CARMAX CAN'T SELL CARS! Their Prices Are TOO HIGH!

so I'm at Carmax today and I'm gonna go down there and show you what they're trying to sell their vehicles for all right so as you can see they're actually out of room so they're parking cars this way in these aisles this one comes pre-farted in that's an option on this someone has already farted in it for you oh this is what I want to see over here Tesla Tesla let's see what a used Tesla is that not the ugliest vehicle you've ever seen and they want fifty thousand dollars for it fifty thousand dollars that's crazy that's crazy that's crazy CarMax come on now so I'm at a Car Max today and as you can see behind me they are stacked to the brim with vehicles that they cannot sell they have a vehicle for sale in every parking space behind me and they're even parked now in the aisles because they are overloaded with vehicles all right so as you can see they're actually out of room so they're parking cars this way in these aisles to be able to just fit everything that they have on this lot in this lot so right here we have a 2022 Toyota 4Runner and it's got 17 000 miles and they weren't 47 000 for it so I've been to new Toyota dealerships and that's about the range where you can buy a brand new one so you can buy one that's a year old and it's got 17 000 miles for about the same price as you can buy a brand new one for so this one if you don't want the hassle of farting in your brand new Toyota 4Runner this one comes pre-farted in like you don't even have to worry about it that's a that's an option on this someone has already farted in it for you and you get to you get to pay the same price for that hassle-free shopping that's the way I like it all right let's play a game so this is a 2021 RAV4 hybrid it's got 29 000 miles put in the comments down below what you think CarMax is selling it for don't cheat I'll put the answer at the end of the video all right so if you haven't already please like this video And subscribe to the channel it really helps me out and I would really appreciate if you did that for me so we've been looking for Ford Mavericks out in the wild and here's one it's a 2022 and it's got 13 000 miles now I just found a 2023 same trim level as that last week when I was out looking for Mavericks that was for sale and they were wanting uh 36 000 and they had a fee on top of that and it came out to be about forty thousand dollars now that used for Maverick a year older and with 13 000 miles it's thirty six thousand dollars and the new one that I found after the dealer markup was 40 Grand so Ford can't keep any four Mavericks because they're all here at Carmax there's one down there I got one right here and then I've got another one right over there behind me there's three this is most four Mavericks I've seen in one location ever all right this one actually blows me away I've already seen the price on it I've been wanting to give you my surprise face when I see the prices but I walked by it and I had to uh look at it but it's a 2021 Ford F-150 Lariat it's got 51 000 miles they want 50 grand for it that's crazy so the brand new ones I've been at all these four dealerships is 2023 um X not XLT but the lariat and they're somewhere you can get anywhere from like 65 to about 75 grand on it but that one's got 50 000 miles it's two years old actually is three years old at this point and they want fifty thousand dollars for it fifty thousand dollars that's crazy that's crazy that's crazy CarMax come on now so CarMax just reported their earnings and their sales came in down about 10 percent and this is not a surprise the the used car market has has come down quite a bit the sales the demand is down so this is this is nothing out of the ordinary but what CarMax has said that in the last uh last few quarters that they wanted to do is because they knew the slow time was coming up that they were going to pull back on their buying but still keep their prices elevated they thought that this was better for their bottom line better for their shareholders better for their company oh this is what I want to see over here Tesla Tesla let's see what a used Tesla is I don't think I've ever seen even a used Tesla on any of these dealerships that I've went to to price so 2021 Tesla Model 3 long range um 16 000 miles they're selling it for forty four thousand dollars that's cool I don't know if you can hear it or not but you can actually hear something running in there cool thing about Tesla I just learned this like last week they've actually have a climate control thing so it's a hot day and I'm on asphalt right now it's very hot out here if you can't tell by the sweat but if the car gets over a certain temperature you can actually program it to turn the AC on while the car is just sitting there and that's fantastic feature that's uh I'm getting more and more on board with some of these Tesla features every day so I feel like I just randomly gave a plug for Tesla right there not wanting to you know what I'll do it Elon just to just send me my my Tesla that's fine um that's pavement enough I want the fast one though give me the fast one all right so here's the problem they've been trying to buy fewer vehicles from consumers right and even with them trying to buy fewer Vehicles over the last couple quarters they are still overwhelmed and they cannot sell these cars right now what's the problem they're too expensive so I can actually come over here and give you a real life example of where used car prices have gone in the last uh three or four years so this is a 2021 Venza it's got about 50 000 miles so it's a few years old at this point and uh back uh when my wife was pregnant with my son this is about five years ago we bought a Venza with about 50 000 miles that was about a few years old and we paid right at twenty thousand dollars for we didn't buy a wholesale we actually bought it from a dealer so we paid more than what it was worth at the time but uh CarMax is actually selling theirs for thirty one thousand dollars so similar years old similar miles to what we bought five years ago but the price increase is about 50 percent or more than what we actually paid for our vehicle so prices have gone way up in the last three four years and that's a that's a real world example right there so now what's their plan they want to keep their prices elevated and they want to still continue to make more per unit but this is the problem that you're going to have and if they continue to have that plan and they don't lower their prices then as you can see right here they're stacked to the brim and they're running out of space to actually Park these cars on their lot and this is just one car max out of hundreds that are Across the Nation right and they can't just continuously buy vehicles if they're going to keep their prices elevated and sell as few as they are right now is that not the ugliest vehicle you've ever seen I hate these little things there's people that are in love with them it's just a car with a bed on the back of it um it's a 2022 Hyundai Santa Cruz and it's got 12 000 miles and they want 37 000 for it ugh all right we've had some people ask about Honda ridgelines we've got two of them right here that one doesn't have price listed this one does though so we'll check it it's a 2022 Honda Ridgeline RTL uh mileage mileage 9 000 miles and they're wanting 42 000 for it and you can have the debate in the comments below whether a Ridgeline is a real truck or not and I know what you're saying if if CarMax is sucking so bad then after their earnings report why did their stock go up well really the only thing that shareholders care about is the bottom line and CarMax actually beat estimates and they beat estimates not because they were actually selling more cars or making more uh money per vehicle that they were selling they were able to beat because they cut costs all right we found the Mazda aisle so um again people asking about cx-5s all the time we don't get opportunity to really show a bunch of used ones so here's the used one this one's a 2018 Mazda CX-5 Grand Touring it's got 64 000 miles and they're selling it for twenty four thousand dollars there you go and we've got actual C next C we have a CX-9 right beside of it this white one um it's a 2020 Mazda CX-9 touring it's got 31 000 miles it's four wheel drive and they're selling it for 31 Grand and here's a nice red one over here so we'll check it I think this one's a cx-92 I would assume yep's 2020 uh Mazda CX-9 it's Grand Touring it's got 40 000 miles and they're selling it for 33 000 miles and I'm not I can't remember what the brand new ones of these cost so somebody put that down in the comments for other people but um it looks good but still seems high for the miles and everything all right this is what I want to find the camera owl but there's only a three here and these two actually don't have prices on them but this one does so we'll check it um this is a 2018 Toyota Camry LE it's got 47 000 miles on it and they're wanting 24 grand for it so another reason why carmax's stock went up after they reported these earnings is because when a company that's publicly traded uh reports their earnings on Wall Street Wall Street actually posts expectations for the company and Wall Street had expectations for carmax's earnings to suck so way down here and what ended up happening is Carmax just sucked so they suck just a little bit less than what Wall Street expected which made their stock seem more valuable than what Wall Street had expected all right here's a couple Honda Civics we'll check this one this is a 2019 Civic LX it's got 46 000 miles and they're one 23 000. we'll check this one real quick since we're here this is a 2021 Civic sport it's got 20 000 miles on it and they're wanting 27 grand for it all right so now one thing that is actually pretty alarming about carmax's earnings is they bolstered their loan loss Provisions yet again they've done that over the last couple quarters and what that basically means is that they're Shoring up they're putting some money back to prepare for the repos that they know are coming in so we know repo is a big hot topic of the carb market right now lots of people are not paying for their cars and they're getting them taken away and uh CarMax they actually they hold their own notes on these vehicles that they sell so them Shoring up like this is saying to the car market that you know what we know that times are tough we know times are getting tougher and we know that people that we've sold vehicles to more of them than six months ago or a year ago are now no longer going to be able to make their payments on their vehicles and we're going to have to go get those cars back and when we go get those cars back a lot of time a lot of times we're actually going to have to lose some money on some of these vehicles all right they don't actually have very many Tacomas here but I found one but it's not a four-door it's the little haves the door thing on the on the on the back it's a 2016 Tacoma TRD sport it's got 52 000 miles four wheel drive and they're wanting thirty four thousand dollars for it all right I've had a lot of questions about Nissan Frontier so here's one it's a 2023 Frontier Pro 4X it's four wheel drive it's got 9 000 miles on it and they want forty five thousand dollars for it and for those of you that keep saying well I'm not seeing prices come down even a company like CarMax where their motto has been they want to keep their prices higher and actually make more per vehicle their average selling price has even come down about 5 five percent so even a company like this that wants to keep higher prices they're already cutting prices and you're seeing that across the market right now so it might not be as fast as you would like it or the actual amount that vehicles are coming down is not as much as you would like it's not as much as I would like either no one wants to pay these prices for these vehicles but prices are coming down it's just going to happen slowly there's still not a lot of inventory in the system well CarMax has got it all that's why but there's still not a lot of used car inventory in the system so that's going to keep prices elevated for this foreseeable future so it's going to be a slow Trend down but even a company like CarMax cutting its prices around like five percent that's a good sign that's what we want to see when we want to see five percent this quarter only so five percent next quarter we want to see 10 percent of the quarter after that this is how it's going to go it's not going to be one big whoosh down so those of you saying well prices are coming yes they are coming down it's just coming down slowly all right so here's the RAV4 you saw at the very beginning of the video it's uh 2021 hybrid xse and it's got 29 000 miles on its four-wheel drive and they're selling it for 40 Grand that's crazy we got another one right here beside us so we'll we'll go ahead and check it too just while we're here this is a 2021 RAV4 hybrid XLE and it's got 20 000 miles and they're selling it for 37 Grand all right I just walked down here to the CarMax lot through those bushes right there and I stepped through a spider web on my face for you I did that for you so you better like And subscribe wind lots of wind hopefully the mic's still okay but I'll wait for a minute all right one thing that is very worrisome about carmax's earnings wind I hope this is this is so I hate wind I hate winds so much I used to love winds now since I started making these videos for you guys I hate wind I hate it so much so it's a it's a little bit uh it's I am I am just sucking at words today um back when my wife was pregnant about four and a half years ago yes right um nope

Channel: Car Questions Answered

Views: 474,385

Keywords: Car Questions Answered, car auctions, car buying tips, car market, car questions answered, carmax can't sell cars, how to negotiate, upside down in car loan options, used car prices, truck prices, new car prices, used car dealer auctions, toyota, ford, dealer auction vs public auction, dealer auto auction, dealer auction prices, stock market, ford f150, auto loan crisis, doc fee, ford maverick, repo, auto loan crisis 2023, car market crash, car market 2023, carmax

Id: 6h0NBghDv5E

Length: 14min 19sec (859 seconds)

Published: Mon Jun 26 2023