Dealerships Are Going Out of Business
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- Опубліковано 8 лют 2025
- Dealerships Are Going Out of Business the market is not looking good
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You aren't wrong, I sell inexpensive cash price cars and have never had an issue selling before these last several months and I have good inventory. Luckily for me our Auto Repair Shop is our main source of income and not the sales lot.
We are in the exact same boat...
Multiple income streams. Buy wrecked vehicles. Sell high value parts Sell engine transmissions - any thing high value. Do not forget power steering assembly. Sell shells for scrap. You already set up with mechanics. .
Auto repair shops are definitely booming
It’s tax season nows your time to shine!
No ones using their tax money as a down payment.. people are broke , if anything they’ll be paying off credit cards
I don't know anyone with an actual job who received a refund for tax years 2023 and 2024. I'm three grand in the hole after tripling what I took out for federal withholding, one guy is nearly ten grand deep with zero explanation as to how he's that far under with his employer's HR department.
Or they blow most of their money, then try to find a basic beater car for cheap. I would say buy a vehicle first. Cars are King. No car, no Job
Food and debt. Though you will have a few idiots that blow it and get into debt even deeper.
Yeah people are broke people are just trying to pay there bills not worried about buying cars l. WIll be paying my Chrysler town and country van off on 2 years I am driving it till it does I don't need or want a car payment anymore and can't afford it on 1982 salary just above. I didn't get crap back in taxes this year I owe the government 1,000
They do - we see it every year
It's not as prevalent as it was 5 years ago but volume of used cars pick up Feb - March
There are a few dealerships on Boulder Highway that I hope fold. I went to several of these dealerships last year and to say they were unethical is an understatement.
thank GOD i bought my last used vehicle in 2018.the crazy part is i couldnt afford to buy that same vehicle today.they still want 3500 to 4k more than i paid for it then, with 50k additional miles than mine.thats NOT including crazy interest rates.insanity IMO.the banks & dealers signed their own death warrents during covid.the suicidal act is done, its now just a matter of time till it catches them.
That's because the newer these automobiles get the more owner-disrespecting creepy spying, nagging, and anti-repair they get! Let me guess, the used vehicle you bought in 2018 was a pre-2014 model? I wouldn't shell out my hard-earned cash for any model year post-2013...but that's just my sense of self-respect asserting itself.
i started a dealership as a second business last month and im using cash to purchase cars. I pay 850 for a month for my location and i use the back to park my other busniess's vehicals. I opened jan 2nd and i havnt sold a car yet. wish me luck bros.
Are you based in vegas ?
Good luck ❤
Good luck brother…👍🏿!
Not one in a month? You are in trouble brother.
Your cars are priced too high.
@@tracknu2 no I'm in the Midwest
This tax season is gonna be pretty terrible for dealers.
Hell yeah, I have to 9.5k more over what they already took!
I hope so.
I tripled my tax withholding taken out for federal and I'm still three grand in the hole for 2024. This is on top of three grand for 2023. The only people I'm seeing getting any 'refunds' are baby mills who have five or six kids and zero reported income.
Tax time won't buy nothing but a basic beater these days. It isn't even worth it
Food and debt
Simple: If you can't afford to buy that car with cash, then you shouldn't buy it financed.
Supply /demand has flipped. Dealers refuse to see the writing on the wall and continue to keep their heads in the sand. Karma is a bitch.
Exactly ! well said !
Ignorant af. You know absolutely nothing about the industry
No, not a good time to open a dealership. Disposal income has decreased and people are repairing their vehicles instead of rolling the dice on a used car, not knowing what problems they are buying. Car dealerships in central Texas seem to have excess inventory. Income in this area makes it impossible to purchase a new vehicle.
Hey Lucky, here in Florida at my local Chevy dealer. They are parking excess inventory in customer parking spots now overflowing with cars. One thing, they’re not honoring warranty for service anymore. I had to call in the general manager to get them to honor a warranty for part purchase from them. I’d say they’re running out of money now.
thats boulderdash, GM had a great year profits are going up
Not true
Meaning, taken as a whole things are not looking good for GM
@tomradar-s9u how are things not looking good when 2024 was one of their most profitable years in a long time?
@@drewdevon2009 profit up doesn't mean sales up. Also, they are and will continue to cut jobs. Not a rosy outlook
Inflationary pricing length combined with consumer credit issues cars aren’t going to sell.
Bottom line - cars have way too much technology that the average consumer never asked for and manufacturers added on to drive revenue and now it’s biting everyone. Manufacturers need to offer vehicles with no technology or make tech options to get base prices down.
More technology in cars is nice. It's the price that is unrealistic. And, more technology with solid analog options (not fully digital on important features) is actually great.
Lender's are tightening up requirements for loans. A friend of mine cannot get financing because he has too small of a down payment. The lender is probably worried that he cannot afford the vehicle with so little down. People just don't save any money up these days. I just purchased a vehicle for $13000 dollars cash. Absolutely no finance help or loans. I paid the full amount myself.
I swear, Money's Untold Mysteries is one of the best books I’ve read. It’s life-changing.
Welcome to the real world this is how it use to be 45 years ago in the auto retail business. We only had 36 months financing on new and on a 1 year old with low mileage vehicles. The banks only loaned xyz $'s less 20% of the selling price that the customer had to put down or we took them to a dip house for down payment money. We Sold vehicle's not payments. This is a small part of what it was like back then.
It is about time the car industry cleans up this mess so sales can get back on track. The weak, bad dealers will go away leaving the good trustworthy Dealerships will have to earn back customers by not over packing their cars with over priced unwanted accessories.
Late 70s, early 80s, me and Pepper Ridge Farms remembers; The white shoe polish windshield poetry, 'Runs great $1888, don't be late" and the signs like "We can finance ANYONE, even YOU!"
I would say 30% of the used dealers are gone from the Richmond Va market.
Rents have doubled but there’s also a lot of empty dealership and shop space.
I’m a Traveling hardware salesmen in the area.
wow. thanks for sharing
Route 1 is becoming thinner and thinner of dealers as you go up north
Same with Albuquerque & Santa Fe NM about 30% maybe more, Dallas Forth Worth Tx I would say about 15% I go their monthly. The used car dealers that are open are carrying much less inventory , then there are some that carry old inventory 2010 and below and have a little more inventory. New car dealers in Dallas are lowing prices , some are not but used cars on new franchise dealer lots are still high .
Lotta businesses are going out of Business.
Thanks Lucky. It is fascinating to hear you talk about the industry behind the scenes. I find it very interesting how things work behind the curtain.
I bought a vehicle last month. I got a heck of a deal. They lowered the price $3000 dollars. This vehicle had been on the dealer lot for 127 days straight. That's a long time to have inventory setting around
Details how much total and what kind of car??
@@luisvilla799paid 2k for my truck.... pulls 9200 lbs
.runs great
..yay...272k miles 2009 Ford 5.4
3k off a 100k pickup truck? lol
@@mic-drop-74 yeah that’s what I’m thinking lol
MMR gives prices the auction dictates, not the public. Who buys cars? The public.
Minnesota and Midwest. Seeing slow sales in cities of 100,000+ population base and better sales in smaller communities.
If a used dealer has to kiss the note for a period of months to get the deal bought from a bank they need to be prepared to make the first payments for the first few months into their profit profile.
i would not open right now unless you are paying cash for all your cars
Well I mean they should, trying to sell 2007 Toyota Corolla with over 150,000 miles for 8,000.
Fools actually believe that a 2007 Toyota is worth 8 grand. They really believe that it's a 400 thousand mile vehicle. LOL. Yeah right. And how many repairs does it take to get there ??
And only 12 owners!
@@mistaajones Are we talking about modern women?
@@sociolocomtsac😂😅
Looks like the Dealers have destroyed the dealership model. I would rather see one price on the manufactures website, add options and wait for delivery. Dealers are Toxic.
I’m all for it!!
yessssss
Hum, Lucky I have been around the block with vehicles selling, owning part of a dealership and doing high end body and paint. I went through grad school in the vehicle industry. I started in 73 and watched the market; this is the worst time since 73! Unless you are selling under 4k cash rides now isn't the times to open up. Cash up and be ready for the bottom; then sell sell sell.
I sell motorcycles at a dealership here in Vegas, and it's an uphill battle. We don't have lenders that will approve anyone with a credit score under 600, and down payment has no impact on approval odds. On top of that, Nevada has a lot more fees than what I see in other states. Car dealerships have a good bit of room to take off fees so they can sell more cars, but if we sell a motorcycle for MSRP out the door, we will lose hundreds or even thousands of dollars. Meanwhile, Utah and California dealerships have no trouble doing that. So many of our customers buy out of state, and it hurts local business.
I love sales, but the industry in Vegas right now is the worst I've ever seen unfortunately.
try Moto lease
We are an Audi family and in the past if you got one at MSRP you were doing good, I bought one 2 years ago and they are hounded to turn mine in for a new one offering me $7,000 off MSRP. Offering $7,000 below MSRP through an email before I even squeezed me more tells me they are hurting.
Lucky, why do banks look at the MSRP for the value of new cars? I bought a new car a few months ago. I wanted a diiferent car for my business, but I had about $15,000 negative equity in my truck. I have good credit, but..... I bought a Dodge Hornet that was marked down $17,000 ($47,000 msrp) the bank didn't even flinch. I financed just under MSRP. The Hornet was probably worth around $26k when I drove it off the lot. I would think banks would do a little research because they financed essentially 140 - 145% LTV.
The bigger the loan, the more money they make, Cars except for that rare moment in time (chip shortage blah blah) never have positive equity until the term is basically over.
Market is shit in nyc dealers are fly by night😢 here one month gone the next month !! And a ton of salvage vehicles being sold 😮
Yup it’s either Salvage or Rollback mileage all over FB Marketplace… stay away from cars in Brooklyn & The Bronx it’s really bad out here..
Dealerships where given more than enough time to restore proper pricing to be more fair to average consumers, but if this is the case NEW Online pricing may be a lot better to use, you pay what you can afford you don’t want junk accessories or added warranty with them Nitro tires
This would be way more beneficial, if customer wants car serviced then the dealership should repair ( warranty no cost to customers) so service shops should remain open. Banks hate dealerships rates are through the roof too, better to find your own financing rate 😅
My area had whole road of 10 car dealers when I moved here ~20 years ago, only 2 still remain (Toyota & Nissan) and no new ones have opened.
thanks for sharing
Hey Lucky, if you want a transparent take from retail ask versus retail buy, sign up for iron planet. Look at the price of used construction equipment. The top offer is usually half of the asking price, and from following recent auctions, is pretty accurate. Those of us with cash have all the leverage right now
Not sure about opening, consumer debt is at an all time high. I really don't think interest rates coming in either. On the other hand you can leverage your UA-cam presences and I think folks are really starved for a a fair straight forward way to buy cars.
Add six months of payment into the loan with the understanding to the customer that you will be making the first six months payments with money orders with their name on it.
Easy and smart to open a new business with other people's money. Good luck to anyone investing a couple hundred grand.
Despite the "booming economy" my taxes last year and this year, went to pay off or catch up on bills...
Increasing overhead due to market inflation, higher dealer lot insurance premiums, higher reconditioning costs, higher labor costs, higher interest floorplans, Bad credit, broke or upside down/ over extended buyers, scared banks. The perfect storm.
Car dealership trust is just bad in general. I honestly think it’s a combination of bad dealers and bad customers.
I was in parts / service was 18 years. I dealt with many of the buy here- pay here dealerships. ALL of them were shady AF. Preying on desperate people.
No better time! I think you’ll
Be in the trenches until they straighten out the tariff and fed funds stuff, but that’s why it’s a good idea- competition shook out some, rents are down, etc Your industry is bound for a rebound as soon as these rates start going down!
I was going to buy a new truck during Covid, but the outrageous mark ups caused me to not do it.
I am still driving my 2001 F150 that I bought brand new. 240k miles, showing its age for sure, but it wouldn’t surprise me at all if I drove it for another 10 years. It runs great and parts are dirt cheap. I will just keep fixing it until it rusts away for good. I do all the work on it myself, so it only costs me parts to keep it running.
No way I am paying new truck prices. Absolute rip off, the manufactures and dealers are gouging.
Lower the price 30% and I’ll buy, otherwise I am just going to keep driving my truck. Screw the new car industry, they can all go out of business.
Bless you Lucky!!!!
Cars at dealerships are too expensive.
That's because ever since COVID 19 pandemic, the dealers want 5 thousand dollars profit per unit sold.
Perfect time to buy a franchise dealer if you are an independent doing well and want to add more banks to your dealer! And run both the independent and the feanchise
Franchises aren't cheap and factories generally don't let used car dealers buy dealerships.
Ford sent me an email this morning that offered me a bonus $2,000 of any new Ford, this discount was to come off AFTER all other dealer discounts and incentives had been applied.
Interesting. I wonder how that will go if you bring it into a dealership. Maybe present it after the deal is on paper?
$$$$
They’ll find a way to get that back somehow.
The way dealers have tried to screw me in the past, I have no sympathy on them. NONE! Karma is a bitch.
if dealerships are having such a problem selling, why the ridiculous prices?
Because they'll ride those insane prices all the way into bankruptcy. It's never their fault, it's always someone else.
Auction prices still high
Thank you for your news.
All the big name dealers in VA seem to have tons of cars. Except Lexus. All lots were empty 2 years ago. Wild stuff
$$$$
Northern VA never gets hit as hard as the rest of the country. It's the wealthiest couple counties in the country.
3:10 The toy Hummer display really cleared things up for me. Totally lost without it.
My gold etfs are cranking gld or iau.
Gold always goes up and paper money alway decreases.
Good time to open a dealership… No.
Good time to start acquiring low cost inventory… yep.
It’s a good time to start planning and getting investors. Start getting plans together and ready to pitch to investors as well
It’s a good time to start a dealership that emphasizes NO EV’S , NO HYBRIDS SOLD HERE!! 🇺🇸
"Good time to start acquiring low cost inventory… yep."
Where does one find that low-priced inventory? It doesn't exist unless it's already worn out with north of 200K miles on the odometers.
In Tampa,Fl. They are full even parking cars on grass around properties.Toyota kinda shocked me cars everywhere
Just left the Auction and these dealers thinking that they're
gonna make money during income-tax season, spending
so much money to fill their lots.
Banks should learn their lesson and never loan people money to buy vehicles. They should ask for collateral.
1. Prices are too damn high.
2. Economy is in a recession, despite what you are being told, your wallet will tell you different.
3. Unemployment is going up, and banks are nervous giving out loans.
4. Recession is just getting moving..
5. Consumers are maxed out.
I had a dealership try to pass that fee to me. I refused gap and to cover that finance fee and the refused to sell me the car even though I was fully approved.
Lucky open a dealership your are very knowledgeable. You will make it no doubt..
It is a terrible time to open a dealership. The economy is just beginning to soften and these tariffs are the death knell. The job market is weak, housing prices and inventory are stuck, and government and fed policy are not well-adjusted to the conditions on the ground. If you want a dealership like Brandon at Car Questions Answered, then go for that, but anything above the super-low price car is a suicide run.
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You need to send them to the auction with no reserve if you want to sell them.
Hey Lucky, I just got an interview for the car buying manager position. How would handle the transition from salesman to this new role? I love your videos!
Lucky, I haven't even considered a car purchase since 2005, my 2004 Maxima and 1997 Ford Ranger is last cars I buy.
No they're not. But give it a couple of month.
Local to vegas, would be cool meeting you after you get going!
Wow , sounds like the perfect storm for auto sales this year. I've been looking at new trucks and they are expensive upward 57K . Used trucks are about 5 to 15K less than a new truck but are selling at the same prices when new several years ago, so used is out for me. The incentive are getting better for new cars and trucks. Very few are going to buy in this used car and truck market unless you really need a car or truck to replace. Cars are not a priority right now for many people , I think keeping a roof over their head is a priority. Apartments and home rentals are high and very competitive and people want stay where there at financially and improve there bottom line and pay off the bills and stay where their living at now rather than buy a car unless you really need need one. Getting back into direct car sales sounds fantastic but these commercial property leases in Vegas seem to high at 40K month , that person is dreaming. Commercial property is dime a dozen throughout the southwest with lots of open space . why is Las Vegas commercial property so high? Real Estate brokers think LA residents are moving to Vegas?
The only guy driving a new car this tax season is the tax collector. The junk near me is still priced too high. The dealerships are filled with young kids who are beyond annoying. Seriously, I stopped at a dealership, kid shows me a used car. Nice car. I ask, "tell me about the warranty". He looks like I just tazed him. "Warranty"? "I'll ask my boss". I look him in the eye, "you don't know what warranties are attached to the cars you are showing"? "I just start here last week". ....... It was time to walk.
Different markets are still there. Just need to pivot & find your niche to move through these tougher times. I say set up shop!
I love but love your videos
thanks 🙏
When u finance a car the dealership gets all there money up front and for n e body think other wise read the damn car loan information they give you read it all smh
I would say it’s too early, but it’s market dependent. No experience with Vegas.
I’d definitely buy cars from you for my turo fleet.
Went to mercedez brooklyn, their lot is absolutely packed with cars they can't sell. A lot of them are EVs. They had a ton of S 580e. I had to park on the street when i arrived.
Seems like most businesses are on the decline.
Don’t need a 10 minute video to explain this. Vehicles are price 30-50% more than they should be. The value of something is the price a customer is willing to pay for it. Market adjusted covid prices will be the end of the dealership model. Good riddance. Consumers in 2025 want invoice factory direct pre 2019 prices. No lying commissioned middleman inflating prices.
well said. There is a disconnect between what the consumer can pay and the price where the dealerships are willing to sell. Even with rebates many dealers are losing money every time they sell a car and that money is going straight to the bank to pay off the delinquent floor plan.
In Portland Oregon most of the cars are going over wholesale I can't get anything and its hard to sell anything I am getting like 12 people and 1 may buy
we used to send every Subaru we got to Oregon we would get all the money lol
I gave up on auctions in the PNW, one guy would swoop in and buy everything, it's almost as if the other bidders didn't exist.
I started doing bhph and I sold 16 cars in nov and december. Its all about price.
if they are priced right they will sell. how much does it cost you to run them through the auction.
Tax refund this year go's to buying food . People are hungry .................................. .
Set up dealership like “car questions answered guy” 5k or less and take us along for the ride. Good luck
If you were the dealer with overflowing lots, what would YOU do to move inventory?
Are they really hurting? Have you noticed they're still adding the ADM?
Those dealers had 3 good years from 2020 -> 2023. They just didn't exit in time. They've been reaping it in!
That guy on J&S Auto seems to move a lot of cars... but who knows what the margins are and he appears to have a lot of overhead, mechanics, sales people, social media guy, etc..etc. I assume there is an interest expense on his inventory too ? So many of his customers are buying cars they cant afford, underwater in loans only to get more underwater
North east has the best credit customers. Im going to NJ next month to visit dealers there
Lucky your outro is loud as hell. It can literally give someone a heart attack if they have the volume loud listening to you. Maybe a softer outro one day?😃 Excellent content by the way ❤
sorry about that
just a like for a right topic
Great timing on the dealership, Lucky!!
$$$$
@@LuckyLopez777
Can't wait for the videos showing the sweet deals on wheels when you get business rolling again!
One dealer goes out of business. Another dealer pops up in the same place. I Don’t know why I should care about those scummy business going out of business
One untapped Market, is stealing U.S. automobiles and shipping them overseas. Opportunity awaits !
Maybe someone who is overleveraged on their vehicle can have it stolen. lol
🙃@@vijayanchomatil8413
That’s been around for a while now.
If you had a lot full of Cheap Camry hybrids you can get rich during tax season
Ray and Zach were talking about Vegas. I said call Lucky....LOL
I really love this industry i have question for wholesale how do you get cars mainly? Is it whit the public or auction to auction
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You shouldn’t be selling financed cars to people with bad credit anyways. Glad they did recourse on you.
What is a "cheap" car?
I sell luxury and exotic auto parts. Mostly wheels. The last 2 weeks has been DEAD like really dead. I haven't had sales like this since the beginning of covid
thanks for sharing
For 2025, new car sales will reach 16.3 million, used cars at 20 million. Not a record but not too bad.
People who purchased vehicles from dealerships have been getting ripped off ever since the COVID 19 pandemic. One car dealer bragged that he made 10 thousand dollars profit off selling one vehicle. A Yukon Denali. 10 thousand dollars profit ????? Get real. People are getting screwed. Vehicle sell for pennies on the dollar at the car auctions. Consumers would be shocked
Good idea.
Time to bring back simple, basic cars.