The Ugly Truth at FORD | Customers OUTRAGED

ah well it's 7 P.M here in Ventnor City New Jersey and it's Saturday night which means launch Saturday night with courage with your hosts Ray and Zach and well how are you tonight handsome I'm doing well pops all right do I want to start with Ugly Truth at four to the reason why customers are outraged for the reason that dealers are outraged we have an interesting show for tonight we're going to focus on Ford initially then from this past week we had some earnings come out so Credit Acceptance Corporation and the auto loan delinquency collapse dilemma Armageddon whatever the hell you want to call it there's a lot of issues going on the subprime running space we'll touch on that as well and a few other stories too before we do yeah I want to let everyone know a week from today we will be live on this very YouTube channel from Staten Island at the first ever car Edge Sales Event if you are interested in supporting us and getting a deal at a fair price go to caredge.com tonight and look at what we're doing with the Sales Event now let's get past that pops let's talk about before do you want to start with why the customers are outraged or why the dealers are out are are you I just want to ask one simple question you know because because your mother and I we paid for three semesters of education at the University of Pittsburgh and was there a course that I didn't realize you took a course in hyperbole or something customers are dealing let's start with dealers okay let's start with the dealer all right so there was a very interesting interview that came out over on Twitter but it's X but it still says Twitter in some places on the website and this came out from car dealership guy have you seen what I'm about to play I I I I I watched some of it all right here we go there's a clip it's a minute 37 seconds long let me get it going here so that everyone can hear it bear with me audio's on let me turn this on you ready to go pups yes all right let's rock and roll uh you know if you've been a Ford dealer or might have had the store for generations and you have have I feel I think for some viewers I feel like Mr Farley's trying to become Elon Musk right we're just gonna throw away the old business model and adopt TVs and um um you know splitting the company into three parts and him deciding to run the EV side uh you know okay if you're a guy that makes 100 of your income selling nice Vehicles not sure that makes you feel great great and when they said hey hey you know you're gonna have to do with us one point is a million seven per store or qualified to even get even easy to ship to your store or that's a significant Burden Burden for almost every four year because the average four store is pretty small small so maybe maybe 500 new units a year a year sorry about that Echo let me get rid of that apologies apologies sure so the invest a million seven how many EVS will you get what will the margin get like the payback period's terrible uh and yet still a lot of dealers are trying to do it like and and then the math on this sometimes it gets a little comical for instance we had a client in the Upper Midwest uh that called the city and said hey I want to put in these EV charging stations can you have enough capacity I said no you don't have enough capacity and we can't bring you any capacity for just more more electricity they couldn't bring it to a store so he bought the Chargers from the Ford supplier he installed them he built a wall a six foot wall uh on two sides and then behind the wall he installed a diesel generator that powered the EV charger Ah that's funny all right pups so Four dealers apologies for the echo there folks thanks for dealing with us as we got that squared away four dealers are outraged at Ford yeah because they are converting to Electric they're drinking you know they're buying they're going for it right to build to build a six foot wall to hide a diesel generator to charge the EV infrastructure at their dealership yeah because well the city can't get you the necessary electric for it dealers are outraged because of that customers yeah are outraged because the company that leads the league and recalls for the third year in a row for the third year in a row and this must piss off the dealers as well except I guess maybe not because they get to do all the recall service work but what you're looking at here is this year so far Nitza recalls by manufacturer and it's not even close Yes Ford is red they've had 36 recalls 17 of all the recalls in the United States this year from Ford 4.389 million Vehicles impacted Chrysler is second with 27 recalls and 1.7 7 million Vehicles impacted BMW 20 recalls 157 000 Vehicles impacted Forest River those are recreational vehicles 5 000 Vehicles impacted Navistar those are commercial vehicles here it's not even close no customers are fed up because the quality of the Ford product isn't there and dad the other reason that uh customers are fed up is also going to be because of price when you look at what Ford has done with average transaction prices Ford's average transaction price in the most recent quarter Rose eight percent to 56 270 its highest level ever for Ford the average Ford transaction price almost 60 000 we've talked about on this channel a lot we've talked to afford a lot and with good reason because they're one of the big three in the United States of America we have an opportunity we're going to be at the Detroit Auto Show in a couple of weeks in about about six weeks now and and hopefully we'll get to talk to some people from Ford I just want to ask him what are you doing what what are you doing here I can help you with that help me understand uh um the dealers every time in their Factory rep walks into their store are gone what are you doing what what really what's the plan we don't what do you what is it you're trying to accomplish because whatever it is you're trying to accomplish it's not happening um and the EV business I mean that story from Al Haig um about the interview from cardio yeah about how a dealer you know has to hide the fact that he's that he's powering the the electric vehicle Chargers with using a diesel generator and and the fact that they paid 1.2 million dollars for the privilege to do that okay to to get his hands on vehicles when he can get them that they have no margin built into them and B at the moment the public doesn't even want to buy um you know Ford had projected for this year 2023 to produce 150 000 lightnings I believe if you if you were to check some numbers if they sold less than 5 000 Lightnings in the second quarter okay Lightnings are starting to build up on dealers Lots people are not buying them you don't need to produce 150 000 of them if nobody wants to buy them so if you're a dealer one of the dealers that said I'm in I'll invest 1.2 million dollars so I can be um an electric vehicle dealer through Ford you have to be thinking yourself what did I agree to get myself into uh it is these guys have been selling pie in the sky and when I say these guys what I mean by these guys is the upper management the CEO the the the the the heads of of stalantis of General Motors of Ford have been selling this pie in the sky that the vast majority of Americans want to get electric vehicles and as it turns out this ain't Europe the vast majority of Americans in this here aren't really interested in getting electric vehicles and if they do want to get electric vehicles they seem to be much more interested in getting a Tesla which is a proven electric vehicle than they are in getting a General Motors product or a foreign did you see just no no we'll go there we'll go there we'll go there we'll go there we'll go there well good because the mock-up of the vehicle looks a lot like the blue on you we'll go there let's stick with Ford okay let's stick with Ford I know you're talking about the EV side of the business well that's the that's the business that's draining the money and that's the business where the reason and the in the justification from a business context to jack up the prices for your apps here I mean let's actually pull the data back up on the screen and let's look at this together let's let's dig into this as a team here Ford brand had the biggest hike with its average transaction price up eight percent to fifty five thousand eight hundred and three dollars in high demand the Broncos saw a 13 hike its average transaction price over fifty eight thousand dollars the transit fan Rose 13 to also 58 000 thanks to the addition of pricier electric model and strong demand and pricing power for commercial vehicles we saw prices go up the F series there's stalwart yeah their Bell of the ball had a four percent increase in average transaction price the average transaction price for an F-150 F250 F-350 is 66 000 the reason I bring this up that is because the thing that's underwriting the thing that's even giving those upper management folks that you talk about is the fact that they have an internal combustion engine business an F-series business that for whatever reason people buy these 70 80 90 000 pickup trucks they're starting to less and less the market day's Supply data shows that that to me it feels like you've got one thing that makes you a bunch of money and has the most freaking recalls yes and you're trying your hardest to move in this other direction and it's losing you a ton of money and people that they Supply that inventory is even higher makes me question they they had said earlier in the year that they expected their EV division to lose three billion dollars this year yeah okay but they expect Ford overall to make I don't know 12 to 14 billion incredible okay even after losing three billion on on the EV side of things so I don't know if I was an investor I would tell them well you know what ah that could have been like 15 billion you made if you didn't have those damn EVS yeah um then they had the lower the price of the Lightnings to try and create some demand for the product hasn't really helped and once they did that within a matter of days they they increased the projection for Ev loss for the year to four and a half billion dollars for order so so ice vehicles are are there to underwrite all the losses that they have to absorb while they try to go into the EV business and they haven't figured out how to get into the EV business in a manner that will allow them to make a profit and in a manner that will allow them to keep prices low enough that they can Garner uh share market share and I mean because Tesla controls 60 percent of the market every in the United States everybody else that's out there with their newfangled EVs and everywhere we go we see newfangled EVS everybody else is fighting for another 40 percent and and ain't none of them figured out how to make money on them do you think we're about to see the big shift the big um uh you know is this is this a catalyst type event for the Auto industry we're in I know we've been on YouTube for three years with you all here and we thank you to everyone who has who has been a part of the car Edge Community we've helped by car all that stuff we've been operating in a different Market than normal for the past three years yeah New Normal which makes me think that there are going to be some pretty strange things for example we had Ford come out recently and say they're going to use Tesla's charging infrastructure no one would essentially yeah no one would have seen that happen a couple of years ago do you think we're going to see some changes that and what I mean by that is some automakers who say you know what everyone you want to go spend tens if not hundreds of billions of dollars to go compete with Tesla we're going to carve out our Lane right here and it's just like what Toyota did back in the 1960s we're going to build high quality cheap as can be well I don't mean cheap affordable as Community yeah because cheap has a negative kind of yeah like which automaker is going to look at what Ford's doing look at what GM's doing look at what stalantis is doing and say you know what we're going to build a car that people can drive and we're going to just Mass produce the hell out of it and people are going to enjoy it someone some right well you would think and and I I there was this sales were up 58 year over year maybe it's Honda it could be uh you know and and maybe maybe like Honda and Toyota and Mazda those three and even the Subaru to an extent um those four that have been kind of slow yeah getting into the EV business um you know at the dealership that we're working with next weekend what's the one vehicle they positively absolutely can't sell the four bodies Ram 1500s those are the three they can't sell okay so it it just it it appears to me that nobody's quite figured out how to replicate what it is Greenland's in the house what it is that that Tesla's able to do now there was a comment that we got on one of the one of the videos about Ford and a Gentleman said you know maybe we're looking at this wrong maybe this is Ford's way of driving their dealers out of business yeah you know what that is that is a super for those of you I just saw the comment come through in the chat so we'll start here we'll we'll come back to this red Unk says what's the ugly truth that I miss it the ugly truth is that there are four dealers out there who have invested over a million dollars to have access to electric vehicles and they're fed up because they have to build diesel install diesel generator to charge their EVs and they're also fed up because there's no profit in the EV since they sell and there isn't any demand for the EVS that that they they have to sell and they're slowing demand in general for Ford products and then consumers customers are fed up because Ford is as we like to say leading the league in recalls it's not even by it's not even close Ford last year they were at an MVP page I feel guilty because there's all these these Engineers that are out there to try and sell the iPhone but holy hell Ford last year had the most recalls for this year is by far leads with the most recalls of Oasis the year before last year before so the past three years and they've come out and said we're addressing this now we've hired new leaders Ford's had quality issues that frustrates customers because your car ends up your truck ends up in the shop and the price point we were just talking about average transaction prices at Ford or up eight percent year over year they've gone up eight percent every quarter for the past couple of years ever since the chip shortage in the new car shortage prices for Fords have become unattainable for most people you want an F Series pickup truck it's 66 000 so that's why there's a lot of outrage and it's not we could have said tonight's show could have been about solantis or GM just as well the Detroit big three yes like you just said that maybe this is part of their plan dealerships out of business because that's it if if if what so many people in America want or say they want is direct from manufacturer to the consumer sales much like Tesla you know how many people do we see in the comments and say gee I really wanted to get a Toyota or I wanted to get the Honda uh the pricing was and the wait was so long and it couldn't get a straight answer so I just lightened up their car ready yeah so I just went and got a Tesla yep okay so so Ford knows that GM knows that's they all know it so how do you how do you break the lock of franchise dealers in this country and and we know that that is a insanely powerful lobbying group within the United States um so how do you how do you break the backs of those franchise dealers well um you make them invest 1.2 million dollars to be able to have charging stations and have the privilege of selling EVS that don't make any money so that they that ultimately if they can't sell cars uh well they can't continue to make their rent payments and they go out of business yeah and Ford doesn't doesn't they they don't sell the open point they just say okay well we'll just wait for more to go out of business and more and more of go out of business and then when there's only a handful of Ford Stores left in the Country Ford will say well what if we just buy you out and then they can go into the direct to Consumer business I don't know if that I don't know if that plan makes sense I don't know if it works um you know I don't know that they're ever going to make an EV that people are going to want to the to the same degree that Tesla makes EVS that people seem to want but I will say what I've said in the past and that is the early adopters for Ev have adopted the vehicles they're going to adopt and there there aren't enough people out there looking to adopt any more of the these EVS in the numbers that we have seen in the past so all this pie in the sky that we're gonna oh we want to be at 60 EV sales by 2030 and and you've seen this movie before you know when 2030 rolls around they're going to be saying well now it's by 2040 and by 20 points more slowly than you'd think of course and and you know and you know there's been trillions of dollars that have been allegedly committed to advancing all every one of these manufacturers towards EVs and I and I said this to you before about the casino industry in Atlantic City when when Casino gaming first passed and Resorts International first opened and there was no competition and there were lines literally lines to get into the casino and and not only that you had to have a sport coach so if you weren't wearing a sport they wouldn't rent you one just so for the privilege that you could go into the casino and so everybody saw that and the next thing you know there's like 20 announced or 25 announced Casino Hotel projects for Atlantic City wow and some of them got started and didn't get past like two stories of Steel literally nothing but on the on the beach two stories of Steel that's it they ran out of money the the house we're watching that happen already okay so so my point is that the most number of casino hotels there were in Atlantic City at any one time I believe were 11. and then it dropped down to like I don't know seven or eight yeah I mean I I believe there were eight or nine now it's so everybody's trying to jump on this EV bandwagon well and the bandwagon's not that big I think you make a really interesting point that I I really think you do another piece to this puzzle that's impacting current sales price point of those EVS is through the roof we're gonna do an experiment in just a moment and the actual affordability of vehicles is worse today for new cars than it was even a month or two ago because interest rates have gone up the average new car interest rate right now is 9.2 percent that is gonna that's mind-boggling to many of you out there because you'd say no I last time I got an auto loan it was four percent five percent two point nine percent for used it's up at 13.61 so let's say folks even wanted to go that route yeah whether it's EV or ice vehicle a lot of people are on the sidelines right now because even as new vehicle prices become more negotiable and incentives have gone up significantly yes let me pull that up right here and my favorite is solution yeah yeah incentives for automakers are through the roof yeah they're up significantly lucid's offering thirteen thousand dollars in incentives Infinities offering fifty six hundred dollars in incentives pole star eight thousand dollars Tesla 2500 Ram dealers a ram is offering 4 700 Lincoln 4600 Jeep nearly three thousand dollars the Jeep incentives are significantly higher if you look in the right places Audi nearly five thousand dollars Volvo for nearly four thousand many thirty five hundred Ford only at 2 300 2400 Hyundai at 2100. so the the oems are looking at that dad and they're saying okay people are on the sidelines because they just can't they playing can't afford this stuff yeah there's ice or even and when you see the size of those incentives okay that's not necessarily the cash rebates okay that takes into consideration what it costs per vehicle when they do the specialized financing like mini you could do 399 up to 80 84 months well there's a huge cost to that it's not like you can walk into a mini dealership and get a 3 500 hour rebate you cannot uh but but the cost of of offering some vented artificially low interest rates is really much more expensive than people realize and that's where the bulk of the incentive money is going and to try and try and keep the interest rates I want I want to show you an example I want to show you an example the lease incentives right now so we're working with the car Edge Sales Event it's one week from today one week from today folks we've pre-negotiated deals that would be be ending right it'd be ending right now yeah the dealership closed at 7 pm yeah the dealership we have pre-negotiated dealer discounts the way that that looks like is if you're on caredge.com and you click on this trusted dealer feature we don't have any with Ford you do new you're going to see all the pre-negotiated discounts on Foresters unfortunately it's zero percent we have no discounts they're all pre-sold yeah they own at this dealership they have no inventory of that if I come in here and let's do Jeep really quickly so you can see it you can see the pre-negotiated discounts on Compass or Renegade or Grand Cherokee and then and then on top of that you get whatever fact look at this this is how slowly these expensive electric vehicles or something yes 18 481 when you add in the way I had to program in the software 18 481 in total discounts for a lease the dealer discount on that's like four grand maybe five grand there's 13 14 000 in incentives because these automakers are looking and they hands are going up well that's because they're included in that is the 7 500 federal tax that also helps which which they passed through into the lease so on top of that there's even more money yeah but that's part of that eighteen thousand seventy five hundred is the because if most people are not going to qualify for the full 7 500 if they were to buy or or at least one of these vehicles um so yes on electric vehicles in many cases the discount uh offered from the factory portion of it is much larger because they're passing through the 7 500 credit anyway it's just an example of to your point earlier well maybe the maybe the the group of people who actually want to buy these expensive Vehicles as well well yeah when interest rates are Sky High and also the the vehicle prices are Sky High that that contributes to it all right let's come to the chat here pops we've got from Maury thank you uh contribution so much for the 23 combustion engine band these corrupt politicians want to force on everyone it does feel a little bit like that I'm not gonna I'm not gonna fully go in that camp but we're good it ain't happening by 2030 it ain't gonna happen by 2035. no I met the politicians trying to force something off oh yeah of course he'll do it I'll I'll I'll you know is it a good time or a bad time to buy a new bar to pay you off a politician it's always a good time before we answer this one dad I want to pull up we did a live show about this yeah exactly Orient saying with the UAM which is UAW strike Upon Us vehicle prices will Skyrocket good used car prices will increase as they will be rare the United Auto Workers are trying to negotiate September 14th was it was the is the drop dead date for a new contract with United Auto Workers which impacts the Detroit dig three stalantis General Motors and Ford if there's not a deal secured for labor the people that actually produce the vehicles then we do anticipate that prices would go up well there would there would be I'm sure the UAW will authorize a strike yeah how long that strike will last it could be one of the reasons why um you know a lot of the manufacturers have increased um their their own hand inventory dramatically is because they're they've been anticipating a strike but think about that think about this question then we're going to keep going to think about this question from Jeff is this a good time or a bad time to buy a new car we're not talking news we're talking new car and if I'm thinking about GM solanthus Ford I actually am probably looking now I'm I still think end of year is going to be the best time but if that strike happens yeah I don't see why prices would go down because inventory the pipeline of inventory for those three brands now if you're talking about trying to buy a Honda or a Toyota weight I don't see why I would if you can wait because they just have no inventory yeah they truly have no inventory well that's mine too so but the but the big three have inventory and we'll continue to have it I you know and one of the reasons they were inventory has grown was in anticipation of of the tough negotiations that we're laying ahead uh or lying ahead with the with the UAW um you know and will there be enough cars for a little depends how long the strike lasts um and then and then part of the what I what I suspect will happen is that is is that the big three will go to the government and they'll say uh we can't have this is this is bad for the country and then we'll ask the federal government to step in and and uh stop the strike and that and stuff like that has happened before yeah okay so I wouldn't be surprised if if that were that is going to play out so interestingly in the political Arena because the perception of the automakers and dealers is the worst it's ever been because of all the price Jack you know price gouging and Market adjustments and things like that oh man and I do go back to there's never been a better time to buy off a politician than right they are available ladies and gentlemen ah man Darion wants to know or Daron excuse me um is it a good time to trade in and get a new lease we are seeing such incredible downward pressure on trade-in values right now it is sad it's sad because a lot of people folks have been following us knew that they were in a position where their used car was worth a ton of money relative to what they paid what they owed on it that that is flipping right before our eyes we are seeing every single day I was talking to a gentleman dad Stephen Stephen's coming to the car edge sales event next week can't wait to meet him in person he put 17 000 down on a on a truck that he bought last year in April yeah he's in a two thousand dollar Equity position right now after driving it for about a year let that sink in he put seventeen thousand dollars down okay well there's certain things we don't know yeah okay here's the certain things we don't know we don't know a how much he paid for the truck B if when he bought the truck if it had some type of Market adjustment that he paid for it was a 51 000 used truck ended up after they attached the extended warranty that he didn't realize he bought it was up to a sixty one thousand dollar vehicle it put seventeen thousand dollars on it's just an example that of people put a lot of money down they think okay I'm gonna I'm gonna pay it off he's paid off eight thousand dollars of it so far and he's looking at himself he's like holy cow well I've sunk a lot of money in there can I can I help them lower so I'll have even more Equity huh cancel it there more oh I explained that I was literally on the beach with my friends with my friends today yeah on the phone with Stephen yeah and I was like yeah you can cancel the warranty he's like yeah I put 3 300 in the warranty I was like I was like how many calories have you driven yeah and he's like uh uh you know maybe about it's a 60 60 000 mile uh 10-year contract he's like maybe around 10 000 I'm like you can get 80 of that money back he's not gonna get it but it'll it'll go yeah it'll go to lower the payoff cancel my extendedwarranty.com we have a free guide on how to cancel your extended warranty but I get my point being now is now a good time to trade in again at least it could be but but my my point was was there was there additional dealer markup and there was because there was an extended warranty snuck in yeah there was tax and state fees that typically had 10 percent he doesn't know when 20 yeah yeah so so you know just because somebody put seventeen thousand dollars down if there was if there was ten thousand dollars of Market adjustment and ten thousand dollars in state fees well yeah I mean if it was if it was if it was a brand new Ford truck that was 66 000 on average no no we we anticipate a major negative equity crisis I mean it's happening right now it's happening right before our eyes every single day so we have for those of you who are unfamiliar we have a ton of resources back at caredge.com we're obviously pushing right now the Sales Event because we're very excited for next week but if you click on sell we have this like network of in-market dealers that offer to buy your car you just put the information in there and so every single day we see hundreds of offers come through and the trend of people who are accepting those offers is falling yeah because people are looking at that and they're like wait I thought it was going to be worth 25 000 and the offer 17. we're seeing more and more of that right now well you know if if wholesale values are going down and they are they have been um then trade-in values are going to go down and they're going to go down faster than normal wholesale values because you know it's when the dealer really want you know you've heard me say it a zillion times the dealer makes their money when they buy the car okay if they buy it for the right price they're going to make money yep if they pay too much for it they're not going to make money yep so well the whole theory is to yeah I had a salesperson work for me didn't matter how much you appraised the car for he would go out and he would tell the customer two thousand dollars less than what it was appraised for yeah because his theory was whatever number I tell you is going to be too low yeah all right pops let's keep going through the chat here we've got from Brayton I wish Zach is right but the truth is car makers know many Americans are used to taking out 72 84 and even 96 month car loans so no need to make cheap cars this has become all the more clear today as we've actually started to do the Sales Event every single person I've interacted with so far except for one except for one has been I want to lease this car I want to lease this car and you and I come on this thing all the time we talk about out the door price and every single person I'm talking to says to me I love the out the door price act but can you make sure my payment's less than this I'm just like damn it do you know why that is why is that because 85 percent of all buyers are payment buyers and that's all they look at and man this is what Braden's saying people have become conditioned did you did you see um there was a chart today about states with the highest percentage of loans that are a thousand dollars a month or more okay there were two states in America where over 20 percent of all the new loans were at a thousand dollars or more in payment I'll tell you one of the states one was Wyoming I know that just seems odd but you know because of the other California no Florida no think think really hard what's a big big truck State Texas Bingo buddy over 20 over 20 percent of all the car new car loans taken out in Texas are represent a payment of a thousand dollars a month or more now what do they drive a lot of in Texas big trucks yeah because apparently you can be incarcerated if you just drive a regular car okay so so apparently the long Texas is it if if the sun if if he ain't driving a pickup truck yeah he's going to jail so so they make everybody buy a pickup truck well the average price of a Ford pickup truck 66 000 66 000 wait because of course one-fifth of all the loans are going to be with a payment of a thousand dollars or more I kind of feel like a little bit of an idiot but I kind of want to do this all together all right so if the average threat let's do it let's get rid of trusted dealer yeah and let's go back to Ford and let's do new okay here we go okay this Platinum right here yeah I'm gonna go down to the monthly payment calculator seventy thousand one hundred and twenty dollars let's go see here holy cow I wonder what the MSRP on this thing is let's look at that really let's go to the dealer website bear with me folks share this tab and stuff all right this is 77 120 truck and they are discounting at Seven Grand does that not Unleashed at least on their website that doesn't mean that that's what you can buy it for when you go in yeah sadly that's true because it's not actually though build on what we were talking about the beginning just look at just look at the sample pain that they show you the sample payment they show you is 60 months at 6.9 percent you're at 1247. I wanna go back to art with with seven thousand dollars down yeah how many people you think are coming up with ten percent down saying 77 000 okay and now you can get 10 you remember when we were in the chip shortage the new car shortage and trucks like this yeah for 10 over MSRP yeah the market really is really interesting if if if if partially so so yes if you're looking if if you live in Texas and you feel compelled that you have to have that big ass pickup truck okay um how are you getting one where your payment is at a thousand dollars a month or more and we didn't even put in the fact that the average new car interest rate right now is 9.3 9.2 9.2 let's look at that really quickly humor me live in this moment I wanna I wanna pull this off I I try to live with you in all moments you live with me in all the moments I appreciate it yeah all right so you're out the door price if you were able to get it at their 70 120 and we're in Nebraska here's this is what your doctor is here yeah so we're assuming these are all the accurate fees let's let's go let's just let's make this nice and easy 75 000. okay I'm 7 500 yeah are we going to be over let's stretch it out man yeah let's stretch it out go to 84 months but we're going to be at unfortunate nine point two percent nine point two percent what do you think the payment is well I think it's about a thousand bucks about the door price went back up but anyway that's right wow an 84 month note yeah with 10 down yeah whoa yeah do the math now that's you know if it was just a thousand dollars it's eighty four thousand dollars that you're paying for that that truck oh wait I want to get it under a thousand dollars there I go there I go all I need to do yeah is convince the financial institution yeah that they should lend me sixty six thousand eight hundred and eleven dollars how many months is 96 months how many years is that no don't say let's see don't that's eight yeah that's eight years how long do people stay in a car um well uh yeah well the average age of of vehicles on the road today has gone up dramatically um but I can tell you when I when I was actively in the business you know we would you know people would sign up for 60 month notes and well you know three years in they want to trade out of them okay then so then in order to roll their negative equity into their new loan we would sign them up for 72 months you know and the same problem would occur in 36 months they want to train but at 36 months they couldn't because they had so much negative equity we couldn't roll that on and so so those people had to end up going about 48 or 54 months and now you know we got to take you out to 84 or 96 it's yeah so if you buy one of these and you've let's say you finance it for 84 months for seven years which we do not advise we do not especially when you consider the fact folks that the average warranty on one of these vehicles is three years 36 000 miles whichever occurs first yeah so from the manufacturer so let's let's say let's say you drive 12 000 miles a year so three years in your warranty is done the end of three years you still have four more years of payments and you have no warranty what do you think that might cost you because at a certain point in time you're going to have to do some maintenance yeah okay uh I I don't want to say anything just but based on recalls I can tell you this stuff's built to break yeah yeah you know what man I feel guilty we're 40 minutes in and we're still talking about Ford quality control issues but you're so right Dad the powertrain warranty is three year thirty six thousand miles and if you're taking out an eight year the power the powertrain warranty oh seriously yeah yeah but but the bumper to bumper yeah but still like what's what's the what's the recall right now for the Lincoln Aviator there's a stop sale on Lincoln aviators a Ford product because the rear camera doesn't work that's not that's the 360 degree camera doesn't work uh well it does work but but there's a likelihood that you can encounter a blue screen or a black screen and well that's a safety issue because well it makes it a lot more difficult for well can I can I just say one thing about this go for it okay before we had backup cameras and people had to go like this okay I mean I don't give a I don't give a damn I I don't give a damn if it's a blue screen a black screen or no screen you don't need a screen to back up my point was going to be that not all of these issues out of recalls are power drain related but they just have to pay for them if it's out of warranty yeah I mean you know for the life of me come on these cars are having more and more technology in them and it's more stuff that's likely going to break yes and and you and if you're on an eight year note at a thousand eighty one dollars a month I can't that's okay let me let me make it worse for this that's my red let me make it worse for the people around so you're on this you're on this 84 note 84 month note of a thousand eighty one dollars a month okay now I'm thinking you're probably stretched a little bit and that 1081 a month that's not leaving you a lot for discretionary income so I'm just guessing I'm just guessing that those people that have those notes they're not like I don't know putting an extra hundred dollars a month into a into a savings account for when the car breaks um so they can have some money set aside to take care of Maintenance that it's going to need find another 100 or 200 a month to set aside for something let alone let alone set aside money in their in their normal savings account or their their retirement accounts I mean people are stretched so thin well I I need to be stretched to be thin but um you know my point is financially people are stretched so thin I you know they don't they don't think about what happens when this breaks yeah and then well and and insurance is going up because the average price of cars have gone up which means the average price of repairs from an accident have gone up so everything's going to go up and then you get like my age and it's like Dad now no no no no it goes up because you know they just figure you don't have the skill set anymore at a certain age and then like let's say I lived 80. let's hope that I do and I still want to drive yeah you know my insurance is going to Skyrocket because I go well I don't want an 80 year old or no driving a car all right I just want to be very clear yes back at courage.com I put the link down there we do sell extended warranties vehicle service contracts are what they're called we've got in a pretty incriminating video coming out next week about someone else in the space who does very shady tactics we make six hundred dollars the number that you see you don't have to give us any of your personal information you're gonna quote we make six hundred dollars use that to negotiate left right and everywhere in between if that's the type of product that makes sense for you because you're right the expense for these things do go up and use the damn extended warranty quote as a way to it's a proxy measurement for how expensive it's going to be to own a car run it for a BMW compare that to a Toyota the BMW is going to cost way more to own than can I show you something else yeah yeah just go on our website there you know we do have the data on the website yeah uh if you go to car Edge and and there's we have all of the cost of ownership data right there yeah and we need to spend more time sharing that with people all right let's keep going here pops we had a lot of contributions come through we're going to look at those in just a second I want to pull this up from David David and I have been emailing and it's changing exchanging messages back and forth hopefully fingers crossed David's going to join us next week at the car edge sales event is David related to the late no blank I will ask him in my next email okay so David yes I'm happy you're here please share your experience thus far hopefully it's been different than the traditional car buying experience we've got this contribution dad that came in from Michael Preston I wanted an electric car but I bought a Hyundai Elantra blue for 25 000. I can buy a lot of gas for the twenty thousand dollar difference in price if you can indeed yeah wow thank you for the contribution Michael and that's a very very much fair point we've got here from Amon pops five dollar contribution with you thank you appreciate it thank you guys use the knowledge you shared to buy a new Camry SC for 26 000 out the door price of 28 600 Toyota financing a 2.75 yeah my guess is that that's probably only 36 months but that's fine that's great yes yes that's terrific that's what yeah it should do yes from Shannon we always Shannon Shannon uh thank you for the contribution excited that there's actual data supporting what I already knew here in Texas I see this with my friends now hope to see you guys at a dealership one day here in Texas or a border state when we're down there hopefully we're near you that's a massive State because that is a big state that is a big state but yes next time if we are down do the other one in a minute we're going to go there towards we're going to go there towards that we're gonna go there towards that because now Dad yeah we need to talk about General Motors General Motors made a big announcement the other day we're talking about vehicle affordability we're talking about the push from the oems that we need to go electric yeah General Motors made a huge announcement that's a progressive announcement an announcement to help us really realize this vision of affordable American-made Vehicles yes that I'm proud yeah that that the the biggest automaker one of the biggest automakers actually they are the biggest automaker of Toyota doesn't beat them in the united states in the United States they're not in the world Toyota is still the biggest the commitment to vehicle affordability has never been stronger Cadillac one of the General Motors brands yes price is new celestic how the hell do you think they want you to say that I'm not sure well um we got you celestic yeah why don't they just say why don't you just call we're grabbing it now uh I'm doing celestic okay celestic the new who doesn't want the new Chevy Celeste no it's Cadillacs the new Cadillac the Chevy brand will be at least a hundred thousand less three hundred and forty thousand dollars can I can I help them with this take a look at how well lucian's doing yeah exactly okay lucian's losing what was it 555 thousand dollars per loosened salt Okay so and they're less than that Cadillac um and and I'm guessing it might even be I I've seen them it's really a wonderful looking carpet pollution yeah yeah yeah I mean nobody in the right Minds buying them they are cool looking but why why why why why would anybody spend 340 000 for a a an electric Cadillac that now having seen that I understand why about a third of the Cadillac dealers took General Motors up on their offer to buy them out when they said we're going to go all electric you're either in or we'll be more than happy to buy out your dealership buy me out because I was buying that and my guess is there's no margin in it for the dealer what video did we do recently what video did we do recently we visited Dad we visited our local Mercedes-Benz yes okay so we're going up Market on expensive electric vehicles and let's look at this this is Omaha Nebraska that's the ZIP code I currently have in here yeah but let's look at Mercedes-Benz let's do new and then let's do Fuel and performance electric all right let's let's look for for an SUV I want an image of one here we go here's an eqs yeah only 75 days on the market yeah a market day supply only 165 days that's pretty good okay and that's that's less than half of what that Cadillac is going to go for so if you are those dealers you said it earlier in tonight's show you said that maybe what we're witnessing maybe what we're witnessing with the automakers investing all this money in expensive EVS that no one can seemingly afford yes is actually a ploy to get their dealers to throw up their hands you don't know that enough just buy us out yeah you're right a third of Cadillac dealers last year took buyouts yeah from General Motors no this ain't gonna work you know wow you could be onto something you know here here we are in in the rural Indiana as the local Chevy GMC Cadillac dealer um yeah you can have my Cadillac for it because because ain't nobody you know nobody's buying an electric Cadillac when they have to go buy I don't know I have a million dollar combine I wanted to I just want hey here you go maybe maybe I'm off man maybe Lincoln Nebraska is the hotbed of um you know Mercedes electric vehicle 165 days Supply there's 11 for sure eleven for sale in three years we sold in the last 45 days let's try one other region let's try our region we're in 08406 right 08406. yes update location [Music] eqb that's a reasonable price okay here we go Mercedes-Benz of Cherry Hill this is the Key West but I want to see oh these are real images okay these are real cars that are there let's look at it there it is 275 days look how many are for sale 459 for sale within what is this 100 miles of 08002 which is where this dealership is yeah that's right outside of Philadelphia so right outside of Philadelphia there are 459 2023 Mercedes-Benz eqs base the base is 135 wait wait scroll back up a second oh yeah and there's the fair prices well list price wow wow wow wow so people evidently are paying for him no people no people aren't they're sitting man yes and then you've got a Cadillac coming out with their Celeste stick yeah I'm just gonna I coming out with their celestic celestic do you think the tea is silent celestic I I would I I would think for that for that price they should come up with a name that someone could pronounce celestic yeah cialet uh it's the new Cadillac for sticking a table you're sticking it to you yeah yeah man you really could be onto something that this is the oem's ploy yeah to get their dealers to throw up their arms the Cadillac bend over dad Hey kid thank you only people who will pay 340 000 are those quote flexing for the gram no you know I want to be honest here yeah because we didn't talk about tonight but we can touch on it at least you know just for a moment here the largest subprime auto loan originator one of the largest subprime auto loan Originators is an organization called Credit Acceptance Corporation and we're not going to dive into this too much I promise this ties back but if you look at their most recent uh financial statements yeah from their quarterly report I know that's tiny up there on the screen but what I want to focus everyone's attention in on is this right here an increase in provision for credit losses of 70 103 million primarily due to an increase in provision for credit losses on forecast changes of 118.8 million primarily due to a decline in consumer loan performance during the second quarter of 2023. the reason I bring that up that's awfully wordy to say hey people ain't paying their loan the reason I bring that up is because the Flexin on the gram culture is what's leading to the compromise of subprime credit performance all those people who had PPP money or whatever the hell or just PPP or whatever it was right those are the people who were spending that money buying the new car getting Credit Acceptance Corp to approve it and now those loans are going delinquent the people spending 340 000 on a celestic that the people buying celestics are just yeah they're rich they're just Uber Rich I'm I'm assuming that there will be at least one YouTuber that provides a celestic so that they can do a review or whatever yeah but you know that's that's like you know three hundred and forty thousand dollars for a Cadillac I don't know for 340 000 I would expect to walk out I don't know with 10 or 12. 10 or 12. 10 seems reasonable yeah maybe five but you know Laura salzer in the chats and you could buy a lot of White House Subs with that money and for those of you who don't know what White House Subs are they are look up White House Subs in Atlantic City New Jersey and they are uh perhaps the finest submarine sandwich made in America today all right pups let's try and do it let's let's try and help here are there any affordable base model trucks any size that a working man can afford anymore entry-level trims have gone up significantly in price we actually did a really interesting analysis over on the car Edge website about this I'll try and pull that up and while I am my point is going to be that if you can find entry level options the price points are generally affordable I mean don't think about financing right now it's the fact that these automakers have really prioritized the production of their higher level Vehicles yes they make more money and they need to make more money to underwrite all those losses that they're taking on in the development of their AV business the disappearing act of affordable trucks Vanishing base models drive truck prices higher so it's not that there aren't affordable options quote-unquote affordable options out there the reality is trying to find yeah this chart right here this is new truck inventory a base model F-150s Silverados and RAM 1500s from 2019 to 2023. look at what happened they all plummeted okay they all went down significantly this is what inventories of Base models were back in January of 2020. here's where they were in January of 2023. so are there affordable trucks out there there are some of course there are you have to you have to search you have to search way harder than you ever would have yeah exactly because automakers prioritized yeah Mark D says White House Subs was so busy they told us to get lost essentially I went there at 12 30 and it was not busy I'm just saying I was over there today oh and that may have been mark that I ran into on the boardwalk today so Mark if that is you or Mark if you're watching in general thank you for saying hi when we met this morning on the boardwalk wow you you I need to get out more so people can can say hi can you say hi to yeah because you know the one one of the things that I have figured out is that if you if you don't live around though that people ain't saying hi people ain't saying hi and you Pops yes a lot of people are going to be saying hi to you one week oh absolutely one week from today yes how excited are you for the salesman tell me tell me how excited you are for this on a scale of zero to ten how excited are you for next Saturday to spend the entire day on my feet we'll be sitting for part of it in a car dealership with your son yeah helping people buy cars you're literally going to be there helping people buy cars for an entire day you haven't been in the dealership in what five years four years four years four years five years how excited are you to go back to the dealership and for those of you on a scale of one to ten for those who don't know we convinced the car dealership to let us take over two of their dealerships for one day food truck will be there free food oh yeah how excited are you even if there wasn't free food even if there wasn't free on a scale of one to ten be nice today about 12 and a half 12 and a half now if you want to know the part I'm not excited about they don't have any good hotels in the Staten Island area Brandon Brandon car question to answer to saying Ray is about to lie no I think you actually are excited are there good hotels nearby no we haven't been able to find them they are not uh but yes about about a 12 I am so excited to be within the confines of a dealership again um carrying on having a good time uh meeting and greeting people having conversation trying to help counsel people when it comes to what it is they want to do and try and decipher why it is that they want to do it and and try and help them decide if it's really in their best interest to do it um so yeah I'm I'm really looking forward to it it'll be it'll be a great deal of fun um it'll remind me also why I retired yeah I totally will remind you why you retire yeah but but for one day yeah I'm I'm really excited if you're in that region you drive past Highland or on Highland Boulevard you will see our our logo everywhere on this dealership which is really great we've got here Dev from Chris have you guys thought about adding more ranges in between two and 500 miles in your car search and I want to take a moment to let everyone know why you should be using carteredge.com to either find a car to buy yeah or if you're going to sell a car obviously start there as well when you're on the browse you know click on browse cars you can on this location tab over here choose two thousand one thousand five hundred miles you can search Nationwide even yes and the thing that I love that we built that the thing that I love most of course now we have the trusted dealer and that's going to be something that we're working on the thing that I love most the days on Market if you want to filter by Vehicles who have been that have been on the on the market for a while yes 150 to 250 days for example as the only car search I know where you can filter by that and then when you come to that vehicle we give you a fair price estimate what we think our algorithm thinks is a fair price for that vehicle the market day supply and of course the price history down here as well I think I'm very proud of the car search that we've built so yes you can go 200 miles 500 miles you can use all sorts of different reasons okay but are you gonna going to have an option of somewhere between 200 and 500 or is it 200 oh he would say can we have like 300 or 400 yes oh I'd misinterpreted I'm sorry yeah so let me help no yeah probably not sorry about that yeah yeah there you have it didn't mean to do that no no yeah Chris is like hey man can you stop and just give me my answer yeah just answer the damn question the answer would be no my bad Chris yeah sorry we do apologize okay pops yeah let's call it a show yeah well wait there were a couple more uh started questions you gotta do it all right fine you just have to AG wants to know why doesn't your website scrape some dealer's inventory on the website we have had some dealerships um reach out to us and say hey don't advertise our cars I intend uh on building a page where we can keep track of those dealers so that you can see them you won't see their inventory on the website because they do not appreciate empowered and informed car buyers yes we will name them give me a little bit of time make sure I'm not going to get to Mega sued we get sued everyone and you can sue anyone but I don't want to get I don't want to do something stupid yeah um and so you leave that to me and then axx TW says this kid ever have a real job you can vouch for me I have had he has had a real job yeah yeah thank you he ran a uh a software company um as the Chief Operating Officer um only re uh reported to the CEO the owner so yeah she's had a real job um and if I may if you knew how hard he worked you wouldn't want this job okay this is a real job now you might not think us doing videos and doing live streams is like work but it is okay it takes a lot and and this is the least amount of what he does it's the most fun this is the fun part of what he does but yeah he he's had a real job Robert over and Brigantine just over the bridge we really appreciate that yeah I mean everything that we do is work it's insane it's been three years of building this we've spent truly millions of dollars to get to where we are it's mind-boggling to me that we've done that but we're making a change in the industry like I I recently had some pretty Heavy Hitters to reach out to us and say like okay we see what you're doing we want to know what you're working on we want to see how this progresses because they they see the writing on the wall they see that this whole idea that dealers are just gonna you know have all the information the customers are like they and continually take advantage of customers like everyone knows that needs to change because they're watching Tesla approved yeah so a lot of people a lot of people like what we're doing yes yeah yes and it is a real job it feels like a job it is a job yes on LinkedIn yeah that makes it a real job though now you can call the show all right we will be back yeah on Monday over on the road and Zach channel that is where we do our Monday through Friday show next week Saturday night we will be at Saturday the whole day we're actually going to start the live stream in the morning on Saturday we're going to be doing a live stream all day shooting the batteries don't run out well we're going to have multiple guys on the team there helping us so the batteries will be there right we will be live from the dealership next Saturday night please tune in for that not next sharing next Saturday all the whole damn day that's gonna be such a long time okay yeah we probably would like to go off the air by seven o'clock next week since we'll be on the air yeah anyway tune in yes if you're in the Staten Island area if you're nearby within even like 100 miles come visit with us just come hang out the last thing we want to do is have an empty dealership that day just come spend time with us come hang out it's a caredge.com where you can see the information right there Megan says how do we recommend good dealers to courage Megan you can either email me directly Zack z-a-c-h at caredge.com or go on the community forum and share information caredge.com Community we pull and look at all that information frequently and so we'd be happy to look at that I have to do a little dance you do have to do a little dance yeah there you go and yes the idea is to bring car edge sales events and powered by car Edge dealerships Nationwide that is truly the goal an exclusive network of dealers that we have vetted and that we have given an operational Playbook an operating manual for how to run their businesses how to set their prices how to handle interactions with customers how to treat them fairly the sales event is our proxy you know it's our example for how that should work it's a way to be able to show yeah so anyway please please please please send well wishes as we do this it's our first one so I'm definitely starting to get nervous it's either gonna work or it's not it's either going to work or it's not all right pups we've got ice cream in our future I'm in I'm in let's go yeah let's go thank you everyone for tuning in yes thank you everybody have a great rest of your weekend we'll see you back on the other channel on Monday yeah we'll be there okay we're on our way to Custer's Last stands ladies and gentlemen if you're in the area come say hi see

Channel: CarEdge

Views: 90,625

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Id: acGws6uGoMA

Length: 63min 51sec (3831 seconds)

Published: Sat Aug 05 2023