Buying Cars is Hopelessly Overpriced Now...

rapidly Rising car prices has bothered me for the past couple years now I'm not saying you can't go out and buy a car but rather that you can't do it for a reasonable price don't believe me we'll hear factual prices I've pulled from Edmonds CarGurus and Consumer Reports apologies for my voice I am a bit sick right now anyways last year the average cost of a new car was 47 grand even used cars are still averaging 28 grand meanwhile in 2017 just six years ago you could go to some Grandma's lawn a few blocks down point at a car that she doesn't drive anymore all for the low low price of 1800 to maybe three grand she'll give it to you even if you don't care about extra bells and whistles you could literally go to used car lots and find old grocery getter beater cars for one grand or less I've literally made videos showcasing these cars for those prices using official factual data from CarGurus at the time of making those videos by the time that you've spent five to ten Grand on a used car back then you were actually pretty well off you got some decent Wheels like seriously again this is not anecdotal look at the past six years of my 2017 videos that feature these cars that you could buy for 10 grand in those videos I once again use actual factual data obtained from CarGurus at the time so you know that the market prices weren't just pulled from nowhere and I'm not misremembering Mach 1 Mustang Subaru wrx's BMW M3 e46s if you had 10 grand in your pocket you actually could buy those cars in fact you had quite the amount of choices and you were decently wealthy in those choices of course the sad thing is almost all those cars featured in those videos are almost double their prices now I would later highlight this in two successor videos I made on the subject about a year ago social media has forever changed how we buy cars while the internet has existed for some time now social media has only recently took off in the past couple decades growing more than 16 times its size from a measly five percent of users in 2006 to now 79 of the population using social social media in 2019 this is thanks to various social media apps gaining popularity due to widespread connectivity internet availability and of course just growing interest from both consumers and investors alike the reason I bring this up is because social media has forever changed how we buy cars in the past when you bought a new car you bought it because you liked it you would only brag show it to some people after the matter of fact of buying it even then you likely only showed it off to your neighbor a few co-workers and maybe some family and friends my father would do this every five or seven years each time he got a new car he would just showed off to a select few they'd get bored of it after a few weeks but it's okay because my father himself would be fine because at the end of the day he didn't buy the car to impress them he bought it for himself so he keeps using that car for several more years this forever ingrained in my head that the standard of keeping a car had to be at least five to seven years optimally around 10 years and usually at most around 15. of course there's nothing wrong along with keeping a car longer than 15 years if you are willing to maintain it or just really like the Nostalgia unfortunately such a standard now eludes modern buyers who change cars as frequently as let's see this right here there are some people who are changing cars every 18 to 24 months that's basically two years people are constantly saying that you should buy a car at least every three years and only keep it as long as four years tops you also have constant tweets from people flexing about half their car is a 2020 model they're not going to date you if your car is any older than that model year dang I guess a 2017 Lamborghini Aventador s is now a beater guys man who the hell cares about year of production only 7.7 percent of people are now keeping cars for 15 years this used to be the standard prior to the 2000s the average length of ownership in the early 2000s was around 11.2 years but is now dropping to eight years again per person I know someone's gonna google the statistic of how long are cars on the road of course that statistic has gone up but that's because it's changing owners we're not talking about the vehicles themselves staying on the road I'm talking about the people owning one vehicle for a longer time so what the hell happened why are people keeping cars one-fifth the duration that they used to I'll tell you why it's because people nowadays can brag to the internet about their brand new car if you look into the science behind it this is a huge dopamine kick for some people and absolutely affects future decisions and it absolutely can be addictive it can also be harmful and even generate fear there are people who now constantly see their friends changing cars they constantly see the people they follow on social media change cars so out of fear of being made fun of they change their cars more frequently as well because of societal expectations that gives rise to the current problem where people have artificially created a new car shortage despite there being tons of cars still being produced and of course someone is going to mention the 2021 chip shortage in the 2020 quarantine however both of those issues should have tapered off by now yet instead even years later we still see an increase in car prices it's hard to blame a chip shortage when I can drive by new dealership Lots right now and see brand new 2023 models lined up in three rows of 10 on every dealer lot I drive by each one however is now marked up to the moon but I don't get it the supply hasn't dwindled anymore so why are the prices still high well obviously because the demand still is too we still have fools out here changing cars every 18 to 24 months I mean you just saw the same thing I just saw so don't lie to me you've probably experienced it too think of how many friends peers or social media influencers you follow who now treat cars as disposable items and discard them every few years sometimes even months instead of cherishing them and making memories of them for a decade at least exactly I'm not the only one imagining this this is a very real problem with very real consequences which brings me to my next point it's impossible to bargain now of course someone was probably about to comment well if car prices are just High just bargain bro you guys are stupid I used to be one of the morons who tried to give this advice I kept trying to give this advice to quote unquote resolve the situation completely unaware of just how bad the situation has changed I already have a running car it's easy for us to tell the newer people who are trying to buy a car that they're stupid when in actuality a lot of these people are young 20-somethings fresh out of college struggling with student loan debt and currently need to get a new nine to five to not just pay their student loan debt but just to make ends meet right now they do need a car to get around they have to buy one there's no getting around it if they buy a new car 47 grand even if they go for a used car it's still 28 grand on average and that's where this problem becomes really really stressful for them and I can empathize with them because unlike shopping in a supermarket where five dollar item is indeed five dollars car prices are never truly set in stone it's literally stated by the manufacturer it's why they write manual Factor suggested retail price the prices you see have always been a suggestion even if you are a so-called gig chat who'll lock in there puff your chests out and try to bargain at the dealer table it doesn't really work anymore in the past by that I literally mean 2019 AKA pre-pandemic you could ask for a lower price the salesman would pretend to walk to their manager and Boom come back and now you got a car for under MSRP nowadays people are constantly buying them way over retail and again let's not just blame this for introverts who don't want to bargain because even if you are willing to bargain which I am and always am I've tried to help 18 or so friends over the past few years and trying to buy a car and even showed up to the dealership to supervise the transaction I've stopped doing this around mid-2022 as I was driven insane by the realization that my old guard tactics of negotiating don't really work and I don't mean that as in a new guard style of negotiation was developed I mean that in the sense that negotiating and bargaining depending on location can just straight away dead five of those dealers I went to more or less told us this why should I sell you this car for one thousand dollars under MSRP when I can sell to some tick talker who's willing to buy it for 10 grand over we're done here he literally name dropped Tick Tock amid 40-something salesman said that that he would rather sell the car to a Tick-Tock clout Chaser in the next week or so than waste any more time trying to bargain with me and undersell it at the cost of his commission and this makes sense it's his literal job to study car Trends and consumer Behavior so even in his mid-40s he started to use tick tock to learn about car buyers and Trends in 2019 prior this wasn't even something that crossed their minds most dealers were so fearful of losing sales they would do anything to prevent you from walking out the door consumers could literally hard counter bad salesmen by just walking towards the door and another salesman who's looking to snatch up the commission will stop you and offer you a better deal than the previous salesman you just discontinued the transaction from we the consumers had power at dealerships we could even make them compete against each other by visiting multiple dealerships and bringing their papers over none of this works anymore we the consumers do not have power anymore the dealer holds all the power because there's now an abundance of consumers to choose from so they'd rather sell to the highest loaning moronic wannabe than an actual car Enthusiast who loves the car and is trying to negotiate and get it for a reasonable price we are competing against people we literally cannot beat which is why the salesman as well as the dealerships are extremely confident and just turn us down they don't care about bargaining or playing around with it anymore because they've got plenty of people lined up that they can sell the car to for a much higher price than us modern internet culture moves so fast that anything five years ago even on YouTube is practically buried and this isn't me just being a boomer and saying that oh the death of magazines and cable TV is why younger Generations are making the wrong decision because as I said even in the case of the internet with social media like YouTube information from five years ago is already forgotten a lot of people young 20-somethings fresh out of college when I tell them that they overpaid for a modern car that literally costed half if not a quarter of the price five years ago they go no way you're just exaggerating or misremembering until I literally pull up statistics and facts to show them that I'm not joking and this blows their mind because they go well I wouldn't have known that because I didn't start looking into cars until literally this year and that's what makes them so easy to get taken advantage of instead they get prices from famous tick tockers from YouTubers and even from salesmen who run social media pages so the wealthy flexors the wannabe entrepreneurs and the literal salesmen who are making commission off of the sale who are running a social media page are now the ones who are in control of what prices the newest generation sees that's a huge contributing factor as to why these prices are just going so Skyward interest and Loan duration has drastically gone up it's one thing for shortage or supply and demand and blah blah blah this one is just pure greed on the dealership behalf there is no excuse for this and we as people should weaponize ourselves with knowledge and should help each other to not fall for these it is disgusting absolutely disgusting that things like exotic car financing AKA 144 month loans AKA 12 years even exist or collect their car financing that's 96 or 120 month the average loan duration of a car is 84 months average by the way meaning that there's people taking over to contribute to the rising number right that's seven years of your life think of how many people you know who aren't even keeping their cars anymore every seven years but are taking seven years loans on them think of how weird that is and that actually brings me to a story of my own brother who for the longest time was trying to escape Automotive debt because he was changing car hours faster than the loan periods were ending which creates a situation called carrying over negative equity people basically get trapped in loans forever if they are literally outpacing the duration of the loan and of how long people's loans are it's very easy to do that it's honestly kind of hopeless hence the title of this video and no one individual no matter how knowledgeable can stop this tsunami of morons who are now flooding the market unlike my other videos there's no conclusion no happy ending just a lingering question a fear that I now passed on to you viewers watching what is our future what will our future be as a community of car lovers who prided ourselves in working on cars buying them to cherish every moment and tuning them to beat up supercars several times the price what will happen to that culture when those tuner cars cost just as much as supercars when no one has the attention span anymore or willpower to even work on their own cars anymore and they're just shop babies and go even further not only in the debt for the car purchase but even take loans on the mods and even take loans on the labor done at the shop instead of learning to just turn some wrenches so now even purchasing the damn car only becomes a hobby exclusive to the rich and the wealthy and the famous and not to their average everyday man who is willing to just buy the car work on the car fix the car tune the car there's no more passion no more hard work no more appreciation so what will we do if that's the culture if that's the future that we're faced with even in spite of all this hopelessness in spite of all this defeatist rhetoric I just told you I'm so hopelessly finding myself still hopeful I found a place where I still could turn wrenches I found a place where I still could buy new rides and parts I found a place that still was filled with warm Smiles helpful hearts and passionate Minds so maybe I did lie I do have a solution a conclusion maybe though it might not work for you but it sure as hell worked for me funnily enough it was the place I started at long before or even made this YouTube channel I'll keep my heart close to cars remaining hopelessly hopeful it won't get any worse maybe even start to get a little better but if things do go in an uncontrollable role a breakout of Despair you'll know where to find me after all I promised from the start to be an automotive Channel but surprise the automotive category has more than just cars I always make videos on cars still but maybe it's time I bring something from my past as I break forward towards the future having said that thanks for watching And subscribe and like this video if you look forward to more Automotive content four or two wheels see y'all next time blade Angel out

Channel: Bladed Angel

Views: 307,294

Keywords: Buying Cars is Hopelessly Overpriced Now..., Used-car prices are going up: Here's a look at why, Why car prices are still so high, Why used car prices are going up again, New Cars More Expensive Than Ever, Car Prices up, Rising Car Prices, 2023 Inflation Prices, Car Buying Tips in 2023, Bladed Angel, 4 Car Nerd Arguments I'm Tired of Hearing...

Id: diFarEGvYL0

Length: 14min 37sec (877 seconds)

Published: Sun Apr 09 2023