BREAKING POINT! The Car Market has Suffered a FINAL BLOW!

the top trim here they've already slashed it $4,500 and they're offering special financing of 0% for 36 month loans I'm sure you can easily get that bumped up to a 60-month 0% if you tried over $100,000 for this particular example well you see what you're seeing behind me here just stacking up all these brand new tunders just sitting on Lots collecting dust 2024 Frontier SV bird crap Edition and this one here it's a little more affordable at 42,000 so in 7 days this is going to be gone off the lot and that is no kidding what they say is the wholesale price for this Ram if you were to finance a good chunk of these $100,000 pickup trucks you're easily spending right around $2,000 per month with current interest rates hey YouTube Untamed here I personally believe that we have just reached the breaking point for the new and used vehicle Market in today's video I'm going to present to you some new detail stats facts and figures that are quite alarming well alarming if you're a dealership anyway for us the consumer the buyer things are looking pretty bright as we continue forward throughout the rest of 2024 here so in this video really I want to paint a clear picture of what dealerships are having to do right now what we're seeing them do right now and what they're going to have to do moving forward so stick with me in this video we'll walk through it all you know one of the clearest indicators of the market doing extremely well for buyers right now is the sales figures for the brand new toota tundra the 2024 Toyota Tundra just saw its greatest sale figures back in March just as last month we saw over 15,300 new Tundras sold before that it was 11,600 and before that 9, I think 200 is roughly what it was so it's increasingly getting better for Toyota when well let's face it this is not that great of a truck and people know that people don't love this truck so what does that mean that means Toyota is having to slash prices and we've seen it I've shared it on my channel here before we see Toyota dealerships across the US slashing the MSRP $88,500 or more below that sticker price in order to move inventory because well you see what you're seeing behind me here just stacking up all these brand new tundra just sitting on Lots collecting dust they have to incentivize those interest rates and they have to cut that cost tremendously in order to move it and well over 15,300 units sold last month that's a clear indicator of buyers getting great deals on this platform here you know I think we can confidently say that new vehicles today especially new trucks are easily 25 30% overpriced now you know this same exact TOA Tundra just a few years ago in 2021 you can get the top end trim TRD Pro example of it anyway for $54,000 this right here is a Capstone which is slightly more expensive than the current TRD Pro but this right here gives you a very good idea of just how ridiculous things have gotten right so this here almost $81,000 for this 2024 Toyota Tundra Capstone right that is overkill and that is more than what most Americans want to spend on their new truck especially heaven forbid you're a working man and you want to get a nice truck well the days of getting one for 40 to 50 Grand a nice full-size pickup truck those days are gone and you want to know what's really pathetic nowadays if you're going to get a brand new 2024 Toyota Tundra SR5 base model Bare Bones example right here you are now spending exactly how much you would have spent on that top trim level back in 2021 you're looking at that 54,2 for an SR5 what gives you know one promising bit is we are no longer seeing dealerships charge markups or adms additional dealer markups on top of MSRP we're seeing very very few dealerships do it of course you're going to see it in California till the day you die that's just California for you ladies and gentlemen you might see it in Washington state Florida you know those east and west coast populated states they tend to still do them unfortunately but it is much easier to get them at MSRP or better even tiity Pros you can get discounts on 4Runner tiity Pros nowadays Tundra tiity Pros you can get5 6 $7,000 off of a tundra TI Pro soqu still they're a little elusive um even right here behind me we got some Toyota RAV 4S do you remember the prices of these especially the hybrids throughout the pandemic so many dealerships were just taking advantage of people especially for like the Rav 4 Prime putting 10 20 $30,000 markups over MSRP which is disgusting but we're getting away from that even Ram trx's the final Edition you can get them easily 77 $8,000 below MSRP now right Ford Raptors easily over or under MSRP raptor r that's a different story still but even those they've come down tremendously all that to say markups are becoming less and less popular which is good a good sign anyway so we need to be careful what we wish for obviously we always want the new vehicle prices to drop then we want them to slash msrps greatly however what does that do to the used vehicle Market all these used vehicles here you know they're just sitting on the lot too because there is a second and third order effect when we see those giant slashing of cost on the new vehicle side right something has got to give that means your tradein is now worth a lot less if they're having to sell at a 10 15% off discount right so we're going to start seeing that ripple effect throughout these used vehicles here as we move forward so we're kind of in that weird null period right now where we're starting to see the big slashing of cost of the new vehicles but we're still kind of strong with the used Market but really between now and the end of the year here in 2024 your used vehicle trade in value is going to be garbage yeah one small thing playing to our benefit as well is wholesale figures are down tremendously and what why that's good for the buyer is now dealerships just can't flick their used inventory over to auction and expect to yield maximum gain for it that's no longer the case so now they're actually being forced to discount it for you the consumer the buyer who actually walks the lot and actually buys a vehicle the the wholesale the auction Route is no longer as viable or as reliable here moving forward and that's a good thing guys now we can reap the benefit of the market taking a downturn and you know a promising bit is we are seeing some successful sales figures with cheaper options like the Chevy tracks right the Ford Maverick some cheaper available options are selling like hot cakes because we have too many of these options here this right here is technically more of a base model Toyota Sequoia this is a sequoia SR5 it does have the hybrid it is Bor in the I force Max this makes it a little bit more expensive but even still for an SR5 kind of a barebones example we're still looking at over $71,000 for it gosh and and in in what day and age are we living in that $71,000 is the common typical price for a family hauler if you're like me I have four kids I need something kind of big like this and well I'm kind of forced to buy something very used if I want to get a good deal on something nowadays and well heaven forbid you want a nicer trim option right here we have a Toyota sequa limited and well we're over 77 Grand for this particular example that's quite insane most Americans don't want to pay another mortgage payment if they're going to finance something like this just for their vehicle and perhaps my favorite example of the new vehicle Market taking a huge shift is the 2024 Toyota Tacoma right behind me is the Tacoma tiity sport priced at $51,000 51 grand for a midsize pickup truck it's not even a top trim right it's not a TRD Pro not a trail Hunter but they still want 51 Grand remember when that used to be full-size pickup truck money not that long ago go just a few years ago but here we are 51 Grand and well my favorite part is it is a full new redesign full new redesign and what is it doing it's just sitting here on the lot this has been here for over a month at this point and this is not an uncommon site we see lines of them just sitting collecting dust on Toyota dealers across the us right now and that's a huge indicator when throughout Toyota's history have they ever introduced a full new redesign of one of their pickup trucks or SUVs and just had them sit immediately upon arrival this has never happened and well here we are that's a big indicator where we're at right now smaller engine and bigger payment that is where we're at right now and that's the direction that a lot of vehicle manufacturers are going I'm not just picking on Toyota so many vehicle manufacturers are doing this cramming tiny little engines into these trucks now a four cylinder is in here a 2.4 L 4 cylinder is in this Toyota Tacoma T Sport and well they want a lot more money than the previous generation that did have a reliable naturally aspirated V6 not to mention they're fully made out of Mexico now that doesn't sit right and we begin to see a lot of things like this now this is a very common site at a number of dealerships right now in the window you see a public notice that this vehicle is going to be sold wholesale through the auction if it doesn't sell within the next 7 days so in 7 days this is going to be gone off the lot and that is no kidding what they say is the wholesale price for this Ram so behind me we have a few Ford mocky Mustangs and this is perhaps the most satirical part of the story right the the government pushed regulations and forced the hand of a lot of vehicle vehicle manufacturers to produce electric vehicles and what did we see happen it totally flopped Tesla had the luxury of dropping and slashing their prices throughout the last year and this year included just to move their inventory for dealerships around the US they're declining and turning away their Ford Mustang Machi allocations because they can't sell it they can't move this inventory they can't even incentivize it enough through discounts and incentivized interest rates to actually sell them people are voting with their pocketbook right now and they're not buying off on it so Ford this last month in March produced zero brand new Ford Mustang machis which I personally I'm okay with that however it is a bummer because what does that do that forces Ford to lay off people right and I don't want that I don't want Americans to lose jobs but you see where I'm getting at here it is a ripple effect and when we start losing jobs it has another detrimental impact and another second and third order effect on our economy at large so I don't love it but at the same time the V's got to go now I don't want to totally beat a dead horse here but of course we see it with the Ford F-150 Lightning as well right here is just a small example of what a typical Ford dealership looks like most Ford dealerships throughout the US larger Ford dealerships have upwards of 100 plus brand new Ford F-150 lightnings just sitting on their Lots or in their back Lots collecting dust right now because nobody wants it you know and I kind of find it funny last quarter Ford really paded themselves on the back when they saw an increase in sales figures of 6.8% increase however what they failed to mention is the increase in their inventory at large they're getting a lot more new vehicles their inventory is increasing at a much higher rate than 6.8% you know and we're going to see a lot more deals like the one here behind me this is still technically a brand new Ford Expedition it is a carryover model from 2023 which is not an uncommon site right now you walk to any dealership and you're going to see a lot of brand new 2023 models still on their lots and those are the ones you really want to Target you can get exceptional deal on those ones in particular getting them at at invoice or even below invoice in order for them to move that inventory one thing to think about that we often don't talk too much about is floor plan cost whenever a dealership has a brand new vehicle new inventory sitting on their dealership lot they're paying a floor cost amount a small interest rate that really compounds over time and it cost a lot for them to keep a ton of vehicles just sitting collecting dust this particular example behind me is $10,000 off of MSRP which is great but honestly not good especially with this one being a demo model a few hundred miles on it for test drives and whatnot they could do better you know this right here is a is a clear example we have a couple Ford Broncos here each of them wild track Sasquatch packages this is a two-o that's a four-door 66 Grand and some change 67 and some change over there for the four-door we see a lot of vehicles in this quote unquote segment just sitting on lots to right now and what is it these are the quote unquote toys for Americans uh obviously when interest rates are very very low and the economy is booming these tend to fly off the shelf cuz they're toys and they tend to be the third you know extra vehicle within the household but these right here you know it might might not be a bad time to try to buy one if you're in a position to do it because you can definitely negotiate the best possible figure now you know it's not an uncommon sight to see this as well this right here is a 2024 GMC Terrain this particular one is a Denali and you see there in the window $2,250 off and a .9% interest rate that is not an uncommon site right now and I would easily argue that you can get much more off of that price tag here and while keeping that great interest rate too and we see that down the line here you see a bunch of little yellow tags green tags in the window it's starting to look a little better guys so it's no surprise that the new truck Market is wildly overpriced much of these trucks here behind me they're full size pickup trucks many of them are diesel denali's Ultimate Edition spec to the gills overly speced to the point where they're unattainable for most Americans now if you were to finance a good chunk of these $100,000 pickup trucks you're easily spending right around $2,000 per month with current interest rates that is absurd that's mortgage payments for a truck and heaven forbid you need it for work right you'd be scared to scratch the thing at that point so kind of ridiculous and that is why we see so many brand new full-size pickup trucks just sitting on Lots collecting dust we see it with Ford GM Chevy Ram this is not an uncommon site ladies and gentlemen so you can easily negotiate several ,000 off that sticker price if you were to actually move one right now and because so many vehicle manufacturers have priced their vehicles Out Of Reach for Americans we are now beginning to see a lot of Manufacturers actually drop the msrps of the vehicle here right in front of me is a 2024 Sierra 3500 Denali ultimate so this is the quote unquote top top trim for the 3500 here and well you see over $100,000 for this particular example you know it is a beautiful truck the interior is stunning got that awesome brown leather interior it really is a remarkable truck but man that's just Out Of Reach for most Americans and they've produced a lot of top trims here a lot of these are Denali right in front of me but we are seeing a lot of Manufacturers like we see with stantis you know Jeep is dropping their cost of their Cherokees a couple thousand you know their baby steps but we are seeing some progress in that regard so I found the two most affordable pickup trucks on this GMC lot so I have aand brand new 2024 Sierra 1500 Pro that cost just over $50,000 that's this white one here right next to it is an extended cab not the crew cab for $55,000 that one's in elevation though so a little bit better of a trim over there at the gray one but this one here let's talk through some numbers as an example for $50,000 so during the pandemic when interest rates were you know 2 to 3% regularly with excellent credit for a new vehicle loan you're looking at spending we we'll say 3% you're looking at spending $3,900 extra on top of that $50,000 purchase this is not including sales tax registration all that but let's pretend you spent 50 grand for this one here over the course of that 60-month loan you spent $3,900 in interest so just under $54,000 for this particular white one here fast forward to current times with current interest rates you're spending we'll say a 9% interest rate with excellent credit which is not too uncommon right now you're spending over $122,000 $2,275 throughout that entire 60-month loan so that $50,000 truck quickly turns into a 62 or $63,000 pickup truck pretty insane huh you know I was kind of excited when I popped over to these two GMC Canyons here cuz I saw the 1.9% interest rate in the window however when you get up close and personal you quickly notice the reason why see if you can spot it right there so because these ones are two wheel drive that is why these ones are sitting here in the lot but these largely throughout the US are selling pretty quickly they have a very low lot inventory time and this entire line right here was completely filled with brand new Nissan Frontiers just a week ago so they sold a few it appears as we got a couple gaps now and that's because they're kind of affordable right you can actually get the utility of a pickup truck and not totally break your bank on it so because of that we're seeing things like that Ford Maverick and the Nissan Frontier and if you need a SUV the Chevy tracks they're actually selling you know that's not cheap by any means 49 Grand a lot however to be fair these are often discounted and and and publicly discounted you know quickly when you walk into an Nissan dealership they'll drop this several thousand dolls closer to 40 Grand and give you an exceptional interest rate and well a more affordable option is right here so you get the 2024 Frontier SV bird crap Edition and this one here it's a little more affordable at 42,000 you can easily get this closer to 35 if you tried so right here is a prime example of what we are seeing across various vehicle manufacturers and dealerships in the US they're slashing the price of this 2024 Nissan Morano Platinum the top trim here they've already slashed it $4,500 and they're offering special financing of 0% for 36 month loans I'm sure you could easily get that bumped up to a 60-month 0% if you tried so this right here is why we're starting to see those record sales Sal figures throughout the US those High sales figures from that last quarter is because dealers are needing to get desperate they need to move their inventory and they need to drastically make those changes but I would argue they need to make bigger changes if they're going to actually successfully keep up with the rise of inventory levels matching current demand so big picture wholesale figures are down very low dealers can no longer have that luxury of flicking their used inventory over to the auction to expect high yield or return on those Vehicles now they have no choice but to slash those prices for the consumer for you the buyer walking the lot so wholesale numbers are down forcing them to slash prices for the used inventory when it comes to the new inventory we are seeing a huge huge uptick and a very fast uptick when it comes to that new vehicle inventory pre- pandemic we're looking at 4 million being available at any given time throughout a year pre pandemic numbers 4 million brand new vehicles now we're starting to Teeter tour 3 million new vehicles available within the us at any kind of given time and that increase that we saw from 1.5 million this time last year up to about 3 million I would argue at the end of this year will be easily over 3 million that's a huge very fast jump so dealerships are seeing the riding on the wall manufacturers are seeing the riding on the wall if they don't slash their prices cut their msrps and incentivize their deals drastically they're going to suffer because every single month that passes by all these vehicles here just sitting on this lot they cost this dealership a ton of money and know that so they need to move this inventory at all cost so the fact that we just witnessed very large sales records this last month and last quarter throughout all vehicle manufacturers is a very very clear sign of vehicle dealerships doing just that slashing prices and incentivizing their deals so the breaking point ladies and gentlemen truly is right now it's good and bad it's good because you can get an exceptional deal on New on a new vehicle however your used vehicle your tradein value is going to come down drastically just as much so keep that in mind we're kind of in that null period where your value of your used vehicle is still decent while they're offering great deals on new vehicles so might be a good time to consider buying right now all right guys we'll wrap up the video there as always I sincerely appreciate you taking the time to tune into these videos I thoroughly enjoy talking about this kind of stuff and I love engaging with you all in the comments I love seeing what your thoughts are on it as always so we'll wrap it up here if you haven't already done so please consider like and subscribing I always hate asking that but it does help out the channel tremendously and I certainly am appreciative of it just remember guys when it comes to buying a vehicle at this point in time you are absolutely in the driver's seat don't forget that

Channel: Untamed Motors

Views: 80,237

Keywords: Toyota, Tacoma, Tundra, 4Runner, Sequoia, TRD, Pro, FJ, Land, Cruiser, Heritage, Edition, Trail, Teams, Untamed, Motors, Ford, Raptor, Lunar, Rock, Solar, Octane, 2022, 2023, 2024, 2021, 2020, voodoo, blue, army, green, 4x4, off, road, cement, grey, gray, midnight, black, calvary, capstone, new, how, to, limited, sport, BFGoodrich, car market, used, vehicle, market, trend, trends, market crash, crash, carmax, loan, defaults, interest rates, auto, crumble, fail, dealers, sales, dealerships, dealership, people, bankrupt, cost, of living, 2025, tailhunter, MSRP

Id: zEfMbSk2LbY

Length: 20min 10sec (1210 seconds)

Published: Mon Apr 15 2024