It's more the monthly payments kickin there ass, $70-80k pickups are now the norm, which means if you got a $850-1100 a month truck payment, very little margin for error. Miss just one payments and things unravels very quickly.
Imagine the cost to gas up those pickups at today's gas prices. Not only gas price but their house utility prices that they cannot control. In Southern California, electricity cost skyrocketed from less than $200 per month to over $500 for a 1,500 sq ft home. All these high prices all of a sudden, which quickly exceed their budget.
@@andyhughes1776 It's really not "that" bad... My diesel F-250 has a 34 gallon tank and only costs about $100 to fill. At 1/4-1/8 tank. Diesel is about $5.50/gal here. I have no idea what the "reserve" is on it and I get about 350-400mi/tank.
unless you are a contractor who can take tax credits for the vehicle, you are insane to make that kind of payment. Let's not forget how much auto insurance runs these days. The higher the replacement cost, the higher the premium. I'm nearing 70 y/o and I refuse to buy any new vehicle. There are too many good used ones for a fraction of the cost. Never forget that a car is only transportation to go from point A to point B. When it becomes a status symbol, you drift away from reality. Dealers are selling payments, so put your money IN the bank, instead of paying it TO the bank.
Homes and vehicles didn't increase in value last year, they increased in price. Inflation far outpaced price increases so they actually went down in value.
Wrong- Inflation doesn’t impact everything at the same rate. Hence, the rate is determined by some janky formula. Price is objective value is subjective.
Actually, people overpaid because basic economics of supply and demand. Demand is drying up with interest rates. Demand will crash the car market because of lack of buyers for various reasons outlined in this video.
The entire economy was fluffed up with low interest rates,those have went away ,so buyers who don’t have any real cash saved or those who finance most or all of there new car are finding themselves unable to afford the monthly payment now that the interest rates are up and inflation has already hit their buying power and the gas,and food bills are 30 -40 percent more than Jan 2020 and insurance,and housing prices are thru the roof.
@@jonathantaylor6926 actually it was not supply chain issues! This is deep thinking right here Bobby. How can people not be working yet they have money to spend on things and buy cars? If people did not get these government checks then the supply would have been enough or close enough to supply the real demand. But bc government likes distort the economy this is where we are at now.
Bought my 2020 car in summer of 2020, every one in NYC was sheltering and scared to death. I felt that there could be inflation coming or problems with supply chains. There was no one in the dealership, they were desperate to sell something to someone. I got an awesome price, paid in full with a trade in. Dodged the inflation bullet with a little critical thinking…
We did the same thing. We bought a Honda in June 2020 and we offered the dealership $5000 below asking price and they jumped on it. I bought a high end mountain bike on eBay same month and year and got a fantastic deal.
I did the sane thing. I got a almost fully loaded atima in November 2020 that was 1 year old and only paid 18k for it. The same car was going for 30k at the dealership or even more lolllll. Used...
How much money you make has nothing to do with your credit score. There are people making well into 6 digits that are living paycheck to paycheck and stretched to the limit. Those that make more money just tend to have bigger bills.
Very true! I had a husband just like that he was earning high but could not handle money at all he had so much debt. I realised latterly that he is actually a very greedy and selfish person and that’s what was driving all the awful decisions he was making! He would fall prey to every scam out there and completely disregarded his young wife and family! Stay strong everyone🙏🏻
The same can be said for lease, rental, and many other used cars. But cars are built more robust than you think and if the car is young, the risk is low.
be careful buying a repo. people that knew they couldn't afford them and got them anyway, will abuse the hell out of the vehicle knowing its going to be repoed at some point.
I'm pretty old school so if you borrow money you should pay it back and not be a deadbeat… BUT…. banks are supposed to be smart and any bank that financed 100% + for a car purchase deserves to take massive losses. The bank is supposed to be the adult in the room. But they'll get bailed out and they know it but your car still still be repossessed and ruin your life.
You are old school? 🤣 if bank is kind enough to lend you money so you can purchase the car or home of your dreams then why shouldn't you have to pay them back until the day your dead. Otherwise you should have zero credit score and no access to any credit until you do. Who do you think pays for bad loans? It is not the banks but rather the other individuals who take out loans in the form of higher interest rates. I just can't believe how naive or dumb people are who think bad apples in society shouldn't get punished for anything even when they make it worse for everyone but the wealthiest.
My late Mother said and I quote; "Money won't solve money problems". She was a prodigious saver and did very well for herself. My Wife, Sister and I drive nice cars but not new cars. Looking forward to the correction. This is what you get when you vote for Mau-rons.
When you watch other videos about car repairs, you won't want a luxury vehicle either... Reliability issues is much higher than, add parts shortage and much more higher maintenance cost. German dealers are starting to charge $300/hr labor rate these days and that's not including the grid/escalator.
your a fool to buy a BMW without researching maintenance costs first. My Lexus LC 500 is EXTREMELY RELIABLE and maintenance costs aren't that bad. The buyer must do research to make an educated decision, the onus is on YOU-
@@donjuan3912 I have an an 11 GS 350 AWD and it is extremely reliable. Just do an oil change every six months and recently changed all fluids in the car. (everything was very clean). Not the sexiest car on the planet, but a really great vehicle. RWD based AWD too in a nice sedan. The drivetrain could be in a truck or SUV.
There is phenomenon called "Too much house". Too much house is when you overpaid for a home, that you really can't afford. This phenomenon can be applied to buying vehicles. This is why you should only buy vehicles that you can really afford.
There were folk in Va., that would but these things called McMansions, 3500 sq ft houses on small lots. Yet, they couldn't afford to furnish it so it only looked good from the outside.
people no longer teach their kids to buy what they need, & save for what they want.by the time people have all they want, they can no longer afford what they need. sad but true.
I spent the last 25 years working overtime and saving. I always lived below my means. I always feel poor even though we both earn six figure incomes. We divert as much as we can to savings and investments. We basically live paycheck to paycheck with the mindset that we do not have any money. We continue to save for retirement. We always do what we are supposed to but the government never rewards us for this. The government rewards people who spend and do not save.
That's crazy. Most people that graduated from college tend to have higher salaries and carry massive debt. I have zero college debt, zero mortgage, zero credit card debt and high net income retention because of keeping my debt low. People are buying things that won't make them happier. They just become more insufferable. Money isn't for everyone and money won't make you happy if you were miserable to begin with. Money just makes a lot of people become more comfortable being assholes.
I would never put myself in a situation where I would lose my car if I lost my job. This means I'm not driving a fancy car, but that's okay. My old car gets 30 mpg, it's cheaper to insure than an expensive car, the tires for it are cheaper, the battery is cheaper, parts cost less and nobody wants to steal it or break into it. It's even a manual so you don't have to worry about the transmission going out.
Even if a non dollar-denominated asset sees no real gains during inflation that's still much better than holding cash and seeing your real purchasing power undermined. In other words, sometimes you have to chose between the lesser of two evils.
One thing I always have at the back of my head is the Rockefeller's advice on how to earn during times like this; while others are panicking and selling or holding,
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
@@larrytyler823 These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
@@larrytyler823 I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfolio-advisor for guidance.
I have a neighbor who bought a Ford Raptor a year ago and never made a payment on it and the truck got repossessed after 3 or 4 months. Then 6 months ago he comes home with a newly bought Chevy Silverado and again didn’t pay for it and it got towed away a few months ago. Now he’s shopping around for another truck. I’m mystified by how stupid people are.
Good stuff. I’m subbing. No debt for me, not a penny owed. Own two 5th gen 4Runners so no vehicles need for a few decades. I rent in a very desirable area of Los Angeles at 25% below market value… Life is good. The recession is really starting to move, it’s gonna be a wild ride for some. The market turn has been awesome for me as I’m a part time day trader and have been crushing it. Live small be happy.
I got a mortgage on a house that a military family was forced to move out of, after 1 year we've got $125k positive equity and snatched up two premium vehicles at huge discounts during the height of the gas price scare. Everything in life is about timing. Don't buy what you want when you want it, buy what you want when things are on sale.
Thank you so much Ben for covering this. I commented on a video of yours a couple of weeks ago on the repo issue. It is going to be catastrophic for many unfortunately. Nobody wants to see something bad happen to anyone, but so many people bought vehicles that they knew they couldn't afford in normal times.
I just lost my job but luckily I was preparing for layoffs for quite awhile. Just sucks my layoff happened just as the tech sector shit the bed so it's gonna be awhile before I find a job in a field I got skills for.
Not surprising. Many people still get talked into loans they can’t afford. They would rather look good to their friends and neighbors than drive an older vehicle. Also, dealerships have stretched loans to six or seven years to lower the payment. It’s a pretty sick system.
Getting your vehicle repaired at the dealership is also expensive, my a c went on my truck, the repair was $2700 ,thank God I purchased an extended warranty at time of purchase.
I retired last year at 62. I have a total after taxes income of about $56K. I have not used credit in many years, except for credit cards which I pay off in full every month. Yet I have a credit score of 837, and far more available credit than I could ever use. You don't have to have a high income to have good credit, and being poor does not necessarily mean you have bad credit. Those "high income" types that had their cars repossessed just lost a big chunk of their credit.
I agree with you we are lower middle class but we have good credit we use cc but we pay it off at the end of the month we earn points I cash it out to buy food to give it to the less fortunate
Not enough inventory for a crash. Dealerships are going to get the worst of it because manufactures now see that customer factory orders is the best route to go. Why flood dealer lots and eventually have to mark things down. So if anything I see a dealership crash coming.
Because car makers make cars. Plants don’t stop. They don’t stop auto worker shifts they just keep sending cars to dealers. That’s how the system works. You would like to think they could dial it up and down but that’s not what happens. So they discount to get rid of. The auto cycle.
@@stclairstclair they have been doing it in Europe and other countries for years. The transition is now happening in America. We will never see the inventory levels we saw before the pandemic.
People buying cars over 100k don't live in our world. They have been very blessed. They're not affected by gas prices. They have no concern how the stock market is doing. Must be nice.
dealerships not doing credit checks, boosting the base price of a car , requiring customers make huge monthly payments and not checking to see if a potential buyer even has a job people trying to pay off a vehicle when it will be in the junk yard before it is paid off.
It's common knowledge that banks have been holding repo's for the last year now. *not wanting to crash the market. Well at some point they are forced to sell them at auctions. It's coming-
@@mattportnoyTLV it is indeed, when the banks decide to accept the losses to clear their book, a tsunami of repos will hit the market, it's coming sooner than you think.
People are getting their cars repossessed and now they're buying up all the $1,500 to $2,500 running driving cars on marketplace and Craigslist. I used to be able to take my pick of cheap cars, not anymore.
Excellent points. Looking forward to your next vid on increase in credit card debt. And people who now buy groceries on credit so they gas up their cars. Take care and stay safe
Thanks for this nicely presented info. Two corrections though- you said,"why are these high income earners having their assets reposessed?" You mean 'formerly' high income earners .Those cars are NEVER truly 'assets' at all until you own them, (that's fully/completely paid off!) as the bank/finance company can always take them away if a payment or two is missed. and-, "how come these high income earners with 'A1 or prime credit' are having cars reposessed?" Because it (the credit rating) was also a very transitory illusion. Once you have a late payment or default their A1 credit rating is no longer! Food and shelter take precedence always, and unpaid for cars become an albatross around their necks, an expensive and unwieldy boat anchor. Fortunes turn on a dime, you could become sick or injured, the households strongest earner could be laid off, or even pass away. Assuming debt beyond what you could come up with if you were out of work for a few months is done mainly because people like to delude themselves (and those around them) into thinking they are far more prosperous and in a better financial position than the really are.
Thanks for covering this aspect Ben. Could you take a closer look at the auction marketplace and the fact banks and dealers aren’t selling their over leveraged cars and not flooding the market with so much more inventory. I’ve been reading that if the reserve price isn’t met then the banks hold into the cars and keep trying hence their way to control how much real car inventory exists. Checkout Lucky Lopez as he literally walks auction yards that are stacked with cars and banks/ dealers aren’t moving off then because they are into them at such high rates. Just another aspect to look at. Great content
I've been hearing from "experts" for years that housing and automobile markets are going to crash, that its a certainty. I assure you as of right now in Louisville KY, there is absolutely no sign of this. Only thing "crashing" is peoples income and purchasing power.
Crashing income and purchasing power is where it starts because we have a service based, consumer driven economy in the US. If people stop or slow down purchasing, it will be felt everywhere.
@@RTSELLS Of course there is, because people are used to selling their home in the first week, They don't want to wait the houses are "still" overvalued with the drops...
They actually have, this isn't proprietary information, a GOOGLE search can easily point that out on the media outlets, articles, and videos who have reported about it.
Thank you very much for that. For the past year I have been waiting to start hearing the repo news and this is I think about the first real one. I think right now the repo Market will tell a lot about the state of this country. Therefore I welcome any repo news that I can get and what I also like to hear is of those repos how many were unclaimed if that's the right term meaning how many people did not go and retrieve their car and that that color went to auction and what happened to that far out auction was it too high that dealers were not buying it. And the dealer is another Focus I'd love to see about because the dealer is laying their cards online. I work for a dealer one time he was very nice man and had a lot of dealerships he was spending over 2 million dollars a month just to keep the operations going that didn't include inventory. Now how are these dealers able to afford office if they're not selling cars.? They have to pay on the property, for the employees, for the advertising, all equipment, and everything else that it takes just to keep a business going and on top of that they have to show out every month interest for every car so if that car doesn't move they have to pay another month of Interest so how are the dealers going to stay afloat in this and do you think that we'll see the decline of car dealerships kind of one here three there maybe it'll grow to 8 years and then all of a sudden we'll see just huge massive drop. At that time I believe we'll start seeing 10 or 20 falling off the radar every day. That is devastating to an economy and to the communities they serve and in turn this devastation will bring a depression to that neighborhood. Just look at Milwaukee when they shut the plants and moved overseas Mexico. Those neighborhoods the last part as much as 90%. So how devastating will all this actually be? You've got manufacturers they're not going to sell the high-end cars and as a result they will have to shut those plants down. When they do that we'll be seeing 5 10 maybe 15, 000 person laid offs and how devastating that be to a community whether it be here or in another country? It will kill it bring with it another depression for that area. When you have a depression here and a depression there and depression down there they all live up with each other, this is something people don't talk about or think about every single business and when one goes so does another. Your heart weakens and doesn't pump your body doesn't get enough oxygen and this is the same with a community where in this case the car is the heart of that community. The heart stops beating and see what happens.
Still not seeing any of this in Ohio. There are so many people that didn't blow money during covid years they will be scooping up the inventory starting to arrive. Prices will not be insane but don't expect any type of crash in cars or houses. Plus manufacturers are starting to switch to the insanity of EVs, making gas vehicles even more desirable to the non insane crowd.
Agree. In Ohio too and waiting for 2015 rx 350 prices to tank. They are going down, but with this crazy interest rates I have to wait until I have at least half the purchase price In cash to buy safely
I’m looking for a used car but the current asking prices are ludicrous. Annual used car sales averages 40m units, the repo rate at 2.2m units is slightly over 5%. I don’t know how much downward price pressure this will bring to the used auto market but we also have the combination of lower demand and rising loan interest rates. I just want to see pre-pandemic prices but based on what I’m seeing, I doubt that.
Great video, spot on Ben. A little fact left out of the equation is the level of sabotage and vandalism occurring with the high end repossessions. The high earners have a level of arrogance and entitlement that a repo can't occur to them. When they know that expensive metal is going away, they enact vengeance. So the moral of the story is buyer beware of higher end models that end up on the aftermarket resellers (Carmax et al) lots. There may be "issues" with that shiny used car. PS: The market will soon have massive excess of vehicles and used vehicle prices will plummet like a rock in their Koi fish pond. Cheers.
@@cp3onmtv963 It is true. Patience and due diligence and you will find your gem. Use the internet as your showroom and search daily. A one way hundred dollar plane ticket and a couple tanks of gas is well worth saving many thousands of dollars if it is out of your area. Good luck with your hunt.
Car industry is just another marker of economic collapse. It with be a fright show ahead as we race to the bottom. Stand fast because it is time to pay up for the fast and loose times. We will recover when it resets values and new industries will emerge to fit our future redirection. Painful change for the better in the long run.
Between repos entering the market, inventory levels rising and mainly, the feds raising interest rates, prices will tank (as will trade in value). I bought a 21' wide body challenger at 0% / 72 months. I wouldn't even consider buying a new or used car now, as rates are 5%+.
There are people out there with 170k in car loans. My mom sees all these new cars. And is like "how can people afford them?" Everytime I tell her "they cant". Granted we have never been able to buy a brand new car so we get salvage titles. But we are in a much better shape financially then others.
The government has a lot to do with smaller savings accounts, They started spying on people's accounts and trying to tax more so people found other ways to save money not using bank institutions. Also, people with great credit made wrong decisions on the "gotta have it car/suv " and now decided that a repro will not hurt their credit really bad. Dealerships/loan depts have made getting a vehicle too easy and will finance anyone
I haven't seen the impact of any crash just yet. Used car prices in my area are still very hgh. Carmax and dealers are asking as much for a 1-2 year old car as for a new one.
In light of these repossessions, how do you feel lenders will behave for future customers who are prime or subprime? Will lenders be desperate for more business or will they be apprehensive on who they lend to?
Ben: “eat big, shit big ” need that carved on a stone! Ben most of the high pay jobs here in Utah 100/160 managers 160/250 directors 250/350 executive Directors 350/500 CFO 500/million CEO Not many people make more than 200k here in Utan Just look at Utah's transparent web page and 😅look at the government salaries
You are about 6 months behind on this. The 2.2 million repos was reported at the end of July and Lucky Lopez has been reporting on the repos for the last 6 months. Let me guess you saw some of his old videos and are using his info to make your own.
Love the videos! Can't help but notice I keep getting Grant Cardone ads during them, which is just too much irony, my sales managers used to throw his CDs at us and expect us to be 10x 😂Just because they believe it's possible, they're going to try brainwashing everyone with it. I doubt most car sales people know they can walk away from working at a dealership with some really severe dysfunction that will impact their life negatively.
Don't forget all the new cars sitting on lots awaiting chips. Those are about to flood the market, and all of the repos that have been sitting in lots to be doled out will then be forced onto the market as well. This time next year, you will probably be able to get a Porsche SUV for the price of a Chevy. A low end pickup repo will be a steal.
There is much to be said about personal responsibility. It’s been reported that many repos are cars that still have the dealer tags still on them. They were not paying their rent through the Covid shut down and spent their stimulus checks on cars they could not afford. We must live within our means, otherwise the repo man comes and you are to blame.
I saw somewhere that carmax looks to lose hundreds of millions of money this year because of the loss of value in the used car market as repossessed go to auctions.
@@PumpkinKingXXIII Whether or not that’s true isn’t the original point. You claimed that Carmax was looking at losing hundreds of millions of dollars, and that isn’t true.
I had a good job for 4 1/2 years, then out of the blue was falsely accused by a customer and let go. Could not find a comparable job, financially, had to settle for half as much and struggled for months to get caught up. Those aholes knew what they were doing. Malicious and dispicable.
I'm pretty let down, I thought I was going to find a 40k gwagon, but a quick search on cargurus determined that was not the case. Back to corolla shopping.. 😌
There is more money in the car market at risk of default than there was in the subprime mortgage market in 2008. When you have tow truck operators saying that they are booked up for over 12 months on car repo jobs and the repo cars aren’t selling at auction, I can believe with a high level of confidence that this is a good sized crack in the economy that will add more pressure on top of all the other things that will most likely crash the whole thing.
Good information for those of us looking for a new car, and not worried about waiting 6+ months. In the video you used a G Wagon as an example of a car that was hard to get, and is now on consignment at the Mercedes dealership. As an owner of a Wrangler 392, or baby g-wagon as it’s called by owners, do you expect to see a similar decline on high end Jeeps, or do you think they will hold value in comparison to the rest of the market since they are both a base and luxury brand?
That's not even close to being true kid, car repos don't get delayed for anything, not even the apocalypse stops the repo man. The banks have been holding repos back at the auctions for the last couple of months to keep from flooding the market, but no more than that.
This is only the tip of the iceberg for what's coming. New and used vehicles and homes are going to crash harder than the last bubble burst.They were grossly overpriced people knew it, but they did it anyway.
Prime and sub prime debtors in the last 2 years way way over bought and got hosed in price and interest and are living over leveraged. We Americans need to learn to live below our means
There was an article out there of someone. I make 4500 an month and am paycheck to paycheck. 170k in car loans. And they had more than that. In addition with other loans.
You da man!! Great video. The financial illiteracy out there is astonishing. Everyone should not be getting a new car every 3 years. Everyone doesn’t deserve to drive a BMW vs a Honda. This is crazy. Those BMWS are going to get cheap. How about a fully loaded f250. Done like dinner. Ohhh man.
Most dealerships can't keep anything in stock let alone new. And the new market will be thin for yrs to come. Remember, 80% of the simi conductor chips are made in Tiawan. China takes Tiawan and kiss NEW cars goodbye! This guy is about 50% right.
Got blessed last year with a job making $75k a year then got fired yesterday for getting sick and taking 2 days off in a row. Now I’m preparing to lose my car I’ve been paying for. 17% interest rate and $65k loan. :) great
@@tedlahm5740 variable rates are almost unheard of in the car world though, which he asked. You are correct though a variable rate mortgage would be impacted.
thanks for the great video, also you can use funny like-sounding words to substitute real swear words. I noticed the 3 public/private auction properties near me are very busy not only with 6 vehicle truck haulers and 3 car trailer setups, also noticed many single black unmarked toe trucks bringing in freshly repoed vehicles.
If you take the word asset & replace it with liability. Like everyone else I carry a lot of debt, only my debt is in true assets things that make a cash return every month. With that being said I am also concerned, even guys like me with a lot of cash flow can & will be whipped out. We are just seeing the beginning stages of the next great depression, those who bought liabilities are first to go down & as they go down they spend less then those who thought they were so smart by investing in true assets find their products & services are no longer in such demand & they go down. Hey great videos, good to see your in the Beehive State
That’s not what happened what happened. What happened was the democratic party destroying the country. 5 dollar gas, food so expensive you can hardly afford it.. The jobs are all still there everybody is still making money . The problem was everything actually doubled in cost. Therefore prior to Joe Biden you could afford your monthly bills but with gas and food and everything else damn doubled in cost you can no longer afford to pay the bills that you were paying prior to the democratic party.
@milos durovic You are completely wrong the standard of living they think they deserve is way higher than they can afford. They should be living in a one bedroom house and driving a small used economy car
I have a 2004 Lexus gx470 and a 2005 Toyota Tacoma with about 150K miles each. both should go another 200K without any major issues and if there is an issue I'll just fix it.
It's more the monthly payments kickin there ass, $70-80k pickups are now the norm, which means if you got a $850-1100 a month truck payment, very little margin for error. Miss just one payments and things unravels very quickly.
Imagine the cost to gas up those pickups at today's gas prices.
Not only gas price but their house utility prices that they cannot control.
In Southern California, electricity cost skyrocketed from less than $200 per month to over $500 for a 1,500 sq ft home.
All these high prices all of a sudden, which quickly exceed their budget.
@@andyhughes1776 It's really not "that" bad... My diesel F-250 has a 34 gallon tank and only costs about $100 to fill. At 1/4-1/8 tank. Diesel is about $5.50/gal here. I have no idea what the "reserve" is on it and I get about 350-400mi/tank.
Back in summer 2009 when diesel was over 5 dollars a gallon,a dodge dealer was giving a Hyundai accent free with every diesel pickup sold !!!
@@michaelmeyers3664 Could happen again today!
unless you are a contractor who can take tax credits for the vehicle, you are insane to make that kind of payment. Let's not forget how much auto insurance runs these days. The higher the replacement cost, the higher the premium. I'm nearing 70 y/o and I refuse to buy any new vehicle. There are too many good used ones for a fraction of the cost. Never forget that a car is only transportation to go from point A to point B. When it becomes a status symbol, you drift away from reality. Dealers are selling payments, so put your money IN the bank, instead of paying it TO the bank.
Homes and vehicles didn't increase in value last year, they increased in price. Inflation far outpaced price increases so they actually went down in value.
Part inflation, mostly supply chain problems.
Wrong- Inflation doesn’t impact everything at the same rate. Hence, the rate is determined by some janky formula. Price is objective value is subjective.
Actually, people overpaid because basic economics of supply and demand. Demand is drying up with interest rates. Demand will crash the car market because of lack of buyers for various reasons outlined in this video.
The entire economy was fluffed up with low interest rates,those have went away ,so buyers who don’t have any real cash saved or those who finance most or all of there new car are finding themselves unable to afford the monthly payment now that the interest rates are up and inflation has already hit their buying power and the gas,and food bills are 30 -40 percent more than Jan 2020 and insurance,and housing prices are thru the roof.
@@jonathantaylor6926 actually it was not supply chain issues! This is deep thinking right here Bobby. How can people not be working yet they have money to spend on things and buy cars? If people did not get these government checks then the supply would have been enough or close enough to supply the real demand. But bc government likes distort the economy this is where we are at now.
Bought my 2020 car in summer of 2020, every one in NYC was sheltering and scared to death. I felt that there could be inflation coming or problems with supply chains. There was no one in the dealership, they were desperate to sell something to someone. I got an awesome price, paid in full with a trade in. Dodged the inflation bullet with a little critical thinking…
We did the same thing.
We bought a Honda in June 2020 and we offered the dealership $5000 below asking price and they jumped on it.
I bought a high end mountain bike on eBay same month and year and got a fantastic deal.
Same, had to get a new car in 2020 before the prices shot up and struck a deal 🤝
I did the sane thing. I got a almost fully loaded atima in November 2020 that was 1 year old and only paid 18k for it. The same car was going for 30k at the dealership or even more lolllll. Used...
@@joey_cash ditto.
quit lyin
How much money you make has nothing to do with your credit score. There are people making well into 6 digits that are living paycheck to paycheck and stretched to the limit. Those that make more money just tend to have bigger bills.
This is very true.
Wealthy people use credit to expand their ventures. That's why wealthy people generally have higher credit scores.
The majority of people that make more, spend more. Lose you job and things can go south fast.
Very true! I had a husband just like that he was earning high but could not handle money at all he had so much debt. I realised latterly that he is actually a very greedy and selfish person and that’s what was driving all the awful decisions he was making! He would fall prey to every scam out there and completely disregarded his young wife and family!
Stay strong everyone🙏🏻
"Financial success is not how much money you earn, but rather how much money you save." - Anonymous
Great sharing. Recession is inevitable. This country has printed far too much money and too much debt.
Voting for senile criminals has consequences, doesn't it?
It would seem risky buying a repo because mostly people know whats coming and neglect maintenance.
More importantly, if one cannot afford the loan, one probably cannot afford the maintenance.
That's an excellent point - that's why you have to bring it to your mechanic to do diagnostics and take it for a ride if it passes well.
Maybe a low mileage repo would be low risk
And then if it was a Lease in the beginning you gotta worry about how proper that Engine was broken in.
The same can be said for lease, rental, and many other used cars. But cars are built more robust than you think and if the car is young, the risk is low.
be careful buying a repo. people that knew they couldn't afford them and got them anyway, will abuse the hell out of the vehicle knowing its going to be repoed at some point.
I'm pretty old school so if you borrow money you should pay it back and not be a deadbeat… BUT…. banks are supposed to be smart and any bank that financed 100% + for a car purchase deserves to take massive losses. The bank is supposed to be the adult in the room. But they'll get bailed out and they know it but your car still still be repossessed and ruin your life.
The banks don't care. They sell off the loans.
I wonder what happened to Jonathan Taylor Thomas ?
You are old school? 🤣 if bank is kind enough to lend you money so you can purchase the car or home of your dreams then why shouldn't you have to pay them back until the day your dead. Otherwise you should have zero credit score and no access to any credit until you do. Who do you think pays for bad loans? It is not the banks but rather the other individuals who take out loans in the form of higher interest rates. I just can't believe how naive or dumb people are who think bad apples in society shouldn't get punished for anything even when they make it worse for everyone but the wealthiest.
Banks are kind. 😂🤣🤣😂😂
Banks are your friend
Facts working security at a bar out late at night in just a couple hours we saw like 10-12 repos last weekend in a area where we typically see none
Facts, I work security part time and it’s amazing to see how many repo man out late at night with a car hooked on back😮
I've been seeing alot of repo tow trucks around my area usually might see one a week now its 1 to 2 a day
My late Mother said and I quote; "Money won't solve money problems". She was a prodigious saver and did very well for herself. My Wife, Sister and I drive nice cars but not new cars. Looking forward to the correction. This is what you get when you vote for Mau-rons.
Money fixes a lot of problems!
Yep that’s right save my money and wait for the correction of the market place
Terry you are so right!!!
Meanwhile, lots of companies are dropping their lower end trims and focusing exclusively on higher trims
When you watch other videos about car repairs, you won't want a luxury vehicle either... Reliability issues is much higher than, add parts shortage and much more higher maintenance cost. German dealers are starting to charge $300/hr labor rate these days and that's not including the grid/escalator.
Rich people are buying Tesla, no one cares about BMW/Mercedes anymore. How many new German cars do you see on the road?
your a fool to buy a BMW without researching maintenance costs first. My Lexus LC 500 is EXTREMELY RELIABLE and maintenance costs aren't that bad. The buyer must do research to make an educated decision, the onus is on YOU-
@Jack Dealers in California, North East & South Florida are the locations that are charging those rates. Good luck with your BMW.
@@donjuan3912 I have an an 11 GS 350 AWD and it is extremely reliable. Just do an oil change every six months and recently changed all fluids in the car. (everything was very clean).
Not the sexiest car on the planet, but a really great vehicle. RWD based AWD too in a nice sedan. The drivetrain could be in a truck or SUV.
@Jack I'm a BMW mechanic in California. We daily get problems with them. I call bs with your comment.
There is phenomenon called "Too much house". Too much house is when you overpaid for a home, that you really can't afford. This phenomenon can be applied to buying vehicles. This is why you should only buy vehicles that you can really afford.
Nobody does that in America 🇺🇸 😕
There were folk in Va., that would but these things called McMansions, 3500 sq ft houses on small lots. Yet, they couldn't afford to furnish it so it only looked good from the outside.
@@tomstarcevich1147 I make 6 figures and drive a 13k used economy car Lol. Of course I'm just barely over 6 figures... but it's... 6 figures!!
people no longer teach their kids to buy what they need, & save for what they want.by the time people have all they want, they can no longer afford what they need. sad but true.
I spent the last 25 years working overtime and saving. I always lived below my means. I always feel poor even though we both earn six figure incomes. We divert as much as we can to savings and investments. We basically live paycheck to paycheck with the mindset that we do not have any money. We continue to save for retirement. We always do what we are supposed to but the government never rewards us for this. The government rewards people who spend and do not save.
That's crazy. Most people that graduated from college tend to have higher salaries and carry massive debt. I have zero college debt, zero mortgage, zero credit card debt and high net income retention because of keeping my debt low.
People are buying things that won't make them happier. They just become more insufferable. Money isn't for everyone and money won't make you happy if you were miserable to begin with. Money just makes a lot of people become more comfortable being assholes.
I would never put myself in a situation where I would lose my car if I lost my job. This means I'm not driving a fancy car, but that's okay. My old car gets 30 mpg, it's cheaper to insure than an expensive car, the tires for it are cheaper, the battery is cheaper, parts cost less and nobody wants to steal it or break into it. It's even a manual so you don't have to worry about the transmission going out.
Sounds like a boring life. Meanwhile we drive in style. Still paid for in cash
Even if a non dollar-denominated asset sees no real gains during inflation that's still much better than holding cash and seeing your real purchasing power undermined. In other words, sometimes you have to chose between the lesser of two evils.
Yes Strickland. I would rather lose 3% on a stock due to inflation than lose 10% on cash due to the same inflation.
One thing I always have at the back of my head is the Rockefeller's advice on how to earn during times like this; while others are panicking and selling or holding,
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
@@larrytyler823 These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
@@larrytyler823 I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfolio-advisor for guidance.
I have a neighbor who bought a Ford Raptor a year ago and never made a payment on it and the truck got repossessed after 3 or 4 months. Then 6 months ago he comes home with a newly bought Chevy Silverado and again didn’t pay for it and it got towed away a few months ago. Now he’s shopping around for another truck. I’m mystified by how stupid people are.
Good stuff. I’m subbing.
No debt for me, not a penny owed. Own two 5th gen 4Runners so no vehicles need for a few decades. I rent in a very desirable area of Los Angeles at 25% below market value…
Life is good.
The recession is really starting to move, it’s gonna be a wild ride for some. The market turn has been awesome for me as I’m a part time day trader and have been crushing it.
Live small be happy.
I got a mortgage on a house that a military family was forced to move out of, after 1 year we've got $125k positive equity and snatched up two premium vehicles at huge discounts during the height of the gas price scare. Everything in life is about timing. Don't buy what you want when you want it, buy what you want when things are on sale.
Hurricane Ian will be delivering a lot of cars to the used car market as well. Buyers beware of flood-damaged cars.
It's costing around $150 to fill up a modern pick up truck these days. There sure are a lot of 'em out there. Good luck.
Thank you so much Ben for covering this. I commented on a video of yours a couple of weeks ago on the repo issue. It is going to be catastrophic for many unfortunately. Nobody wants to see something bad happen to anyone, but so many people bought vehicles that they knew they couldn't afford in normal times.
I like the empathy tone in this comment, not so much the sarcastic laugh I hear in the video at times.
I just lost my job but luckily I was preparing for layoffs for quite awhile. Just sucks my layoff happened just as the tech sector shit the bed so it's gonna be awhile before I find a job in a field I got skills for.
Not surprising. Many people still get talked into loans they can’t afford. They would rather look good to their friends and neighbors than drive an older vehicle. Also, dealerships have stretched loans to six or seven years to lower the payment. It’s a pretty sick system.
Getting your vehicle repaired at the dealership is also expensive, my a c went on my truck, the repair was $2700 ,thank God I purchased an extended warranty at time of purchase.
84 months now
I retired last year at 62. I have a total after taxes income of about $56K. I have not used credit in many years, except for credit cards which I pay off in full every month. Yet I have a credit score of 837, and far more available credit than I could ever use. You don't have to have a high income to have good credit, and being poor does not necessarily mean you have bad credit. Those "high income" types that had their cars repossessed just lost a big chunk of their credit.
I agree with you we are lower middle class but we have good credit we use cc but we pay it off at the end of the month we earn points I cash it out to buy food to give it to the less fortunate
My score is 808.
Not enough inventory for a crash. Dealerships are going to get the worst of it because manufactures now see that customer factory orders is the best route to go. Why flood dealer lots and eventually have to mark things down. So if anything I see a dealership crash coming.
Because car makers make cars. Plants don’t stop. They don’t stop auto worker shifts they just keep sending cars to dealers. That’s how the system works. You would like to think they could dial it up and down but that’s not what happens. So they discount to get rid of. The auto cycle.
That is Not how it works, GM doesn't want a dealer who can't move them, a dealership only gets as many cars as they have proven they can/have sold.
@@stclairstclair they have been doing it in Europe and other countries for years. The transition is now happening in America. We will never see the inventory levels we saw before the pandemic.
People buying cars over 100k don't live in our world. They have been very blessed. They're not affected by gas prices. They have no concern how the stock market is doing. Must be nice.
dealerships not doing credit checks, boosting the base price of a car , requiring customers make huge monthly payments and not checking to see if a potential buyer even has a job
people trying to pay off a vehicle when it will be in the junk yard before it is paid off.
you had me at "eat big shit big". epic content bro
I see the same things coming, but I think combined with the down turn in housing, we're headed for dark times.
"Eat big, ..." I like that analogy.
Next video: Car repos are about to bring the apocalypse.
😄😄😄😄🛻🛻🛻🛻👍
No, the fall of man and his sin is.......................
@@greenrush4313 Only Jesus but I can certainly tell you of Him! xoxo
@@joannereeves4121 AMEN!! JESUS IS THE WAY THE TRUTH AND THE LIFE!!! #NOONE COMES TO THE FATHER BUT BY HIM!! #GLORY_TO_KING_JESUS!!!
That’s why I am saving and waiting until it happens then maybe I can buy a used c6 or c7 corvette
My lease is up on my Santa Fe in February. This is all great news.
It's common knowledge that banks have been holding repo's for the last year now. *not wanting to crash the market. Well at some point they are forced to sell them at auctions. It's coming-
It’s not coming. Not in the way you expect.
@@mattportnoyTLV it is indeed, when the banks decide to accept the losses to clear their book, a tsunami of repos will hit the market, it's coming sooner than you think.
@@mattportnoyTLV housing prices and car prices are going to be crashing for years
@@christopheryoung2874 depends on how long the Fed insists on maintaining this trajectory.
@@mattportnoyTLV do you see a way out?
Because I don't
People are getting their cars repossessed and now they're buying up all the $1,500 to $2,500 running driving cars on marketplace and Craigslist. I used to be able to take my pick of cheap cars, not anymore.
Excellent points. Looking forward to your next vid on increase in credit card debt. And people who now buy groceries on credit so they gas up their cars. Take care and stay safe
By January 2023 the auto repo rate will be at 3 million. The you will see huge price depreciation.
And it will only go higher
Price depreciation on everything could continue to go down for over another year after interest rates drop. I'm expecting up to two years
I saw the repo man circling the area looking for cars , evictions are picking up
Thanks for this nicely presented info. Two corrections though- you said,"why are these high income earners having their assets reposessed?" You mean 'formerly' high income earners .Those cars are NEVER truly 'assets' at all until you own them, (that's fully/completely paid off!) as the bank/finance company can always take them away if a payment or two is missed. and-, "how come these high income earners with 'A1 or prime credit' are having cars reposessed?" Because it (the credit rating) was also a very transitory illusion. Once you have a late payment or default their A1 credit rating is no longer! Food and shelter take precedence always, and unpaid for cars become an albatross around their necks, an expensive and unwieldy boat anchor. Fortunes turn on a dime, you could become sick or injured, the households strongest earner could be laid off, or even pass away. Assuming debt beyond what you could come up with if you were out of work for a few months is done mainly because people like to delude themselves (and those around them) into thinking they are far more prosperous and in a better financial position than the really are.
2.2 million repos. I AM IN THE WRONG LINE OF WORK. Thanks for the info BrO.
Thanks for covering this aspect Ben. Could you take a closer look at the auction marketplace and the fact banks and dealers aren’t selling their over leveraged cars and not flooding the market with so much more inventory. I’ve been reading that if the reserve price isn’t met then the banks hold into the cars and keep trying hence their way to control how much real car inventory exists. Checkout Lucky Lopez as he literally walks auction yards that are stacked with cars and banks/ dealers aren’t moving off then because they are into them at such high rates. Just another aspect to look at. Great content
I've been hearing from "experts" for years that housing and automobile markets are going to crash, that its a certainty. I assure you as of right now in Louisville KY, there is absolutely no sign of this. Only thing "crashing" is peoples income and purchasing power.
Crashing income and purchasing power is where it starts because we have a service based, consumer driven economy in the US. If people stop or slow down purchasing, it will be felt everywhere.
Wrong. I'm a realtor, we are seeing 10 and 5 thousand dollars price reduction daily. Pay attention
@@RTSELLS Of course there is, because people are used to selling their home in the first week, They don't want to wait the houses are "still" overvalued with the drops...
And thats why I still drive a 2007 F-250 paid off even with a 6 figure salary...lol
Funny how mainstream media isn't reporting on this. I would have had no idea repossessions are this bad.
They actually have, this isn't proprietary information, a GOOGLE search can easily point that out on the media outlets, articles, and videos who have reported about it.
Repos have doubled. The average is 2% of all loans. It’s now about 4%.
@@mattportnoyTLV and going up........
@@renardfranse is it?
@@mattportnoyTLV You think it's going down lol
Bought my 2008 Ford SUV in March 2009 during the collapse then. It has 9700 miles. Bought for 20500.
Thank you very much for that. For the past year I have been waiting to start hearing the repo news and this is I think about the first real one. I think right now the repo Market will tell a lot about the state of this country. Therefore I welcome any repo news that I can get and what I also like to hear is of those repos how many were unclaimed if that's the right term meaning how many people did not go and retrieve their car and that that color went to auction and what happened to that far out auction was it too high that dealers were not buying it. And the dealer is another Focus I'd love to see about because the dealer is laying their cards online. I work for a dealer one time he was very nice man and had a lot of dealerships he was spending over 2 million dollars a month just to keep the operations going that didn't include inventory. Now how are these dealers able to afford office if they're not selling cars.? They have to pay on the property, for the employees, for the advertising, all equipment, and everything else that it takes just to keep a business going and on top of that they have to show out every month interest for every car so if that car doesn't move they have to pay another month of Interest so how are the dealers going to stay afloat in this and do you think that we'll see the decline of car dealerships kind of one here three there maybe it'll grow to 8 years and then all of a sudden we'll see just huge massive drop. At that time I believe we'll start seeing 10 or 20 falling off the radar every day. That is devastating to an economy and to the communities they serve and in turn this devastation will bring a depression to that neighborhood. Just look at Milwaukee when they shut the plants and moved overseas Mexico. Those neighborhoods the last part as much as 90%. So how devastating will all this actually be? You've got manufacturers they're not going to sell the high-end cars and as a result they will have to shut those plants down. When they do that we'll be seeing 5 10 maybe 15, 000 person laid offs and how devastating that be to a community whether it be here or in another country? It will kill it bring with it another depression for that area. When you have a depression here and a depression there and depression down there they all live up with each other, this is something people don't talk about or think about every single business and when one goes so does another. Your heart weakens and doesn't pump your body doesn't get enough oxygen and this is the same with a community where in this case the car is the heart of that community. The heart stops beating and see what happens.
GREAT, the market needs this asap
I drove thru the Toyota lot where I live in Pa, saw 2 keep wranglers with repo written on windshield.
Still not seeing any of this in Ohio. There are so many people that didn't blow money during covid years they will be scooping up the inventory starting to arrive. Prices will not be insane but don't expect any type of crash in cars or houses. Plus manufacturers are starting to switch to the insanity of EVs, making gas vehicles even more desirable to the non insane crowd.
Agree. In Ohio too and waiting for 2015 rx 350 prices to tank. They are going down, but with this crazy interest rates I have to wait until I have at least half the purchase price In cash to buy safely
I’m looking for a used car but the current asking prices are ludicrous. Annual used car sales averages 40m units, the repo rate at 2.2m units is slightly over 5%. I don’t know how much downward price pressure this will bring to the used auto market but we also have the combination of lower demand and rising loan interest rates. I just want to see pre-pandemic prices but based on what I’m seeing, I doubt that.
Intel is getting ready for lay offs
Great video, spot on Ben. A little fact left out of the equation is the level of sabotage and vandalism occurring with the high end repossessions. The high earners have a level of arrogance and entitlement that a repo can't occur to them. When they know that expensive metal is going away, they enact vengeance. So the moral of the story is buyer beware of higher end models that end up on the aftermarket resellers (Carmax et al) lots. There may be "issues" with that shiny used car. PS: The market will soon have massive excess of vehicles and used vehicle prices will plummet like a rock in their Koi fish pond. Cheers.
I really hope this is true. I need a new (used) car and I just want a fair price!! 2015 Rx 350 saddle tan seats… not too much to ask!
@@cp3onmtv963 It is true. Patience and due diligence and you will find your gem. Use the internet as your showroom and search daily. A one way hundred dollar plane ticket and a couple tanks of gas is well worth saving many thousands of dollars if it is out of your area. Good luck with your hunt.
Waiting to pick up a Hellcat or GT350 for cheap.
Car industry is just another marker of economic collapse. It with be a fright show ahead as we race to the bottom. Stand fast because it is time to pay up for the fast and loose times. We will recover when it resets values and new industries will emerge to fit our future redirection. Painful change for the better in the long run.
Between repos entering the market, inventory levels rising and mainly, the feds raising interest rates, prices will tank (as will trade in value). I bought a 21' wide body challenger at 0% / 72 months. I wouldn't even consider buying a new or used car now, as rates are 5%+.
There are people out there with 170k in car loans. My mom sees all these new cars. And is like "how can people afford them?" Everytime I tell her "they cant". Granted we have never been able to buy a brand new car so we get salvage titles. But we are in a much better shape financially then others.
If all you can get are salvage title cars are you really in better shape financially lol
Don't buy a repo. Idiots throw it into reverse at 10 mph when they smell the repo man coming, just for kicks.
The government has a lot to do with smaller savings accounts, They started spying on people's accounts and trying to tax more so people found other ways to save money not using bank institutions. Also, people with great credit made wrong decisions on the "gotta have it car/suv " and now decided that a repro will not hurt their credit really bad. Dealerships/loan depts have made getting a vehicle too easy and will finance anyone
I was rejected by bmw financial again and again in the past 2 years with a 700 credit score.
I haven't seen the impact of any crash just yet. Used car prices in my area are still very hgh. Carmax and dealers are asking as much for a 1-2 year old car as for a new one.
In light of these repossessions, how do you feel lenders will behave for future customers who are prime or subprime? Will lenders be desperate for more business or will they be apprehensive on who they lend to?
Ben: “eat big, shit big ” need that carved on a stone!
Ben most of the high pay jobs here in Utah
100/160 managers
160/250 directors
250/350 executive Directors
350/500 CFO
500/million CEO
Not many people make more than 200k here in Utan
Just look at Utah's transparent web page and 😅look at the government salaries
I bought a repo F350 and it turned out great for me.
its a f350
You are about 6 months behind on this. The 2.2 million repos was reported at the end of July and Lucky Lopez has been reporting on the repos for the last 6 months.
Let me guess you saw some of his old videos and are using his info to make your own.
Love the videos! Can't help but notice I keep getting Grant Cardone ads during them, which is just too much irony, my sales managers used to throw his CDs at us and expect us to be 10x 😂Just because they believe it's possible, they're going to try brainwashing everyone with it. I doubt most car sales people know they can walk away from working at a dealership with some really severe dysfunction that will impact their life negatively.
Don't forget all the new cars sitting on lots awaiting chips. Those are about to flood the market, and all of the repos that have been sitting in lots to be doled out will then be forced onto the market as well. This time next year, you will probably be able to get a Porsche SUV for the price of a Chevy. A low end pickup repo will be a steal.
Very informative, thank you! 👍
There is much to be said about personal responsibility. It’s been reported that many repos are cars that still have the dealer tags still on them. They were not paying their rent through the Covid shut down and spent their stimulus checks on cars they could not afford. We must live within our means, otherwise the repo man comes and you are to blame.
I saw somewhere that carmax looks to lose hundreds of millions of money this year because of the loss of value in the used car market as repossessed go to auctions.
No. They’ve set aside $75M to cover potential losses.
@@mattportnoyTLV they may have set that aside but that doesn’t mean it will cover the loses.
@@PumpkinKingXXIII Whether or not that’s true isn’t the original point. You claimed that Carmax was looking at losing hundreds of millions of dollars, and that isn’t true.
@@mattportnoyTLV I never said it was true that’s what I saw. It may turn out to be true. It may turn out to be false.,
@@PumpkinKingXXIII it’s false. They set aside $75M for losses, because that’s what they anticipate losing. Read the earnings report.
So how do we take advantage of the situation and buy a fine car on the repo market? Like how does this work?
Become a dealer sadly.....
I had a good job for 4 1/2 years, then out of the blue was falsely accused by a customer and let go. Could not find a comparable job, financially, had to settle for half as much and struggled for months to get caught up. Those aholes knew what they were doing. Malicious and dispicable.
I'm pretty let down, I thought I was going to find a 40k gwagon, but a quick search on cargurus determined that was not the case. Back to corolla shopping.. 😌
Don't feel bad, in the end you'll be better off.
History repeats itself. Cycles. Happens often. Nothing new.
I think it depends on your local area. Car sales are still up here in west central Wisconsin.
Not here in Chicago they have flat out stopped on the used side.
I can imagine Southwest Florida car sales are booming as well
San Antonio, Texas still have markups
Bought a pickup in 2019 drove it for 2 years sold it for more than I paid for it go figure a dealer bought it for full asking price
There is more money in the car market at risk of default than there was in the subprime mortgage market in 2008. When you have tow truck operators saying that they are booked up for over 12 months on car repo jobs and the repo cars aren’t selling at auction, I can believe with a high level of confidence that this is a good sized crack in the economy that will add more pressure on top of all the other things that will most likely crash the whole thing.
Good information for those of us looking for a new car, and not worried about waiting 6+ months.
In the video you used a G Wagon as an example of a car that was hard to get, and is now on consignment at the Mercedes dealership.
As an owner of a Wrangler 392, or baby g-wagon as it’s called by owners, do you expect to see a similar decline on high end Jeeps, or do you think they will hold value in comparison to the rest of the market since they are both a base and luxury brand?
Dumb question. And it's not a baby g wagon. Just making yourself feel better.
@@parkerbeebe i don’t own a 392 Wrangler. Ben Hardy owns the 392 Wrangler.
I hope so, I am waiting to buy a vehicle.
It’s because repos were delayed due to COVID there is no increase. We are catching up to the repos from two years ago.
That's not even close to being true kid, car repos don't get delayed for anything, not even the apocalypse stops the repo man. The banks have been holding repos back at the auctions for the last couple of months to keep from flooding the market, but no more than that.
This is only the tip of the iceberg for what's coming. New and used vehicles and homes are going to crash harder than the last bubble burst.They were grossly overpriced people knew it, but they did it anyway.
Its always FOMO
Why did you say its going to crash and at end of video you say its probably not?
Use cash, don’t over pay, and don’t use credit. If you have to finance, never finance longer that 48 months.
I.E, don't ever by a depreciating asset on credit.
@@MrRlspell You mean liability!
Whatever we think the car repo situation is now, it'll get much worse in the coming months, much worse.
I'm here for my daily "sky is falling" video
Prime and sub prime debtors in the last 2 years way way over bought and got hosed in price and interest and are living over leveraged. We Americans need to learn to live below our means
There was an article out there of someone. I make 4500 an month and am paycheck to paycheck. 170k in car loans. And they had more than that. In addition with other loans.
ty. first vdo telling us on trouble with auto~
You da man!! Great video. The financial illiteracy out there is astonishing. Everyone should not be getting a new car every 3 years. Everyone doesn’t deserve to drive a BMW vs a Honda. This is crazy. Those BMWS are going to get cheap. How about a fully loaded f250. Done like dinner. Ohhh man.
@@flapflapflap nice ride. As long as you can afford it’s all good. Enjoy
So true! People paying insane prices for FOMO. Dealerships better have saved up; prices gonna drop insanely. Note: don’t buy crypto, it’s useless.
No it stealership will find a way
Most dealerships can't keep anything in stock let alone new. And the new market will be thin for yrs to come. Remember, 80% of the simi conductor chips are made in Tiawan. China takes Tiawan and kiss NEW cars goodbye! This guy is about 50% right.
I always wondered how people could afford new fancy cars and I couldn't. Turns out they couldn't either. Their banks could... but not them.
Got blessed last year with a job making $75k a year then got fired yesterday for getting sick and taking 2 days off in a row. Now I’m preparing to lose my car I’ve been paying for. 17% interest rate and $65k loan. :) great
Friends was the best. Rachel was my favorite character
Looks like the Keeping up with the Kardashian lifestyle is coming to a crashing end.
I've been wanting to know if the Fed raising rates changes the amount of your monthly payment, even after it was agreed upon on a used car.
No. Deals a deal.
Variable financing would change the monthly nut. (mortgages etc)
@@tedlahm5740 variable rates are almost unheard of in the car world though, which he asked. You are correct though a variable rate mortgage would be impacted.
thanks for the great video, also you can use funny like-sounding words to substitute real swear words. I noticed the 3 public/private auction properties near me are very busy not only with 6 vehicle truck haulers and 3 car trailer setups, also noticed many single black unmarked toe trucks bringing in freshly repoed vehicles.
I agree with you. The nasty words are completely unnecessary.
If you take the word asset & replace it with liability.
Like everyone else I carry a lot of debt, only my debt is in true assets things that make a cash return every month.
With that being said I am also concerned, even guys like me with a lot of cash flow can & will be whipped out.
We are just seeing the beginning stages of the next great depression, those who bought liabilities are first to go down & as they go down they spend less then those who thought they were so smart by investing in true assets find their products & services are no longer in such demand & they go down.
Hey great videos, good to see your in the Beehive State
Some cliparts, graphs, pics keeps holding interests of viewers (in large count) . Like ur content
Thank u
Leveraged too much…….buy things you can afford.
Yep, That's why I enjoy my $715/mth mortgage with escrow!
That’s not what happened what happened.
What happened was the democratic party destroying the country. 5 dollar gas, food so expensive you can hardly afford it.. The jobs are all still there everybody is still making money . The problem was everything actually doubled in cost. Therefore prior to Joe Biden you could afford your monthly bills but with gas and food and everything else damn doubled in cost you can no longer afford to pay the bills that you were paying prior to the democratic party.
Tom Drummy, exactly! Too many people are living well above their means!
@milos durovic ,I respectfully disagree.
@milos durovic You are completely wrong the standard of living they think they deserve is way higher than they can afford. They should be living in a one bedroom house and driving a small used economy car
What about truck market? Work trucks 3/4 one ton trucks. It's still crazy what prices are for a 10 and 20 year old diesel trucks are going for.
My no note 2018 kia Sorento will be with me a bit longer. I'll wait to buy new again. Simple.
I have a 2004 Lexus gx470 and a 2005 Toyota Tacoma with about 150K
miles each. both should go another 200K without any major issues and if there is an issue
I'll just fix it.