Why The Car Market Is Crashing

Here is my response to @CNBC - Why Cars Lose Their Value So Fast

The YouTube Creator Academy:

My ENTIRE Camera and Recording Equipment:

[DEmechanic]

I’m 23 and a mechanic, I been in the industry since I was 17. My advice to people is don’t ever finance a car, and literally die your maintenance on cars. So many people I see go buy a new car and have all these payments cause they couldn’t afford 2-4k of repairs, due to neglecting their cars. An oil change is a lot cheaper than an engine job or new car. Also don’t ever buy a Chrysler product, jeep, dodge, ram, fiat are all garbage. Absolutely junk. Literally just get a Honda or Toyota and always do the maintenance on time and you’re set. My 2007 Honda accord just hit 200k miles and it still driver like new, obviously I’m a mechanic so I save money on repairs but just by taking care of it I know it’ll reach 590k miles easily. Just wanted to spread some useful info out there for people

[littlenest]

With how suddenly the prices went up, this drop was bound to happen sooner or later

[frankelse]

Simple answer: because people were ripped off and overpaid for a depreciating asset.

[krassimirpetrov]

Dealerships historically made zero money on new cars. They make money with service department and used cars

[l.h.tnguyen]

Used car lots are alot more profitable than a new car lot. This is from personal experience. We would get cars for 5-7k and sell it 12-15k and we did this consistently. Most new cars have 1-2k profit margins and sometimes they sell for loss to meet numbers. If you want to make money, sell used cars.

[Hamil.Stan]

sometimes used cars are only few thousand dollars lower than a new car. If that's the case, I'd rather go for a brand new one. Also with new, you can get the specs how ever you wanted while with used cars you are stuck with what is left.

[Commonsenseisnotcommon]

Best thing I ever did was sold my car, now I just ride my bike everywhere. There is no way I would ever pay any of these prices, and insurance is ridiculous. It’s one of the main reasons I sold my car. I started working from home and realized I didn’t need it, it was just sitting in the driveway. It was already paid for, but I was paying through the new nose for insurance for no reason.

[Slideyslide]

The reason there aren’t excessive amounts of cars is because of accidents. Especially the newer cars built today. They total a lot easier because of all the expensive parts. Ex 3, 000 headlights or 1, 800 aluminum doors.

[zerafians]

there was the chip shortage, not just covid. That was a HUGE reason why the prices of used cars was whacky during 2020-2022. Also, a 5-7 year old car can sometimes be its age right when maintenance costs get expensive. looking at a car thats around 45-100k miles. A 5-7 year old car is an old car. The 2-3 year old car rule is correct though. Not at its cheapest but save that 15-20%

[whorhaydelfuego]

We recently bought my wife what we plan to be her last, or perhaps 2nd to last vehicle, and we bought it new. It's the first time we've bought a new vehicle and while it was certainly more expensive than a used similar vehicle, this way we actually got the vehicle we wanted. In fact when we went to the dealership they didn't have the vehicle we wanted, but to make sure they got our purchase they sent an employee a few hours away to another dealership to get the vehicle we wanted. The dealership process was a colossal PITA and we paid through the nose, but in the end we did get exactly what we wanted. Every other car purchase in my life has been a quagmire of figuring out what I wanted in a vehicle and then picking through the used listings to find something that kinda sorta met as many of the requirements as possible, and then I still had to sort through the short list to find something that wasn't obviously already half way through its serviceable life already. Would I recommend buying a new car to anyone who isn't already well on their way to being able to retire? Absolutely not! But it is one of those luxuries that I think is more reasonable as you get older and in a strong financial position.

[elpayp]

My recollection is that the reason used car prices spiked during the pandemic was because of supply chain shortages for new cars, especially microprocessors, which brought the entire assembly process to a standstill.

[javelsosa]

I’ve been in the automotive industry for going on 30 years, as a salesman, a finance manager, a sales manager, and now general manager. One of the biggest mistakes that I hear, even from people in the industry is that you should never finance or lease your new car that you should always pay cash. There’s only a small percentage of people that can actually afford to pay cash for a vehicle, if you’re going to spend $20-$60, 000 for vehicle, you would be smarter to finance that vehicle and use that money that you would have paid cash towards a vehicle and use it as an investment that actually earns you money on your money, if you have $50, 000 to pay cash for a new car, then you should put it down as a down payment on a piece of property that increases in value.

[XxGBNLxX]

Still keeping my car until it implodes

[ishmamrahman]

Buying a used car over 20k is ridiculous to me... dosent matter how good it is or how low the milage is ... used is used. I rather buy a the cheapest used car over a used luxury car

[jasonalvarez]

Imagine overpaying paying 65k plus for a Toyota Tacoma or ford bronco like people did 2020 - 2022 😂😂😂 laughable behavior

[OnlyToaey]

The reason I got a new car was the use one was almost the same price.

[kinghazythethird]

If you have bad credit, they won’t finance you a used car so some people are forced to buy new

[mikeseverson]

Dealer margins on used vehicles are normally higher than new vehicles.

[Zorapayne]

In 2024, don't set new year financial goals without consulting a financial adviser. There expertise ensure a solid plan for success. Building wealth involves developing good habits like regular putting money away in intervals for solid investments.

[techwithgriggs]

The way I do it is to buy a new car and drive it for 14-15 years then buy a new car again!

Depreciation doesn't matter if you drive the car into the ground! lol