Is The Great American New Car Dealership Dead? Things Are Looking Grim Out There
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- Опубліковано 26 вер 2023
- As the automotive industry goes, so does the larger economy,
The lockdowns of 2020 lead to crazy supply chain issues and understandable inventory shortages for car dealers for the 2021and 2022 model years.
But while nearly every other industry fully recovered soon afterwards, the car business appears to be still limping along and not looking good.
We toured several local dealerships, both foreign and domestic, and saw the same things at all of them. Scarce inventory, no hype, no foot traffic and far more used cars than new.
Is this just an extended slump, or a sign of things to come in the larger economy?
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The middle class is simply not making enough money to buy new cars anymore.
Not only that, but a lot of the upper class are buying vehicles that are marketed towards the middle class. That's how bad the price gauging is.
Bingo PAL 🥵
Not when the published average payment is just over 1,000 per month and that's not including the operation, maintenance, insurance & fuel...
85% of all new car purchases are leased or financed. Many trades are underwater and the balances are rolled over into the new car note.
we went through this before, but it was luxury dealerships pulling in the poor to buy luxury cars with a looooong payment plan...and sometimes they just talked the poor sap into believing it was possible to own a dream car (just like banks "explaining" how they could afford a house), knowing it would get repo'd. but it was off the inventory tax list for a while, too bad for the customer who got stuck with the repo on their credit report.
We are in a “Silent Depression” worse than in the 1930’s if you compare cost versus earnings corrected for inflation.
Electric is the future. Gas companies are evil. My ebike gets a full charge for fractions of 1 penny. They are running scared and this is nothing new. They saw their own death 20 years ago, people. Tesla won.
And far longer
even if you don't correct for inflation we look worse off
I can’t keep up with low six figures, I’m bleeding 1000-1500 per month.
And it's silent by our current administration refusing to speak about it. They're all in hush hush mode.
Whats "broken" is new cars have gotten a well deserved reputation of being over complicated, to expensive and not very duable plus they all look so similar now.
Dealerships now look like Sears stores at the end of their life
I grew up broke, and I learned to fix what others threw away Im positive I will survive.
Except that you can't fix any new cars with an expensive bi-directional scan tool, expensive software. Even many independent shops have to send cars back to the dealer to newly installed parts programmed because it's impossible for them to do it.
i did too, and didn't have you tube to explain how to fix stuff others threw out. what screws some of us is living in the snow belt--you find a car old enough to fix, and its swiss cheese.
We all need to support the RIGHT TO REPAIR movement
Sadly the new trash they are making can't be fixed. I have several older non computerized cars, but sadly most of the older cars got scrapped. We've never needed them more than we do right now.
@@jamesl9686without a doubt, your comment about living within your means...few consumers do that, and its why they're in over their heads and the only way out is to keep diggin' that damn hole.
i lived like a pauper while funding my education. ironically, checking out all the free stuff on university campus i still had more fun in my free time than those drinking their days away in the dorm, whining "there's nothing to do around here".
well, there's nothing delivered to you on a silver plate, that's true :) i looked around for events mentioned, made the effort to go to them, and had a blast for free. no different than sneaking candy into the theatre as a kid :)
too few learn how to make money their tool, instead of the other way around. they follow the herd over the debt cliff.
Take out all the fluff and crap and sell stripped-down models again that regular people can afford.
Exactly. Now the factory workers are on strike again. Didn't they learn from the last go around.
Exactly... Nobody wants a car that tells you how to drive, or worse, drives itself. Power windows and cruise control is cool, but all the other gadgety bells and whistles is ridiculous. If there's a reason why car manufacturers are suffering, it's because they stopped listening to what people want.
that's impossible to make now alot of these things are legally required like backup camera's and ABS making a simple stripper model is made else where but not here and Europe add in legally required emissions standards of 30+ mpg you can't go simple
That's exactly what I've been saying. If it's legal to ride a bicycle or motorcycle, it should be legal to drive a $5-15K new car.
That may be a long time coming. Car makers are disconnected from the public perceptions and their reality.
just the fact you could drive through a dealership and not get attacked by salesmen is scary as hell!!!
This for sure…. Precovid they would be lined up on the lot and at your window in 3.5 seconds flat!
My buddy had $10k down and the best APR he could find was 17% on a used truck. He just went and bought a $10k truck private sale rather than buying something new.
No offense but your buddy must have absolute dog shit credit
I just purchased a lightly used 2021 Chevy Colorado a couple weeks back. I have excellent credit (756 is what they pulled), own a home, have had and paid off cars in the past and am in my mid 30s with a decent income for my area. Best they could get me was 10.15% APR. I wasn't shocked but I was a little surprised. I assumed it would be high, but I was thinking 8-8.5% something like that. Still bought the vehicle. I will refinance the moment rates go back down a good amount (probably at least a couple years). I looked it up afterwards and saw that avg APR in my state right now for USED vehicles is 11.89% so I guess I did better than average but my god are rates high or what.
Bruh what. 😂 I got a new tacoma for 4.25% $4000 down. Used just isn't it right now.
About 20 years ago i bought the last new car I'll ever buy. I thought the prices back then had become outrageous. Whats going on now is on a whole different level. Most people cant afford a new car. Its so insane even a lease is out of reach. A lot of people do it, anyway, of course. And inflation across the board is out of control. Its so bad now that I can barely afford a good used car that has 100,000 miles on it. We have 6 cars in our family of 5 people. Our newest car is 4 years old. All the others are at least 10 years old and close to or well over 100,000 miles. I do all the work on all of them to keep them maintained and repaired. Its the only way I can afford to have these cars at all. I'm always buying parts and getting out my tools. Anyway, so now the UAW is striking, asking for outrageous terms. So cars will only get more expensive. And I will never buy a disposable EV POS. So, yeah, something is happening alright. The destruction of the United States. I'd say vote accordingly, but voting doesnt seem to matter any more, either.
ive worked since 15 and have neer owned a car and porbably never will, if i cant buy something and own it and repair and afford gas then there is no point anymore, o well ima just enjoy burning of the entire system cuz people worshipped greed over doing the right thing
I'm with you brothers
My newest car is a year 2000 and I swear I’m going to keep it as long as I possibly can
What we are seeing is the death of fiat money. Buy Bitcoin. It fixes this.
EV's are about 95% recyclable and they are designed to go 500,000 miles (American made Tesla's anyway). And, if you have solar, the cost own is tires and washer fluid.
They don't want us to have personal transportation unless they can control the where and when. That's why there's the big push for EV.
Absolutely! In their perfect world each household will have one EV to share and services like UBER to fill the gap. These EVs will be leased or some kind of lease / subscription hybrid. Of course just like you mentioned they can and will be disabled for violating TOS, or social credit penalties. The top 10% will still be able to purchase and own cars in the way we are used to. These luxury cars will be 100K plus, run on petrol, and be free of many of the restrictions the EVs everyone else can afford. Mark my words.
Exactly 💯 SOOO MANY people have no idea what's going on ‼️We are in progress of the Globalist agendas, The "great" Reset, New World Order= Theft of our Country, World, and life as we've known it 😥😡
Covid was a test run; Lockdowns are for Prisoners ‼️
Shutting businesses down, schools, elimination of jobs if you refused to be jabbed with UNSAFE "Vax",
Not allowing people in Stores, Banks, Hospitals, Schools, etc. Unless you COMPLY with "face coverings",,,,
Plastic shields up at Store cashier areas,,,,
Placing arrows and footprints on HOW TO WALK and what direction,,,,,
ALL a test on human reactions to Corporate TYRANNY ‼️
It's certainly NOT A "scary virus" people need to be worried about..
WAKE UP PEOPLE ‼️
@@TheMikeDuderAbsolutely 💯 CORRECT ‼️And it goes even deeper,,, with their DEPOPULATION, Transhumanism, and FULL Control Worldwide agendas !!
So many people are clueless to what's going on ‼️
NEVER EVER did I imagine times like we're in,,,,and horrific times that are coming very soon 😥😡
@@TheMikeDuder The freedom we've experienced as a society was permitted to spur technical progress. It's like how the internet was free of regulations for a very long time, it stimulated development and innovation. Now they (The Powers That Be) feel like AI and robots can handle most things from now on We The People are surplus to requirements and have become more of a liability.
"You'll own nothing and be happy" in full effect.
I’ve worked in dealers in Michigan for 25 years and one of the major changes in dealers I’ve noticed is that dealers used to be all individual family owners going back to the 50s and so they took pride in their lots. Ali most all of the family owned dealers in my area have been sold off to corporations who own and manage dozens to hundreds of dealers. It’s just not that personal anymore.
Every dealer is some conglomerate, and they dont have any interest in maintaining a customer for life at their dealership... Honestly after hearing what some of these big companies like Lithia or Autonation pay for a small time dealer i dont blame for selling out!
This is what's happening in basically every type of business market in the country. Basically 3 big corporations that own thousands of slightly smaller ones are buying up businesses and land under one of their mid level company names but in reality it's 1 of the big 3 of them that are going to end up owning everything. Blackrock is one and I can't think of the other 2 but you get my point.
It is becoming a monopoly. Customer service and loyalty are not an issue at these corporate dealerships. Chances are that a pissed-off customer will just end up making their next purchase from another dealer owned by the same corporation.
I work at a family owned dealer in Houston, with ~500 employees, and we're run as if we're a conglomerate too. Just so little personal and so much profit driven.
@@martinliehs2513 With capitalism it's the job of the capitalist to win the game of monopoly. It's the job of the regulator to ensure that there is competition in the market place.
That's why I'm doing a 90% rebuild on a 97 Silverado. Body and frame is the only thing not being touched. All new front suspension arms, springs, tie rods, 6 bolt upgrade to rotors and axle so any newer rims can be used. New crate 350 from BluePrint Engines. Complete rodo and upgrade of interior with 2015 GM seats and console. Converting to carburetor. I'll be able to drive this truck forever and work on anything on it. Total investment will be under 15k. All labor will be done by me except exhaust system.
Have a family of 5 and could be more on the way. So I've chosen the late 80's e150 as my platform paired with the 300 inline 6. I just hope i can afford to do it before they are all gone.
Doing close to the same on a 92 Silverado
@@tnhomestead It's going to be my forever truck. To hell with these 100k over teched trucks, and I'm a tech guy. Don't want it all in my ride.
And you'll have 100% better truck when your done it'll out last and new truck
@@johnj2496 exactly!
Uncle Tony, the fact that you weren't being stalked and flagged down by salesmen as soon as you drove onto the lot, is telling in and of itself...I remember when you were swamped by salesmen trying to make a sale as soon as you showed up on any lot...
Look were the is sun its late after hrs like 7 or 8 pm when flimed
@@jeremyhanna3852 you must be young. A Sunday on any lot up to 9pm you even touch that lot they're coming out. Hell one time I pulled to make a u turn and wasn't even approaching parking space and 5 cockroaches were coming off those front steps.
@Vicus_of_Utrecht I been a tech at major Ford dealers 3 to be exact from 2001 till 2017 they all went home at 6pm if they were doing a deal might stay over to finish it if there slow the top sales people leave at 5pm
💯
He showed up driving a 25 year old jeep, and never put it in park. Someone was watching, but they weren't going to come out.
Gouging customers and treating them like crap is what is causing the dealership model to hopefully die.
I understand why you would say that, but in reality, you're going to need someone to work on your car. No dealerships mean no factory techs. You can't take newer vehicles to independent shops. They have no idea how to work on them. I get cars towed in to me on an almost daily basis, from independent shops that got themselves in over their heads.
and low quality junk vehicles with constant recalls and problems
@@AT-wl9yq I would never own a newer vehicle. I don't own any vehicles that I don't know how to fix myself. Because I am partially disabled, there is something once in a great while I might need to have a shop do, especially since I don't have access to a hydraulic lift. But there are several independent shops nearby that can work on all my vehicles.
only $10k over sticker
@@AT-wl9yq Tha't not true at all. Go research how Tesla does it without stealerships.
Also, another thing to take in mind is this coming up auto year is when a lot of manufactures supposed to be switching over to all electric but nobody is really wanting to buy those. Yes, there is a select few that do but for a good majority of people don’t want them.
It was once glorious!
When I was a kid, the new models coming out were a big event! Rides, free food, clowns, music, the beautiful show girls showing the car, the car spinning on a platform, coupons, enormous search lights in pattern, music, small contests, and at the end, someone one the car on the spinning platform. They had ugly car contests, highest mileage contest, most dented car contest, looks like they could fly car contests, creative car decorations contests. I loved it! The last time was when a local Ford dealer had Indy 500 drivers. It was Rick Mears, Mario Andreadi, AJ Foyt, showing the new fuel injected Mustang and Ford F-150! It was a big event to look forward to every year. Today, the cars are ugly, puny, status quo, no girls, no food, no games, no giveaways, no car contests, no Indy 500 drivers, no local celebrities, no spinning platforms, no rides, no music, no search lights, no big voice announcers, no decorated lot lights. Did I mention the cars are all ugly, puny, four cylinder junk? Nobody wants the cars, fewer, want to see the reveal, even less even know there are new models at all. This is why I still drive my last new car I bought in 1996.
1990's cars were the best. Everything that made the car the best thing ever was available by 1996. We've had some refinements since then but things mostly started getting worse.
@@wayland7150 Today, vehicles are a bunch of ugly looking, upside down bath tubs, with weak four cylinder engines, weaker front wheel drive suspension, and all automatic transmission equipped. No wonder the autonomous car is being pushed. The cars today inspire falling asleep behind the wheel. They are easily the most uninspiring, boring, ugly, cars ever to come out. I think the 1950s are the best in terms of aesthetics, comfort, and durability. The 1990s are easily the second best but more reliable, more efficient, maybe a bit less durable but the reliability makes up for it. By the way, I bought my current vehicle in late 1996 with only 11 miles on the odometer. It seems the cut off point is 2004, and the carry-overs from that year. But after the 2004 models were terminated and the carry overs, there really is not much to consider buying. After 2007, There is nothing left I would want, unless it is a nice market vehicle, like a Corvette, or a Mustang, which I can not have where I live.
Tony, I'm a technician at a Toyota dealership and it's the same thing there. We have very few new cars in stock, and most of the new cars in our deliveries are already pre-sold. We also have far fewer used cars in stock, and many of them are much rougher than what we used to sell. Many parts are also on backorder, which impacts me in the service side. The fact of the matter is the supply chains never recovered. Just in time inventory was a house of cards, and covid blew it down. It's going to take years to get back to normal, assuming we ever do.
Government is doing this. It's staged the same way the Plandemic was.
Could not agree more! I said way back when the whole “just in time” parts inventory for (all manufacturing) was instituted, that that is a dumbass idea! And I only was in my early 20’s.! Have one item not arrive “on time”, and your production is shut down!! So much for the value of an MBA! Dumbasses.
Prepare, is the keyword.
Thank you China..
@@VerifiedVIPMember it could have been anyone in a complex supply chain
@@VerifiedVIPMember The Japanese take the blame for this one. They introduced the "just in time" model because Japan has no room to store parts and such and what room they do have was and is astronomically expensive; when the Japanese stuff started getting popular in the '70s and '80s the US and European companies looked at how the Japanese companies were keeping their costs so low and discovered "just in time." They then took that ball and ran with it because it lowered operating costs significantly, to the detriment of service departments everywhere and, as we saw with covid, any slight interuption to the supply chain brought the whole damned house down, whereas the traditional American way of doing things (i.e. building at capacity and storing the excess to fulfill future orders) would have probably weathered the storm far better and come out much stronger
Hi Tony, I work at a Chrysler dealership in Los Angeles and I cannot speak for how other dealers do business but the way it works here in sales is that much of the merchandise is held at remote hidden satellite properties, and are moved over to the main dealer property. The reason for this has been rampant theft and break ins on the main dealer lot, so they have to basically hide away most of the cars until a customer shows up, or calls beforehand about a particular car they are interested in. Most people nowadays pretty much know what they want and did their research before they even stepped onto the lot, so it doesn’t really hurt the sales to not have a bunch of it outside ready to go. As I’ve said, I’m not sure how other dealers do business but this is how it is in mine, and I hope this may bring some context to why they look this way.
It's pretty much the same thing here in Houston as well
Makes sense since rioters and thieves love car lots.
Agreed, a few business parks that have multilevel parking facilities are used by car dealers to store cars until needed. Where I work It’s the same thing.
Four of seven levels are dealership automobiles.
Agreed….but this is Murfreesboro.
My son sells cars at a dealership. He recently told me he was looking for another job. I told him I wished I could afford him in the family business. He said “After this month you probably could.”
Ya they love cutting off cats 🐈 ..lol
We're in a weird place where new cars are stupidly expensive; making good, cheap new cars doesn't make financial sense to manufacturers; and new cars have never been better performing or more boring. What a time to be alive.
"Personal transportation is *the* most important aspect of American culture, American life."
Amen!
Personal transportation is what the American way of life is all about.
Darth Schwab does not want that...
I was just reading about how people defaulting on credit card and auto loans is at an all-time record high.
And I’m really liking your “state of the nation” videos.
2008 is going to be remember as part of the good times with what is coming 💀
A nation without borders is not a nation.
@@Vicus_of_Utrecht lifes always been the same to me, worked since 15, never had a car or bank account and will never afford a house, i buy virtually nothing and dont do much, hope everyone enjoys living how ive lived forever cuz nothing has ever been affordable
@@truthisforever1000 what country are you from?
@@Vicus_of_Utrecht im in the country that promotes the destruction of humanity through propagada, in fema region 9
You are SO right! I retired from a Chevrolet Dealership in 2018 and Sept was cars for school and Oct-Nov were 4x4-AWD for the coming snow. Very, very busy! Today it's like a Morgue. They lost the middle class buyers. For me to buy a new truck, like I did in 2016, it would cost me 30%, or more, to buy an equally equipped truck PLUS the interest rate is 3 times higher.
America lost the middle class, the Ukraine War was the final nail in the coffin. Car makers/dealers are adjusting to that reality.
I just priced out a 2023 Ram 1500 classic. 2WD, 3.6L V6, long box regular cab, IH red, closest thing I can get as a replacement for my 1998 Ram 1500. $32,875. Heck No, I bought a 2001 Ram 1500 optioned just like my 1998 out of Arizona with 97K miles $3780
And they STILL REFUSE to lower prices to a level that people can afford.
Most trucks are way north of 50 grand. A well optioned 4×4 your looking at nearly 90K or more. How people can afford that is beyond me.
@Jelsick The dealers make them think they can afford it to make a sale. They will bend over backwards to make it happen even if they know you realistically can't afford it and will eventually be a Repo.
I'm a Nashville native (rare nowadays) that grew up near the train yard and never have the car and truck lots been less than 3/4 full. I'll be 60 this year.
These lots have been completely void of any vehicles and I mean NOTHING NOT EVEN ONE for about 3 years.
The Canary has been dead decomposed and blown away.
I've had several conversations with people lately regarding the economy. It's alarming how many people don't think we're in trouble and likely soon to be in a possibly deep recession. A lot of people who live paycheck to paycheck and work in certain industries are going to be in trouble.
The Government and Corporations do not care if people are in trouble..... do not care if we tale another breath.
Because media is hiding it.
If an R was president, it's all they would talk about
New cars are now listed as a "luxury Item" according to government accounting. The era of free travel with transportation the average person can service is drawing to a close. I just spent all day getting brake parts to work from "our friends in the East", nothing fit, it all had to be modified. An independent shop can never recoup that time so what he makes gets watered down by garbage parts. The Dealerships used to be the firewall supplying OE parts , now they are lost in a maelstrom of engineered failure. Raid the junkyards for anything usable in your fleet till the bitter end ( maybe 5years?) when insurance and registration make ICE machines less and less viable. Keep talking about this, we need to be screaming at the top of lungs now ( or be silent forever).
I was a mechanic for 37 years, and vintage cars have always been my hobby. We have a LOT of salvage yards here in AZ, where cars just don't rust. I have spent decades getting parts from salvage years. I don't think there is going to be a problem with real vehicles anytime soon. It's all just a political nightmare. People are finally starting to wake up and realize that it's just not possible, and are backing away from their green fallacy.
I mean I got a car. It may not be brand new but hey a 70 cadillac with a 8.0 is definitly ok for a weekend cruiser and a motorcycle for the daily is good enough for me.
ICE is not going away anytime soon. The electric grid simply cannot support everyone charging an EV at home, the charging infrastructure sucks and the battery range vs. recharge time issue is at least a decade away from being solved, especially in colder climates. Also, the World doesn't have enough lithium to meet the demand of "no more ICE by 2030". It's a progressive-liberal pinko pipe dream.
So yeah, ICE is here to stay quite a while longer, regardless of what all the greentard politicos will say to get re-elected in big cities. The EV narrative is a get rich quick scam for many of them and their corporate donors.
Thank Bidenomics for that, soon everyday items will have a luxury tax.
We need people who will oppose the Neo-Feudal system of owning nothing to run for office and then start arresting the collaborators on any charges or technicalities and even if there is just accusations against Globalist anti American people in government
I was in the market recently for a truck..the only criteria I had was it had to be a 3/4 ton and AC. Just to amuse myself I went to look at a dealers used lot...they had 1 2018 gmc with abot 70,000 miles for 45 grand ! I told the salesman that they would be serving iced tea in hell...at the card table before I ever paid that much for a used truck...hell I wouldn't pay that much for a new one. I bought an 05 gmc from a private owner for 3 grand and spent about a grand sprucing it up.
Ford sells a stripped down F-150 in Mexico that it calls the 'Lobo'. Ford just recently registered the Lobo model name in the US market. Hmmmmm.
No, the Lobo is the top of the line truck. The F150 is the bottom of the line work truck.@@MrSloika
@@MrSloika Interesting. Unfortunately if they decide to sell it here, it won't be the same truck they sell in Mexico. It will be loaded down with trash that is impossible to repair, and cost several times as much. It would be great if we could buy vehicles made for sale in Mexico and register them in the U.S. Actually you can, if they are 30 years old or older.
This goes for private sellers. I've seen people trying to sell their 1986 Lebarons for $19,000. Or a non functioning 35yo Toy truck in bad condition for $12. The fuck.
That GMC's price is jaw-dropping. Who the devil is buying these vehicles at these prices?
Dishonesty has destroyed the car business. I bought my first new car in 1976.. It was a good experience. I have bought 25 more since then, all domestics. As the years went by, purchasing a car became more and more of a battle. The "mandatory" add on items, the make believe service charges, etc, have become common at every dealership. I LOVE cars, and now I am at a place where I can buy whatever I want without needing to take out a loan. The dealership experience is so offensive I avoid it.
Exactly. And it became so blatantly predatory during the pandemic that I'd rather have a colonoscopy than ever walk into a dealership again.
Believe it or not I have had 2 good carmax experiences. Everything was upfront and what they said is what it was. A far cry from the dealer that advertised a truck at 22k out the door only to drive an hour there and they insist on a $2000 documentation fee on top of the out the door price. F THAT!
Dishonesty has always been “part and parcel” of the car business…
Does that explain why those dealership did not put their flags out? September is their Christmas but they did not put the decorations up.
Yup, it's a mess. What the economy hasn't done to hurt things, the dealers have themselves. Things are worse than I have seen in my 30 yrs in the business and I'm expecting them to only get worse. If you're in or around the business or just a consumer in need buckle up and hold on tight. This ride is only going to get rougher.
"This ride is only going to get rougher" Not for me. I have all the vehicles I will ever need, and lots of parts.
Well MAYBE if stealerships didnt add 30% markups on all MSRP vehicles then things wouldnt be "lookin rough out there". Its 100% self inflicted greed.
I remember when you could get a new vehicle for under MSRP, and way under MSRP during the end of year closeouts.
Yes, Toyota manufacturing went down do to Mother Nature. Today they have no excuse for their out of line mark-ups. Just gouging the ignorant that have credit for higher profits. They will lease the left over inventory for a tax loss. Scamming the tax payers is there best profit. There is no longer a reason not to vote out Republicans favoring tax deductions for the corporations. They do not provide living wage jobs. We can no longer purchase anything we build. Only the rich getting richer and paying less taxes.
Don't forget about the "doc" fees. Somehow you magically now have a line item for them to process the paper work.
From a young age I was taught MSRP was Maximum a Sucker Really Pays. Somehow it became the absolute base price before fees.
There's a dealership I stop in every 5K miles for free tire rotations. Pre-COVID, they had lots of new inventory. COVID happened, and they burned through their new inventory, including the cars in the showroom. I expressed concern that I couldn't see how they'd stay in business, but I was assured that sales had changed from selling new cars off the lot, to selling build-to-order, and that business was just fine. And as long as sales of build-to-order remained high, they weren't going to invest so heavily in stocking their lot with new cars. It's the new normal. If you need a car right now, you're buying a used one. If you want a new one, you'll have to order one with the features and colors you want, put money down, and wait for them to notify you it's arrived at the dealership.
Actually with interest rates high, that would be a push to having fewer lot cars, so that makes sense.
The risk of carrying inventory forward in the wind of rising interest rates is more risk than dealerships can bear. A bird in the hand is worth two in the bush. The problem is that when you are selling anything the goal is to make the sale. It is very difficult to increase your sales margins when there is nothing to sell. The pont I am making is that this isn't "sales", it is order taking. The margins are shrinking. Shrinking margins regardless of the industry is bad news. To put is bluntly the consumer is getting crushed.
@@waynetang1763 As I understand it, when say, Ford hears the dealers are putting 20k Pacs on Broncos, they got mad. So for the next year Ford raised the cost to dealers by 10K. So that is a lower margin. But is still a pretty good margin when you sell cars for 10k over sticker. Even 2-3k.
It's the same development here in Norway, recently here locally there was a dealership in my area that had to put people on leave as people aren't buying new vehicles, they're also focusing more on used cars to keep the business going. The middle class like in the states are being erased, people do not afford new cars anymore or their own house for that matter.
Thats the Plan of the WEF
I was looking to update my 2013 Nissan Frontier during the covid because they would give a ridiculous trade in amount for it(2 hours north of NYC) the Honda dealer wanted 5k over sticker for a new ridgeline. I said no thanks and 6 months ago when I checked with Toyota they also wanted 3k over sticker for a Tacoma. I decided then I am going to make the Nissan last another 20 years.
Maintain it well and it should treat you well. I heard the Frontier is one of Nissan’s better models. Even Scotty, who generally favours Toyotas from his experience, made a video where he gave the Frontier a thumbs up!
I have been in the shop equipment side of the auto industry since 1985. I am in dealerships and independent shops every single day. What you are seeing IS the “new normal”. They are still selling new cars, people just have to order them and wait. 90-95% plus of the inventory on any of the lots are used cars. A fair % of the New inventory you will see, isn’t actually inventory, that are new vehicles that have been ordered and they will sit them out on the lot until the buyer comes to pick it up.
They are making a mint on the used vehicles because of the inflated price caused by the (intentional) lack of new car supply. They are making good money on the new cars being ordered because they are getting MSRP and do not have the floor planning cost of loading up their lots with new inventory. Inventory that you would normally be seeing going on sale right now ( making less money on them ) so they can make room for the new ‘24 models.
You have seen the end of the days of lots loaded up with new vehicles to choose from to drive away with that day. If ya gotta have a car today, you have all of the over inflated used cars to choose from.
They will order in a few new vehicles that you can fawn over, but you’ll have to order yours. 🤷🏼♂️ That’s what I see. “They” are changing our world weather we like it or not. At a level, it is intentional. Read between the lines, prepare yourself to survive. Tony, you are spot on, there is a wrinkle in the force.
There is a lot of evil involved here. And I think a lot of it comes from the WEF. It's not just cars. How many businesses of any kind do you see having sales and advertising low prices, or competing with other businesses? Almost none. For over 20 years, all the motorcycle dealers in the Phoenix, AZ area have been price fixing, agreeing to all charge the same prices and insane dealer markups to prevent competition. Capitalism doesn't work without competition.
for the price of a new F150 i could rebuild my 2011 front to back many times over.
Trucks to look for are late '60s through early '80s models. I had a 1975 F-250, 390/C6, it got 8 mpg, no A/C. I wound up selling it, wish I hadn't. Love the Twin-I-Beam front suspension on those older Fords. I do still have a 1993 Chevy I bought new and will never get rid of.
@@geraldscott4302 agree. I have a 49 f1 Also. It's more reliable than any of or newer vehicles
I've been passing by the Chrysler plant in Belvedere, IL (every weekend) for about 3 months now. Haven't seen the employee parking lot over a 1/3 full. I remember seeing that lot filled to the max just a few years ago.
There was a King of the Hill episode where Hank decides to replace his old Ford truck with a new one. He tells his buddies he will go to the same dealership he's gone his whole life since they never charge him a penny over sticker. His friends tell him it is customary to buy the car UNDER sticker. He goes to the dealer and confronts him and says he felt betrayed.
NOW, TODAY, if that dealer really sold cars and trucks for sticker, we'd be in awe.
As a Honda dealer in a similar market I can relate. The 20% of Metro Honda dealerships that sell 80% of the vehicles are taking priority in the supply line. I’ve been purchasing vehicles from a few large dealerships that consider themselves overstocked just to stay afloat.
A dealership chain here in Oklahoma just sold. The owners cashed in because they're seeing some writing on the wall like you're saying. They've been selling less new cars and losing money in the shop due to warranty work. These new cars are so complicated that it's really hard for these dealerships to meet the time requirements set by the manufacturers and they end up fixing stuff on a loss.
it does not have to be doom and gloom maybe the kids didn't want the business and some dealer conglomerate came up and made an offer
@@TwoDollarGararge This came from the people that work there and that was one of their reasons for selling, maybe not the entire reason, but it was a factor. It is possible the kids didn't want it, but old owners are brothers and they aren't that old.
@@Steinerrides oh well if you don't want to learn how to fix modern cars that's the name of the game adapt die or make what you have work
@@Steinerrides keep in mind that most vehicles are throw away anyway and the second there is a major repair they get rid of it because they think it's about to become unreliable always been like that
Many dealerships can't even find anyone that knows how to work on that garbage.
One of my theories is they (they meaning those making the decisions) need to make the American public use up the used cars and make new ones scarce in order to help the transition to EV. What I mean is, the dealer being able to say, "We dont have the ICE (Internal Combustion Engine) vehicle your looking for but we do have this nice EV which has incentives and discounts to make it comparative in price to the car you asked for (and its available right now)" or some variation on that theme. When everyone faces either an EV or walking everywhere, the transition is "SEMI-VOLUNTARY". In my opinion, the best way to combat this is to do all the preventive maintenance to keep what you have in good working order longer, and keep a good relationship with someone (hopefully yourself) to fix anything that wears out. Us old gearheads with classics are very blessed. Im praying the parts for all cars stay avaliable!
That might be the goal, but they still have a fight on their hands.
I have several old classics. EVs are not only COMPLETELY worthless, but extremely dangerous. I won't go near one. Back when I used to work as a mechanic for a large city fleet services department, our parts were kept in a building some distance from the actual shop. If we needed a part, we had to take a golf cart from the shop to the warehouse to get the part. I hated that thing with a passion. I started using a wheelbarrow to go get parts. I'd rather walk and push a wheelbarrow than use that stupid toy golf cart. Unfortunately I eventually got caught and had to go back to the golf cart. Eventually it disintegrated and was replaced with a gas powered John Deere Gator.
Don't forget about the ability to 3D print parts
As a European it's weird to hear about this sort of dealerships. That's so contradictive to smart business. Here dealerships, if they're big, might have 1 example of each available model in the showroom for the customer to see up close. And if a customer wants a car, they configure it to their liking and an order is placed. If a dealership here has an outside lot it's just for used cars and customer parking. Having all that pre-specced inventory is a great way to go bankrupt, all your cashflow is locked up in it and every inventory car is susceptible to the customer not liking the spec, model change, vandalisme, weather damage, random damage, aging, theft, etc. And if you then have to sell at a reduced price, just to get rid of them, you might even turn a loss. And that could be carried through, if it happens once or twice ánd if you have a healthy business but even the healthiest businesses will go under if that's a constant reoccurrence.
I used to love this time of year we would go down to see if the new Oldsmobiles were in.
The gov handed out EIDL loans like they were giving out water. Almost no credit checks and "businesses" got huge loans for almost no interest and forever to pay it back. They have spent most of it now and we are seeing effects.
I halfway expected to see a salesman with a fishing pole in hand and a $20 bill on the hook, Tony. If you drive through a lot where I live, a salesperson will hotfoot it out and try to corral you at the end of a dead end row where you have to turn around to escape. At one dealership, the first thing the salesperson said to me was, "Are you ready to trade today? Did you bring your title with you?" I think they've priced themselves out of the market and desperation is starting to set in. I also suspect car shoppers are starting to realize this isn't the best time to acquire more debt for a non-appreciating, technologically fragile vehicle that rivals the cost of a house, without the value.
ua-cam.com/video/ZtQJnliOCBQ/v-deo.html&ab_channel=Shout%21Studios
I drove 18 wheeler back in the 1990's as a Yacht hauler out of Clearwater Fl ..Used to transport boats out of Murfreeboro Tn back then .I-26 at Exit #81 ..used to see lots of boat haulers on the interstates back then .you don't see a lot on the highways these days 😢
I work on yachts and alot of the owners have backed down on repairs or try to do it themselves.
It's getting hard out here in this line of work.
I grew up next to a dodge dealer and there would always be a Viper in front. They stopped making them obv so there was a few hellcats that took the spots for a few years. Last few years nothing but broken chrysler fiat products infront instead, rip
The hellcats are stolen now so that's why they don't put them out front anymore
What Chrysler Fiat produats are you talking about? Jeep Renegade is the only Fiat re-badged vehicle besides the Promaster vans albeit those were re engineered by Chrysler and use a Chrysler engines etc.
Fiat they only sell less than 10k per year so you never see them.
@@mypronouniswtf5559 The Jeep Compass is made on the same platform as the Italian made Renegade using a stretched chassis
Hey Tony
I'm up in Ontario Canada, our car lots were always very full but around 2018 that seemed to diminishe, though 2020-21 they looked like ghost towns. Now they all look pretty much like what you're showing us.
I have my own bodyshop, usually I do restoration, but lately my phone rings off the hooked with ppl wanting to "restore" their 5 to 15 year old trucks. They'd rather pay me what seems like a lot than buy a new silverado or tacoma for 85-90 k
Years ago, middle class assembly workers in Windsor, Ontario would get a paid day off when they ordered their Chrysler to watch it being built (extra carefully) by their coworkers. Both the company and the workers appreciated that sentiment. Today we live on a different planet.
Honestly, id love to see the middle man cut out and allow consumers to buy direct from the manufacturer. As far as im concerned, the chip shortages showed the true colors of the dealers.
Only Tesla does that right?
@@CobraR1993
Nope.
It's to late even if they took that route the price, quality, and longevity of a new car is seriously lacking to the point who wants to spend on them
I heard the big 3 are headed this direction a while back
The chip shortages show just how stupid car makers are, loading their cars with endless computers and modules.
Wow, you can really hear the crickets at these dealerships!
Uncle Tony is pointing out the elephant in the room. The working man will always be the first to tell you when things aren't going in the right direction. Right now there are a lot people with limited means making a lot of tough choices.
Uncle Tony is a perfect example of old school wisdom that is mostly lacking in America today. We should all listen very carefully to this man. Simple logic leads to great wisdom.
What ever happened to all of the vehicles that needed chips before they could sell them?
look up the bullwhip effect that's what happened
@@TwoDollarGararge The bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain.
@@raymondcanessa7208 that's the long way of saying it this is my simple definition. There is a shortage prices rise a oversupply is made prices free fall people horde it's cheap creates a shortage prices rise and it goes on again and again
Some got sold without all the chips they needed, meaning they have some features that don't work, and some are still sitting in fields rotting away waiting on chips. Why do cars need chips in the first place? Cars were working just fine without chips for almost 100 years.
That was a fairy tale
Here in "Small Town" West Tennessee the local Chevrolet dealership has a 2022 Ram 1500 with 14K miles on the odometer sitting on the front row where a new Chevrolet car or truck would normally be sitting. In the past, in a "normal" year, there would be well over 100 new automobiles and 30 or more used automobiles sitting on their lot. I drove past that dealership this morning and there was 9 new vehicles and 5 used vehicles there. Their complete new and used inventory is sitting on the front row with room to spare. It's crazy how empty that dealer's lot is.
Very much the same here in Western Pennsylvania Tony. I live in a semi-rural area near a small town with a nice Chevy dealer that's been there for generations. They remodeled and built 2 new showrooms a few years before the COVID lockdowns. Always had lots of new and used cars. Now it's a ghost town. Last time I passed it, they had one new vehicle in the new car showroom, one new truck outside, and a handful of used vehicles. There's nothing inside the used car showroom and very little activity now, which as you pointed out, USED to be the busiest time of the year for dealerships. About 15 minutes West there are a few other dealerships; a Chrysler/Dodge/Jeep/Ram, a Nissan, a Hyundai and a newer Chevy dealership. The CDJR and Hyundai have decent inventories, however more used than new. The others are not so full. It's crazy! As for me, I'm set! I have my 'retirement' fleet and will probably not need another vehicle for the rest of my life! ALL MOPAR! 😁😎
Banks are tightening up lending practices going into the sideways/recession economy. It's getting harder to find qualified buyers for new cars so the dealerships have shifted their sales model. The focus is on new premium vehicles with unprecedented markup, and used cars that are now selling at or near their original MSRP. The higher margins make is so they can move less cars and make just as much money... little trick they learned during the "stay at home" times when shortages were rampant and people would pay anything for a new/used car.
The industry used to aim for volume and then used incentives balance out demand to meet volume. During the pandemic, when they couldn't get cars, they went lean and high margin on what inventory they could build and they liked the results. Fewer costs (less inventory) and bigger margins by selling fewer, more expensive car and especially trucks.
Everyone wondered if they'd have the discipline to maintain this model after, but so far they have. Cars are selling at much higher transaction prices, dealer hold (meaning finance) smaller inventory and everyone makes money. Is this sustainable? Not sure. Vehicles are getting really expensive as interest rates go up -- that should dry up demand and generate competitive pricing. We'll see ...
Yes. Once upon a time everyone had a mechanical wristwatch, then the Japanese perfected the quartz watch. The quartz watches kept much better time and were cheaper. Dozens of famous watch makers went under. Rolex respondent by raising the prices on their watches and limiting supply. Today Rolex is one of the most profitable brands on the planet.
@@MrSloika I own a 1980 Rolex Submariner. It is a family heirloom. It is not worn, it is put away in a safe place. It has appreciated in value since I've had it.
@@geraldscott4302actually your money just lost value so it costs more to buy that Rolex. Regardless even overall car sales will collapse like watches as banks continue to reduce credit as that is how most Western minded people survive.
New vehicle prices are in the same boat as residential real estate, at an increasing rate, the wages of people who would purchase them, even as rentals or leases, cannot afford them on the wages they can earn. The two curves just dont intersect anywhere. It will crash in the used car market first. The people who can afford a 70k pickup truck will get hammered when they go to sell it in 3 years to get a new one. Gonna be a hella steep depreciation curve. They will have depreciated by 40k for a perfectly kept truck with 70k miles because the used market just cannot pay that much for them. Couple that with intentionally designed to be short lived and stupid expensive to fix and that is gonna cause huge problems for the auto industry.
@@jonvb2439I wouldn’t buy either but the prius is a better option.
Most car lots in Springfield, Missouri, have very few new cars. You’re right Tony, things are bad, but no worries, the repossessions will start rolling in heavily next year-so, looking at the bright side of terrible things in progress regarding the car industry, the car lots shouldn’t be empty next year. Imagine the days leading up to Venezuela’s and Cuba’s collapses. I’ll bet most folks didn’t think what happened would happen, and I’d double my bet that they never imagined it’d continue for decades and perhaps indefinitely. I hope we don’t have to travel the path of a fallen nation, but I’m prepared if we must. Thank goodness I participated in the Boy Scouts-as I have aged, I have never forgotten or dismissed our motto: Be Prepared. 👏🏻❤️🔧
You think those repos are going to be cheap? Go have a look at what those repos are selling for at auctions. Even if you can get a repo for cheap, there are usually no bargain. People tend not to take care of cars they know are going to be hauled off by the repo-man.
Boy Scout's motto is "Always prepared". Is it "Be prepared" in the States?
@@carmudgeon7478It was "Be Prepaired" for me in Pennsylvania in the 1980s
Beep reparied.
the shortage is by design...theres no shortage of laptops cellphones or anything else with a chip
manufacturers claiming their ecu's are anything more than a 5yr old cellphone/laptop worth of computing power is a farce.....universal aftermarket ecu's were a thing...
how much is a 5yr old laptop worth?...and thats you buying retail.....sure aint $1k like an ecu
so we know they could pay a little more, make it more universal.....but somehow they cant?
BULL.....dyou think theyre not getting their favors from the bailouts called in?.....lol
they golf and vacation and have dinner together
That's strange. I still drive my 1993 Ford Ranger 4.0. 140k miles. Still runs and looks like a beauty.
"The individual is handicapped because they cannot imagine that something ultimately evil is among them" J Edgar Hoover
"The individual is handicapped by coming face-to-face with a conspiracy so monstrous he cannot believe it exists." J Edgar Hoover -
I work for a dealership. It seems to be on demand . The dealerships don't hold stock. You come in and order a car and wait for it to come in a few weeks later. The dealerships hold very limited stock.
Yup pops waited 2 weeks for a '23 jetta.
That was almost 24k.
Moms 2020 jetta in early '20 was 16,800.
And then we the customer have to pay MSRP and “market adjustments” so we can continue the lie about inventory being low. Profit margins are higher for the dealership this lie. I’m not speaking ill about you personally but I really want to see the current dealership franchise model collapse and disintegrate. It’s an absolute ruthless environment on their showroom floors.
Our local Chevy dealer has always put used cars on the front row and still do. Of course the rest of the lot is fairly empty.
The Ford dealer near me, has been in business for over 50 years. You walk the line and and you might see a couple of new Broncos, a few F-150's, and a Mustang or two. Right next to the front line is the Fix-It body shop and there's a mix of brands either done, or awaiting repair, no demarcation between the two. Their used lot is across a residential road and isn't different from the main lot, except, they have a 30th Anniversary Trans-Am and a 30th Anniversary Z-28 sitting on the front line.Other than that, you wouldn't know it was the used lot.
The problem these days, is that year to year changes are negligible. Back in the day the differences between model years were significant, maybe not mechanically, but stylistically.
These days, you really can't tell the difference between a 2013 model and a 2023 model.
Yep 60s to early 70s. Now if a car had no logos you may not be able to identify it in a crowd.
At least they stil use those. Try to I identify a crime car without a logo.
The 2013 model is going to be much higher quality than the 2023 model, and much easier to work on. But you need to go back to the '90s to find decent quality cars.
Good point. September isn’t so much the new car line up change in terms styling or completely new. Nowadays, the press gets a sniff, then a taste, then a year later the public takes delivery.
Well, I think part of the problem is there are no longer any cheap "entry level" basic automobiles for the average, low wage earner to get into. I remember the seventies and eighties when a person working full time at around even three to four bucks an hour could afford to buy a cheap, entry level car. I am amazed at the starting prices on even the lowest level vehicles now.
They don't sell as well now because many people realize the price went up without being attached to quality (let alone wages!), and don't want to spend tens of thousands of dollars on a vehicle that turns into a brick for the smallest issues. I predict a small displacement motorcycle boom in the US, followed by a Mopar and "shade tree" mechanic boom.
At current prices new and used I suspect many folks like me will be a long time before getting in the car market again. Then throw in the shoddiness of today’s vehicles and boom. 84 months of payments. At my age I might not live long enough to pay for it.
Many people lease new cars now instead of buy just to afford the payment.
@@tabbott429 Leases are decreasing. Currently about 20% of new cars are leases. Pre-COVID/WWIII (Ukraine) about 1/3 were leased. Many people can no longer qualify for a lease.
No new vehicle is going to last 84 months. And it costs way more than they are worth to fix them. Manufacturers seem to have decided that the lifespan of a new vehicle is 10 years. After that their dealers will no longer work on them, and they will not make parts for them. In 1995, I bought my current house, for $69,500. I got a 30 year mortgage. I paid it off in 18 years, but that is about the same price as most new vehicles these days. And the interest rates on vehicles are now higher than the first mortgage I got on my house in '95. Just plain crazy. People complain about the quality of '70s vehicles being bad, it's a lot worse now. One of my cars is a 1972 Ford, and I've been driving it for 25 years with almost no problems at all.
Tony is the man!!
He’s going to get that censorship badge if honour for telling truths!!
I won’t comply either!!
Thanks brother!!
The Economy has been in a Tailspin going on Four Years and no one can Deny what is Happeniig anymore !
As someone that works at a new car dealership, there’s another factor at play too and it’s carrying costs and overhead. 95% of dealerships have a floor plan loan and those costs have DOUBLED in the last 6 months. Not to mention the cost of utilities, and other factors such as the wave of faulty replacement parts that eat up profits from the service dept with fixing the same issues twice. With a slowing economy on the horizon a lot of companies are looking to cut their overhead significantly.
Well Tony I have been around a while ,I remember this time of year going to the new dealers to see the new models and it was great to see the new offerings from the big three I'm talking the late 50's and 60's when cars had class and style now they all look the same none will be classics . I just traided my 2019 Lexus straight accross for a 2022 Outback didn't want that hybred pile of $hit my real cars are a 49 Merc and a 57 Bird have no intrest in newer cars . the designers and unions have killed the auto industry ,can't belive my Lexus cost three times the price of my first house in southern komiefornia fixed that problem also moved to a free state .Never look back our political system has killed the American dream reprogramed our children to hate their country and the world owes them a living God help us .
The government is ruining all of this and on purpose. The Unions are now on the Board of Directors and they stage targeted strikes for their own purposes now, not the workers who may get some tokens out of it
okay, boomer. The American dream was never what it purported to be, anyway, certainly not for the majority, certainly not for native Americans or people of color. My 16 year old grandson doesn't think the world owes him a living, he is somewhat more rooted in reality. You blame the unions, what about the huge difference in white collar CEO pay versus the average Joe? You really think Mary Barra (sic) deserves all those millions she "works hard' for? That is capitalism for you, albeit a perverted capitalism.
No interest in a Lexus or Subaru, but a '49 Merc and a '57 T-Bird are right up my alley.
You are 100% on the car market reflecting the economy. Worked in a machine shop early 2000s thru the 2008 crash that made car parts. Old timer said we get slow economy is going to be bad. The 08 crash he was skeptical about how bad it would be but it was true.
you are on it Tony . good report .
I’m a Toyota tech and on our side we are changing our model to focus more on having the customer buying the car online and just coming to the dealership for pickup and processing paperwork. So our lots are looking emptier and emptier and so as a response we are increasing our used car inventory for those that can’t afford a new car in these difficult times and to keep the lot looking full and busy
The front line at the Chevy dealer near me has a C5 Vette, C6 Vette, 2016 Mustang and a few other weird ones. You're right, something is up.
In Soviet Union, you wait 10 years for a new Lada. In America, new car dealers sell 5 year old cars.
And the Russian Lada gets delivered in the morning and the plumber comes in the afternoon!😆
@@roguedalek900 The Lada was not really a bad car. It was based on an ancient Fiat design, but built much stronger and tougher. Nearly bulletproof, and easy to work on when something did go wrong.
Im really suprised none of the auto manufacturers have said "screw this" and flood the market with cars and have incentives like pre 2020. The competitors would have to play catch up. Sell the volume and get the market.
Im suprised Kia/Hyundai has not done this
My cousin works at the local gm dealership in our town and he said his boss sends them out to buy cars people have for sale online and bring back to sell on the lot. And two days a week 4 of the staff go to the car auctions and buy vehicles to bring back and sell , im in ky and the biggest Toyota plant is about five miles away from my sons house and the Toyota dealership is the same way. It's crazy
I'm stocking up on used scooters. Whatever I can find and fix. I've started making trailers and other stuff for them too. I've suspected that we can't rely on our economy for a good while. Also scooters are fun idc what anyone says about them lol
They are fun as long as nobody sees you riding it
Gas or electric?
Scooters are fun until winter arrives.
@@francoamerican4632 unless your a northerner wear layers northerners are cold blooded anyway
@@nickb2080 who tf cares what other people think enjoy the thing you like
The real problem is vehicles are too expensive. They gotta bring back basic simple affordable vehicles like chevette pinto so on
won't happen impossible with modern regulations and there is a higher chance of a snow day in hell then that happening
No, don't even joke about bringing back the Pinto! Riding in the back seat induced clastrophobia and they tended to explode when rear ended.
If anything, bring back the Chevy Nova. They were basic, reliable, affordable cars that ran forever and were built like tanks.
@@francoamerican4632 Chevy II/Nova, Falcon, Dart. Those were cars you keep running for ever with simple tools until the tin worm got to them.
Detroit has a 300 year old saying. "Small cars, small profits" . Detroit would rather sell three $75K trucks than 7 Darts/Novas/Fairmonts . There's money in adding options and it keeps the dealer busy with service calls.
I liked the Pinto - they have become frugal collectibles. The Duster was affordable too. Regulations have eliminated profits on cheap cars.
I've worked with the car dealerships for 30 years doing PDR . You hit the nail right on the head. We better get ready for some tuff times.
Most of the used cars at dealerships are called program cars ( Leased) As Klause Swab stated " in 5-10 years you'll own nothing and be happy"
Chevy dealerships use to have a separate used car lot called OK used cars.
And Tony th cars they do have are unaffordable for the Middle Class for example $80k work trucks
Yep 80k wrk truck is about right
Yes. I look at car yards with disgust. I never see a new car and think, god dam that car looks awesome, it's more like, who the hell would pay $40k for that?
And buck nasty knowing long term they are junk
Plus $40,000 is the cheap ones.
40? You wont get much like a sentra mabye
You spelled 79k wrong
@@NoOneUNo 😂
You’ve heard the old saying, they don’t make them like they used to. They don’t sell them like they used to.
I remember in 2008 we were teased with a new Roadrunner and Cuda based on the Challenger....gee wonder what happened???? A new Cuda based on a Challenger would have been bad ass
Notice the same thing in Vancouver, Canada, there's no inventory! Enjoy your videos, they are so on point.
In the 70’s and 80’s it was Long Chevrolet in Elmhurst IL. 30,000 units a year. We will never see those kinds of numbers again! Acres of New cars. And Timmy got the pie in the face at the end of the commercial.
Linn Burton for Bert Wineman your TV Ford man at 7575 N. Ashland Avenue! 😅 WGN would run the same 3 ads all night Saturday in the wee hours. Or Liberty Auto Wreckers in Libertyville ..hahaha ...
I am sure you didn't see those numbers the. That would be 82 cars per day 7 days a week. No dealer could sustain that kind of volume even with fleet sales.
@@mexicanspec Just look up the history of long Chevrolet. That number is their peak number of New and used units for a single year. Yes it didn’t last forever but it did for awhile. Advertising in the Chicago area was crazy nuts in that time. You got bombarded by radio, tv and newspaper ads around the clock. You also had a couple of other big dealerships like Celozzi / Ettleson, and Fencil Tufel. Fencil Tufel alone had a large sales staff that I would estimate in the 30 to 50 people. And yes, you were like fresh meat to the lions when you pulled into the dealership. They all would try to get to you first. Shout out to Marty Whittenberg. He was one of the good ones.
@@roguedalek900Dont forget, Hi I’m Harry Schmerler rock a bye my baby, your singing Ford Man on Route 83 and Touhy Avenue. Cars were so much a part of our lives back then.
If it wasn't for the absence of plates, I would have thought that Honda dealership was just a carpark.
This is what I see and wonder what is up and why aren't people talking about it. Thank you for discussing this. We should have returned or be returning to normal. This administration seems to be glad this is happening. These issues strongly affect Americans and the leadership says nothing, but glittering generalities, aka big time bs.
Living here in San Diego California love the weather but times are getting tough. And I’m middle class.
@jonvb That’s kool my great grandmother was born in Exira Iowa in 1908 her parents immigrated from Denmark.Lots off cars here though . Dealerships are full of Vehicles. Thanks for responding. My Great Grandmothers lived till 96 years old she lived here in California, She told me as a child Indians going to the house and all they wanted was food . She gave me Arrowhead heads and a Stone that was used for plowing from the Indians.
Ironically, I have seen some dealerships in my area that have a decent amount of new inventory. However, they can't hardly move any of it, and when they do "sales", you have to have a voucher to get a sales price, and from what I understand from a friend of mine, you may only have a few vehicles you can chose from in many cases. We have some shady stealerships in my area though, and they are all trying to compete as locals against each other and with the Penske Automotive Group. There is enough money tied up in dealerships and stealerships that only Walmart, Tyson and JB Hunt rival them because they are multi-billion dollar world wide companies. Things are screwed up, and I saw it coming long before now. I am dreading for the day I hear my friends working at some of the dealerships in the area end up jobless.
Well, when you see signs on cars/trucks like I have been seeing in my area that say: "$10,000 off" and "$14,000 off", that right there tells you a lot...at least they are having sales again, but even with those astronomical amounts "off", the sales prices are WAYYY out of reach for most people....
Yet so many foolish people still get pregnant and having children as we enter the Greatest Depression globally in the next 2-3 years.
@@dyer2cycle yeah i remember car and driver doing an article in like 2012 about how crazy truck prices climbed for a base model work truck... at that time comparing a 2012 gmc 1500 to a 2002 model, the price had jumped 22% adjusted for inflation... now that percentage gas to be 60 or 70% absolutely crazy!
Excellent general analysis ... keep going on this level of insight ... much appreciate your intel
That September-October frenzy was a thing when automakers always released new models in the fall. When they got away from that protocol and released new models year-round, the fall frenzy became irrelevant.
People haven't forgotten about the slimy "buyers premium" markups from 3 years ago. Screw them and their it's got wifi selling points.
NEVER get a vehicle with wifi or any kind of satellite connection. It is spying on you. Tesla is being sued because Tesla employees were caught watching people have sex in their Teslas on the cameras in the car that had no off switch.
It sure is giving off a Blockbuster Movie rental place vibe ..
Where i live here in Texas, the dealerships are stuffed full of new vehicles and virtually no used ones. Strange. Of course the inventory is nowhere near what is was pre pandemic.
Also notice dealers trying to pick it up on service. Crazy pricing. $1200 Canadian for brakes on F-150. And even most non-dealer service centres are now using computer systems and time standards similar to the dealers so they aren’t value priced as they used to be.
Built Back Better!
try fixing the new cars now, or have it repaired at $150 an hour on a $25 an hour wage
How about $15 an hour...or less...
The solution is to buy a Toyota with a 7-year warranty and trade it in after 7 years and do it again if you don't know how to work on a car Toyota Care is actually pretty good
I have a 30 year old truck and a 50 year old car, and I can fix both of them myself.
@@TwoDollarGararge 7 years? My folks are still driving a 2001 Toyota Camry with 300K miles. Only repairs are a drivers side door handle and a driver side window regulator. I replaced both for them.
@@muziklvr7776 My neighbors Corolla went 450k I'm saying if you're Joe normie and you don't know anything about cars and just want a box that works that's not a bad way to do it
Great commentary on this change in times! This is why I have all pre 1990 vehicles in my yard 5 of them run. The 6th one i just picked up for cheap a no rust 87 FJ62 with 67k miles hasnt run since 1998 so im going thru the fuel system. Any person with half a brain wouldnt buy a car at these prices and these loan rates.
I lived in Murfreesboro for 3yrs, worked in Smyrna. Loved it there, great place!