People actually created this mess…they accepted those ridiculous prices and paid above MSRP price plus extra 😂😂😂😂😂 I never paid MSRP because MSRP is just a suggested price but not the real cost of a vehicle….so I keep what I have for as long is possible….and I know I will get my price and not their price…very soon everyone will be affected by high interest rates…
@@ms.b9093 It was almost like a State of War….but people forgot everything so quick. Waiting in line to get in many Stores…restaurants closed,schools etc…. Going to a bathroom was a challenge…even breathing next to another person was almost impossible….those channels showing juice from dead people inside of trailers…and many more trailers were ordered because wasn’t enough at the time…true or not. And after the WAR comes the Judges….like usual to tell the soldiers that actually nothing happened and no need of this or that etc…..
@@ms.b9093 Powell's stubborn thumb keeping those rates low for so long also led to inflation. We should be experiencing a rebound from high rates soon. High Fed target rates have a delayed effect on the economy. It usually takes a year or so. Impatient financial media goons never acknowledge this. Rates went above 5% around this time last year. All their "soft landing" talk might be proven wrong in the near future.
Can we talk about an ever LARGER picture? CEO’s taking home 30 MILLION a year. Administration in levels just below CEO, i.e. CFO etc, also getting huge pay. For what? Poor decisions? Ideas based on stockholder greed and not corporate or consumer viability? Again… the average middle class working family suffers at the hands of the rich. We pay bloated prices. Bloated insurance to cover the higher priced vehicles. Bloated repair cost. AND, WORST OF ALL! Layoffs, when those making the most, need someone to pay for THEIR bad leadership decisions. Next will be us taxpayers bailing them out AGAIN.
do you understand most manufacturers are making 5-9% profit thus there isn't "bloat". As soon as a statement is so and so is being paid immediately a red flag goes up a person who wants to play victim and has no clue about economics is posting dribble.
Go after CEOs knock yourself out. But inflation is driven by Governmnent and you can look to Biden specifically. He continues to spend like we are in Covid. All that is inflationary because we don’t have the money in taxation so we print. Printing devalues currency and you need more to buy the same thing ..inflation.
Greed made this country great, INFLATION, the UNJUST theft of our ALREADY EARNED money, will put this country to their knees. End inflation, End the Fed, Bitcoin fixes this !
THE SO CALLED DISCOUNTS ARE STILL TO LOW. INFLATION WENT UP 20-25 % BUT CAR PRICES WENT UP 50-60 PERCENT. SO A 10-20 % DISCOUNT STILL HAS A INFLATED PRICE OF AROUND 30%. THAT AIN'T NO DEAL.😡💵😡
Biden has DESTROYED our energy supply, and HUNDREDS of BILLIONS of tax dollars are used to produce BOMBS, not cars, BOMBS. You voted for this. What the f*ck did you think would happen? The green hippie la la wagon is crashing into a thing called REALITY. Welcome to REALITY. You'll be here for a while.
@@baldone45 exactly. Time to insist on a better auto industry. I vote we allow lawn mower vehicles with simple carburetors to provide cheap transportation for those needing a roof over their heads, and for the rest we have E-Bikes and motorcycles that already have good ranges. Also we can make cheaper motorcycles also. Cities can be remodeled to increase foot/bike/small EV traffic in their administrative cores (with service roads for heavy deliveries & work). ICE has its place and so do alternative powered devices like pedal bikes, ev's, etc. You cannot have emergency services in hard hit areas without ICE with todays technology.
Rates should really be raised, but more importantly, spending needs to stop. Neither of those will happen in an election year. (spending will never stop)
rate raising isn't a helping action at all. The Fed really needs to stop spending money it doesn't have and since the debt is entitlements Boomers need to curb their appetite for social security, cut their entitlement by double digits, fica, and welfare tax should be raised by a percentage or a new national sales tax be implemented. But none of this will never happen because it's the responsible action to take.
Raising rates only hurts the borrowers, whichnis most people. What they need to do is stop printing so much money. Likewise a national sales tax or VAT would also affect the people who can afford it the least the most. Even a "millionaire" tax would likely affect the ones of the bottom of that class more and take them down and serve as a barrier to entry for other people rising up the scale. Something does need to be done about the excess money in the supply, as well as all the regulations pricing domestic American labor out of the market.
@@Thane36425 raising taxes is the only solution along with entitlement cuts. It's going to hurt but the nanny state has to end or the state itself will end.
@@davidporter7051 If the printing keeps going, all the taxes in the world won't change anything except to grind the majority of the people down until they need those social services.
It's cheaper to maintain a paid off vehicle than to buy a new one while spending money to maintain it. I just spent $1200 on a 36,000 mile service that I have to do every 36,000 miles (roughly every 3-4 years because I don't drive that often, and my car is a 2019 I bought new). I spend roughly $400 a year servicing this car that I completely paid off. I'd much rather keep the car I have running as long as possible than pay these over-inflated prices while financing at these interest rates. Screw that. I hope the industry does crash because it's well-deserved.
Ben, in 6 to 8 months, (unless the Gubers start printing Gajillions again) the average consumer won't have any money to buy anything of value. Anyone selling non-essential items will hurt. THIS is the GREATEST GENERATIONAL WEALTH TRANSFER in recorded history!!! Do you own Silver? Look into it, quick! Cheers
Definitely not voting for the treasonous orange turd who created this mess with his inept handling of the pandemic, 0% interest rates, $8 Trillion in government spending and massive tax cuts the price gouging corporations and 1% used to take advantage of Americans.
Bitcoin 2024. Time to stop voting for a lesser Evil, we tried both of this years 'approved choices' for 4 years, and they both suck HARD. Vote with your wallet for real change.
Voting is how we got here... I smell a revolution coming on. Hunger will motivate a person, especially when you haven't eaten, and now your kids' belly is feeling hungry every growing day..
Even with high interest rates, all they have to do is lower prices back to late 2019 levels, they'll sell everything on the lots, not the 2022 price gouging prices.
I have a niece that works in a GMC dealership. Surprisingly she is still selling plenty of cars. Nowhere near 2019 levels but the profits they get from each car now surpasses the profits they were getting back in 2019 she says. Sell less cars, less paperwork, less personnel to manage, yet more money. This is why she tells me they don't lower prices that much. People just love debt.
Too put it more simply, Banksters are not allowed to create money with the click of a computer key any longer. That scheme was so overdone, that they diluted the purchasing power to the point where a loaf of bread costs $6. If you or I did the same, it would be called counterfeiting.
What do you mean banksters cannot keep creating money ( loans)??? They still don't need to hold any reserves to make loans. They are encouraged to make loans but no one can afford the Interest rate
@@Userhfdryjjgddf If you want to know how our fraudulent money system works, read The Creature from Jekyll Island. You will learn all about creating money from thin air, the results of which you have witnessed.
Bought a new 2023 Honda Ridgeline RTL-E in mid-January to replace total loss vehicle. Got 3.5K off, put down 30K, financed 15.7K (taxes, tags, etc) @ 0.9% for 3 years. Total finance charge for term is $297.56 - pretty much 'free' money. Will pay off early - this will be my last new vehicle.
The automotive Consumer Price Index for New Vehicles is still showing a parabolic move. It is just now starting to roll over and return to the mean. But hey, don't take my word for it. Things aren't attractive and there's certain ways that can change. We'll see whether they do. -Warren Buffett said of Berkshire's growing $188 billion cash position May, 2024.
Good video, but I totally do not believe anybody claiming that inflation is around 2.5%. I think that was a government number you quoted. In the past three years I would say that for things we spend money on every week, prices are up at least 30% through the three year timeframe since we got out of the initial COVID pandemic.
So, how will they "fix" it this time? "Cash for Clunkers, part deux?" Biden seems to be thinking that changing environmental goals will do it, but it won't.
The Fed is not crashing the car market. Greed from the manufacturers is. Consumers can’t borrow money if they can’t afford it. If the dealerships are spending more time to get people approved it is because those people buying shouldn’t be buying. Also, lenders know when things are over valued. You should update this video. It is misleading and assigning blame to a party that isn’t worried about a sector of the market but that is instead addressing the entire market. Corporate greed is also the cause of the home prices issue, but that is another story.
Rates are not that high if your memory isn’t limited to the last 20 years. Too much artificially cheap money for too long caused inflation and now we are paying the price.
The current inflation rate is closer to 3.5%. The problem is it’s reaccelerating. The FED isn’t cutting in 24 unless there’s a significant financial accident. The same people who are predicting a rate cut or two this year are the clowns that said there would be six.
@@ms.b9093 nope. I just posted actual facts and figures. You should use them. Net profit is hovering around 5-9% in good quarters and during bad there are losses. Emo replies are not warranted nor desired.
The car market more closely resembles the Great Depression than anything else. For instance, interest rates surged during the 1930s, reaching a whopping 20 percent in 1932. The Great Depression was marked by massive layoffs, which we are starting to see at all three U.S. automakers right now. Also, the ridiculous prices of vehicles is perhaps the biggest similarity to the Great Depression. During the 1930s, since the average joe couldn't afford even the most basic new car, automakers survived off of their most expensive vehicles.
This is long overdue…the price of Automobiles has been skyrocketing for years…. $70k for a new car is ridiculous…..its inevitable that the Auto industry suffer an adjustment, taking a mortgage on an automobile is not financially sustainable. Scale back production, lay off workers, somebody has to do it….if we I ever going to get back to 2% inflation, some segment of the economy has to suffer.
@@jimsteinway695 YOU MEAN THE LAST ADMINISTRATION THAT LEFT IT THAT WAY WITH $8 TRILLION IN GOVERNMENT SPENDING, MASSIVE TAX CUTS TO THE RICH AND CORPORATE AMERICA, AND 0% INTEREST RATES. THAT IS WAY TO MUCH CHEAP MONEY IN THE MONETARY SYSTEM THAT LEADS TO INFLATION. TOP IS ALL OFF WITH TRUMP'S INEPT HANDLING OF THE PANDEMIC.
At the same time with car price and interest crisis. We also have car manufacturers discontinuing certain model cars that was your dream car and now replacing them with EV’s.. they want consumers to panic buy those hyper cars. For example 2025 will be last yr they will makeNissan GTR’s $125k msrp with 8%+apr doesn’t sound like a dream anymore just a nightmare. That’s just a base model😅
I really love your channel, you really have a lot of love for cars and the automotive industry, and it shows through. That being said, you're a little more guilty of click bait in your title than usual, and it paints a picture that isn't backed up with facts. This is a very complex topic that cannot just be boiled down to simply saying that "The Fed" crashed the car economy. Firstly, to say that the car economy has crashed is not even close to accurate. Manufacturers (and dealers) spiked car prices during the COVID years at a significantly higher rate than overall inflation. That was partly due to supply issues along with labor issues in getting product manufactured, but it was also plain greed. They were able to charge more because there was no reason not to. People continued to "vote with their wallets" by continuing to purchase cars even with market adjustments into 5 figures in 2020 and 2021. Looking at "days supply" metrics, only some manufacturers are seeing a truly significant slowdown (Stellantis a primary victim), and this is due to over-manufacturing along with lack of adjustment in car prices until relatively recently. Secondly, Interest rates are most definitely up, but the alternative to this - lowering rates and allowing inflation to run rampant again - is absolutely absurd (I personally would prefer not to see my grocery bill double again). Historically, the current Federal Reserve interest rate is lower than what was considered normal and is only "high" when looking through the lens of the interest rate drops following the 2008 housing crash. Inflation needs to stay controlled. Finally, you keep defining what is going on in the automotive industry as a recession throughout this video. A recession is defined as economic decline for more than 2 consecutive quarters. While the automotive segment has declined approximately 1.4% this quarter, it grew by 0.5% the previous quarter, and as recently as Q2 in 2023 it grew by 3.6%. We are simply seeing a market correction right now, no different than any other segment goes through - ups and downs. I get that UA-cam rewards views, likes, and subscriptions, but you are typically much better than this video. Please do better!
The Car manufacturers put too much attention to the EV car market, Now they realize there's no infrastructure! The price of new cars depreciate so much the new buyers are upside down, right after signing paperwork! New car prices are way over expected Manufacturers retail Market Price! It's no Wonder, The car market is so messed up. Banks aren't giving loans for new cars. Especially when there's so many vehicles being Repossessed!
The dealerships have sold all the stupid people over priced new vehicles! They’re going to have to get WAY DOWN IN THE WEEDS , if they want to sell this next group !
Other youtubers showing car lots like dodge and ford unable to sell trucks and suvs. Dodge cant sell chargers, challengers and especially can't sell the Hornet. So where you say they are selling vehicles is stretching the facts. Full dealer lots shows you are incorrect.
I'm personally keeping my 7 and 9 year old vehicles until they become too costly to maintain. My 2017 CX5 only has 44k on it because we were force to stay at home for about 3 of those years. Neither vehicle has needed anything major other than tires and scheduled maintenance.
Thanks for a video about the business side of the market and how the shop props up a dealership. Often overlooked but so important. You could make another about insurance costs as well. Two thumbs up
Labor rates increased 25% since covid. Lack of new technicians, combined with more technology in our cars, has created the perfect storm. I work in the industry, and it's not uncommon for shops to charge $200 per hour
Actual vehicle sales are down more than 1.2%. "Official" numbers are automaker sales to dealers. But consumer sales are way down and dealer lots are overflowing.
@@ms.b9093 Apparently you've not seen the Tundras and brand-new Tacomas piled up row after row at some dealers. I saw one dealer with 115 Tundras in stock and almost two dozen Tacomas.
Those 10 to 14 percent interest rates on new and used cars, is for excellent credit as well. The rates are higher for fair or bad credit. You should update yourself inflation is way higher than 3%. And the fed isn't going to lower rates, i read where inflation is still going up. The fed said its considering a rate increase.
I just bought a 2024 NISSAN TITAN PROx 5/5/24 … it’s expensive but I’m so happy with the V8 5.6L thanks to all your reviews on the Pro4x. Thanks Ben Hardy Reviews … your a natural and I love your honesty
Car companies are making polished crap. They look good but they are mostly hot garbage. The prices are too high for something that ends up behind a tow truck. The banks aren’t willing to lend money for hot garbage with a bad return. The only companies that are cushioned in all of this is the insurance companies. The Insurance companies just raise rates on current older vehicles customers. The consumers are waiting for rates and prices to fall, which isn’t going to happen before the damage is done to the car makers. The car makers will blame everyone else but themselves, Just like Boeing is doing. I just hope that the government bailouts stop and the bad companies just get ran out of business. AMC made ugly and unreliable cars. They didn’t survive the down turn in the 80’s. That’s the way it should go.
Bottom line the appetite for most consumers simply isn’t there regarding new cars. They’ve gotten too expensive interest rates are too high and until everything comes back to a more normal level I can’t see things normalizing
I get business side of things probably more than most because I have owned my own business. Dealers will be able to survive on service without a doubt. The vehicles have too much that eventually everyone has to take it to get serviced. As vehicle cost more it gets more reasonable to buy warranty to extend the life and reduce the cost that drives sales down but keeps service up. Sales side both mfg and dealer are to blame. For example putting way more markup on certain types of vehicles is bs. The truck market has funded a lot of others. Dealers are greedy and most only sell on price not actually sell. The mfg has a upper hand cause they can lower production to try to keep up margins and reduce costs. As a result sales will slow.
TruCar has a Military buying program. Tomorrow my wife and I are going to visit our local BMW dealer to take a look at a couple 2021 and 2022 certified 3 series. Do you know anything about the TrueCar military program? And what are your thoughts about purchasing now. We currently own a 2016 Honda fit EX with 20,000 Mi on outright
Your Fit is worth basically what it was when new still, so it's a good time to sell it if you want to. If you're financing, BMW offers 5.99 for 60 months on CPO vehicles. Dealer may present 6.99 because bmw allows dealers to mark the rate up one point, so don't be afraid to ask for buy rate during negotiations. If they aren't interested in that, ask for an extra year of CPO warranty. Good luck!
It’s crazy how much car values drop.Who would want to buy new?I looked at the CX 90 56K . 3 months later some used showing up 10k less. The EV6 20k less in 3 months. Crazy. Buy used. Then you don’t have to deal with all the markups scams.
This has always been more or less true (covid time excluded). I've always said new cars are for chumps. Let some other schmoe take the hit on the big depreciation the first couple of years. I haven't bought new in over 25 years.
There are so many markup scams, but these price increases are a combination of much higher labor and material costs (CoVid lockdowns and stimulus nonsense) and new regulations. In addition, the eco commies running Western governments are pushing EVs, which are big money drains. As a result, they are passing those losses on their ICE vehicles.
Dealers created this mess. Then they feel they’ve become the victim. They can suffer.
People actually created this mess…they accepted those ridiculous prices and paid above MSRP price plus extra 😂😂😂😂😂
I never paid MSRP because MSRP is just a suggested price but not the real cost of a vehicle….so I keep what I have for as long is possible….and I know I will get my price and not their price…very soon everyone will be affected by high interest rates…
Unnecessary 0% fed lending rates in 2020 created this mess! The same mess was created in the housing market too!
@@ms.b9093
It was almost like a State of War….but people forgot everything so quick.
Waiting in line to get in many Stores…restaurants closed,schools etc….
Going to a bathroom was a challenge…even breathing next to another person was almost impossible….those channels showing juice from dead people inside of trailers…and many more trailers were ordered because wasn’t enough at the time…true or not.
And after the WAR comes the Judges….like usual to tell the soldiers that actually nothing happened and no need of this or that etc…..
@@ms.b9093 Powell's stubborn thumb keeping those rates low for so long also led to inflation.
We should be experiencing a rebound from high rates soon. High Fed target rates have a delayed effect on the economy. It usually takes a year or so. Impatient financial media goons never acknowledge this. Rates went above 5% around this time last year. All their "soft landing" talk might be proven wrong in the near future.
Can we talk about an ever LARGER picture? CEO’s taking home 30 MILLION a year. Administration in levels just below CEO, i.e. CFO etc, also getting huge pay. For what? Poor decisions? Ideas based on stockholder greed and not corporate or consumer viability? Again… the average middle class working family suffers at the hands of the rich. We pay bloated prices. Bloated insurance to cover the higher priced vehicles. Bloated repair cost. AND, WORST OF ALL! Layoffs, when those making the most, need someone to pay for THEIR bad leadership decisions. Next will be us taxpayers bailing them out AGAIN.
do you understand most manufacturers are making 5-9% profit thus there isn't "bloat". As soon as a statement is so and so is being paid immediately a red flag goes up a person who wants to play victim and has no clue about economics is posting dribble.
Go after CEOs knock yourself out. But inflation is driven by Governmnent and you can look to Biden specifically. He continues to spend like we are in Covid. All that is inflationary because we don’t have the money in taxation so we print. Printing devalues currency and you need more to buy the same thing ..inflation.
"I say just say NO to The BLOATARDS!!"
Everyone should stop paying taxes
@@lisamari941 that's a really dumb comment
If I had a dollar every time someone said the car economy has crashed since 2023, I’d have a Lamborghini
There is no doubt, repossessions and defaults on Auto Loans are on a 20years + high
@@jayp4114 and exactly where is my new $5000 economy car?
I buy off lease cars in cash..
@@jayp4114 No they are not, just more doom and gloom.
Greed will put this Country to their knees
Greed made this country great, INFLATION, the UNJUST theft of our ALREADY EARNED money, will put this country to their knees. End inflation, End the Fed, Bitcoin fixes this !
Yep, late-stage capitalism run-amok without any proper guard-rails for the last 40-50 years (if not longer). This should end well.
No. STUPIDITY.
You voted for this s**t.
THE SO CALLED DISCOUNTS ARE STILL TO LOW. INFLATION WENT UP 20-25 % BUT CAR PRICES WENT UP 50-60 PERCENT. SO A 10-20 % DISCOUNT STILL HAS A INFLATED PRICE OF AROUND 30%. THAT AIN'T NO DEAL.😡💵😡
" We're having a 50% reduction on our 300% Markup!!"
Biden has DESTROYED our energy supply, and HUNDREDS of BILLIONS of tax dollars are used to produce BOMBS, not cars, BOMBS.
You voted for this.
What the f*ck did you think would happen? The green hippie la la wagon is crashing into a thing called REALITY. Welcome to REALITY. You'll be here for a while.
Avoid those greedy dealerships as much as possible.
People need to work on their cars and not rely on dealership.
@@Rick-vg2pz The Just Rolled In channel will tell you why it’s not a good idea for people to service their own cars x.x
I’ve watched Just Rolled In. It shows that stupid people shouldn’t breed
@@Rick-vg2pzgood luck with that when it requires software updates or parts only available at a dealership
@@baldone45 exactly. Time to insist on a better auto industry. I vote we allow lawn mower vehicles with simple carburetors to provide cheap transportation for those needing a roof over their heads, and for the rest we have E-Bikes and motorcycles that already have good ranges. Also we can make cheaper motorcycles also. Cities can be remodeled to increase foot/bike/small EV traffic in their administrative cores (with service roads for heavy deliveries & work). ICE has its place and so do alternative powered devices like pedal bikes, ev's, etc. You cannot have emergency services in hard hit areas without ICE with todays technology.
Rates should really be raised, but more importantly, spending needs to stop. Neither of those will happen in an election year. (spending will never stop)
rate raising isn't a helping action at all. The Fed really needs to stop spending money it doesn't have and since the debt is entitlements Boomers need to curb their appetite for social security, cut their entitlement by double digits, fica, and welfare tax should be raised by a percentage or a new national sales tax be implemented. But none of this will never happen because it's the responsible action to take.
Raising rates only hurts the borrowers, whichnis most people. What they need to do is stop printing so much money.
Likewise a national sales tax or VAT would also affect the people who can afford it the least the most.
Even a "millionaire" tax would likely affect the ones of the bottom of that class more and take them down and serve as a barrier to entry for other people rising up the scale.
Something does need to be done about the excess money in the supply, as well as all the regulations pricing domestic American labor out of the market.
@@Thane36425 raising taxes is the only solution along with entitlement cuts. It's going to hurt but the nanny state has to end or the state itself will end.
Yep!
@@davidporter7051 If the printing keeps going, all the taxes in the world won't change anything except to grind the majority of the people down until they need those social services.
Going to the dealership for services is another crisis😂😂😂
If it’s under 60k miles or 5 years of age NOT using a branded dealership will destroy your resale value
It's cheaper to maintain a paid off vehicle than to buy a new one while spending money to maintain it. I just spent $1200 on a 36,000 mile service that I have to do every 36,000 miles (roughly every 3-4 years because I don't drive that often, and my car is a 2019 I bought new). I spend roughly $400 a year servicing this car that I completely paid off. I'd much rather keep the car I have running as long as possible than pay these over-inflated prices while financing at these interest rates. Screw that. I hope the industry does crash because it's well-deserved.
smart
What was included in 1200$?
Get ready and prepare for an economic crash.
Service Department revenues will decline next as the consumer can no longer pay for expensive dealership repairs of their vehicles.
Then, go to mechanic school to learn the basics and save money.
@@turnerruma5977 they still have to pay thousands of dollars that they can’t afford.
lol at 2.5% inflation, like no one notices the huge increase in prices nearly everywhere.
over the past 5 years inflation is average over 5% a year
Ben, in 6 to 8 months, (unless the Gubers start printing Gajillions again) the average consumer won't have any money to buy anything of value.
Anyone selling non-essential items will hurt. THIS is the GREATEST GENERATIONAL WEALTH TRANSFER in recorded history!!! Do you own Silver? Look into it, quick!
Cheers
You sound like a conspiracy theorist and should be put on a terrorist watch list!
I stack all metals and even some bitcoin. Have no clue what's going to happen but it really doesn't look good.
@@Userhfdryjjgddf You're a few steps ahead of the crowd! Kudos
Vote wisely
And hope it counts the way you intend
@@dwighterickson6121dead people and people without IDs will still be voting.
Definitely not voting for the treasonous orange turd who created this mess with his inept handling of the pandemic, 0% interest rates, $8 Trillion in government spending and massive tax cuts the price gouging corporations and 1% used to take advantage of Americans.
Bitcoin 2024.
Time to stop voting for a lesser Evil, we tried both of this years 'approved choices' for 4 years, and they both suck HARD. Vote with your wallet for real change.
Voting is how we got here... I smell a revolution coming on. Hunger will motivate a person, especially when you haven't eaten, and now your kids' belly is feeling hungry every growing day..
GDP . . .driven by GOVERNMENT spending. Everything else is shrinking.
WRONG!!! Small business development has been rapidly expanding, creating the majority of new jobs!
False. Just look at the data. An interesting comparison is US government contribution to GDP vs. US government spending.
Even with high interest rates, all they have to do is lower prices back to late 2019 levels, they'll sell everything on the lots, not the 2022 price gouging prices.
I have a niece that works in a GMC dealership. Surprisingly she is still selling plenty of cars. Nowhere near 2019 levels but the profits they get from each car now surpasses the profits they were getting back in 2019 she says. Sell less cars, less paperwork, less personnel to manage, yet more money. This is why she tells me they don't lower prices that much. People just love debt.
there are so many factual errors in this statement. Not the least is actual inflation is up around 30% since 2019 that's not feasible and illogical.
@@smokeyj3983is your niece's dealership making 33% more profit not revenue?
@@davidporter7051 honestly, I don't know. I didn't really ask much else. All I know is she's making a real good living and is very happy
The problem with that is the dealership will take a huge loss because they bought these vehicles from the manufacturer at these inflated rates.
still driving a 1999 Mercury Grand Marquis as a daily.
It will last for 500K easily
Nothing wrong with that…a car is no more than something to move you from point A to point B….
@@vincentharris7909 has 131k on it.
worth whatever it takes to keep that car on the road
If you believe inflation is 2 1/2 to 3% I have a bridge to sell you.
My credit union does car loans at 6.49%, 6.99% for used. Where are you seeing 15%?
Tier B and C credit....which is more than 50% of the population
Mines 6.75% new up to 84 months (yikes!!!)… 7.75% used and 60 months max on used
Too put it more simply, Banksters are not allowed to create money with the click of a computer key any longer. That scheme was so overdone, that they diluted the purchasing power to the point where a loaf of bread costs $6.
If you or I did the same, it would be called counterfeiting.
What do you mean banksters cannot keep creating money ( loans)??? They still don't need to hold any reserves to make loans. They are encouraged to make loans but no one can afford the Interest rate
@@Userhfdryjjgddf If you want to know how our fraudulent money system works, read The Creature from Jekyll Island. You will learn all about creating money from thin air, the results of which you have witnessed.
Bought a new 2023 Honda Ridgeline RTL-E in mid-January to replace total loss vehicle. Got 3.5K off, put down 30K, financed 15.7K (taxes, tags, etc) @ 0.9% for 3 years. Total finance charge for term is $297.56 - pretty much 'free' money. Will pay off early - this will be my last new vehicle.
That's too much...
@@Tom-i4e5f You wish you had a new vehicle at that deal.
The automotive Consumer Price Index for New Vehicles is still showing a parabolic move. It is just now starting to roll over and return to the mean. But hey, don't take my word for it.
Things aren't attractive and there's certain ways that can change. We'll see whether they do. -Warren Buffett said of Berkshire's growing $188 billion cash position May, 2024.
No MSRP increasing by 50% since 2019 will kill the auto market. You’re just insane if you buy a new car at these prices even with 0% interest.
Good video, but I totally do not believe anybody claiming that inflation is around 2.5%. I think that was a government number you quoted. In the past three years I would say that for things we spend money on every week, prices are up at least 30% through the three year timeframe since we got out of the initial COVID pandemic.
So, how will they "fix" it this time? "Cash for Clunkers, part deux?" Biden seems to be thinking that changing environmental goals will do it, but it won't.
The Fed is not crashing the car market. Greed from the manufacturers is. Consumers can’t borrow money if they can’t afford it. If the dealerships are spending more time to get people approved it is because those people buying shouldn’t be buying. Also, lenders know when things are over valued. You should update this video. It is misleading and assigning blame to a party that isn’t worried about a sector of the market but that is instead addressing the entire market. Corporate greed is also the cause of the home prices issue, but that is another story.
Nailed it!
Rates are not that high if your memory isn’t limited to the last 20 years. Too much artificially cheap money for too long caused inflation and now we are paying the price.
Bought my z71 truck in 2003 . I’m still driving it. What ever it takes to keep for bailing out the car dealership
Labor rates at dealerships have increased the cost of service. When sales slow, service costs increase to balance things out.
Then, go to mechanic school to learn the basics and save money.
THIS IS TRUE!
The current inflation rate is closer to 3.5%. The problem is it’s reaccelerating. The FED isn’t cutting in 24 unless there’s a significant financial accident. The same people who are predicting a rate cut or two this year are the clowns that said there would be six.
actually it's worse. It's over 4%.
IT'S REACCELERATING DUE TO RISING LABOR COSTS, COMMERCIAL RENTS, AND CORPORATE GREED!
@@ms.b9093 nope. I just posted actual facts and figures. You should use them. Net profit is hovering around 5-9% in good quarters and during bad there are losses. Emo replies are not warranted nor desired.
@@ms.b9093 Corporations are supposed to be greedy- thats the point. Inflation is a monetary phenomena always. They FED printed too much money.
The car market more closely resembles the Great Depression than anything else. For instance, interest rates surged during the 1930s, reaching a whopping 20 percent in 1932. The Great Depression was marked by massive layoffs, which we are starting to see at all three U.S. automakers right now. Also, the ridiculous prices of vehicles is perhaps the biggest similarity to the Great Depression. During the 1930s, since the average joe couldn't afford even the most basic new car, automakers survived off of their most expensive vehicles.
We are still selling millions more than the real estate crash in 2008.
Good, everything is way too expensive
This is long overdue…the price of Automobiles has been skyrocketing for years…. $70k for a new car is ridiculous…..its inevitable that the Auto industry suffer an adjustment, taking a mortgage on an automobile is not financially sustainable. Scale back production, lay off workers, somebody has to do it….if we I ever going to get back to 2% inflation, some segment of the economy has to suffer.
Really? This is bad and going to get worse.
Big correction incoming. Good luck! You're gonna need it!
How many people are upside down due to market adjustments.
A lot
Not me on any of our vehicles.
EPA is destroying cars, so it fits.
The economy is NOT "fine".
Exactly it’s trashed. We’re on the brink thanks to the current administration
@@jimsteinway695 YOU MEAN THE LAST ADMINISTRATION THAT LEFT IT THAT WAY WITH $8 TRILLION IN GOVERNMENT SPENDING, MASSIVE TAX CUTS TO THE RICH AND CORPORATE AMERICA, AND 0% INTEREST RATES. THAT IS WAY TO MUCH CHEAP MONEY IN THE MONETARY SYSTEM THAT LEADS TO INFLATION. TOP IS ALL OFF WITH TRUMP'S INEPT HANDLING OF THE PANDEMIC.
At the same time with car price and interest crisis. We also have car manufacturers discontinuing certain model cars that was your dream car and now replacing them with EV’s.. they want consumers to panic buy those hyper cars. For example 2025 will be last yr they will makeNissan GTR’s $125k msrp with 8%+apr doesn’t sound like a dream anymore just a nightmare. That’s just a base model😅
I really love your channel, you really have a lot of love for cars and the automotive industry, and it shows through. That being said, you're a little more guilty of click bait in your title than usual, and it paints a picture that isn't backed up with facts. This is a very complex topic that cannot just be boiled down to simply saying that "The Fed" crashed the car economy. Firstly, to say that the car economy has crashed is not even close to accurate. Manufacturers (and dealers) spiked car prices during the COVID years at a significantly higher rate than overall inflation. That was partly due to supply issues along with labor issues in getting product manufactured, but it was also plain greed. They were able to charge more because there was no reason not to. People continued to "vote with their wallets" by continuing to purchase cars even with market adjustments into 5 figures in 2020 and 2021. Looking at "days supply" metrics, only some manufacturers are seeing a truly significant slowdown (Stellantis a primary victim), and this is due to over-manufacturing along with lack of adjustment in car prices until relatively recently. Secondly, Interest rates are most definitely up, but the alternative to this - lowering rates and allowing inflation to run rampant again - is absolutely absurd (I personally would prefer not to see my grocery bill double again). Historically, the current Federal Reserve interest rate is lower than what was considered normal and is only "high" when looking through the lens of the interest rate drops following the 2008 housing crash. Inflation needs to stay controlled. Finally, you keep defining what is going on in the automotive industry as a recession throughout this video. A recession is defined as economic decline for more than 2 consecutive quarters. While the automotive segment has declined approximately 1.4% this quarter, it grew by 0.5% the previous quarter, and as recently as Q2 in 2023 it grew by 3.6%. We are simply seeing a market correction right now, no different than any other segment goes through - ups and downs. I get that UA-cam rewards views, likes, and subscriptions, but you are typically much better than this video. Please do better!
The Car manufacturers put too much attention to the EV car market, Now they realize there's no infrastructure!
The price of new cars depreciate so much the new buyers are upside down, right after signing paperwork!
New car prices are way over expected Manufacturers retail Market Price!
It's no Wonder, The car market is so messed up. Banks aren't giving loans for new cars. Especially when there's so many vehicles being Repossessed!
The dealerships have sold all the stupid people over priced new vehicles! They’re going to have to get WAY DOWN IN THE WEEDS , if they want to sell this next group !
Other youtubers showing car lots like dodge and ford unable to sell trucks and suvs. Dodge cant sell chargers, challengers and especially can't sell the Hornet. So where you say they are selling vehicles is stretching the facts. Full dealer lots shows you are incorrect.
I'm personally keeping my 7 and 9 year old vehicles until they become too costly to maintain. My 2017 CX5 only has 44k on it because we were force to stay at home for about 3 of those years. Neither vehicle has needed anything major other than tires and scheduled maintenance.
The car industry crashed the car economy....
The gov't did actually
Thanks for a video about the business side of the market and how the shop props up a dealership. Often overlooked but so important. You could make another about insurance costs as well. Two thumbs up
Labor rates increased 25% since covid. Lack of new technicians, combined with more technology in our cars, has created the perfect storm. I work in the industry, and it's not uncommon for shops to charge $200 per hour
My old 2010 Jeep Wrangler and 2015 Chevy Silverado are paid off and still running great.
The Car Business Is A Catch-22!!
We get ONLY One Vote!!
VOTE WISELY 👍
Actual vehicle sales are down more than 1.2%. "Official" numbers are automaker sales to dealers. But consumer sales are way down and dealer lots are overflowing.
Not at Toyota or Honda!
@@ms.b9093 Apparently you've not seen the Tundras and brand-new Tacomas piled up row after row at some dealers. I saw one dealer with 115 Tundras in stock and almost two dozen Tacomas.
Let the vehicles rot on the lot and let the dealerships go out of business. To bad so sad.
We've walked out of dealerships 3x last week. They said x we said x-10% out the door. Nope we walked.
The Fed, how about the manufacturers?
How about stupid people that pay high prices for new cars?
These comments! Lol apparently economist don’t watch Ben Hardy videos.
car prices are still high and you have double digit interest rates, now isnt a good time to finance a car. Its not a feeling, its a fact
good they got rich for 2 years! OVERCHARGING EVERYONE
I can't see myself buying a new car ever again. They are simply not worth what they are charging.
If dealer inventory is building up then they aren’t moving as many vehicles
I didn't spend all the time and effort working on my credit score to get a worse rate than when it was bad.
Economic collapse countdown. Prepare for a depression. 😮😢
Those 10 to 14 percent interest rates on new and used cars, is for excellent credit as well. The rates are higher for fair or bad credit. You should update yourself inflation is way higher than 3%. And the fed isn't going to lower rates, i read where inflation is still going up. The fed said its considering a rate increase.
You can find low interest loans on most new vehicles now.
Just another crappy clickbait video.
F J B!
CRY HARDER!!
8.8 percent, new car, good credit
My credit union. Vehicle Loan Rates APR* as low as 5.80%
mine SECU of MD is 4.99 for 36 months, then 6.49 for 48-60 months not much better than financing directly with the dealer
@@blakespower Looks like rates are varied.
I just bought a 2024 NISSAN TITAN PROx 5/5/24 … it’s expensive but I’m so happy with the V8 5.6L thanks to all your reviews on the Pro4x. Thanks Ben Hardy Reviews … your a natural and I love your honesty
Car companies are making polished crap. They look good but they are mostly hot garbage. The prices are too high for something that ends up behind a tow truck. The banks aren’t willing to lend money for hot garbage with a bad return. The only companies that are cushioned in all of this is the insurance companies. The Insurance companies just raise rates on current older vehicles customers.
The consumers are waiting for rates and prices to fall, which isn’t going to happen before the damage is done to the car makers. The car makers will blame everyone else but themselves, Just like Boeing is doing. I just hope that the government bailouts stop and the bad companies just get ran out of business.
AMC made ugly and unreliable cars. They didn’t survive the down turn in the 80’s. That’s the way it should go.
Bottom line the appetite for most consumers simply isn’t there regarding new cars. They’ve gotten too expensive interest rates are too high and until everything comes back to a more normal level I can’t see things normalizing
Dealerships are history
No they didn’t…
I get business side of things probably more than most because I have owned my own business. Dealers will be able to survive on service without a doubt. The vehicles have too much that eventually everyone has to take it to get serviced. As vehicle cost more it gets more reasonable to buy warranty to extend the life and reduce the cost that drives sales down but keeps service up.
Sales side both mfg and dealer are to blame. For example putting way more markup on certain types of vehicles is bs. The truck market has funded a lot of others. Dealers are greedy and most only sell on price not actually sell. The mfg has a upper hand cause they can lower production to try to keep up margins and reduce costs. As a result sales will slow.
I DRIVE A 1969 F250 CAMPER SPECIAL .
A 1969 IS SO CHEAP TO FIX, I DO IT MYSELF.
THE AMERICAN PEON HAS NO IDEA WHAT USA HAS IN-STORE FOR THEM.period
That works fine if you’re retired and rarely leave town.
Nice breakdown of the overall car market
The broader economy is actually in contraction when you adjust for the impact of inflation.
MAYBE we will get a cut in Dec but I highly doubt before then..
Hey, U back . Looking fresh. 👍
TruCar has a Military buying program. Tomorrow my wife and I are going to visit our local BMW dealer to take a look at a couple 2021 and 2022 certified 3 series. Do you know anything about the TrueCar military program? And what are your thoughts about purchasing now. We currently own a 2016 Honda fit EX with 20,000 Mi on outright
Your Fit is worth basically what it was when new still, so it's a good time to sell it if you want to. If you're financing, BMW offers 5.99 for 60 months on CPO vehicles. Dealer may present 6.99 because bmw allows dealers to mark the rate up one point, so don't be afraid to ask for buy rate during negotiations. If they aren't interested in that, ask for an extra year of CPO warranty. Good luck!
@S2kTi thank you for such a well-thought-out and thorough response.
Ohhhh the poor dealers!!! Hahahaha 😂😂😂
👍👍
It’s crazy how much car values drop.Who would want to buy new?I looked at the CX 90 56K . 3 months later some used showing up 10k less. The EV6 20k less in 3 months. Crazy. Buy used. Then you don’t have to deal with all the markups scams.
This has always been more or less true (covid time excluded). I've always said new cars are for chumps. Let some other schmoe take the hit on the big depreciation the first couple of years. I haven't bought new in over 25 years.
There are so many markup scams, but these price increases are a combination of much higher labor and material costs (CoVid lockdowns and stimulus nonsense) and new regulations. In addition, the eco commies running Western governments are pushing EVs, which are big money drains. As a result, they are passing those losses on their ICE vehicles.
Vote Trump😊
😂
No thanks, FDT and FJB. RFK Jr 2024!
@@RFJerseymoron
Sure if you want a womanizer felon go right ahead.
I'd rather eat a cactus
No, greed has crashed the economy.
😂😂😂😂Biden and the Dems rule😂😂😂😂
TRUMP AND REPUBLICANS COLLAPSED THE ECONOMY IN THE FIRST PLACE. IT'S GOINT TO TAKE YEARS TO REPAIR!