accelerate rapidly. Significant Debt accumulation will lead to a mass defaults. You can look historically and see the start of the easing cycle by the fed all but confirms the recession on the horizon
Rates go up, housing prices go up. Rates go down, housing prices go up. Get used to inflation. I doubt this rate cutting cycle will last very long.
these people buying at the mark ups deserve what they get, especially when they complain a year later when that car depreciates
Bro you’re the Q of the car market crash. It’s coming!! 2 more weeks! Hell we are coming up on ANOTHER red October. But brilliant marketing for your dealership bro. If I was in your area I would be one of your customers. I refuse to pay these inflated vehicle prices
No one wants to admit that the solution to lowering prices for cars is opening up the free market to include Chinese auto competitors into America. Everyone says they will sink our industry and its probably true, because they're overpriced, they're technologically dated in many respects, and they can't possibly compete. Hardly anyone can afford a car anymore, even with 0% interest. We need more competition!
I don't give a hoot what interest rates are.
When a flipping new ford ranger cost over 40k, i won't buy one if the interest rates were 0.
If vehicles are overpriced between 50 to 60 percent the rates can go to zero let them sit.
If I can't buy car for $50K with 1% or 15% of interest, that song I'm not going to sing. 🤷
Ppl are broke. This economy will crash and stay down without free money.
No such thing as free money
@@Mike_173there is if your an illegal immigrant😂
Is never free we pay for it with Inflation and Taxes 🤔🇺🇸
Cheap money is what got us here in the first place. People need to learn to live within their means. $70,000 cars are only affordable with 0% interest and and 5+ year notes.
@@jackwilbur9419 Or a crooked Republican. (Look at the loans MGT had "forgiven" yet she yaps about student debt. Same with "Gropebert". ALL Republicans are crooks - only about half the Dems are).
50 BPS literally will do NOTHING for the average consumer Next, we have been in a recession since oct 2021, but they just change the definitions of things that have existed since 1930s
The problem with having interest rates high for too long is that it will LITERALLY crash the economy.
High interest rates hurts the economy and will literally destroy it
.05% makes little difference in the purchase of a $65K plus vehicle.
I bought a used ranger (2021 lariat) for 38k.
Only had 4k miles on it so felt okish about the price.
Especially because i traded in my 2015 v6 mustang that i paid 28k for in 2016 for 18.5.
I had actualyl troed just selling the mustang tonthe same dealership in 2018 and they offered me 10k.
Price literally doubled for a used car with all the craziness going on
It’s not the feds job to lower prices for Americans. Their job is to keep inflation under control, which they deem 2% to be under control, and to keep unemployment under control. 2% inflation doesn’t mean prices get cheaper, they just don’t get expensive as fast. Decreasing inflation is not deflation. The slope of price increases just gets less steep, it’s still positive.
How about going from inflation into deflation.
Recesson blues, most have no money, cards maxed out, credit in shambles = thanks to JOE’s polices.
50 basis points aint changing anything
More buyers that have lost their jobs??
I fail to understand where folks are going to get funding for a car, new or used without a job.
'that pays a livable wage'
You know its way more than 2.5 percent inflation.
Agreed
I’m driving my 2014 Toyota 4Runner until the wheels fall off. Paid for and best vehicle that I’ve ever owned. I’ve had new expensive cars before. My mind has totally changed. Paid for overrides new and overpriced!!! If cackling hoe goes in, things get way worse. People can barely eat must less buy an $80,000 ride. 😵💫🙅♀️😤
That's a lot of "Hopium" for a market made on greed.
It's 50% inflation
Rumor is another 50 bps in Nov
Feds haven’t helped by cutting rates. Payment on a $90,000 truck at 0% interest payment s still high as Giraffe ass. And that’s up there
UPS and Amazon have new layoffs. Farmers are devastated.
Inflation is Higher than that , try 18% or Higher !