I have NEVER seen the USED PC Market like this before...

so one of my friends they recently messaged me and they sell gaming PCs and they said Brian I took the whole of January off but coming back now I should have taken the whole of February off too because usually in January it's a pretty low month for selling gaming PCs especially after the Christmas rush but this year is something different I've actually never seen this worse of a January than ever when it comes to flipping gaming PCs now I think there's a few excuses for that and we'll go over some examples here today and some of the financial condition that are hitting the used Market but basically in a nutshell if you're into buying used PC parts it's never been a better time to look for a bargain but if you're selling gaming PCs it's actually a crazy Market out there to the point where I'm still sitting on one half of the PCS in last episodes of flip up challenge and I sold the other PC which had a wild ride of its own and let me explain here I had an RTX 3050 PC and I still have an RTX 2080 TI PC but the RTX 3050 PC I have had that up for $850 Aussie dolls and it actually took 3 weeks to sell it and in that time I actually got offers for 700 Aussie dollars and I was like after a while I was like sure this is all the markets pricing this thing at I'm just going to sell it at that price so I even agreed to sell the PC at that price but then the guys just never showed up there's actually two people that offered the same price never showed up and then a week later someone came in at 850 and they came and picked it up so that's the wild ride that I've been having right now on the used Market coming into 2024 now the RTX 2080 TI PC this is a completely different story and I don't know what it is lately as well with people wanting to trade es scooters for gaming PCs like almost one in every two messages someone wants to trade an e scooter and say an Xbox or something for my gaming PC and I don't know if you guys around the rest of the world are experiencing these es scooter booms on wanting to trade for a gaming PC but but it is actually so abundant right now I'm kind of wondering if it's either one of two things and this is all I can put it down to is the E Scooters do they just fall out of fashion that quickly in other words they're just one massive fad or are people stealing es scooters and then trying to trade them for gaming PCs I'll let you guys be the judge in the comments but let's get right into now why this January and also I believe this February and the couple of coming months it's going to be some of the worst months if you're trying to sell a gaming PC right after today's video sponsor never pay full price for Windows 10 or 11 again with today's video sponsor SCD Keys you can get activated for as little as $15 using that coupon bftc links in description below welcome back to Tech yes City and here we are right now at the lowest point we have ever been if you're trying to sell a gaming PC now some places in the rest of the world you may be having really good success but I'm just I like to talk to you guys about my personal experiences but a lot of you guys also like to tune in see what's cracker and see if this information pertains to your market and where you are locally cuz basically techia city is almost like this big Hub of PC flippers where a lot of you guys are all over the world flipping PCS where you're at and you have a lot of good success but here's the thing this market and you're probably like Brian why are you so upbeat why are you so happy about this situation and I'm actually it's not that I'm happy it's just that I look back and the 3 months coming up to Christmas I knew when I was in Japan I had to get back to Australia and get into that Christmas boom season because it was actually pretty crazy coming up to Christmas there was just it was a flipping frenzy and I told everyone I knew personally I was like guys you got to get on this you got to start flipping PCS before the end of the year and in hindsight that was the right advice that was actually more than the right advice because I just didn't think coming into this new year it would be this bad but another reason I guess I'm not down about all this is because I know these seasonal demands exist it's always been a thing in a lot of different markets a lot of different Industries but if you take advantage of the good times then you should be able to ride through the bad times and I think I've said that throughout my Channel's history time and time again and it's one big point that comes out of this video is something to reiterate is that always take advantage of the good times because the bad times are always waiting just around the corner and actually it kind of seems like here's the bad times for The Used PC flippers and this is what it is right now because it is stopping me from doing the flip up Challenge Series people are asking me where's the next episode and I'm thinking well I can't give you a next episode if I don't sell the previous episodes PCS and so that's kind of on hold at the moment until I sell the next PC but also at the same time it stops me from buying as many PC parts as well regardless of whether they're a crazy bargain or not I actually have to slow down a little bit if nothing's moving and so what we got right now is a situation of really bad finances in Australia and this is where I'm pointing the main culprit to and that is our fiat currency system in Australia but also the way people borrow money here basically in Australia most people borrow their money via what's known as a variable interest rate and this is on things like houses cars and nowadays a lot of other things too people borrow money to go out and buy gaming PCs in Australia as well it's getting that crazy but these interest rates have gone up and a lot of the times there is a fixed interest rate available but it's usually for very short term terms sometimes it's 2 3 or 5 years and so a lot of people right now who borrowed in early 2020 and 2021 they're coming off these fixed rate interest uh rates they were locked into and they're moving to variable interest rates and though even though it's gone up into the 4% region from as little as 0.15% that 4% is so much more relevant for the conditions today for the average Australian than it's ever been in the past and you're probably thinking why is that there used to be 15 16 17% % interest rates in Australia and people handled those times and they got through them what's different now 4% a walk in the park compared to that 15% interest rate for example and the biggest difference here is is that the size of the mortgage that people have taken out this time around is so much larger in proportion to their income than it was back when those interest rates were like 15 or so% in the 1980s it's a completely different ballpark where say for instance if someone had a $30,000 Mortgage in the 1980s they were earning maybe $155,000 it was a 2:1 ratio nowadays you've got people borrowing a million and they're only earning $100,000 a year and so that mortgage ratio is basically 10 to1 and so if you have an interest rate of 4% it's actually going to be maybe an interest rate really of around 20% if we compare it to those figures back in the 1980s and it's actually going to be worse cuz the banks always put their arbitrary cut on on top which is around 2 3% so even though you see a 4% interest rate in Australia it's actually like a 7% interest rate that they're paying back to the banks now you're probably going to stop me here and go Bri where are you going with this just just bear with me a little bit we're we're going places with this information and that is people have now less discretionary income because the interest rates have gone up they got less money out of their paycheck to now go out and spend on things like a gaming PC and other things that would be recreational they have to then pay that back to the bank on their oversized mortgage that they purchased during a boom run when house prices were going up it seems like at least lately house prices are kind of plateauing in Australia but that's not only the problem here there's actually more problems after that and the biggest one after this Factor alone is inflation and we've been covering this here on Techo City we've actually got an updated video coming out very soon talking about the future of tech prices and where inflation's going especially after the recent CPI report in the USA which was still running pretty hot they thought it was going to go down but it was actually hotter than expected and then they're there scratching their heads going this is fine they don't know how to deal with it basically there's a situation unfolding here that we'll go on to a separate video but it's leading to the fact that people have less discretionary income but it's a double Wy because not only do they have less discretionary income especially in Australia where they got to pay back the banks more money they've got less discretionary income because the prices of the things that they have to have in their life have gone up quite a lot and these 3% figures that they throw around uh 4% 5% inflation we all know that's it's cooked as well when we look at Shadow stats for example they're applying just traditional methods of say you have 1 kilo of steak and here's the price that you paid in the 1980s here's the price you pay now and that's kind of more immune to the measures that they use in these baskets where the ingredients in the food that they use have either gotten cheaper or the products have shrunk and they say say oh well it's only gone up 3% yet the actual quality of the product has gone down and the size has gone down they don't account for that in their inflation reports and so now we couple all this with one more factor and that is the top 1% at least from a recent report now have more wealth in total in the whole of the middle class like I couldn't believe this report when it came out but this is the way the Federal Reserve and central banks and governments have designed the system it is not capitalism people complain about capitalism what we have right now is not true capitalism at work capitalism died in my opinion capitalism died in 2008 the GFC that's when true capitalism or at least remnants of true capitalism died when they started those printers up in Mass they did not let the natural events take course and let the Bad actors go out of business they kept a lot of zombie companies alive after the GFC that shouldn't have been in business and they just roted the system and now this is what you're seeing as a direct result of that and basically what this means is PC gaming has suffered because of this because I believe there's less Innovation involved because companies are taking advantage of the cheap money in the Fiat system instead of delivering true Innovation to us Gamers and I think I've been pondering on this for a while I've been a little bit down about it because I feel like where's Tech going we've been seeing this race towards uh different Technologies like RTX and things like that and sure they're okay but I feel like we should be at a higher level than we are currently and as much as I would like to blame Nvidia AMD and Intel for all this I actually am putting the more of the blame on central banks and federal reserves for the system that they've put in place to enable this kind of crap to happen in the first place and so I feel like at this stage of the GFC just took its natural course the Bad actors would have been out of business the ones that would survive the strong workers most the middle class for example would still be in business still making products and in fact they would have more of the wealth available today which is where you need the wealth to be for better innovation in products as well as better competition anyhow that ran aside how does this pertain now to the used Market well basically your middle class earner now has less of the pie available than they've ever had at least since modern gaming PC as we know it has been in place and so what this means is that if you're looking for a deal and you have some cash on hand you're actually going to get the best deals right now in the used Market Market Bar None for instance I've got a video coming up on the RX 7900 XT and in some cases it can be the best value new card out there at the moment especially raw rasterization and certain titles but then if we compare it to the RTX 3070 TI I got and I'm not even including the free power supply I got thrown in with that this just trumps the value charts it's on another level and so that's the power of used price performance right there in one graph so if you're a buyer it's never been a better time but here's where we're going to flip the side of the equation equation where it's actually kind of sad news and that's if you're a seller and if you're a seller we all know that price is ultimately what sells the product in this case a gaming PC if the price is right someone's going to come in and buy it but here's where if you're the seller you are getting absolutely ripped off via the current crony system in place because you've got to partake in true capitalism lower your prices be much more competitive than you've ever been before while this top 1% group at least the top point 1% group is just taking advantage of a broken system and fleecing the wealth out of it every single day and it's to the point where you've got to complain about it because you can see the cracks exist in this system and it's not fair and it's even affecting things like selling gaming PCs right now so that is the update on the market buying is great selling is pretty bad right now especially if you're selling used gaming PCs or a mix of new and you and that's just the reality of it But ultimately I would like to see our system get back to sound money I think that's the most important thing and if we look back in history anytime there's been economic prosperity it's always been tied to a sound dollar or a sound currency so basically where I'm going with this is overall if you're flipping gaming PCs especially in the used market right now you've got this trend where I'm sure it's going to pick up in later coming months but overall there's going to be this wave that's on this downward trajectory and that's the saddest part that downward trajectory you want to reverse that because basically that downward trajectory is ultimately correlated I believe to a lower standard of living and so that's kind of the sad update but I thought I'd show you guys this diagram with a tech City Paint Shop illustration to cheer you up a little bit and give you a bit of a laugh but I thought I'd make this video to tell you guys I'm sorry that the used content has been very slow right now but that's just the way it is and I'm always going to be honest and tell you guys my thoughts and opinions on various different topics in this case it just happens to have a bit of finance and economic news laced in with it but there's also the inflation news which we'll get on into another video anyhow guys in today's video I thought I'd talk about the problem as well as introduce the solution and I hope you appreciate today's video if you did then be sure to hit that like button also let us know in the comments section below what you think of the used PC market right now are you personally flipping gaming PCs right now what are your sentiments love reading your thoughts and opinions as always and with that aside I'll see you in another tech video very soon peace out for [Music] [Music] now

Channel: Tech YES City

Views: 41,676

Keywords: tech yes city, tech vlog, used pc market, used pc prices, 2024, gaming pc, going down, going up, selling a gaming pc, buying a used gaming pc, inflation, australia, usa, uk

Id: HrNkNAEgWVc

Length: 14min 56sec (896 seconds)

Published: Sun Feb 18 2024