What Just Happened To The Car Market?

In this video we discuss all the factors affecting the car market, both used and new cars - and also discuss if now is a good time to buy a car. Enjoy!

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WHO AM I?
Hello 👋 I’m Humphrey, a former financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

⏱️ Timestamps:
0:00 - Start Here
0:17 - How We Got Here
2:47 - Trend Reversal
6:39 - Interest Rates & Dealerships
7:53 - Concerns for the Auto Market
10:09 - Is it a Good Time To Buy?

[humphrey]

Are you guys buying a car anytime soon? Let me know below 👇

[JayFingers]

I feel very fortunate. I bought a used car right at the start of the pandemic and got sweet terms. The mileage on the vehicle was pretty low, too. Fast-forward to October 2023, and I ended up selling it for more than I owed. About a month later, the value of my car fell by a couple thousand dollars. 😅 Got rid of it just in time. I was looking at getting another car in a few months, and this video has reassured me that we’re coming up on a good time to do so. Thanks for sharing your thoughts on this, Humphrey! Cheers! 🙌🏾

[matthewg]

Really want to buy a car, but don't want to take on debt. Trying to change careers and it's been quite a frustrating process. Don't want to add on the unnecessary stress of a car loan until I get things set career wise. So in the meantime going to ride my 04 Accord into the ground and keep all my liquid in a HYSA, currently getting 5.5% from a referral in goldman sachs

[jacksonbliss]

I bought a used Prius in 2019 and got a fantastic deal (4k off), then I leased a Kia EV Niro and got ripped off in 2022, and my wife just leased an ID.4 and got several thousand off the MSR with no money down and one month free because the dealership was empty because of astronomical interest rates. This a good time for VW owners. ✌️

[GreenTea]

It's unbelievable how long the car market has been in such bad shape. I was barely scraping by financially when I bought a broken 2004 Camry for $1200 in 2020. I was broke and frustrated. I spent a lot of cold winter nights in my ghetto apartment's parking lot, stealthily working on the car since the complex didn't allow it. I had done this for years by that point with other beaters I've gone through. Now, funny enough, once I landed a good job after a few years of work, and some college that I didn't end up finishing, I've opt to keep that Camry alive. Which feels ironic to me, since keeping my car on the road is easier to do now that I can afford fancy tools or to hire a mechanic. No more junk yard trips to get used wheels because they're cheaper than buying tires and having them put on...

I didn't think that the car market would still be so rough after spending several years watching my Camry ease into the 300k mile mark. Being poor was really expensive. I also hate shopping for cars much more than I hate my zip tied front bumper.

[Southernfriedpdx]

I think it would be a good video idea to look at the cost efficiency of rooftop solar panel loans. I have a solar system and it has been a pretty major saving point with the year over year energy rate increases, but it is a complex topic a lot of new home owners might be interested in.

[cw]

We bought our most recent car the day covid lockdowns were announced, and the dealership strongly encouraged us to put way less down than we did by like 50% and they also encouraged us to pick the max length loan term. We didn't do it, but it seemed sketchy that they would even try to push us in that direction.

[imthelovestamp]

Just picked up a 2019 bolt with 30k miles, battery replaced in 2022 under recall. 17k after taxes and the point of sale used EV credit. Screaming deal

[aphomedesign]

I understand that you said to buy a used car is better, but what about when you go to the dealer and the price for a new model is almost the same because everyone is waiting to buy the used car, also why not enjoy a nice new vehicle if you can afforded.

[jonleggett]

I have always follwed the advice to buy used cars. And in 2019 that advice still held true. But from 2021 until now that has not been the case. I just bought a new car for the first time ever because a 3-4 year old car wasn't that much cheaper. Also I bought it in Dec when car dealers are willing to make deals. Now as you mentioned it looks like we're heading back to that situation. But check prices to make sure a used car is a good deal don't just assume it is.

[hisownfool]

I came across this video two months after I bought a new car, a '24 Jetta Sport. Part of what -- pun not intended -- drove the decision was learning that my 2018 Hyundai Elantra Value Edition with 40k miles was going for 90 percent of what I paid for on Carvana. The trade-in value, even at the VW dealer, was almost too much to pass up. Who knows how long that will continue? Second, I could afford to pay cash for the balance. (Thank you Vanguard!) Interesting side note: My car insurance went down after I traded my 2018 Elantra for a new Jetta. Wow!

[Dre-ymwb]

What about the interest rate on used cars? I think it's usually higher than new cars.. in Canada the interest rate for a new car is around 6% and used 9.99%

[CRISZTO]

I got a good deal on a 4Runner, (in today’s terms) best way to get a deal is don’t mention how you’re paying til the very end and try to go end of year, every car is turning one year older and is a bit less valuable. Negotiate that

[dramaticroses]

My car was in the shop for a few months and they loaned me a Madza CX-30 (I have a Madza2). Jumping from a small compact car to a crossover suv made me see another world. I need to get my ducks in a row to be able to save up a nice chunk of change to get a preowned before my car gives me problems. Hopefully the end of 2024 will be the time for me. 😅

[toniolue]

A five year loan on a used vehicle at the cost of a new car blows my mind. I would’ve been cool to see the monthly payments and the total car price between the new vs used cars also. Great Vid!

[CallMeLani]

Yo! Random comment: I remember you and I used to workout with Ali during the pandemic. Good to see you again!

[nickcooper]

This is personal what I do. I buy a new car. Take a 6 year loan pay if off in 5. Take a year of car payments and put it toward a new car. So after 6 years you get a decent trade in and have a year of payments as a down deposit.

[zangarkhan]

Still doubt auto will crash due to how fast dealerships are driving by data driven decisions these days vs. in the 90s where more tolerance was given. Now they pretty good at setting price to sell ratios even if the car is sitting for awhile.

[pavankumard]

So the best time to buy would be next year??

[marklechadores]

Rising monthly costs of auto ownership, high auto loan debt and the bubble are not great signs of personal finance. From your other videos, I'd rather own a used vehicle that is paid off