CAR SALES TANK... Here's Why People Have ZERO Interest!

Car Market FCUKED - What You Need to Know!

Monthly car payments are skyrocketing, repossessions are through the roof, and dealers are still asking over 7% above MSRP on average. Yet, despite all this, we’re just weeks away from seeing deals on new and used cars like we haven’t seen in years! Want to know why? Let’s dive in!
The Current State of Car Payments

The average monthly car payment for new vehicles in the U.S. has reached an eye-watering $735, up from $725 last year. This increase is making car ownership more expensive, driven by factors such as inflation, supply chain disruptions, and heightened demand. Yet, demand has recently decreased, and few dealerships are willing to offer deals below MSRP.
Interest Rates Impact

Interest rates on car loans have surged, with new car loans averaging 6.73% and used car loans at 11.91%. Higher interest rates mean more of your income goes toward car payments, affecting your budget and contributing to rising repossession rates.
Over MSRP Dealership Practices

Dealerships are still pricing new cars 7.2% above MSRP on average. While this is a drop from 8.9% last year, it’s still too high. The top cars priced above MSRP include the Mini Hardtop and several Porsche models. However, there are some cars priced below MSRP, like the Hyundai Kona and Ford F-150 Hybrid.
Repossession Rates and Economic Effects

Repossessions are on the rise, with 1.5 million vehicles repossessed in 2023, up from 1.2 million in 2022. High-interest rates and expensive car payments are straining budgets, leading to more repossessions and slowing economic growth.
The Silver Lining: Market Shifts

Despite the challenges, there’s hope. New car prices have started to trend downward, and used car prices are falling as well. The national supply of new vehicle inventory has hit an 80-day high, the highest since June 2020, indicating a potential buyers' market soon.
Tips for Getting the Best Deal

Research and Compare Prices: Use online tools like Kelley Blue Book, Edmunds, and TrueCar.
Check Dealer Inventory: Look at multiple dealerships' inventories online.
Pre-Approved Financing: Get pre-approved for a loan from your bank or credit union.
Know Your Credit Score: Understand what range of interest rates you should expect.
Negotiate the Price First: Focus on negotiating the vehicle's price before discussing financing.
Be Prepared to Walk Away: If the dealer isn't willing to meet your price, find another dealership.
Look for Dealer Incentives: Ask about current promotions or special offers.
Consider Buying at the End of the Month: Dealers are often more willing to negotiate at the end of the month.
Negotiate Interest Rates: Compare the dealer’s financing offer with your pre-approved loan.
Watch for Additional Fees: Question any excessive or unnecessary fees.
Ask for Added Benefits: Request perks like free maintenance packages or extended warranties.

Conclusion

The car market is challenging right now, but smart buyers can still find great deals. Research, compare, and be prepared to negotiate. With these tips, you can navigate the market and get the best deal possible. Like, subscribe, and stay tuned for more tips and insights!

Let us know your thoughts in the comments below. If you enjoyed this video, make sure to give it a like and subscribe to our channel. We’re posting new content almost every day, so you won’t want to miss any updates. Check out our other videos for more tips and advice. Thanks for watching!

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[jigthepuff]

To get into a vehicle you want it’s $700+ a month. Something is going to have to give sooner or later as potential car buying money goes to rent or property taxes.

[christopherthompson]

People forgot about student loans, rent/mortgage moratoriums, and couple that with the government giving away money people who didn’t see this (crash) coming starting to feel the strain. I paid off my Subaru STI right before the virus happened and I’ve been saving for a Supra the whole time. I’ll hold off until the market levels out. With interest rates what they are currently, I’ll be able to get one for a decent deal soon.

[TheRealCatof]

I'm glad the people that yolo bought cars they can't afford during covid are finally facing the consequences.

[KKop]

loan term was 67 months, not 36 as you said - big difference.

[sheldoncampbell]

The price of used Jeep Wrangler’s are still ridiculously high in the Atlanta Area.

[moottori_paa]

Debt is stupid way to by a car. If you are poor, buy old one and save money to little better one next.

[phaseboundary]

A young person looking to buy their first car should pay cash, then put what would be their monthly average $735 car loan payment into a high yield savings account for when that jalopy finally expires. Then for the next fifty or so years they need a car, they will be continually earning interest rather than paying interest. The cycle would be pay cash then save for their next vehicle, never incurring car loan debt. If instead you start off on the car loan treadmill you will never get off and will be poor the rest of your life, your choice.

[TheMoukis]

People...do not get loans or anything else from a bank if you can't afford something you want to buy. You will get in debt so fast you'll be struggling for the rest of your life. I live in Greece and you won't believe how many people got in debt after purchasing a loan, even with good salaries.

[In-obscurity-nj]

There is a Toyota dealership in Hemet CA selling Camrys under MSRP. If you got $$ down more than fair %. I think if you have something people want they will buy them at a fair price. They sell every one they get

[dapperlygrungy]

If the average loan amount on a new car is $40, 634, people should humble themselves are buy a Camry LE or SE. I got mine for $27, 000 plus tax/lic. with a $5000 trade in, so my out of pocket is $22, 000 which I paid in cash. I have zero note; no monthly payments. Maybe, people are buying luxury, cars when they should really be buying either a Camry or an Accord. I used to drive a BMW X5 and I could still afford to buy a BMW, but I don't want those sh^t broke down cars that are a money pit. I value my time and don't want to spend it at the service center where I can walk out with a $2000-$3000 bill for repairs. Trust me guys, you don't need a fancycar. Luxury cars are show ponies. Get yourself a workhorse like a Toyota or Honda.

[rr]

I've been "WANTING" a new truck, I recently got an out-the-door quote for a 2024 Sierra 1500 Elevation at $38, 800 (no mark-ups or add-ons) which MSRP is at 54, 054. I think it's a great deal but what holds me back from the purchase is those interest rates. Even with a low rate, I'll still be looking at payments around $730-$800 with a 72 month term. My current payment for a 2021 Silverado Custom is $520, 72 months at a 3.84% interest rate. I'll wait it out instead.

[hellotp]

Been trying to get a used n new cars or suv or truck but dealers are awful smh

[oldschoolgamer]

My vehicle is paid off and still cost 600 a month add food to that and all my money is gone.

[Jag-leaper]

Play stupid games....win stupid prizes

[dawkrb]

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it, " -Albert Einstein

[Thomasr]

Just say no. Also: God bless the people keeping our economy going by buying and financing things like cars and trucks and SUVs. Learn that being frugal does not mean just being cheap - its all about value. Loans add no value - actually make things more expensive. Just one time keep a vehicle after you pay off the loan (or just buy a cash car). Then each month set aside the money that would go to a car payment. Do this until you have the money to buy a new car for cash, no payments. Keep driving your cash car until it is truly good and dead. Don't tell the car dealer you are a cash buyer, let them battle it out thinking they can sell you the car for cheap and make up that lost profit in reserve money they make off selling your car loan. Then once in finance just write a check for the total. Then start the process of setting aside what would be your car payment into a fund to buy your next car. Keep driving your new car until it is really dead. You will find that you will have many years of not needing to save up money - use that to invest or improve your life in other ways. You are welcome, enjoy!

[kadeschagunn]

Your buying advice will work half of the time if you’re buying cars that people don’t really want and there is a high inventory. Like a VW Taos or a Mazda CX-30 (or any EV really) it will not work if you want a car everyone wants or sports cars. If you want rebates and big discounts look at American trucks and SUV’s.
But Dealers WILL NOT chase you out the door if you’re being annoying and demanding stuff like the OTD price. Be a nice human being and also don’t put up with bad pushy aggressive sales reps. Ask for someone else or go to another dealer. My PSA for the day lol 😂

[nrich]

Explain to me why would someone pay 40% to much for a vehicle that is poorly engineered and is so complicated that the dealer has a hard time to diagnose and is almost guaranteed to be problematic because reliability is an afterthought.

[ivancliff]

It’s not zero interest. It’s about 10% and up.

[pastperformance]

More inventory, fewer buyers. It could be a tipping point. Now I know the rest of the story!