A pickup truck, which is a WORK truck, should not be more than $40k unless it's a loaded version that is optional. I'm pretty well off and make significantly more than the average salary, my wife does too.. and we consider spending over $40k to be poor financial management. I get it, some people want to live to pay off their car/truck loans but average people DO NOT want to be indentured to our car loan. These prices are absurd.
$60k for an ordinary F-150 is not OK. I make a decent six figure salary and I am not a fool. Just not giving them all that extra money so they can pay their execs hundreds of millions. I'd rather buy an old truck and pay the local shop to keep it going.
Definitely. We have a small concrete business and in 2021 we bought a 21 f350 6.2 dually chassis cab out of necessity for 45k. Now that same truck but a 2025, is now 53k! 8k more in 4 years is insane. It's really out of control at this point.
Thank you! I'm not poor, in fact I have the money to buy a $60k pickup truck but I'm not stupid enough to do so! Why would you? It's insane that people have been conditioned to pay these prices for vehicles. When I was in college I bought a new pickup for $12k and I thought that was pricey... I ran that number through an inflation calculator online and that vehicle would cost me $28.8k today! NOT $60k... NOT $40k... about $30k! I blame the greedy manufacturers for this artificial price inflation because they don't make cars that average people want or can afford - they put themselves in this situation.
It would be cheaper to replace every part in my 2017 Tacoma then to buy a new truck. And my Truck is paid off. So why would i ever buy a new vehicle as long as I it would be cheaper to upkeep my current vehicle? And i can buy one of those portable wireless CarPlay systems that connect to apple and Android for $150 or less. I don't need new technology either.
Problem is, even not buying a car, my insurance rate has went from $60/month to $266/month in 2 years. Mind I drive a luxury car, but $200/month more is a big chunk. I don’t even have a car payment and it feels like I have a car payment.
Dealers are lowering list prices a bit. Then they add fake fees and add ons that raise the price Bako up to more than it was before discounts. The numbers are another shady tactic by the dealers.
This is exactly right. Went to look at a base Honda Civic Hatchback for my daughter this weekend and the cost of the car had apx $2k in fees and add ons that you don't know about until you get on the lot.
Yes, I have been looking for a car. Until prices go down a lot. A few hundred isn’t going to do it. Interest needs to go down. And the bait and switch tactics need to stop. The advertised price needs to be the price of the car. Period.
Ray can say it till he’s red in the face. While yes he is correct that prices are coming down. Taking that cars are 25-50% higher than they should be. Taking some money off the top isn’t moving the needle for average Americans trying to live. Bring in the interest rate and it’s a no go for most people.
Exactly. And the manufacturers are feeling it. Jeep prices are bat shit insane. Jeep Grand Cherokees being all $40,000+ is disgusting. Hell base model wrangler sport models being $35,000+ is dumb as shit. These companies should all be held liable for price gouging and their CEOs get nothing.
@@jamesmyers9285 yeah. This auto market has been due for a crash. I make darn good money but new car prices are nuts. And I have good credit but don't qualify for 0% and im fine with that. But when a bank comes back with an 8.9% on a $53,000 truck and they want $15,000 down. Seems really bad. Pre pandemic I bought my wife a brand new Jeep Renegade( it's what she wanted) and It was $24,500 out the door with 2%. That same vehicle last year before they stopped making it was $39,000
all you broke kids wont consider paying $20-25k for a 2021 4-door Accord? 8% interest rates are nothing when its this cheap. $450/month for a quality car with 40k miles. I'm still holding out because the one i'm buying is still listed $10k over MSRP with 27k miles on it in Cali. 20 miles away. This is where it hurts as dealers continue to list used cars 2022/2023 at MSRP or higher.
As my mother once said when I was considering a purchase: "Is it something you really need or is it something you just want?" So, as far as a car purchase goes, I can wait. I can wait to have more money saved to pay it off faster. I can wait, because I still have a car that is reliable, and gets me where ever I have to go. I can wait, because I am not desperate and in a bind. I can wait, until I find the right deal. I can wait, because I don't have to park on the dealer's lot, don't have to trade a car, and can leave any time I want. JUST SAYING...
I just got a Honda CR-V 2024 Sport, they hit the "target" from caredge, was a very painless process, and I feel we had a Mutual win. They hit the Discount target immediately and I only spent 90 or less in the dealership. So good experience, thank you Ray/Zack and caredge Team. :) 39k out the door.
Personally I find it hard to distinguish twixt absurd prices and the new, lower ridiculous prices. There is no difference between unaffordable and slightly less unaffordable.
If new cars do not go down at least 60% they will pile up like rotten fruits. They have to undesrstand most people can not afford those inflated prices.
screw not affording, i simply don't want to pay it.... look there is no one on this page that couldn't afford a 50 dollar loaf of bread..... but not a single person in here would buy it because bread is NOT WORTH 50 bucks
tried to convince my wife we could use a new 4runner, plan was to go in and pay cash. she saw the prices and decided a CD at the bank was a better buy.
Guys, Americans are not willing to jump right now... My wife needs and would love to have a new car but she is not going to do it right now.... What she said was" my car is just fine right now it's paid off and the prices of cars are still to high.... She is a cash buyer and doesn't care about a loan. She is done with a 50% increase over the coat of the car she wants from 2018 to 2024.... That's right, the car she wants is the same she has, but it's a 2018.... My son is the same but with him insurance is up 20% so he is out of the market all together until he makes more money. My 2018 F150 is good until 2028 most families I know are on hold as well..
I drive a 2013 Subaru Outback Limited, I’d love to upgrade to a new (er) Outback with updated safety features. I’ve seen 2.9% rate on new Subarus from the dealership, but the price is still too high for me. The used car prices are still steep and the interest rates make it undoable. I bought my car outright when it was new, I don’t and haven’t had payments. Even with repairs, it’s cheaper than buying.
Good job :) Your Subaru sounds new to me ! Keep it maintained I’m sure it will go a long time ! I feel safe in my 1984 Volvo 240 diesel , it’s last payment was in March 1988, it’s at 388K miles I still do all my own service on it.
YOU GUYS KEEP LEAVING INSURANCE OUT OF THE EQUATION. ALSO REMEMBER THAT INFLATION UP 20-25%. CAR PRICES UP 50-60%. PRICES NEED TO COME DOWN AT LEAST 20-25% OR MORE. FINANCE RATES NEED TO COME DOWN AS WELL.🤔💵💵💵🤔
@d_all_in so then I guess you have $40,000 cash in the bank? Well then I know who's bank account I need to hack. The average American doesn't have the cash on hand. Get over yourself.
Got a deal on 30 Jun. Last dat of the month and car on lot 50 days. They wanted 26,600$ out of the door mid June and on 30 Jun let me buy it for 6k less for 20500$ out of the door and gave me 2 year warranty. Dealers are making deals and selling at discount. Used car edge to negotaite price down. Worked fine. Thanks Zack and Ray
Sounds like a HSN or QVC deal on food. Just pay $90.00 for 6 porkchops and you can pay it off in 5 easy monthly payments. The 6 pork chops are eaten the first month and you still have payments for 4 more months. That's nuts, just like a 96 month loan on a car or truck.
7.75% car sales tax in California, license fees, and 2.9% to 7.19% interest , from 12 to 84 months, plus insurance. On a 50k to 80k plus Jeep is totally brutal for the average wage earner!
yes waiting. there are a few cars in my family that need to be replaced but asking price of used cars is still about double what it was a few years back.
Waiting. 4 years ago I wanted to buy a 2020 vette, but markups were crazy. Now, there are plenty available in the 80-100k MSRP (and available at that price). Instead, I'm looking at rebuilding/upgrading my old vette and stang. Advantage, no electronic junk to go out and cost a fortune to fix. Taillights with radar units for example.
The price - interest conversation reminds me of mortgages and closing costs. People really struggle to understand that closing costs and interest rates are a see saw. You can get a higher rate that pays a kickback to cover all the closing costs, a low rate where you cover your own costs or an even lower rate where you pay your closing costs and pay extra to buy the rate down.
100 year mortgages in Japan helped cause the overpriced housing market, if they had 20 year mortgages home prices would have to correct to make them affordable DEBT has caused the unaffordability problem and more and easier debt will just make the problem much worse
Been looking to replace my 2010 tundra but no way will I pay anywhere near these prices. As Brandon said, I'm on the sidelines until things come back down to reality. Interest rates are irrelevant, prices are at least $20k too high and I refuse to hold the bag. This comes as much from principal as it does saving money. If I have to wait 5 years then so be it, I'll enjoy not making car payments in the meantime.
You start doing 96 month loans and you will kill future sales. People will be upside down for 5-6 years. Instead of people trading every 2-4 years it'll be 3-6.
@dondgc2298 a lot of people. Not just people who lease. That's where the conversation starts about negative equity on trade ins. I've even heard of people trading a vehicle multiple times in a year. Sounds wild but it's true.
On contrary, I purchased 2021 VW for $20500 out of the door 30 June (last day of the month) where dealer wanted 26,600$ mid June. I got 6k discount. Florida deal.
@raulporrata5032 if you were in say, Aurora Colorado.. you could pay ZERO. just go steal any vehicle you want, get caught, and see no jail time. They caught the people that stole my wife's Subaru, didn't search for the keys, and wrote them a summons. Wow
I heard an industry expert on Car Dealership Guy's podcast this week say that the market lost 12 million car sales during covid meaning that there is pent up demand.
Here is N. Texas, the amount of uninsured drivers is currently 60-65%, which should scare the hell out of anyone. I’m 63 and clean record, I am still paying $422 a month for full coverage on a 2014 Dodge Durango SXT V6. This is insane for me to pay $5200 a year for insurance alone. Border states a crazy expensive. I want to buy another used 23’ Durango, but it is $36k at 18.45% interest. It’s still $950 a month @48 months. I am not doing anything until next year! I am 100% debt free and I am not paying this crap!!!
Two years ago I bought a 2018 Chevy Tray. If you don't buy a lemon and maintain a car, you will have a good run with it. No regrets buying the Chevy Trax. Many people laughed at the fact I bought one. Nobody laughing now. I got what I paid for ( I banged out a lot of the Principal). and it is a good zippy car.
As of July 5, my credit union is charging "as low as"6.92% for new cars on a 63 month loan. Used cars the rate is "as low as" 7.62% for 63 months. the 64 dollar question is in the phrase is "as low as"
Yep…Navy Federal is under 6% on USED so…I’m calling BS on this 14-20% interest they’re talking about. WTF…people have 500 credit scores or something????
Ray always gives me the big boomer energy I love and aspire for. Zack does a great job as vice president and not overshadowing his jobs knowledge, insight and worth. I love this so much. I watch as a general tv show lol.
Average car price for a new car is $47k. For 36 month loan payments is $1400. For 84 month loan payment is $664. I can see why average borrowers choose 84 month term. Average buyer can’t make that $1400 payment at 36 month term. Ray it’s not that the average buyer can’t do the math (they just google a payment calculator), it’s that they can’t make that $1400 payment.
I’ve been holding out for years! I am a strictly cash buyer, but I make very good money, so I can afford a LOT of car. I simply can’t justify the prices on most vehicles because of the value proposition. I’ve been looking for a fun manual transmission car for 5 years now, so I know I’m not getting the best value prop to begin with, but…. The crazy part is, it makes more sense to buy a BMW M4 or even a Lotus Elmira that I can easily get at MSRP (assuming it ever ships) than a Nissan Z that dealers are still trying to mark up $25k+. The worst part is, thanks to outrageous markups on the cheaper end, we’re going to hear that “people just don’t want cheap sports cars anymore”, and it’s just infuriating.
NFW are these cars are worth the asking price. They are overpriced and they are selectively offering discounts while they recover the discount with financing "finesse". These are public companies that should distribute stock to raise capital for investment in the EV transition instead of conserving cash and trying to recover the R&D using inflated margins on customers. Customers are saying NO!
Fed will "surprise" everyone with a rate cut in Sep (.25 or even .5 points) - its a final stretch before Nov and dems will need some sort of a "boost". But it won't mean much - or AT ALL. Too little, too late.
I’ve been looking at trucks around 30k and under and I have over 800 credit score and they are offering 7 percent interest. And the payments are over 600 a month it’s ridiculous
You want to know why no one wants to go to the dealership???? The last time I went, I was in final stages of buying a used Mercedes in TX. I had my own loan ready, but if they could beat it I had exceptional credit and total D:I at less than 30%. I'd already done the pre-purchase inspection. They kept me there in the office for 4! HOURS! Seriously. If it wasn't such a great buy (per my mechanic the engine was spotless - he said he'd buy it if I didn't) I would have walked. It was unnecessary as I'd already said no to every single add on. My company serves the auto industry and I knew exactly what was going on - I could see the salesperson and then the F&I guy yucking it up, pretending to be working on my behalf. I still have that car but I can tell you that I'll never again go into a dealership. Never again. My time is worth SOMETHING.
I’m in Alberta Canada and have been seriously looking at an AWD manual car for a while now. The VW Golf R is what I want, and I can afford it, but I simply will not pay the current MSRP plus package addons. The MSRP number is honestly 10-15% too high, it doesn’t matter what the manufacturer thinks it should sell for, it matters what the buyer is willing to pay. There around 60 new 6MT Golf Rs within a 25 km radius of me and those numbers have been steady for the last 6 months. Even with VWs relatively “low” 6.49% APR I just can’t bring myself to overpay for a vehicle although I know I would dearly love. Looking at used on 2018-2019 Rs, as Brandon said, I would be paying 8-12% for a shorter term which would put payment at the same or even higher biweekly than new. Decided to ride with my 15 year old Mazda3 manual hatch that I still enjoy driving. 6:47
Just drove past a Ford dealership and a new Bronco had $74 k (Cdn) written on the windshield. NOT A CHANCE!!! Me or anyone I know would not pay that much for a Bronco.
Just went looking for new stripped F150s or like similar American work trucks. Ridiculously priced going foreign Nissan frontiers stripped. Unfortunately Americans were not hiring any new employees this year. UAW workers don’t bother applying next year either as u would never get past our first interview based upon your work history….
I bought a 2023 Tuscan for $21 ish with credit union at 5.45 interest rate (I totaled my car and had to buy). I used your tips and and caught the dealership trying to bump up payments so I pulled out credit union rate and quote and they came back with correct monthly rate. (I had 16,000 from insurance to pay down).
After years of waiting and watching finally got a used Subaru Crosstrek 2021. Interest rate 6%. Hardest part was finding manual transmission and a non-electric parking brake.
I am deeply offended, what’s so wrong with Canadian Dollars.? At least we can afford to produce them in a whole bunch of pretty colours! (Yes, colours should contain a U!!!). 😅. Great video guys, highly entertaining, love from the great white north.
Considering that most vehicles you buy are already overpriced, the current interest rates almost doubled you'd be underwater big time. My family is holding out from buying any car or truck this year.
Just replaced my back brakes on my 2001 dodge 2500. Then drove it 1200 miles from Midwest to Connecticut. Yes, it gets about 15 mpg. All paid off leaving ample for repairs and fuel when compared to new car.
I'm willing to concede that car prices are going down somewhere in the country, it's just that according to local dealership websites they're not going down in THIS part of the country. I couldn't wait, my old car was heading toward its last roundup so I used it as a trade-in towards a new base model Corolla and paid less than 20 thousand for my new car that will last me 20 or 30 years because I'm a low mileage driver and paid with a bank draft to avoid interest payments. I just don't earn enough money to take on a car dealership as a financial dependant.
I work for a CDJR dealership and I leased a 2019 Ram, my lease payment was $359 mo. no money down. Lease ended wanted to trade up to the same model with $1k in extras and the lease payment would have been just south of $800 mo. No friggin way, I bought my 2019.
nah, i've been researching F150s for the last 3 months, no XLT is selling for 63k even after tags and taxes unless you are LOADING it up. been seeing them nationwide with FX4, tow, bed, and mobile packages for 48-53k and sitting for more than 30-45 days
face it.some people are addicted to debt.their lifestyle revolves around continuous bills.then their the first ones to complain they never have any money.
I've been waiting for prices to change. Both cost and interest rates. It's ridiculous and I'll just stick with my 185000 mile SUV until things get better.
Without incentives I’ve seen interest rates between 7.99 and 8.99 percent. With incentives I’ve see. 2.99% for 2024 model year but only for 36 months and even with say a $5,000 down payment you’re still looking at 1000+ monthly payment. I was looking at a Subaru Outback Wilderness and Nissan Frontier both cars start at $41,000. While they’re not as expensive as F-150 or any Jeep they’re still expensive. In 2020 I paid $32k out the door for my RAV4 with 1.92% financing for 72 months, car payment is like $365 a month.
I can’t the thumbs up enough times! I love it when YT channels collaborate together. It’s smart and engaging offering many different thoughts on a singular topic. PERFECT! DO it more often!
I bought our 2015 Transit Connect used in 2016 and did the whole deal over the phone. I am hoping to get 3 more years out of it and not buying till then. Can buy a new Versa 5-speed for under $20K. New Bolt under $30K coming. Don't need a car that does 60 in 3 seconds, 8 is fine.
It a tremendously costly and painful process to change dealorship software. I imagine a few might change but the time involved and training process is huge. I think Ray is right about being bankrupt with lawsuits which would be a shame.
I'm waiting to buy something. Also as someone who was threatening to buy something at many dealers, they still believe it's Covid times. There isn't movement on pricing. I am sure tho it happens in areas, just as Ray says... not in my area. I'm on three different vehicles that I'd be happy with and tried to negotiate, so idk.
My wife is definitely in a hold out. She's finished with her car in a few months but she's waiting for the market to settle out. Need deals and a lower rate.
Thank God my 2008 ford mustang which i bought in 2013 is still doin fine just turned 100k miles motor an tranny tight as a drum. Ill have that towed to a shop for fuel pump alternator before i pay 40 k for a mid rsnge Suv or 60 k for an average price pickup.
Was at a Chevy dealer yesterday getting the oil changed on my car. I walked the lot while waiting. Still see trucks priced in the $70k -$90k ranges. No thank you! I have need of a truck, but not that badly. Also saw a lot of 4 cylinder Blazers and very few cars.
Please stop making comments like $63,000 is a reasonable price for an F-150.
Agreed, I think because Ford is selling some trucks models at $120K , $63K seems reasonable...prices are totally out of control.
Agreed...it's not reasonable simply because it's normal. I'd say a reasonable price for an XLT would be $43K.
No sh!t. If these guys think thats a reasonable price they are almost as delusional as the car dealers.
A pickup truck, which is a WORK truck, should not be more than $40k unless it's a loaded version that is optional. I'm pretty well off and make significantly more than the average salary, my wife does too.. and we consider spending over $40k to be poor financial management. I get it, some people want to live to pay off their car/truck loans but average people DO NOT want to be indentured to our car loan. These prices are absurd.
stop being broke
$60k for an ordinary F-150 is not OK. I make a decent six figure salary and I am not a fool. Just not giving them all that extra money so they can pay their execs hundreds of millions. I'd rather buy an old truck and pay the local shop to keep it going.
Exactly
Definitely. We have a small concrete business and in 2021 we bought a 21 f350 6.2 dually chassis cab out of necessity for 45k. Now that same truck but a 2025, is now 53k! 8k more in 4 years is insane. It's really out of control at this point.
Thank you! I'm not poor, in fact I have the money to buy a $60k pickup truck but I'm not stupid enough to do so! Why would you? It's insane that people have been conditioned to pay these prices for vehicles. When I was in college I bought a new pickup for $12k and I thought that was pricey... I ran that number through an inflation calculator online and that vehicle would cost me $28.8k today! NOT $60k... NOT $40k... about $30k! I blame the greedy manufacturers for this artificial price inflation because they don't make cars that average people want or can afford - they put themselves in this situation.
A $75,000 TOYOTA TACOMA!
ABSOLUTELY NO WAY
Made in Mexico with 2 dollar an hour labor. 😂
yea and a crappy turbo 4 banger to boot
They’re having issues too. Same with the Toyota Tundra.
My Tacoma cost $12,000.
Ridiculous.
Pure greed.
Been sitting out of the market for 4 years now , I’ll keep driving what I got rather than pay these prices
It would be cheaper to replace every part in my 2017 Tacoma then to buy a new truck. And my Truck is paid off. So why would i ever buy a new vehicle as long as I it would be cheaper to upkeep my current vehicle? And i can buy one of those portable wireless CarPlay systems that connect to apple and Android for $150 or less. I don't need new technology either.
Me too!
Problem is, even not buying a car, my insurance rate has went from $60/month to $266/month in 2 years. Mind I drive a luxury car, but $200/month more is a big chunk. I don’t even have a car payment and it feels like I have a car payment.
Keep driving your used car as long as it runs good and serves you well.
Payback?? RETIRE 5 YEARS EARLY on the money you save!
Same
My mortgage is $1200 per month. Why would I pay more for a vehicle per month than my mortgage. Insane.
The average new car transaction price will not cost you $1200 a month.
It is hard to believe that people are willing to pay $1200 or more per month!
Dealers are lowering list prices a bit. Then they add fake fees and add ons that raise the price Bako up to more than it was before discounts. The numbers are another shady tactic by the dealers.
This is exactly right. Went to look at a base Honda Civic Hatchback for my daughter this weekend and the cost of the car had apx $2k in fees and add ons that you don't know about until you get on the lot.
None of those F-150s are reasonably priced.
Yes, I have been looking for a car. Until prices go down a lot. A few hundred isn’t going to do it. Interest needs to go down. And the bait and switch tactics need to stop. The advertised price needs to be the price of the car. Period.
Ray can say it till he’s red in the face. While yes he is correct that prices are coming down. Taking that cars are 25-50% higher than they should be. Taking some money off the top isn’t moving the needle for average Americans trying to live. Bring in the interest rate and it’s a no go for most people.
Exactly. And the manufacturers are feeling it. Jeep prices are bat shit insane. Jeep Grand Cherokees being all $40,000+ is disgusting. Hell base model wrangler sport models being $35,000+ is dumb as shit.
These companies should all be held liable for price gouging and their CEOs get nothing.
@@tb4326 plus insurance.
@@nissan300ztt Same applies to the Ford Bronco (full-size).
@@jamesmyers9285 yeah. This auto market has been due for a crash. I make darn good money but new car prices are nuts. And I have good credit but don't qualify for 0% and im fine with that. But when a bank comes back with an 8.9% on a $53,000 truck and they want $15,000 down. Seems really bad. Pre pandemic I bought my wife a brand new Jeep Renegade( it's what she wanted) and It was $24,500 out the door with 2%. That same vehicle last year before they stopped making it was $39,000
all you broke kids wont consider paying $20-25k for a 2021 4-door Accord? 8% interest rates are nothing when its this cheap. $450/month for a quality car with 40k miles. I'm still holding out because the one i'm buying is still listed $10k over MSRP with 27k miles on it in Cali. 20 miles away. This is where it hurts as dealers continue to list used cars 2022/2023 at MSRP or higher.
As my mother once said when I was considering a purchase: "Is it something you really need or is it something you just want?" So, as far as a car purchase goes, I can wait. I can wait to have more money saved to pay it off faster. I can wait, because I still have a car that is reliable, and gets me where ever I have to go. I can wait, because I am not desperate and in a bind. I can wait, until I find the right deal. I can wait, because I don't have to park on the dealer's lot, don't have to trade a car, and can leave any time I want. JUST SAYING...
The prices aren't down to the levels to make the average Joe spend money.
Trucks should cost $30k for an average worker today... until they offer vehicles at that price I'm declining a new vehicle.
@@mnn1265 Smart !
yes, i am waiting. My 2001 Marquis is still getting me around.
Haven't bought a car that wasn't at 0% in 25 years. I can wait 🙂
@@kwilliams1958 That's the plan. I've retired, drive maybe 5,000 miles a year. Will last a long, long time!
Hell yeah man! I have a 01 crown vic lx and 03 grand marquis and absolutely love these for the comfort and cheap, quality transportation.
@@jakethesnake4971 We own the best.
@lillymaypatterson6375 absolutely 💯. How many miles and how long have you had it?
Lower prices altogether...you can outrun the interest by paying off the loan early but youll never out run a high principal balance from the onset.
I just got a Honda CR-V 2024 Sport, they hit the "target" from caredge, was a very painless process, and I feel we had a Mutual win. They hit the Discount target immediately and I only spent 90 or less in the dealership. So good experience, thank you Ray/Zack and caredge Team. :) 39k out the door.
I would love to buy a car but I'm waiting for prices to go down.
My wife has a 15 and I have a 16 vehicles. High ish miles but still going. We want new vehicles, but wont pay the crazy prices and high apr.
Yep same. I'm offering 40k OTD for a Nissan PRO-4X, and they are laughing. I'll wait. I'm in no hurry.
Personally I find it hard to distinguish twixt absurd prices and the new, lower ridiculous prices. There is no difference between unaffordable and slightly less unaffordable.
Bingo
@@yelapa999 I don't think lower is right. Less high, but there is nothing lower in that.
@@cageordie Exactly. Advertised lower, but when you walk into the dealership, It's welcome to the funhouse. Ha!
If new cars do not go down at least 60% they will pile up like rotten fruits.
They have to undesrstand most people can not afford those inflated prices.
@@eddym5532 Not going to happen, they will still sell 15 to 16 million a year. Not everyone is broke.
The automakers seem fine catering to the 13% of the population that can afford a new car.
screw not affording, i simply don't want to pay it.... look there is no one on this page that couldn't afford a 50 dollar loaf of bread..... but not a single person in here would buy it because bread is NOT WORTH 50 bucks
tried to convince my wife we could use a new 4runner, plan was to go in and pay cash. she saw the prices and decided a CD at the bank was a better buy.
Guys, Americans are not willing to jump right now... My wife needs and would love to have a new car but she is not going to do it right now.... What she said was" my car is just fine right now it's paid off and the prices of cars are still to high.... She is a cash buyer and doesn't care about a loan. She is done with a 50% increase over the coat of the car she wants from 2018 to 2024.... That's right, the car she wants is the same she has, but it's a 2018.... My son is the same but with him insurance is up 20% so he is out of the market all together until he makes more money. My 2018 F150 is good until 2028 most families I know are on hold as well..
Ray just because a report says prices are dropping. Doesnt mean theyre dropping to an affordable level.
Dealers are the buffer for manufacturers. Until the pain reaches the manufacturers, nothing will change.
The pain won't reach the manufacturer till enough new car dealerships go out of business.
I drive a 2013 Subaru Outback Limited, I’d love to upgrade to a new (er) Outback with updated safety features. I’ve seen 2.9% rate on new Subarus from the dealership, but the price is still too high for me.
The used car prices are still steep and the interest rates make it undoable. I bought my car outright when it was new, I don’t and haven’t had payments. Even with repairs, it’s cheaper than buying.
Good job :) Your Subaru sounds new to me ! Keep it maintained I’m sure it will go a long time ! I feel safe in my 1984 Volvo 240 diesel , it’s last payment was in March 1988, it’s at 388K miles I still do all my own service on it.
YOU GUYS KEEP LEAVING INSURANCE OUT OF THE EQUATION. ALSO REMEMBER THAT INFLATION UP 20-25%. CAR PRICES UP 50-60%. PRICES NEED TO COME DOWN AT LEAST 20-25% OR MORE. FINANCE RATES NEED TO COME DOWN AS WELL.🤔💵💵💵🤔
Thank you!
Finance rates are irrelevant. You should be paying for a car in cash.
At least 60%
@d_all_in so then I guess you have $40,000 cash in the bank? Well then I know who's bank account I need to hack. The average American doesn't have the cash on hand. Get over yourself.
@@d_all_inwhy should me almighty lord. Some of us like to use the banks money
Got a deal on 30 Jun. Last dat of the month and car on lot 50 days. They wanted 26,600$ out of the door mid June and on 30 Jun let me buy it for 6k less for 20500$ out of the door and gave me 2 year warranty. Dealers are making deals and selling at discount. Used car edge to negotaite price down. Worked fine. Thanks Zack and Ray
I bought my last 2 cars new. Last one in 2018. New car prices are insane now. I don't know if I'll ever buy a new car again.
Sounds like a HSN or QVC deal on food. Just pay $90.00 for 6 porkchops and you can pay it off in 5 easy monthly payments. The 6 pork chops are eaten the first month and you still have payments for 4 more months. That's nuts, just like a 96 month loan on a car or truck.
7.75% car sales tax in California, license fees, and 2.9% to 7.19% interest , from 12 to 84 months, plus insurance. On a 50k to 80k plus Jeep is totally brutal for the average wage earner!
Jeep has gone mad. Grand Wagoneer for $150K is just insane.
yes waiting. there are a few cars in my family that need to be replaced but asking price of used cars is still about double what it was a few years back.
Waiting. 4 years ago I wanted to buy a 2020 vette, but markups were crazy. Now, there are plenty available in the 80-100k MSRP (and available at that price). Instead, I'm looking at rebuilding/upgrading my old vette and stang. Advantage, no electronic junk to go out and cost a fortune to fix. Taillights with radar units for example.
I appreciate having Brandon on the show. He adds lots of value.
The price - interest conversation reminds me of mortgages and closing costs. People really struggle to understand that closing costs and interest rates are a see saw. You can get a higher rate that pays a kickback to cover all the closing costs, a low rate where you cover your own costs or an even lower rate where you pay your closing costs and pay extra to buy the rate down.
100 year mortgages in Japan helped cause the overpriced housing market, if they had 20 year mortgages home prices would have to correct to make them affordable DEBT has caused the unaffordability problem and more and easier debt will just make the problem much worse
Been looking to replace my 2010 tundra but no way will I pay anywhere near these prices. As Brandon said, I'm on the sidelines until things come back down to reality. Interest rates are irrelevant, prices are at least $20k too high and I refuse to hold the bag. This comes as much from principal as it does saving money. If I have to wait 5 years then so be it, I'll enjoy not making car payments in the meantime.
You start doing 96 month loans and you will kill future sales. People will be upside down for 5-6 years. Instead of people trading every 2-4 years it'll be 3-6.
Who trades every 2-4 years?
@dondgc2298 a lot of people. Not just people who lease. That's where the conversation starts about negative equity on trade ins. I've even heard of people trading a vehicle multiple times in a year. Sounds wild but it's true.
@@raulo19999 crazy!
Ray don’t get angry with us…. At a local VW dealer the 2024 Taos was 31,999 the last week of April and 33,999 today 🤷🏻♂️
On contrary, I purchased 2021 VW for $20500 out of the door 30 June (last day of the month) where dealer wanted 26,600$ mid June. I got 6k discount. Florida deal.
@raulporrata5032 if you were in say, Aurora Colorado.. you could pay ZERO.
just go steal any vehicle you want, get caught, and see no jail time. They caught the people that stole my wife's Subaru, didn't search for the keys, and wrote them a summons.
Wow
WTF…that’s nuts!!
I heard an industry expert on Car Dealership Guy's podcast this week say that the market lost 12 million car sales during covid meaning that there is pent up demand.
Here is N. Texas, the amount of uninsured drivers is currently 60-65%, which should scare the hell out of anyone. I’m 63 and clean record, I am still paying $422 a month for full coverage on a 2014 Dodge Durango SXT V6. This is insane for me to pay $5200 a year for insurance alone. Border states a crazy expensive. I want to buy another used 23’ Durango, but it is $36k at 18.45% interest. It’s still $950 a month @48 months. I am not doing anything until next year! I am 100% debt free and I am not paying this crap!!!
Two years ago I bought a 2018 Chevy Tray. If you don't buy a lemon and maintain a car, you will have a good run with it. No regrets buying the Chevy Trax. Many people laughed at the fact I bought one. Nobody laughing now. I got what I paid for ( I banged out a lot of the Principal). and it is a good zippy car.
Ya fuck those losers keep driving it
As of July 5, my credit union is charging "as low as"6.92% for new cars on a 63 month loan. Used cars the rate is "as low as" 7.62% for 63 months. the 64 dollar question is in the phrase is "as low as"
Yep…Navy Federal is under 6% on USED so…I’m calling BS on this 14-20% interest they’re talking about. WTF…people have 500 credit scores or something????
Ray always gives me the big boomer energy I love and aspire for. Zack does a great job as vice president and not overshadowing his jobs knowledge, insight and worth. I love this so much. I watch as a general tv show lol.
Average car price for a new car is $47k. For 36 month loan payments is $1400. For 84 month loan payment is $664. I can see why average borrowers choose 84 month term. Average buyer can’t make that $1400 payment at 36 month term. Ray it’s not that the average buyer can’t do the math (they just google a payment calculator), it’s that they can’t make that $1400 payment.
Or we refuse
JP-gc5in, you're absolutely right. I also think that Ray's 10% rule is unrealistic for many people.
I am one blessed man! I got my wife a 2O23 Sportage for $25,21O.OO!!! In 4 years I will have paid it off!!! SWEEEET DEAL!!!!!!!!!!
People with good credit AIN'T BUYING CARS right now.
And yes my family is waiting to buy once prices come down by another 10-15%.
Hey guys, just wanted you to know that in California, they still have,dealers mark up, and still insist that we pay dealers add on
We love our $23k Impreza, $26k Crosstrek and $24k Jetta.
i have 800 credit score buying out my lease - 3 banks wanted me to have 11% - credit union gave me 6.5
I’ve been holding out for years! I am a strictly cash buyer, but I make very good money, so I can afford a LOT of car. I simply can’t justify the prices on most vehicles because of the value proposition. I’ve been looking for a fun manual transmission car for 5 years now, so I know I’m not getting the best value prop to begin with, but…. The crazy part is, it makes more sense to buy a BMW M4 or even a Lotus Elmira that I can easily get at MSRP (assuming it ever ships) than a Nissan Z that dealers are still trying to mark up $25k+. The worst part is, thanks to outrageous markups on the cheaper end, we’re going to hear that “people just don’t want cheap sports cars anymore”, and it’s just infuriating.
Only 16% of buyers pay cash? Guess I'm dumb.
NFW are these cars are worth the asking price. They are overpriced and they are selectively offering discounts while they recover the discount with financing "finesse". These are public companies that should distribute stock to raise capital for investment in the EV transition instead of conserving cash and trying to recover the R&D using inflated margins on customers.
Customers are saying NO!
Tbh, I got done with an email with a Ford dealership on a 2018 gmc serria 2500 one of the mid models that they are selling for 38,000 with 100k miles
Just for giggles I went internet new car shopping. Less than $40k would cost me $500-$700 a month. My credit score is 800 plus
You should be paying cash for your car
@@d_all_inyou should shut the fuck up Mr. MONEYBAGS. Cash buying is highly impossible for millions.
@@d_all_in Not when you can get Zero percent to 2.9
Fed will "surprise" everyone with a rate cut in Sep (.25 or even .5 points) - its a final stretch before Nov and dems will need some sort of a "boost". But it won't mean much - or AT ALL. Too little, too late.
Prices are coming way down in Phoenix !! But those rates keep me away
All the new car lots in my small town are fill to brimming.
I’ve been looking at trucks around 30k and under and I have over 800 credit score and they are offering 7 percent interest. And the payments are over 600 a month it’s ridiculous
You want to know why no one wants to go to the dealership???? The last time I went, I was in final stages of buying a used Mercedes in TX. I had my own loan ready, but if they could beat it I had exceptional credit and total D:I at less than 30%. I'd already done the pre-purchase inspection. They kept me there in the office for 4! HOURS! Seriously. If it wasn't such a great buy (per my mechanic the engine was spotless - he said he'd buy it if I didn't) I would have walked. It was unnecessary as I'd already said no to every single add on. My company serves the auto industry and I knew exactly what was going on - I could see the salesperson and then the F&I guy yucking it up, pretending to be working on my behalf.
I still have that car but I can tell you that I'll never again go into a dealership. Never again. My time is worth SOMETHING.
Yep…go online and you can order a Tesla with ALL the financials laid out in 10 minutes.
Don’t forget Personal Property Taxes. Many Kansas counties taxes vehicles at 4% of NADA. So plates for a new truck will exceed $2,400 per year.
I’m in Alberta Canada and have been seriously looking at an AWD manual car for a while now. The VW Golf R is what I want, and I can afford it, but I simply will not pay the current MSRP plus package addons. The MSRP number is honestly 10-15% too high, it doesn’t matter what the manufacturer thinks it should sell for, it matters what the buyer is willing to pay. There around 60 new 6MT Golf Rs within a 25 km radius of me and those numbers have been steady for the last 6 months. Even with VWs relatively “low” 6.49% APR I just can’t bring myself to overpay for a vehicle although I know I would dearly love.
Looking at used on 2018-2019 Rs, as Brandon said, I would be paying 8-12% for a shorter term which would put payment at the same or even higher biweekly than new. Decided to ride with my 15 year old Mazda3 manual hatch that I still enjoy driving. 6:47
Prices are not coming down in my block 😂😂😂😂
Prices are way way too high🤯🤑 I'll keep the old 2007 Dodge running keeps throwing Parts at it🤑
Just drove past a Ford dealership and a new Bronco had $74 k (Cdn) written on the windshield. NOT A CHANCE!!! Me or anyone I know would not pay that much for a Bronco.
A round of applause for the smart consumer!!
Buy a reliable used car and drive it until the wheels fall off.
The average age of the vehicle mix keeps going up.
Just went looking for new stripped F150s or like similar American work trucks. Ridiculously priced going foreign Nissan frontiers stripped. Unfortunately Americans were not hiring any new employees this year. UAW workers don’t bother applying next year either as u would never get past our first interview based upon your work history….
No thank you. I’ll electric scooter my ass around before I pay those rates
The solution to expensive vehicles is quite simple! Introduce the 30-YEAR car loan!
And zero down payments.
People can’t afford a house. Might as well make the car their “home.”
Even worse. We are actively cheering for dealerships to go out of business.
I bought a 2023 Tuscan for $21 ish with credit union at 5.45 interest rate (I totaled my car and had to buy). I used your tips and and caught the dealership trying to bump up payments so I pulled out credit union rate and quote and they came back with correct monthly rate. (I had 16,000 from insurance to pay down).
After years of waiting and watching finally got a used Subaru Crosstrek 2021. Interest rate 6%. Hardest part was finding manual transmission and a non-electric parking brake.
Def waiting for deals & incentives + reasonable rates.
Yes i have been waiting for a while and will continue to wait. Everyone should.. prices need to drop by a lot, not just 5k off or some BS like that
I am deeply offended, what’s so wrong with Canadian Dollars.? At least we can afford to produce them in a whole bunch of pretty colours! (Yes, colours should contain a U!!!). 😅. Great video guys, highly entertaining, love from the great white north.
Prices are weakening. I'm resisting the itch to use some my cash on a good deal. I want to wait. I hope I do.
You can wait. You've waited this long
@theworldisastage1984 I've bought and sold at least a half dozen vehicles in the last year. Thanks for the encouragement, though.
Save up and pay cash! Don’t make car payments the norm. Pay off your car as quickly as possible if you have a loan.
Considering that most vehicles you buy are already overpriced, the current interest rates almost doubled you'd be underwater big time.
My family is holding out from buying any car or truck this year.
Just replaced my back brakes on my 2001 dodge 2500. Then drove it 1200 miles from Midwest to Connecticut. Yes, it gets about 15 mpg. All paid off leaving ample for repairs and fuel when compared to new car.
Yes I am waiting for more incentives.
They are going to start calling it a car mortgage and there will be 15 year or 30 year options.
I'm willing to concede that car prices are going down somewhere in the country, it's just that according to local dealership websites they're not going down in THIS part of the country. I couldn't wait, my old car was heading toward its last roundup so I used it as a trade-in towards a new base model Corolla and paid less than 20 thousand for my new car that will last me 20 or 30 years because I'm a low mileage driver and paid with a bank draft to avoid interest payments. I just don't earn enough money to take on a car dealership as a financial dependant.
Interest rates are totally insane
Not if you have good credit most all manufacturers have low interest loans.
True! I got qualified for a 4.75 percent loan from Toyota for a Rav4. Paid sticker price unfortunately but at least it wasn’t marked up.
You want totally insane? I had good credit and paid 15.5 percent in the 80s.
Insanely low.
@@rotart12arx3on a few vehicles that they can’t move without incentives.
No, custumers refuse to overpriced and ridiculous dealers fees...
I work for a CDJR dealership and I leased a 2019 Ram, my lease payment was $359 mo. no money down. Lease ended wanted to trade up to the same model with $1k in extras and the lease payment would have been just south of $800 mo. No friggin way, I bought my 2019.
Prices dealers pay are coming down- what they post isn’t so they make more profit
nah, i've been researching F150s for the last 3 months, no XLT is selling for 63k even after tags and taxes unless you are LOADING it up. been seeing them nationwide with FX4, tow, bed, and mobile packages for 48-53k and sitting for more than 30-45 days
face it.some people are addicted to debt.their lifestyle revolves around continuous bills.then their the first ones to complain they never have any money.
190,000 miles on a Jeep Grand Cherokee, hoping it survives for 2 more years. Not buying anything in this market.
I've been waiting for prices to change. Both cost and interest rates. It's ridiculous and I'll just stick with my 185000 mile SUV until things get better.
Without incentives I’ve seen interest rates between 7.99 and 8.99 percent. With incentives I’ve see. 2.99% for 2024 model year but only for 36 months and even with say a $5,000 down payment you’re still looking at 1000+ monthly payment.
I was looking at a Subaru Outback Wilderness and Nissan Frontier both cars start at $41,000. While they’re not as expensive as F-150 or any Jeep they’re still expensive. In 2020 I paid $32k out the door for my RAV4 with 1.92% financing for 72 months, car payment is like $365 a month.
I can’t the thumbs up enough times! I love it when YT channels collaborate together. It’s smart and engaging offering many different thoughts on a singular topic. PERFECT! DO it more often!
I bought our 2015 Transit Connect used in 2016 and did the whole deal over the phone. I am hoping to get 3 more years out of it and not buying till then. Can buy a new Versa 5-speed for under $20K. New Bolt under $30K coming. Don't need a car that does 60 in 3 seconds, 8 is fine.
It a tremendously costly and painful process to change dealorship software. I imagine a few might change but the time involved and training process is huge. I think Ray is right about being bankrupt with lawsuits which would be a shame.
I'm waiting to buy something. Also as someone who was threatening to buy something at many dealers, they still believe it's Covid times. There isn't movement on pricing. I am sure tho it happens in areas, just as Ray says... not in my area. I'm on three different vehicles that I'd be happy with and tried to negotiate, so idk.
My wife is definitely in a hold out. She's finished with her car in a few months but she's waiting for the market to settle out. Need deals and a lower rate.
I will be forced to pay $3k to fix my old car because I can not pay these payments for a new car.
Thank God my 2008 ford mustang which i bought in 2013 is still doin fine just turned 100k miles motor an tranny tight as a drum. Ill have that towed to a shop for fuel pump alternator before i pay 40 k for a mid rsnge Suv or 60 k for an average price pickup.
I bought a new 2023 explorer today at 0% for 60 months at Bill Utter Ford in Denton Texas.
Was at a Chevy dealer yesterday getting the oil changed on my car. I walked the lot while waiting. Still see trucks priced in the $70k -$90k ranges. No thank you! I have need of a truck, but not that badly.
Also saw a lot of 4 cylinder Blazers and very few cars.
The thought of an 84-month term on a Dodge Hornet makes me itch. I need to listen to some Dave Ramsey, stat! 😊
We are waiting till next year... while waiting we are stacking cash down anticipate more incentives and dealer discounts on unsold 2024 models.