Toyota Mechanic Explains What's Going On in the Car Market | CarEdge + @TheCarCareNut

okay pops it's a special day we got a guest to the channel amd the car care nuts joining us here i feel like do we need to give him an introduction just go look at his channel right watch his channel yeah go look at his channel and then and then say to yourself why are why aren't i a subscriber and then hit the little button hit and yeah but don't do that right now because we're gonna we're gonna interview him right now so do that after that yeah yeah yeah do it then not now amd it's good to see you how are you doing how you doing guys really good to see you i hope you're doing well see you as well yeah we're doing great over here second time you've been on the channel we really appreciate it we know the yaa community is a big tc cn community as well the car care nut yeah i think i got it right yep you got it okay so here's the deal amd we'd like to ask you a couple questions about what you're seeing in the market right now and like we just said a moment ago go check out amd's videos they're really really high quality can you share with us a little bit obviously you're in you're in this world day in day out what are your what are you seeing like what are the impacts of the shortages and and what's going on from your perspective what are you seeing at the shop so on the server side things are for lack of a word organized chaos is the way i'd like to to describe it so here's the snowball effect that is kind of like you know usually snowball rolls downhill but in the automotive world right now the snowball is going around like in a circle and getting bigger and bigger as we speak so there's no new cars to buy used cars are more expensive than new cars so people sensible people who are not going to pay an exuberant amount and feed into this will decide to keep their cars longer but the problem is you keep your car longer now you know if this is a 15 year old car has 250 000 miles it's gonna need some serious stuff at some point so they're flocking to dealerships and shops they're trying to fix their cars there are two years ago we would have told them just get rid of this car it's not worth it absolutely not worth it have a nice day because that's the right thing to do but now they're forced to keep them and now they come in the service department first of a sudden you had a jump of people there all of a sudden all the schedules are booked up you have just an overflow and then parts are not available because equally we can't make new cars we can we can't also make parts for older cars so now all these cars are sitting waiting for parts waiting for parts and sometimes like the part supply chain is so unorganized right now nobody can tell you when this part's gonna get there usually you can have some kind of an eta nothing and then you fix these cars and it's like a continuous thing you're replacing a transmission on a car well this is an older car with a lot of miles and rust at least in the chicago area it's never just to replace a transmission you took it apart this broke that broke this is damaged and while we're here let's all of a sudden the bill gets enormous and and i just have a have a problem with people spending way too much money to keep this old car for just one year that's not a good return on investment but the problem is even with that we still can't get parts and the worst thing is is how this is kind of impacting the industry i mean in the leadership world and in the aftermarket world as well in the dealership world the dealerships are you know they are hurting because they don't have parts they can't fix the cars dealerships will only get paid when the car is fixed done ready for the bill to be paid and car picked up when they can't do that now they're not getting paid on top of it now they're jamming their lot with cars that are waiting for parts and they're not selling really new cars because they can't get them and believe it or not they're actually not selling used cars either because they're so over inflated not a lot of people are buying so they're hurting so their response to that is let's jack up the labor rate i mean the labor rate increases have been ridiculous some you know when you look at the high-end dealerships you know mercedes bmw the luxury cars they've always had high labor rates and that's the way it is but now regular cars toyota honda chevy their labor rate is quickly catching up to the luxury car labor rate and that is not helping their case because now people come in okay the dealership is they already were very high now they're even a lot more high a lot higher and they're flocking to aftermarket shops now let's continue that snowball effect well now aftermarket shops went hmm all of a sudden we have appointments booked out two months in advance for big work not small work if you're like me and you need to know about evs tune in to our new show on yaa electric plugged in monday wednesdays and fridays so i'll give you a prime example that actually happened to me i recently posted a video on uh on an avalon and needed ball joints can somebody have replaced them with aftermarket and they all went bad well the ball joints are on backorder and there's like 600 and something on back order that's that number we can tell from the dealership how many are on back order this ball journal is bad they need to take it on a trip okay let's put an aftermarket part cheaper part you know if it lasts a year two whatever we'll replace it later well the original ball joint was right around 70 to 80 dollars that's the original one from the dealership i called an aftermarket i'm expecting 30 40 bucks maybe 50. it was 150 dollars oh my gosh yep it was available so that's how this is rolling so the dealership doesn't have work so now they're over charging they're not or i don't want to call it overcharging they're trying to inflate their labor rate but in english they're overcharging and because you know if if you're paying and i don't want to get into technician pay here but they're not really raising anybody's pay so let's say that so they're overcharging their customers and then parts are not available customers are saying okay forget this let's go to the aftermarket so you're going to the aftermarket because they're cheaper but actually almost double the price because they know you can't get it original and that is that that that helps to explain why what was it that in the last quarter or the first couple months of this year no cox automotive for the month of february the average service ticket is five hundred and one dollars at a dealership yep what you know i i've been having more the more exciting piece of that dad was it was record-setting revenue on declines in jobs done i'm starting to piece it together now why exactly that's what i was going to say if and and even if the dealerships are going out and getting after market parts well they're going to mark them up um so it's it's easy to see how the average ticket today could end up being over 500 dollars um and and ultimately the ones that get hurt are the customers basically and not only that we're you know this is for repair stuff for general maintenance fluids you know you just went in oil change replace the differential fluid replace the transmission fluid they're rising the prices of oil daily daily wow and then the supplier i talked to the supplier and he's like the prices are going up daily but then every month end we raise another because this is we just can't keep up we're basically losing left and right because we can't keep up with how rapidly the prices are going up and for the longest time the dealership i used to i'm working at right now not used to uh 27.95 was the oil change they lose anywhere from 10 to 15 or every single oil change you know typical business tactic let's just get people through the door hopefully they will buy a filter they'll buy something or they will just become long-time customers that is long gone now at 65 for the oil change they are breaking even or losing depends on how the fluctuation i mean just imagine that dealership is losing money on every single oil change just to stay relevant hoping just to bring people in um i i i have a question for you and you can choose not to answer and i'll understand is is there is there any pressure at least in the shop that you work in because i i know at a lot of dealerships in the service departments there's a ton of additives that they like to add to the repair order um and additives that uh houses a nice way additives that really don't add anything other than to the bottom line for the dealership fancy snake oil is is this something that's that's becoming more and more relevant in the shops maybe in your experience or who you've heard because they can't get the parts and because they can't put as many cars through the shop as they once could so they're relying more on these additives for additional profits the dealership that i work for i don't see this yet i see the labor rate increases i see the kind of the panic over numbers not what i mean there's a point in the dealership where it's like okay we're not seeing our numbers increase now we're not seeing our numbers on the positive they're mostly in the negative overall and that's that's really could shut down leaderships but sure it is a common practice that dealerships will start pushing stuff and the biggest thing that that we're i'm starting to see my leadership and others do is people always complain about something in their bill that says shop supplies and in my opinion i would love if the dealership actually explains what the shop supplies are because they will then actually not have issues once people understand what the chop supplies are but these shop supplies are rapidly rising and within reason because these shaft supplies are actually not just an up charge they're legit shop supplies and they are going up in cost there's a point where you do a job and the shop supplies are like 150 and people are like what is this what is this magical shop supply that we're dealing with and that's where i'm seeing it all right amd one of the things that i'm really curious about is what are the condition of used vehicles that are making it to the dealership right now like i imagine there's some reconditioning work that has to go on have you seen a declining quality of the vehicles that are coming in or is your dealership just not able to buy any used cars to even be selling and so that's a moot point my dealership got burned i'll i'll say this they try to start reconditioning like kind of run down cars and by spending an exuberant amount on them and then asking a very high price for them but you know what i am so happy to report that consumers are now much smarter and that kind of backfired because when you buy this car from a reputable dealership and you take it to your mechanic or something happens to it and you bring it back it's like wait a second i paid a small fortune for this car and knowing that you're overcharging me for it but i have no choice and now you're telling me this is a bad car that you tried to make good but it didn't they got burned by this they stopped actually doing it and that was that because it's just it's just not worth it honestly it's not worth it because we have seen so many cases i get a car as much as oh let's replace a transmission on this car okay well we replace the transmission car comes back after a week that the customer bought it well it's burning oil they bring it back to service and it's like of course you have here's this car with 60 70 000 miles that needs a transmission how was the rest of the car there can't really check i can't drive the car for two weeks to see if it burns oil or not you know you do your checks you do you do diligence but similarly the dealerships are trying to do this the people are selling these cars are also trying to hide all kinds of stuff and it makes it really difficult so they stopped at least at the dealership where i work they stopped dealing with rundown cars that's why our lot the common question we get today is people walking in are you guys going out of business no we just don't have cars because they just got burned a few customers brought cars back and they ended up buying them back because you know they care about their reputation more than than one one car sale so they stopped but we now we see other small dealerships we have a lot of small dealerships around us they now bring us these rundown cars and it's like oh my god i can't believe you can actually put your name on this car wow amd i want to just comment one thing you know obviously here on the yaa side we are so in tune with what's going on at the auctions in the used car market recently carvana bought odessa odessa's the second largest um auction platform in the united states it's really interesting and i think this is why your channel has had so much growth in such a short period of time as you tell it like it is you're here you're the honest truth in this side of the business think about it for a second what you just shared and then think that the largest used car retailer maybe second largest to carmax just bought the auction platform hopefully i'll say hopefully to cherry pick the good ones and sell them out at you know carvana lots but like you've got to imagine in that closed loop where unfortunately there aren't show me the car care nut equivalent at carvana like i don't see that youtube channel i don't see that personality out there online makes me really concerned for consumers who aren't able to get pre-purchase inspections done they have the seven day return that's great but you just said it even a mechanic i got to drive the thing for two weeks this is just me waving the flag the psa sure the prices might be low you might go buy from carvana but please please please be careful because there are a lot of horror stories out there um in this market cars are edgier today than they've ever been the thing with carbon m i'm not out to say that they're they have bad intentions but carvana got too big too quick and i feel like their process their focus is more on the convenience like oh you go online all the streamlined process which is great because everybody's busy people don't have time shop for cars but the problem is you are selling a car people are gonna go through that streamline process of all rainbows and butterflies for one day maybe one hour even i mean it seems like we're buying a toothbrush from amazon how carvana makes it but you're buying a car that you will potentially keep for 10 15 years maybe and their inspections sometimes are very lackluster from both from the purchasing side when they actually trade in a car i've seen that firsthand i will tell you without saying their name they had a horrendous audi that had millions of problems they disclosed everything to carvana they came to quote unquote inspected he did not even start the car he only walked around it and okay signed a check gave it to him and off we go put it on tow truck and it's gone it's like are you serious this is their inspection and we really tried really hard and this was the only glimpse of hope i really tried hard because we had the vin number of that car to search for it like they actually list that car they did not at least for two weeks period after that we kept looking they did not list it but it does scare me that they are taking some of these cars in trade and paying exuberant amounts also that's the other problem and are they really inspecting these cars because i've had some viewers buy a car from carvana they have seven days and they bring you for pre-purchase inspection i've had one that was rolled over oh my god i remember this one arrived floor that was rolled over clean carfax i've had a tundra that they had one millimeter brakes all around oh my goodness i mean did anybody look at this somebody could sue you because of this that's fine i've had others that were good but it's just when i see a car that has one millimeter brakes i mean this is the kind of stuff at least at the dealership where i work you let a used car go with one millimeter brakes you could get suspended and fired for that because the the owner takes this very seriously they've been burned in the back in the past you know somebody sued buying a used car that's that's the stuff that i actually see from the pre-do doing pre-purchase inspections from carvaner wow yeah that that's that's incredible that's i am so glad i'm not buying my car let's um let's switch gears for a second amd we're in a period of time where it seems like and i read a quote recently in automotive news that some prognosticators said you know we're experiencing more change right now than we have since the industrial revolution in auto the push to eevee is is really what we're seeing a lot of which is then obviously juxtaposed and colored by the fact that we can't even produce ice vehicles or repair ice vehicles so it's kind of hilarious what are you seeing and hearing from toyota and how are you thinking about the future as we move towards ev do you think there's going to be a shortage of continued charge of techs to work on evs how do you think about ev maintenance just like a few minutes here your take on where the industry's going i think that'd be a great way to wrap up our our time together i have a strong opinion about evs it has nothing to do with the evs themselves i think our infrastructure is not there it's not about charging stations and because if you look at the percentage of evs today they're actually not significant as much as tesla crowd likes to say they are they're not but once everybody and anybody has an electric car that is plugged in the wall families will have two three four cars families with kids i don't know if our grid is gonna take it that's the real problem with evs and that's and i i see people i see companies making evs and they're great but i don't see the infrastructure kind of catching up to that it's just simply is not and that's a much more monumental task but that's not our department we just talk about cars evs are they're great on paper they're great if you're if you love elon musk and you just whatever he says goes but evs have a significant issue in a gasoline car you run out of gas you say chant a few songs and then you take the hike to the gas station you fill a little jug you come back also chanting a few songs on the way back you put in your car and off you go to the gas station i don't see somebody dragging a 1 500 pound battery to go charge it that's the problem that's the first thing it's it's the people habit you know we are potentially car guys we're always looking at everything but average joe that doesn't care about the car other than it getting them from a to b they're just this is gonna be a quite an adjustment and on the server side of things people say evs are less maintenance and they're much they are this this miracle to the automotive business gonna put all the mechanics out of business there is a news flash on that yes there's no internal combustion engine but there's actually a lot of maintenance on evs that need to be done and if you look at tesla they have an annual service and the way tesla is leading the way in that is you can't keep your warranty if you don't service it not in your home garage watching a youtube video how to do this fluid replacement or this and that no you have to do it in their facility that not even a dealership it's their own facility what guarantees the consumers that today i believe the last time i looked at this no called me on this it was like 600 annual service it sounds magical if you think about it today but when they become more more mainstream what guarantee does the consumer have that this service is not going to all of a sudden become 2 000 every year i mean they're also a business and they're looking at supply and demand as far as toyota let's go back to toyota land where i'm at so we have the bz4x i i said the name for the first time right because i just looked at it before it started i don't know why they can come up with i don't know a rav4 ev or something normal they have to come with these interesting names they are making the dealerships and the dealerships are already hurting hurting bad and they're trying to scav it now each dealership every toyota dealership have to buy a charging station that they specify including a that's a charging station for the people to plug in their cars but then they also have to buy the diagnostic equipment and the enormous charger that charges the battery in the case of an emergency well that total investment right now the last number i heard is about 50 to 75 thousand dollars and if you have a certain size facility you need two of those so now every dealership is spending anywhere from fifty to a hundred and fifty thousand dollars and the news flash is at least in the in the area where i'm at each leadership this year will maybe get one or two cars so spend a hundred and fifty thousand dollars and get two cars what's up i was waiting for more there i was like one or two cars that's how it is the rav4 prime was the same thing yeah you know we have all this hype of the rav4 prime and then we maybe got five and we i've just today seen the first 2022 rav4 prime after we have actually sold two rav4 primes in 2022 there were actually 20 21 bottles wow so that's i i have a question for you is there special training that you need to be able to do the various maintenances on a on an ev vehicle that is significantly different than what you're used to working on now or so i'll give you two answers for that i'll give you the dealership's answer of course we need all our kind of specialized training the car care nut answer is look they're still just cars okay you had hybrids the the problem with evs is the training on the high voltage side and the training of the mechanic not having a heart attack when they open the hood and there's no engine there's like a bag or shoes or whatever otherwise it's just a car now the maintenance will be different and some of the aspects of the vehicle control will be different from the electrical side but we're still talking the same manufacturer you're going to look at all the wiring diagram all the way things are put together it's still the same that that part does not need any more training if you're a specialist in this brand you're going to know all this perhaps they will they usually will issue either a you know an online training module kind of highlighting the things that they feel like okay this is out of the ordinary so let's let you know about it they'll show you some videos here's how the battery taken apart so you can actually know if you ever go into one here's the precautions that you need to know things that are not the norm but everything else really they don't the only cars that they will have specific training for is off-brand cars like when we had the supra which is a bmw we went on a four-day training class which was very interesting because most of the questions we asked were no clue we'll get you an answer back on that one because there are also the instructors are also went to training to learn an entirely different brand and they're still trying to put things together and this was kind of that was the difference that's why we had a four day class there to figure out what's going on here but when the bz 4x this is the second time i say it right comes out it's really just a toyota yes they have a joint venture with subaru but equally when the scion frs and the gr86 came out same thing just an online training module hey here's a boxer engine yeah have a nice day because it's still the whole electrical system is the same and everything else is similar so that's the reality of evs i think technicians will be able to handle them now many will just decide just like when when fuel injection came out and and you know we had the ob2 system many of the older gentlemen in the industry were like you know what i'm done i don't want to start learn something new and then five years later retire i'm just gonna retire now that's you're gonna see that as well and back then the business was not hurting like it is now yeah it's definitely different times yeah well amd we appreciate your time as always and i think it goes without saying if you have not spent time over on the car care nut channel please go check it out it's awesome that you share your insights and your expertise with the yaa community and i'm just planting a seed here let us know in the comments down below but i know amd goes live on saturday nights we typically go live on saturday nights one day one day i'm just i'm gonna speak it into ex we should go live together i'm just saying we're just saying we could just interesting i actually think it'd be really fun there's probably a lot of overlap and i think that would be i think it's really great that you you you join us on the ya channel from time to time because it shows everyone who watches these videos we're just real people we just want to help yep you know and it's awesome to find people like like you out there amd um anyway check out his channel pops thank you amd thank you really appreciate your time thank you zach thanks for putting this together i had to contact this booker and here's the booker yeah

Channel: CarEdge

Views: 397,222

Keywords: ray, zach, car care nut, amd, shefska, yaa, joinyaa, your advocate alliance, auto, automotive, market, car market update, car market, buying, car buying, how to buy a car, when to buy a car, should I buy a car, 2022, car, vehicle, car dealership, truck, suv, car maintenance, maintenance, car buyers, car dealers

Id: UW281vjw6Zk

Length: 26min 42sec (1602 seconds)

Published: Tue Apr 05 2022