Car-mageddon Update: Expect Lower Car Prices Soon | Lucky Lopez
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- Опубліковано 15 тра 2023
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If you' re planning on possibly purchasing or selling a car in the near future, or just curious about how the latest gyrations in the auto market are impacting your current car's value, you'll want to listen up to today's guest.
Automotive UA-camr Lucky Lopez returns to the program to give us his latest boots-on-the-ground reporting on the key trends driving supply, pricing & lending in the car market right now.
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#cars #auto #automobile
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I’m looking to buy another Ford F450. After speaking to two of the biggest dealers in my area they both started with a $15,000.00 “market adjustment” after declining their price, one dealer came back with $5k over. After listening to this pod I found a 2022 f450 80 miles away that’s been on the lot for 281 days. Thanks for the tip!!
Good for you! I hope you enjoy your new vehicle and it performs well for you. May Yah bless you.
I have been selling cars, Trucks for 26 years, everything your guest said is spot on. The last 2 years have seen record breaking profit for the dealerships I was working for and myself as well, however as rates have gone up multiple times in last year it has put many people out of market, a Kia Sportage you were able to lease for 400 a month is now 700, with combination higher rates and added dealer markup.
Was buying a newer car yesterday/ had my check from the bank and was gonna do the deal Even got more money for my car etc .. I walked out had 2 other managers talking to me about signing the papers and go charge the down payment … bye bye
Let all these over priced vehicles just sit on the lots then. Can just drive by and look at them. Until the lot dealerships tire of paying lot lease rent and interest payments, then they can close down the over bloated car lots wasted acres of space.
I honestly don’t feel bad for what ever happens to these dealerships in the coming months. They are completely taking advantage of people on purpose.
Every two to three years Americans purchase a vehicle? Wow! That’s ridiculous. I’m still driving my 1999 Ford Expedition
That's because you are smart. You have a good dependable used vehicle that you take care of. No payments. Low insurance.
The whole economy is built on mindless consumerism
…although, vehicles are tend to be cheaper when compared to other countries out there. That’s one of many reasons why folks changing their vehicles every 3-4 years.
Maybe some. Not smart people.
You're due...my 97 rusted away 2 years ago
I drive for a small used dealership. They buy from auctions. They have cut back significantly. Good show. Very eye opening.
I saw dealerships marking up new cars on their lots by thousands of dollars.
I could not imagine paying more than MSRP for a vehicle.
I hope those dealerships get punished by the auto makers.
I have no mercy for the banks that allowed the dealerships rip off the consumers.
Great show!
Wow! I've been in the car biz for over 30yrs so I'm always skeptical of us "car guys" lol....plus I feel like I never hear anything that I didn't already know. You actually inspired me AND gave me some info that I haven't thought about!! 🤯 seriously, thank you and I'm officially a follower!
It still 'BLOWS ME AWAY' that ANYONE would pay MORE than the MSRP on ANYTHING! 😳
I agree, but that's human behavior when money is "free" (stimi checks, debt moratoriums, etc)
@@billclarke3754 I think at the end of the day. Most people just simply can’t survive without a vehicle. And it’s either you get screwed on a used car, or screwed on a new car.
@Thee Samuel Nelson! No, it's cheap money that caused this mess
Stupid is as stupid does
They are spending that free house equity money given to them by the Fed's ZIRP, QE, and general money printing -- they are spending it before it evaporates back to nowhere.
It’s definitely possible to negotiate with the large car companies like Carmax. Make them an offer and if they don’t budge simply walk away and buy from a private seller. The only reason those large car companies can get away with what they’re doing is because people continue to buy cars from them. If everyone just walks away they die.
#1 rule in negotiations. Be willing to walk away or you will lose!!
I walked away from a deal yesterday.
Factory-to-dealer incentives are what we need. I also agree with the statement above, keep the car until its life is over. The last car I had for 17 years with 180k miles on the vehicle.
Problem with private sellers is they are insane. I wasted so much time with people trying to buy a car. The simplest things like taking the car to the mechanic before hand or getting them to answer simple questions is a pain in the butt
Carmax is not a "Car company" they are used car dealers and they manufacture nothing. The problem is that each used care is a "snowflake" and nearly impossible to know what they are worth because you will usually have no idea how the car was driven or maintained or how much longer it might last.
I've seen 2 of Lucky's interviews. No disrespect to other Wealthion guests, but Lucky brings us info that's so well suited to those "Shooting the Breeze" conversations that you have with your friends.
It’s not often that I watch hour long UA-cam videos but man was this interesting and so informative. Thank you both.
The fact that manufacturers won't build vehicles people want is infuriating.
It's ok. They'll pay for it
Car companies only wanna make the most expensive vehicles they can make the most on! That’s why there’s more f150s on them for lots than anything else and they stay there too!
Foreal.
I tell people to buy a Honda Fit, a Prius, or a Camry. A Chevy truck if you need a truck/suv
everything else is too much car tbh
They're gonna force the Ev market to open up.
Middle class person here who can’t afford any of these fancy vehicles anymore as they skyrocketed in price. Then the affordable cars are in such high demand that there aren’t any. So I just continue to drive my 23 year old rust bucket for now, but at least it’s all paid for. I refer to it as my “fully depreciated ride”. 🤷♂️
Yay, it's Lucky!!! I've been waiting for about 6 months. I'm almost to the point where I *have* to either buy or start borrowing my mom's car.
Lucky is spot on with the Big franchise stores. They won’t let u negotiate. Price is what the price is. The onesie dealers are going away. Another great interview
Wow. Thanks! I had not heard that banks are stopping loans to consumers who do Uber, Lyft, etc & the ripple effects of that. Makes total sense!
I’ve been watching Lucky Lopez for awhile now and find he is one of the most astute analysts in the U.S. cat market. One issue I would like to see discussed is what will happen to prices of first generation electric cars like Nissan Leaf, BMW i3, with less than 100 miles of range when newer electric cars with 200+ miles range? They’re mostly still drivable but I would expect their value will get crushed.
You can buy a used Leaf for $1-2K, a rebuilt battery pack is abpout $2500.
The price of cats have indeed gone awry. It's a head scratcher
@@crankychris2 where? I have not seen that kind of price anywhere.
I was noticing that newer used cars are beat with so many miles on them because of rideshare apps and it makes it hard to get a semi affordable car that still has some life left in it, it’s crazy
Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $4M. We have never sold so much as one share of stock.
It's great to hear that you and your husband are focused on achieving financial independence and have been making conscious efforts to manage your finances wisely. Accumulating a $4 million stock portfolio through savvy investing, frugal living, and careful budgeting is a significant accomplishment, especially if you've been able to do so without ever selling any shares of stock.
Planning to retire at 58 with a sizable portfolio demonstrates a disciplined and long-term approach to financial planning.
I agree with you. I started investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money with an investment advisor and in seven months raised almost $873,000.
@@MarkFreeman-xi3rk Any chance you can recommend who you work with for those of us who want to make the right plays now and be better positioned for a healthy retirement?
@@EmmanuelCage-xd7bt Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. “Margaret Johnson Arndt” is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
My jaw was dropping at the price of cars these days! I bought a Camry new in 2017 (just before the model redesign) and paid under $26K, out-the-door. Now it looks like my next car is going to be upwards of $50K??!? Where are people getting the money for this?
They aren't. They are either not buying or are taking on huge levels of debt for them. It is dangerous economically.
You'll have to take on a second or third job.
People are signing up for 84-96 month loans to afford today’s high car prices.
2017 was an excellent time to buy a car. Hold on to that cae until the wheels fall off.
Great content, Adam and Lucky. Incisive questions and answers! So much is involved with a vehicle purchase with the barracuda/shark nature of the industry. And now we have the falling knives of increasing interest rates, possible higher depreciation and devaluation with the wrong vehicle choice and the continuing “consumer be damned” attitude of the dealerships.
Thanks for the insight! I would like to hear in a future episode about the increased prices of mechanic shops and how this could play into used cars. Possibly buying a card a few years old is better than a 10 year old car because of the price of maintenance. The price of struts, tie rod ends, cv axle could cost more than the car is worth to fix.Thanks again!
I make a point to look for Lucky's interviews. We all need transportation and we all spend more than we wish we had too. Lucky keeps me in the loop so I'm on equal footing with dealers and the coming market conditions. Thanks Adam for bringing Lucky on. I'm a frequent listener to Wealthion, but when Lucky is on I'm absolutely won't miss it listener.
I also make a point to look for Lucky’s interviews 👍
No one wants transportation; they want a status symbol. Plenty of base model Fiestas are available.
Lucky is a 1 trik pony with little analytical skills.. Over 50% of the content in a us so called made auto is local (mostly the agricultural stuff like chassis, rims, mufflers. Do u really think any hi value added items electronics, servo motors, wiring harnesses, alternators, cameras, led headlites, HVAC systems, etc. are made in the us?? no way.
Lucky Lopez a great interview today on the car market. I also live in Las Vegas, and I since I only drive 75 miles a month, I'm going to keep my 2002 Ford Crown Vic, till the wheels fall off.
Always nice to see two great guys together willing to tell us what is going on behind the scenes.
as a former escrow firm owner working through the "creative" (code for absurd) nonsense of lenders who initially tacked on accrued interest on delinquent mortgages on the back end I literally LOL when Lucky said auto lenders on doing the same for cars. In housing , lenders did this in 2008,9,10. Guess what happened? Consumers still didn't pay after 2 yrs or more. We closed some of these years after the initial loan modification as a short sale AND some lender/servicers reconveyed/satisfied their 2nd loans. We even had a transaction where a client HAD NO IDEA that their 2nd mortgage (something like $300K) was reconveyed (satisfied) until they decided to sell and we pulled their Title Report reflecting liens. This was going on behind the scenes. The general public still have no idea how bad things were living in their day to day bubble.
Thanks lucky I really appreciate what you doing I am 57 years old and never owned a new car I'm going to wait thanks
This guy is simply knowledge and experience packed. Just love listening to him.
Incredible show Gents. I was destroyed financially in the GFC and I see so many parallels to 2006-7 right now it makes me shudder. This confirms many of my fears.
How did you get ‘destroyed’? The market went to the moon from March 2009.
@@antpoo Simple. Someone came out of the crisis with no money left wouldn't have had any capital left with which to profit from the recovery.
The fact that there are people out there that think the GGC wasn't a big deal because every recovered after the market hit bottom is another piece of the current market puzzle.
Thank you guys. I’m 61 and should be retiring soon. I’m looking forward to picking up my 57 Chevy two door post on the cheap! When the time is right, I might even call. Lucky. Thanks again. Smitty in Vegas.
Take it from a once top salesman - CAR BUSINESS IS DIRTY. Every single one is criminal, from service to sales, from finance office to dealer principles, from accounting to management.
Clients became friends over the years, I had to QUIT albeit a 6-figure income.
Time is coming soon for direct sales, like Tesla EVs.
Model Y is best selling EV on the planet right now. More to come. Stealerships are giving
ICE vehicle manufacturers a bad name, and EVs are the future. Just watch.
@@bigpops669 sales is a side show. Finance office (warranty, Chem pack, life/disability, artificially high interest rate) makes the most money (150K to 300K a yr); used/reconditioning another big chunk ($150 battery test, $180 replace; cost $86); 3 guys in parts with IQ 200 (combined) mark up 30-100% (1-2m a year); service advisors couldn’t make it in detailing now making 80,000 by up selling services that is not needed. Dealer principle asked me to pick up buddy from jail that stole millions before. “Time to make up” he says.
@@bigpops669 An apprentice was shadowing me. His g/f was coming in to buy, low income waitress. I told him we would give her the best deal but we had to eat too. 2 hours later, prick was all cocki, “I just grossed her $5100” ($10,000 used Kia). GM said, “maybe you should be shadowing him …” I said “call her back, reverse the deal, let me deal with her …” NOT A CHANCE. He is the New Car Mgr there now.
Having been on the bank side of the dealer finance equation I was surprised to hear how much dealer flooring (the interest the dealer pays to the manufacturer to have a vehicle on their lot without paying for the vehicle) could rise after 90 days. HUGE incentive to sell that car - really puts the pressure on dealers. Ultimately the manufacturers will pick the winners and losers among the dealers with their flooring plans.
I agree. I can see that scenario playing out for sure in how dealerships keeping such low inventories to avoid the 90 day trap. In my area, I feel dealerships can see the Boomer Retirement Crisis, inflation pressures and housing shortage problems an they don’t want to over order or have too many cars that don’t sell sitting past 90 days. They were in the past use to having several 100s of new cars on the parking lots at most dealers now that’s like no more then 20 at best. Then we have the push towards electric vehicles an the what if problems that come with this massive transition in US transportation and infrastructure changes needed. Huge gambling for everyone. Also, I feel as long as there are Boomers over age of 55 owning most of the real estate around 65% of 144 million homes looking at there retirement future out of the workforce aging in place in these homes. They are going to cut back on buying cars, trucks and vans will downsize to one vehicle which they won’t drive much per week an slow sales further. That’s coming along with the government ending their driving privileges as fragile seniors. The car dealerships have to know of these economic and demographic trends with Boomers is more impacting to the future of selling vehicles to slim down an stay low weight. They can’t eat and gain weight like a pig plumping up an getting later slaughtered.
Love the debate and interchange of these two gentlemen doing a blog/video. Lucky has some amazing insight and is very good at articulating his points! Cheers and keep it up.
I feel like I'm listening in on a convo with two smart guys. I'm narrowing down my car search and learning so much about the process.
Absolutely outstanding interview - I have a few friends, one who owns an agency in Colorado, who were bragging to me on Friday about how well they are doing. My only thought was the scene from The Big Short where they interview those two mortgages guys in Florida - “yeah man idk but I have a boat!!”. They truly don’t know what’s coming their way. One of them said, “I’m killing it but the consumer is screwed”. No remorse at all. Things would benefit from change.
And that change is coming! They WILL own NOTHING! And THEY will be HAPPY!! Hahahahahahahahahahaha!!!😂
Great content. I was naive about the whole car market, but I did see ridiculously high prices the last two years. Your video was informative and helpful. Thanks
Lucky & CO......your the best!.....and, so, so generous with your time......couldn't get enuff.....thanx a million!
This man is spot on! I got hit by a stupid person and my car was totaled. Autonation would NOT budge on the price of the car and with a 751, I was appalled at being quoted 6.4 to 7.0% interest rate.....enough to make you pass out! I'm trying to hold out, but driving the maroon Enterprise Winnebago rental is wearing on me.....
Interesting interview. Trying to keep my older vehicles going a while longer and hoping for less insane prices.
The only problem with that is a lot of us are doing the same thing. Mine has 200000 miles now
Great job, Mate We can no longer afford to buy homes, hopefully we can buy a car.
Wow - the whole conversation on the auto industry, bank financing, and the gig economy (Uber, Lyft, Turo) etc - very enlightening…
I'm not in the car market, but I like listening to Lucky and hearing what is happening in a different part of the economy
Thank you Lucky and Adam. Who is running this world. Appears automakers and homebuilders are creating debt, taxation without representation for bankers and their shareholders. Homes are for humans to live in and cars are to get humans from here to there. Not to insure investors and bankers insurance companies can payout shareholders lots of money. There is no more purchase power of the US dollar but put more stuff on cars we don't really need and
expect humans to pay for that. This is insane. Hopefully real Americans can finally make cars for Americans moving forward.
over 50% of the content in a us so called made auto is local (mostly the agricultural stuff like chassis, rims, mufflers. Do u really think any hi value added items electronics, servo motors, wiring harnesses, alternators, cameras, led headlites, etc. are made in the us?? no way.
Manufacturers and home builders can't create taxation without representation. It's your choice to purchase and how to purchase. It's always interesting to read the comments of Ramsey disciples arguing totally opposite things.
If possible, don't buy if you don't need to. Pay cash if possible and if you have to buy. Otherwise it's probably better to just maintain your current vehicle. I can definitely afford $1k payment but it's just ridiculous to do so and I'm just maintaining the vehicle we currently have until we find a deal we like. Same thing with a house: we're in market but have plenty of time to wait to find a great deal. In this instance, time is definitely your friend since prices will start to decrease and I expect interest rates to stabilize or slightly increase over the next 2 or 3 years at least.
We’ve created monsters when it comes to banks and their creditors. Sad really but we can be smart about it when most people are not. 😊
Always interesting to hear Lucky's perspective on the auto market.
I didn't realise how expensive the High end RAMs were. Makes the F-150 Lightning very attractive.
I watched the whole interview, from beginning to end, and that's saying a lot. Thanks!
Crazy. I learned a lot from this one, never thought of some of that stuff before, particularly with that rideshare craziness.
Some really tangible tips thank you very much, we have a friend looking to buy a car soon and I keep watching the space to give her the updates and tips, very much appreciate this segment.
The best policy is honesty and many car dealerships lack this, and do not
understand the customer is the most important component in any business,
Without customers no business.
Once you rip off one customer you lose lot of customers.
Always find chats with Lucky Lopez fascinating. Keep them coming.
Great discussion & info from Lucky!!! This is very different than Wealthions usual guests but important considering the investment we all make in our vehicles.
I have always been a careful buyer when it comes to cars. I am also someone who keeps a car and takes care of it- not one to trade every two or three years. I purchased a minivan for my business in early 2020. My old one had 320,000 miles and both of my sons had just enlisted in the Army. My buying impetus was something that I wouldn't mind driving to wherever they became stationed. I found a great deal about 100 miles away, in Atlanta, and was ecstatic with my "new to me" ride. Well, last June, I was coming home from a wedding, and was hit by a drunk driver who fled the scene. Aside from the legal red tape, and dealing with an insurance company who was not as pleasant about giving me money as they had been about taking mine all these years, I have been absolutely floored by the prices of vehicles. Replacing that minivan had doubled in price, never mind losing my 2.5% interest rate. I am still looking, presently using my "old faithful" with, now, 350,000 miles (regular service and synthetic lubricants). Thank you for helping me to see a glimmer of hope in these crazy prices.
Had a coworker laugh at me when I purchased a brand new kia 8 years ago. since than, hes on his 3rd beamer paying 12% interest while my kia has been paid off for 3 years now
Thanks for the comments and how the industry is going. I drive older Honda's and that seems to be working for me. Yes, I do have maintenance but I do not have a car payment. I will try to keep this going. Thanks again.
Turns out Adam is a man of culture … Santa Rosa is a beautiful city. In a beautiful county in a beautiful state. Santa Rosa was once the training camp site of the Oakland Raiders ❤good times right there.
Another concern for banks and manufacturers; assuming we’ll see a major Gov and CB pivot and print’s of $T’s, is these loans being paid back with significantly devalued currency.
Very thoughtful and well reasoned. Thank you for explaining this.
This was so informative and confirms I’m not crazy when I suspect that many I’d the folks I see with these nice new vehicles may be ahead of their skis particularly with hearing that AGAIN loans are being given out without due diligence. Great stuff here! Much appreciated l.
Unbelievable wealth of the auto industry here. Thank You Lucky! I didn't realize the issue with uBer, Lyft and then Amazon. One thing is certain, if you want to know how the economy is doing, just look to the car industry. We as a nation are so tied to the auto industry. If it's hurting, our economy will be too due to lose of jobs...
Adam, I took out a Chase 0% interest teaser loan front loaded with a 4% fee. So effectively a 4% loan if you payoff on expiration of the teaser period. I mistakenly forgot to adjust the payment on the CC account to minimum as it was set to payoff at the end of each period. I went into overdraft and had to scramble to clear up the mistake. My effective rate was 4% x 12 = 48%. Now that is a self-inflicted ouch!! Needless to say, I no longer do any business with Chase Bank
48% is dumb. Just refinance with another bank.
Thanks to both of you for the valuable insight!!!
I use to work near Santa Rosa car dealership. My dealership in Petaluma was one of the last family owned Chevy and Ram
Adding on months on the back end of the loans was what we did at the for profit college. The students monthly payments would be $600 and the students couldn't afford that so our financial aid department would lower the payment to $100-200 and just add the rest on the back end. Sad thing is the students had no clue the money was still owed and just moved to the back end. At the end of the day, the student completes the program and loans repayment start, plus the money you owe to the school. 😢
I am looking to buy new and have been waiting for this. My neighbor bought one of those chargers during the plandemic. Thanks Lucky/Wealthion.
Great vid, tons of info...really appreciated it. One point I was curious about and was not mentioned...each time I speak with a new car dealer they immediately want to know if I'll purchase "cash or finance" (a question I despise...just give me your best price). Obviously, in their eyes, that will determine the price I purchase a car for. I'm a cash buyer, so how is this
"car-mageddon" effecting the cash buyer? Thanks again for your excellent video!!!
Lucky touched on the current most availability of JEEP vehicles. Very few people know this, but in past years of Consumer Reports magazine’s annual car edition, with the owners of every vehicle taking the CR survey, which is the basis for the car edition, in the frequency of required repairs needed, of brands listed, and in all categories, JEEP vehicles rated Dead Last. Notice also, the car manufacturers Lucky mentions which have the least current availability. Those brands are also rated in the same magazine edition, as the vehicles, in frequency of needing repairs the least. 😉
Love seeing Lucky on his own channel as well as on other channels.
Lucky is one of my favorite guests!!!! Thank you for bringing him back.
Lucky is a 1 trik pony with little analytical skills.. Over 50% of the content in a us so called made auto is local (mostly the agricultural stuff like chassis, rims, mufflers. Do u really think any hi value added items electronics, servo motors, wiring harnesses, alternators, cameras, led headlites, HVAC systems, etc. are made in the us?? no way.
Lucky is a very interesting guest and brings up the very good point that, for the individual buyer over the next year or so, value will depend greatly whether you can pay cash or have to finance your purchase.
It is worse, some of the banks are refusing New Car Loans. Have a credit rating on 724? Nope, no car loan for you. What do the banks know that we don't? This economy is not going to have a Soft Landing, it will be a hard landing with a deep recession.
The German car market is booming with a handful (e.g. Suzuki and Rolls) more than doubling sales last month compared to last year. The UK is also doing well and is up 11% overall.
This is the exact type of video I was searching for. Great info thanks. Will be watching for new updates
Excellent analysis! Thank you Lucky and Adam
Great guest! I’m a subscriber to both of you so definitely bring him back!
Since Lucky says he reads every comment, I'll post which i usually don't. I found this video by chance and its very informative ! I will be subscribing to Lucky. i have a 2021 Rav4 Prime and would like to eventually change to a pure electric so I'll be studying your UA-cam channel.Thank-you Lucky and Wealthion for having him :-) Take care Chris.L
Thanks guys. Data point on Bank rates gone crazy. My daughter is 18, new buyer, good savings history, wanted to do 50% down. No "credit" history? 17% and 60 month minimum. ... So ... my daughter got cash from her mom and her sister to "go buy cash" and then pay them back instead. TREND? is the "save-and-then-spend" method coming back naturally in some families, maybe degrees from "convinced-by-" to "forced-by" the market? This purchase is a New chevy, $30k approx, a basic =MSRP deal no rebates. Dealer had to wait two months for one "close" to what she wanted. They have to wait "allocations". Another topic - car insurance coverage - this is crazy pricing to add her car. So is there another TREND? in payouts by insurers for "uninsured drivers" in accidents? More accidents? Might help explain the big bumps. We already had our teens on the policy but the add for this new vehicle is really steep. We did take other quotes, all very high to cover some perceived extra risk?
What a really great interview with Lucky as always. And thanks Adam for bringing on guests that gives us a look into the economy from unique perspectives that nobody else is talking about.
Lucky is a 1 trik pony with little analytical skills.. Over 50% of the content in a us so called made auto is local (mostly the agricultural stuff like chassis, rims, mufflers. Do u really think any hi value added items electronics, servo motors, wiring harnesses, alternators, cameras, led headlites, HVAC systems, etc. are made in the us?? no way. Therefore, the auto market to a a large degree in terms of pricing is dictated by offshore suppliers and market dynamics in the Global South not the fading fast us market which depends largely on interest rates being near 0% and gas at 2 bux per gallon. and which completly escape lucky.
@@dol3980 Samsonite
Excellent information. It is awesome to get this level of "TRUE INSIGHT" without having to swallow a poison pill in the present market.
Please keep up the good work.
Thanks a million Lucky and Adam for this insightful and educational segment. Lucky, the content was exceptional and you've shred light on issues that appeal to consumers as well as investors. You have given the audience a great deal of information to process and a new perspective. Appreciate the tips! Would be interested in your thoughts about buying a used EV that is 7-8 years with low mileage (under 50K mi). How would someone determine if the vehicle is in good working condition other than a visual inspection and the accident history? Thank you.
This is great stuff! I am well versed in the R.E. market, and there is more than enough stock market analysis out there. But autos are the second largest consumer purchase, and there is a dearth of analysis of this market. The connection between the 84 month loans and the ride sharing and delivery businesses was very eye opening! Would love to see other industry specific, in the businesses, experts.
Thank you for having people I listen to on a regular basis
In the Baltimore-Washington area we have large auto groups like Ourisman, Koons, and DARCARS. They are buying up all of the smaller dealers in the area.
Thanks so much for sharing this info! It’s tremendously interesting. I was rather oblivious to the ‘08 crisis (and the run up to it), but learned a lot after the fact. So now I’m keenly interested in the auto market and it’s wider economic effects in conjunction with the national debt and our currency issues. Fortunately, I have no debt and was able to pay cash for a new 2023 Honda Civic (after driving my ‘02 Honda Civic for 18 years).
My 99 Solara has 483,000 miles on it.
Yes, some years are expensive in repairs…last year was $7,000.00
$1,300 this year so far…
Still cheaper than years of car payments.
Such a Catch 22 re: having a car, vs income.
are there any parts you have not replaced yet? Like engine cradle assembly?
Great show! I am in western Canada where we seem to be behind what u are describing but probly heading there. Last few years lots of our used trucks would sit on lot for barely a month and then get sent to the US where they could get more for them. Really ran the used inventory way down and prices up. I assume this will stop happening now but had u seen canadian trucks down there in last few years?
Lucky this is Stavros in Florida caught your video and enjoyed it here we are seeing more used cars and more new cars but atl best lots are maybe 50 percent but mostly vehicles are high and they keep trying to pad the deals with many additional charges and add ons
Lucky mentioned the extending of financing terms for those currently unable to make their payment as something he has never seen. Likely especially true for customers where a refi is off the table because prices are dropping and rates are rising. This happened before in the real estate market in the 2000's, the bankers called it "extend and pretend". As as long as the interest was paid the banks didn't foreclose - same reason as here - the banks don't want to have to show the losses. Wild that this strategy has now been extended to cars. That did not end well for real estate and likely will not end well here either. Those who paid way over MSRP are about to find out how bad a decision that was as we return to a buyers market. Jeep is already offering discounts as Lucky said and that means the used cars are going to have to drop a LOT in prices. Fascinating times
Love the content. I'm looking into buying myself a truck in the future. This video helps me plan when would be the best time to buy. I'll be looking for a manual transmission, and unfortunately, everyone seems to want an automatic.
Look into the Tesla CyberTruck. Coming at the end of the year and in production in 2024. Instant torque, airless tires, bulletproof, etc. etc.
up to 500 mi range. Never rusts
You gave me great info on car buying and I'm taking your advice about waiting to buy a car. Thanks!!
Gentlemen, thank you so much for the analysis. I love me some lucky Lopez!
Not a single word spoken about Tesla; amazing!
I heard that name in at least one, maybe two contexts in this conversation.
So, buying out my lease, on my Ram, for cash was the right move. 2019, 15k miles.
First, fascinating look into what goes on. Gee, 2-3 years to change cars! Guess I’ll just keep fixing my 1992 VW I bought for $500 eight years ago. The cost of any repair is nothing compared to the cost of recent vehicles. Great discussion!
Adam, I am a long term subscriber. Lucky, I just subscribed to you as well. Thanks
Curious to know how many car sales reps at OEM new dealers have been let go and how many are unemployed
Thank you for your work!
Thanks to both of you !
One of the best videos I seen all year!!
Thank you!!!
I’m curious about dealers willing to discount the oldest car on the lot. I’ve always been told the exact opposite. A car that’s been sitting on the lot has already accumulated $1,000’s in finance charges. Dealers take those finance charges into account when determining profitability of a vehicle. Dealers simply have less pricing flexibility when dealing with the older cars as they have more invested.
The only time longevity gives you a benefit is right before the car goes the auction. At that point the dealer is resigned to taking a loss.
Dealers are often incentivized to sell the oldest unit on the lot because the flooring company raises the interest rate once an item matures after a year or however long the terms are. It basically becomes sell at a loss today or at an even greater loss tomorrow. That’s what the deal of the week is at your local dealer. Flooring charges are factored into the sale price, but once the unit matures it has to go. Floor plan companies don’t want to have to repo product from a dealer if the dealer goes under.
Great insights. Thanks Lucky and Adam. Going to sell our old Camry asap based on what I just learned.
You might look into a Tesla Model 3. Prices will be reduced getting ready for a new model refresh. Priced like a Toyota, costs less to own
I got a great deal on a Lexus GS back in 2011. Time to replace car at the end of this year. Great insider information Lucky.
The point about no negotiation is interesting. I think for someone in the car industry, this is negative. But for most consumers these days the negotiation process is a scary losing proposition. They just do not have the skills. This move to transparent pricing, unbudging pricing, etc, is not going away because overall the emotional cost savings are worth more than the savings on negotiating.
As a former Sienna driver can you explain why the current Sienna has a 3-5 ear wait? A few years ago, the minivan segment was on its death bed, now people waiting years AND paying over MSRP? For a Sienna? What cause the demand to spike? (I think the same with the Honda Odyssey?) Is this Toyota/Honda deciding to not build cars?
Yup they're just not making enough.
Lucky Lopez has been talking about this for over two years. Many changes are already in process.
Great interview.