INVENTORY DISASTER But Car Dealerships REFUSE TO LOWER PRICES

INVENTORY DISASTER But Car Dealerships REFUSE TO LOWER PRICES

Ray and Brandon share their knowledge about the car market!

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*None of this is meant to be construed as financial advice, it's for entertainment purposes only.

#UsedCarMarket #CarPrices #carmarket #usedcarprices

[Plow-bx]

The market will self correct if given the chance. No bailouts at the tax payers expense. Greed has consequences.

[HawkEyeJ]

They price gouged us for as long as possible. Just tells me they aren't hurting enough yet to truly lower prices. This will for sure weed out a bunch of greedy dealers out of the market.

[dustincollins]

I think the biggest problem is how high they have raised msrp in the last 4 years. Most people are realizing now they still cant afford the price even with a 10 to 15% discount off msrp. I think they have priced millions of would be buyers permanently out of buying any new car. Why bother to go in and fight to get 10% off when you still cant afford it.

[KADSL]

Dealers have gotten very stupid in the past 4 years, there in dire need of a colon cleansing. Would you pay a markup on a 2yr old loaf of bread?

[donaldbrown]

Back in the 1980s, we were closed on Sunday. Every Saturday before closing we would put 3 or 4 of our slowest selling vehicles up front with a super low "Monday Only" price marked on the windshield. The result was that Mondays became our second busiest day of the week.

[kgjung]

People don't even want to take the time to go see a movie in a theater. There's no way they're going to a dealership to see what the real price is. Sellers are the ones that need to hustle and convince customers. Not the other way around. Negotiations are still going to happen, but it'll never get to that stage unless you give customers a reason to stop by.

[WillShowmaker]

Detroit moved to Mexico, Mexico has moved to Chicago. None of it makes sense, I sure as hell won’t pay 90, 000$ for a pick up truck.

[r.a.monigold]

My first sales job was at the OLD Porsche Dealership where I WAS a mechanic. A NEW Porsche Dealership had just opened about 20 miles away. Folks came by to price compare. We had all the price break leeway we wanted as sales people without asking. The first MONTH I outsold everyone - at BOTH stores and netted more income as well. Reducing your "spff" means you need to sell more. The other sellers were FURIOUS. Porsche Corporate gave me a plaque !

[tectract]

They can't lower prices because that would mean realizing a loss on the books. It would make them INSOLVENT and they would have to shut their doors like the next day after their credit score got readjusted downwards and they lose their credit lines. So basically it's turning into a credit scam of massive proportions, the whole industry.

[brenthouseholder]

I respect both of these guys. I know my situation is anecdotal, but again, prices are not coming down — even when you do go in to talk to sales. I recently was in the market for a new commercial van and a personal vehicle. I went to six different dealerships and negotiated for a 2024 Jeep Wrangler — not one dealership wanted to budge on their price. I told the one dealer that if they took an additional $2, 000 off I would buy that day. They declined and provided no counteroffer. So, going into the dealership doesn’t always yield results, even for cars that have been sitting awhile with large inventories.

[deanmitchell]

Brandon how soon before all the flooded cars from this Hurricane show up at the auctions you are getting cars from and what steps are you able to take to keep from buying one?

[michaelbrewster]

I think, from over 20 years as a dealership sales manager, that mobile homes and car sales have the most unskilled and stupid managers in the world. They don't pay attention to vehicle aging and don't seem to realize that you need to turn and burn to keep going. I have seen dealers that still have 21s on the lot with lots of 23s. How can they be so stupid. This is a recipe for disaster.

[coldwarkid]

Brandon is absolutely right. Whenever me or one of my friends have looked for a vehicle we cruise the dealers when they're closed. An extra markup on the window sticker is an immediate turn off. I bought a new Subaru a couple months ago. The dealer made it very clear online that they were offering about 10% off up front. That definitely played a role in getting my business.

[oneguy]

They are no longer dealerships. They are stealerships!

[danieldornes]

I remember a friend who is a manager at a new car dealership went to training some yeats ago, and afterward told me adamantly they MUST not let any car stay longer than 30 days on their lot. I noticed markdowns on inventory would start after only a couple of weeks. After watching and learning from him and Ray, Brandon and Zach (and others), I see now that with constant changing of car values, the best time for a dealer to sell a car is as QUICKLY AS POSSIBLE, because usually that will be the widest spread between the wholesale purchase by the dealer and the retail sale to the buyer. The gap just gets narrower as every day or week passes, as the value of the car decreases and the cost to floorpan it increases. (And eventually inverts with a resulting loss.) I like your new channel, guys!

[ajhope]

You guys are spot on! Why don't car dealerships realize they're losing out on ALOT of potential customers by not lowering prices?

[ScanFan_Ed]

So many dealers seem to prefer to collect cars more than sell them. I guess the floor plan costs are no big deal to them.

[mikef]

Dealers sucked years ago, they are horrid now. The quality of the vehicles amd parts suck now. I’ll stick to used. Not poking greedy dealers, just not even entering the property.

[BruceandBeateHall]

Can you guys do a show about “why we in the US can’t buy the Toyota HiLux” and other cheaper foreign brands?

[andyp]

They don't want to advertise the real price because they still want to rip off the small portion of people that don't know any better. The true stealership model.