I love how they act like a $3k incentive on a 40k jeep which should retail for $25k is a good deal.
@thisisme3238
Жыл бұрын
Yeah, interesting thinking isn't it...
@jobunaga4178
Жыл бұрын
the US appetite for trucks and SUVs borders on addiction. folks buying 80% more vehicle than they actually need. why does a white collar office dweeb really need a full sized pickup as a daily commuter?
@Andrew-jm4tp
Жыл бұрын
If only an automaker would make a no frills vehicle that people could afford without debt...oh wait they don't sell vehicles anymore. They sell debt. The vehicle is just the bait.
@Scott-ShaggyBeard
Жыл бұрын
Had a dealership do a similar thing to me. They tried to make the $5k "market adjustment" seem like a good deal because they did a $10k-$12k market adjustment on another vehicle that was still selling nicely. I walked out on them and got the vehicle for MSRP using the Costco program at another dealership. While not a great deal, it at least was more fair and didn't have to screw around with the BS the first dealership was pushing.
@therealfragmental
Жыл бұрын
@@jobunaga4178 because they're an office dweeb and need to feel like a big guy
@itsesmir6218
Жыл бұрын
Sales are down due to markups. Its insane that for some car the mark ups are 20%+ of MSRP.
@stachowi
Жыл бұрын
they're smoking crack if they think they're sales and brand reputation aren't destroyed... people won't forget.
@johnsambo9379
Жыл бұрын
Due to Biden's trade policies and enormous tax hikes.
@andrewsang4688
Жыл бұрын
Markups are really just a price increase disguised to save face. Prices go up when supply falls, because that is the way to limit the amount of demand ie sales to what is physically able to be produced.
@fastxsam
Жыл бұрын
Remember they can ask for a mark up. It's not required. Shop around and you will still get a good price.
@matthowell8985
Жыл бұрын
If you want a c8 it's more like 35 and if you want a Z06 it's more like 60% markup.
@jasonmako343
Жыл бұрын
They say maintaining discipline, we say collusion and price fixing.
@Aceinthehole117
Жыл бұрын
If the oil companies tried this they would be in a congressional hearing the next day
@hunterswartz3160
Жыл бұрын
@@Aceinthehole117 uhhhhhhh, opec?
@abjee
Жыл бұрын
Monopolistic
@naturelover2292
Жыл бұрын
The government also need to do something about all the made up ridiculous fees. I hope they sit and rot
@G2_JP48
Жыл бұрын
@@hunterswartz3160 OPEC is made up of foreign countries. They are not beholden to our laws
@MelonSmasher73
Жыл бұрын
Dealers are parasites. If your business model is so great why is it mandated by law and why aren’t we able to buy directly from the manufacture?
@Av-vd3wk
Жыл бұрын
You can from Tesla! No salesmen, no four square, no haggling. Your car can even be delivered to your driveway!
@CountSessine
Жыл бұрын
@@Av-vd3wk Tesla is still fighting this battle (en.wikipedia.org/wiki/Tesla_US_dealership_disputes). Car dealerships, for completely corrupt reasons, are a class of protected businesses in most US states.
@Pfyzer
Жыл бұрын
@@CountSessine that's because America is car centric nation (for good reason) and having only 1 way of buying a car, the middle man will take advantage due to lack of competition....
@HH-le1vi
Жыл бұрын
@@Pfyzer it's more because of sales taxes generated from car sales is responsible for as much as 20% of all sales tax revenue in a given year. So the car dealerships have a lot of say in those laws
@johnsambo9379
Жыл бұрын
The cars are starting at only $60,000. Lol
@passmoj
Жыл бұрын
Conveniently not a single word around "market adjustments".. dealers cannot complain about low sales while marking up autos by 5k-20k over MSRP.
@economiccrisis9267
Жыл бұрын
They know there are idiots that will gladly pay the mark-up
@ZAGGNUT1
Жыл бұрын
@@economiccrisis9267 or desperate people that have an 2 hour commute to work.
@andybonneau9209
Жыл бұрын
Discipline. Code word for manipulating inventory in order to force consumers into paying higher prices. Let's hope some of these manufacturers break ranks.
@jonathantaylor6926
Жыл бұрын
Some will. Heck a handful of banks couldn’t even agree to not liquidate holdings of degenerate gambler bill whang.. when there’s billions of dollars on the line it’s cutthroat.. I think it was Goldman that liquidated and left credit Susie holding the bag.
@DigitalDavid
Жыл бұрын
This!
@phatrix111
Жыл бұрын
FCA would be the first to break the line, next up Chevy, Ford is the last hold out. then it triggers to imports, like Toyota
@gpsfinancial6988
Жыл бұрын
Tesla reduced prices by a large margin. Model 3 is now cheaper than the average new car, with the rebate it is mid 30s in many states.
@merajfaiz
Жыл бұрын
This is tacit collusion among manufacturers, let’s see how long they remained deciplined? The airlines have managed to remain deciplined for a long time.
@abcthegreat1
Жыл бұрын
This seems to politely gloss over the large per car margin expansion that dealers realized during covid and are fighting like mad to maintain
@sba8710
Жыл бұрын
Yes I guess they want to see how it will work. They can always go lower if they have to.
@Mr.BobsDog
Жыл бұрын
💯
@londen3547
Жыл бұрын
No mention of the beloved 'market adjustment' which add thousands to the MSRP of a vehicle.
@fortheloveofnoise
Жыл бұрын
This is why direct to customer sales needs to be legalized...and not just for EVs....will never buy an EV.
@robinwoods4556
Жыл бұрын
If we start to import Chinese EV cars, this monopoly game will end.. People should just stop buying cars and keep it as long as they could. I could purchase 2 more cars in past 2 years but I'm just keeping them.
@jeffreymoore4132
Жыл бұрын
These higher prices also incentivise people to keep their older car longer. That's what my household is doing. The only debt we have is the mortgage and we're in no hurry blow 45k+ on a rapidly depreciating resource. We'll keep our current cars indefinitely if we have to. A rebuilt trans, new AC , new radiator, etc PALES in comparison to 45k car purchase.
@thisisme3238
Жыл бұрын
I'm with you on your thinking. Have an older car myself, get asked all the time if I want to sell it. Give them the same answer, "no."
@methos-ey9nf
Жыл бұрын
Same. Both our cars have plenty of mileage left before they start hitting repairs.
@cyranova9627
Жыл бұрын
Still drive 7 years old cars. everytime they launch new car. it really temp to get one. but in this economy time. nah better skip them
@nicholaskenny4684
Жыл бұрын
Any car built after 2000 will last decades with just basic maintenance. People are new car spoiled now
@powershin12
Жыл бұрын
How much mileage is considered as average for Americans before car goes to the junkyard? Here in Korea it is normally between 124000 miles to 155000 miles.
@bsbro
Жыл бұрын
I never understood why dealerships exsists. It angers me that I paid more for the exact same car that my friend with the same credit score bought from the same dealership just a few days apart. This is the only purchase where we have to haggle so we don't get punished to pay more. It makes zero sense....
@Sarge4419
Жыл бұрын
What about housing? Or a new boat? Or motorcycle? Some people are bad negotiators, which is the actual problem. IMHO
@Martin-ls9bz
Жыл бұрын
@@Sarge4419 dealers are legally mandated, that's the problem
@dadiggaman
Жыл бұрын
@@Sarge4419 Each existing home is unique and sold by individual owner. New cars are all the same and covered by a warranty if not manufactured correctly. No need for dealerships. Buy direct for manufacturer and I pay my taxes to protect me from unscrupulous manufacturers. Dealer should be for used cars only.
@everydayfun9531
Жыл бұрын
From the manufacturer it's more cheaper honestly it's just dealers wanting to make profit is all with the markup prices.
@MelonSmasher73
Жыл бұрын
My jaw dropped when he said that “cheap” jeep was 39k.
@stachowi
Жыл бұрын
they're drunk off of the dumb monye (e.g. loose credit)... they're going to starve when the money contracts.
@marcusaurelius180AD
Жыл бұрын
After 2008, the US automakers jacked up the price and cut the quality to encourage leasing the customer would have to return in 3 years max, and they'd likely never notice the decline in quality and longevity. This keeps their profit flowing because no one can afford to finance/keep the American automobile and they don't have to spend as much money manufacturing quality cars.
@renezr70
Жыл бұрын
Average cost of a vehicle $47K. That means millions of people bought a car at that price. What is wrong with these people?
@stachowi
Жыл бұрын
@@renezr70 they're dumb and desparate. Reposessions are about to explode.
@shattered115
Жыл бұрын
@@renezr70 Ask Dave Ramsey about his opinion on that.
@TinLeadHammer
Жыл бұрын
"Rising interest rates make these cars harder to afford" - love WSJ's focus on how to force customers to pay interest instead of raising a question of runaway prices.
@charlespapineau5428
Жыл бұрын
Wait them out as much as you can. Once the numbers don't work, they will go back to their old ways. Seriously, these companies don't think long term. They look at monthly or quarterly reports. Once somebody high up has their bonus threatened, the discounts will start. They have no discipline.
@chrisvig123
Жыл бұрын
He’s blaming sales on interest rates but won’t admit vehicles are hugely overpriced at this time. Until those prices come down as much as they went up during Covid sales will be low 😮
@Mvp16393
Жыл бұрын
Same as real estate. They want cheap interest rates so they can charge high prices and let people focus on the monthly payment and not the inflated overall price. I hope the feds keep raising. We need high interest rate for a very long time.
@robertbelardo7087
Жыл бұрын
Just another typical lying car salesman
@vigodrakken7916
Жыл бұрын
I wanted to buy a new car before the Interest rates went up, Dealers wanted to play games so I walked away, its not just High Interest rates that keeps consumers away.
@WS-qy3cd
Жыл бұрын
used car supply is at all time lows, if they sold all their vehicles at the lowest price available it would be a one-time deal as they wouldnt be able to refill inventory while owning those cars at a cheap enough cost to sell them for low. its not good, but it's also not any 1 dealers fault, they just happen to be the ones primarily benefiting.
@TheJiggs666
Жыл бұрын
Just saw a Nissan Z, they wanted 80k for a 54k car. Consumers will never forget dealer adjustments.
@jml9550
Жыл бұрын
Consumer will forget when they are ready to buy once cheap interest comes back.
@TheJiggs666
Жыл бұрын
@@jml9550 sadly, you are probably right.
@jml9550
Жыл бұрын
@@TheJiggs666 yep, seen that too many time. Just like homebuyers where they said price is too high, once interest get back to 3% 30 year mortgage, they will fight to get that house.
@edblankenship9125
Жыл бұрын
That new z was marketed originally to be an under 40k sports car
@jml9550
Жыл бұрын
@@edblankenship9125 A Toyota dealer here in the SF Bay Area wants $9995 markup on the new Prius. Absolutely insanity.
@stachowi
Жыл бұрын
I hope these dealers saved their profits.... because it's going to be a very long and cold winter. As a well qualified car buyer... i won't forget about the "market adjustments". Good luck.
@telcobilly
Жыл бұрын
GOOD ON YOU. We need more buyers willing to sweat these greedy scumbags out..
@Mvp16393
Жыл бұрын
Same! Will buy out my lease and I used to be a new lease renewal guy. These greedy mofo lost me as a customer. Good luck finding people ready to pay these useless price. It’s only worth what other people are willing to pay for it!
@CarlosRodriguez-hb3vq
Жыл бұрын
Exactly. I’ve got stellar credit and take good care of my cars. I can hold out a long time…
@mikea5745
Жыл бұрын
The car industry knows most Americans rely solely on their car for transportation. Americans will buy cars at any inflated price they're given, because they have no other choice. All the people complaining about the prices should have thought about that before they decided to live somewhere they are forced to use a car to get anywhere
@cristinareiser5447
Жыл бұрын
@@mikea5745 In the end cheaper housing trumps expensive car. The further out you go, the cheaper your 30 year mortgage is. I currently have to no mortgage because I moved to a place where I'm "forced to use a car to get anywhere". For reference, I'm 47.
@felixfigueroa4036
Жыл бұрын
Huge problem is those markups. If dealerships didn’t try to gauge consumers it would be much better market
@TheAwareHuman
Жыл бұрын
“Other 29 having discipline..” sounds like an anti-trust violation and scheme to monopolize by price fixing with competitors
@grigorioschristodoulou5229
Жыл бұрын
yep, sounds like price fixing. The mental acrobatics of portraying it as "discipline" were first-class
@hspatel1799
Жыл бұрын
I doubt it as they have a strong efficiency in production defense - especially when they have been historically undisciplined by overproducing cars. Not sure if their is enough evidence of market collusion with manufacturers as everyone experienced low production during covid rather than a coordinated scheme.
@konigschwarz2565
Жыл бұрын
Don’t forget the dealerships that charged or are still charging “markups.”
@andyjackson9614
Жыл бұрын
Manufacturers have increased MSRP at record levels and dealers are adding markups on top of record high MSRPs. Out the door prices (especially on trucks) are outrageous.
@Yondaily
Жыл бұрын
That’s why we shouldn’t buy until the rot on there lot’s I did an oil change and the dealership are like ghost towns nobody’s looking at their cars and trucks
@mxweng
Жыл бұрын
We need more economical cars, not expensive cars with useless features, and more EV/hybrids under USD 25,000.
@stoundingresults
Жыл бұрын
those days are gone. Prices like $3000 used became $5,000. $10k became $15k and $25k became $35k+
@gpsfinancial6988
Жыл бұрын
@@stoundingresults After incentives the Chevy Bolt is under $20K in some states.
@cargueone1971
Жыл бұрын
@@stoundingresults unfortunately wages haven’t change. Once the printing of money stops, the market will self correct
@Austin-wz5xk
Жыл бұрын
@@cargueone1971 For unskilled labor, yes. In the skilled trades, there's money to be made if you're willing to work for it.
@cargueone1971
Жыл бұрын
@Austin my generation for sure, there's just not enough GenX to do it all. The millennials and Zoomers are our must unskilled generation ever. With Boomers retiring, there's only the GenX that has the skills and experience to do the high skilled trades, and companies are paying them top dollar to do the Jobs Boomers had kept for so long. Companies are having trouble finding skilled millennials and zoomers. Like you said, there's money out there, but most are skilled or have the work ethic to get it. However, there are going to be tons of jobs when the last of the Boomers retire, but it most likely go over the border because most don't want to do it.
@Chris-Courage
Жыл бұрын
The actual price of new vehicles have also gone up drastically in the past 3 years. People can't afford these prices regardless of interest rate.
@mikea5745
Жыл бұрын
What else are they going to do? Bike? Take the train? The car industry knows America gave up all other forms of transportation. Americans will pay because they have to. If they don't like it, they shouldn't have built a purely car-dependent society
@Chris-Courage
Жыл бұрын
@@mikea5745 I agree. Pretty much everywhere in the US that isn't a major city requires a vehicle to get around since everything is so spread out.
@raymondcanessa7208
Жыл бұрын
@@mikea5745 Best advice buy a 10 year old corolla or camry . Drive it for the 10 years 1 tenth the cost per mile!
@SeanRosairo
Жыл бұрын
Part of the issue is that some people aren’t happy with a regular-sized base model car anymore, the type sold for like $16k just a few years ago. Consumers were going towards SUVs, and even the small ones based off of the hatchbacks they replaced we being bought for much more. Their profit margins are better with SUVs. Ford stops selling the $20,000 Focus so they can sell more $30,000 Escapes. I’d love to get a new Honda Fit or Mazda2, but they just aren’t sold anymore. Civics are huge and kind of pricy now. Not a lot of options.
@filovirus1
Жыл бұрын
my family can't afford a vehicle that costs more than 39k. new cars are just out of our reach
@mathisnotforthefaintofheart
Жыл бұрын
So get a used car for $39K. Plenty of CPO's for that money
@aztronomy7457
Жыл бұрын
I just finally purchased a car after 6 weeks of research/going to dealerships. My impression of the market is that dealers got used to the pandemic prices and are in denial regarding the fact that they need to lower their prices. I was all set on buying a Toyota Rav4 Woodland edition. Went to the dealer and was even willing to pay a $600 markup for "tint". But they wouldn't let me use USAA..Only their Toyota financing which was substantially more. I walked out over the deal. They assumed someone else would come in and buy it immediately...Well it's been several weeks and they are still begging me to come buy it. Things must be changing.
@MrSupernova111
Жыл бұрын
Good! Don't give them a dime over MSRP.
@economiccrisis9267
Жыл бұрын
Toyota is going crazy with the markups. The Carrollas have a $+1000 market adjustment 🤦🏾♂️.
@aztronomy7457
Жыл бұрын
@@economiccrisis9267 not even mark ups… Toyotas are just overpriced, and that’s coming from someone with a 199k mile Rav 4. If they were strictly analog cars I’d pay extra for the reliability guarantee… but computers on all cars are prone to failure. I ended up getting a Subaru Crosstrek sport for 27,500. Gets good MPG, fo leather interior, 182HP, actual lane centering, nice metal wheels, good ground clearance, great AWD , and enough room. For a Rav 4 with similar options you’d be paying 36,000-38,000.
@economiccrisis9267
Жыл бұрын
@@aztronomy7457 I'm leaning towards a Subaru legacy or Impreza. You're right about Toyota's being overpriced.
@aztronomy7457
Жыл бұрын
@@economiccrisis9267 I'd highly recommend checking out the Crosstrek sport. It's an Impreza but has more room/ground clearance. So it's very smooth and glides over bumps. Also great on dirt roads. It's got the same engine as the forrester but it's lighter...Unless you have a family/girlfriend then I'd go with the bigger car. But if it's just you I'd go with the Crosstrek.
@fishman8902
Жыл бұрын
Doesn't seem like the journalist even investigated, not going into dealers markups, mandatory add on, accessories. Making cars unaffordable not to mention the scam like practices of car dealerships. Seems like a paid piece by the car companies 🤔
@bjkjoseph
Жыл бұрын
Toyota knows they won’t be bailed out, so they have to make good quality cars the same with Honda. American car companies should be out of business. Stop bailing them out.
@consumer5631
Жыл бұрын
No. Incentives are just as bad in countries abroad. Japans government would never let Honda or Toyota go bankrupt. Same with South Korea with Kia or Hyundai. I don't think we should be bailing car companies out when they make trash cars but it's not a US problem.
@AbidAli-bo8sv
Жыл бұрын
Exactly, there's more Toyota and Hondas out there 300K+ miles and still running on original engines than any other brands.
@chudson4500
Жыл бұрын
You guys are brain washed if you think Toyota's and Honda's are just as reliable as they used to be back in the day. Every dealership has a service department for a reason
@bjkjoseph
Жыл бұрын
@@chudson4500 said that, but they are a lot more reliable than Ford and GM and forget about Chrysler whatever they’re called now
@chudson4500
Жыл бұрын
@@bjkjoseph Not really. Honda is partnering with GM when it comes to them building their first electric vehicle. Toyota's new engine inside the tundra/sequoia is co-developed with Ford.
@mikestith4210
Жыл бұрын
Short in supply in the Toyota dealership. What would you rather have? A Jeep or a Toyota. Hands down a car that retains its value and has no quality issues. The public isn’t stupid.
@jasonwilkins1969
Жыл бұрын
It’s crazy how there are so many more jeeps than there are Toyotas available for sale. It’s almost like people want to buy a reliable car.
@TankNSSpank
Жыл бұрын
Sounds like they are trying to collectively control the supply. Cartel much?
@johnsamuel1999
Жыл бұрын
Its more like an informal gentlemans agreement. They agree to not start a price war without actually saying or signing any agreement
@jackbrennan592
Жыл бұрын
I love that dealers are blaming the manufacturers like they’re not the main problem.
@luke2400
Жыл бұрын
What Ford CFO said sounds sort of evil to me. And moving forward, their dicipline may trigger federal law enforcement to investigate any possible violations of Sherman Anti-Trust Act. By the way, why US tax payers had the obligation to bail out these poorly managed and over-greedy auto manufactures in last economic crisis? Just let them go next time.
@wokethelast8498
Жыл бұрын
Perfectly said. We have to pressure some kind of investigation and also get rid of dealers! My local dealer a couple months ago turned would add attest 5k “market adjustments”
@MrJoshuapoon
Жыл бұрын
So they admit they are creating an artificial scarcity.
@MaxPower-11
Жыл бұрын
I was hoping the video would explain why there is such an enormous difference in inventory levels between car makers.
@AnhH88
Жыл бұрын
Other reviewers in the car industry covers this. Plethora of reasons. Dodge and Jeep dealerships have the longest day cars sit on their lot vs. Toyota--mainly bc consumers do not want to buy junk. Toyota dealerships may charge over MSRP, but if you place an special order and willing to wait, most are MSRP. This is what I did with my Tacoma. Had to wait 2 months.
@miguelsaucedo8789
Жыл бұрын
They're basically doing what realtors and investors do to the housing market, artificially inflate prices.
@prageeth4855
Жыл бұрын
Dealer guy is worried about price drop of 6k but didn’t talk about $20000 $30000 markup they charged on all the customers 😂
@renezr70
Жыл бұрын
The average cost of a new vehicle is $47K. That means millions of people bought a car at at least at that price. So who's fault is that prices are so high?
@TankNSSpank
Жыл бұрын
I love your unsourced random claim on the average vehicle cost.
@Mr.BobsDog
Жыл бұрын
@@TankNSSpank it was in the video
@KNine36
Жыл бұрын
@@TankNSSpank someone didn’t pay attention to the video
@Austin-wz5xk
Жыл бұрын
What's sad is many folks don't even make that a year at their jobs.
@FreezingPT
Жыл бұрын
An average of 47k per car means half the people bought a car bellow 47k and half brought a car with more than 47k
@divvish
Жыл бұрын
I would like to point out the fact that consumers are being taken advantage of with dealerships”market adjustment” B.S. or the whole vehicle accessories. Please cover this issue.
@TinLeadHammer
Жыл бұрын
WSJ? You are kidding.
@notmyname8865
Жыл бұрын
It is not the rising interest rates that make it harder to afford. It is the dealer mark up! MSRP on a new Toyota Prius is about 32k yet every dealer I have stopped to look at one is over 45k. That is almost a 50% increase and it is throughout all cars from Civics to Corvettes. Dealers have gotten greedy and the real solution is to allow car manufacturers to sell directly to consumers like Tesla does.
@mattheweburns
Жыл бұрын
A bigger better story would be about how Ford continued to keep their vehicles marked up well above MSRP
@zacharyhenderson2902
Жыл бұрын
Any markups above the MSRP are done by the dealership, not by the manufacturer.
@DalHarpJr
Жыл бұрын
@@zacharyhenderson2902 FACTS!!
@gopurdue02
Жыл бұрын
And raised MRSP at the same time. If you look at 22 vs 23 they jacked everything up on trucks by 10K to the point were MRSP = previous "surge charge" add on's. Avoid buying a new car unless you have too.
@zacharyhenderson2902
Жыл бұрын
@@gopurdue02 well used vehicles or selling for both MSRP anyway. Buying new is still the way to go.
@TinLeadHammer
Жыл бұрын
@@gopurdue02 Trucks should be expensive.
@telcobilly
Жыл бұрын
First time in history that the cars won't last as long as the payments..
@Ukacip
Жыл бұрын
They do this in purpose to push people to lease cars instead....
@bamafencer12
Жыл бұрын
And that’s why I’m sticking to my old truck
@destroyerofsimps6574
Жыл бұрын
Not true if you buy American or Korean they’ll probably die on you before you finish your payments.
@jaridkeen123
Жыл бұрын
The sad thing is America doesn't make a Farm truck anymore, I bought a Japanese mini K Truck to be a farm truck. Im not spending $70,000 on a truck that will get a dent in its first day on the farm. I got a $6,000 Truck with 10k miles on it
@martyi398
Жыл бұрын
Ford XL F250 6.8L V8 Reg. Cab can be purchased starting at $43,970, (you may have to place order for it) which would make a great farm truck!
@richr161
Жыл бұрын
I love my kei truck. Got a/c and use it to get around.
@user-ce7jo9ml4k
Жыл бұрын
Price should drop and will drop, Interest Rate aren’t dropping anytime soon. I’m sure the car industry will try to maintain prices higher, will see who will win Car Industry or Costumers.
@jonathantaylor6926
Жыл бұрын
The car makers will fold and lower prices.. a little profit on 10 cars is better than big profit on 2.. high margin is nice but assembly lines are paid for already and need to run.
@ndog3042
Жыл бұрын
@@jonathantaylor6926 10 service contracts is better than 2 service contracts. That’s where the $$$ is for dealers
@mikea5745
Жыл бұрын
The car industry will win. Americans have no choice but to continue buying cars. There is no public transportation, and biking or walking in the US is incredibly dangerous
@rogerm3708
Жыл бұрын
Lee and many other dealerships, broke their past buyers with markups and scared away new buyers. When The Trust is Gone 'Magic'
@paulg9484
Жыл бұрын
Dealer incentives for sure. Never bought a new car without discount and never would. Dealers have become very greedy and will learn soon
@dominiquejeannin4510
Жыл бұрын
Why did you not specifically ask this dealer if he adds bogus markups to his vehicles? Factory incentives can never match the insane thievery that markups are. Petition your lawmakers to change the laws forcing new vehicles to be sold only by franchise dealers, that’s the big problem here. Of course interest rates are a determining factor, but markups are worth more than the interest on an 8 year at 7%.
@P-Bizzy
Жыл бұрын
Contact your local, state and federal legislative representatives and ask them to support legislation that allows direct sales forms eh producer to the consumer. Farm-to-table should include factory-to-garage.
@stoundingresults
Жыл бұрын
I'm willing to spend $30k on a low mileage (under 50,000 miles) lifted pick up. But private sellers want near $40k + for 100k miles used. Still a sellers market. Dealers tack on too much with fees and asking prices outrageous still.
@j121212100
Жыл бұрын
That is why Ford will be abandoning the dealership model.
@stoundingresults
Жыл бұрын
@@j121212100 Tundra or Frontier or Titan Is what I'm looking at
@kayemtee5312
Жыл бұрын
Sadly for us consumers, both dealers and manufacturers have discovered they do better selling fewer cars at higher prices. The losers here are auto industry workers who are facing layoffs and middle class consumers who lo longer can afford to buy any new car.
@jonathantaylor6926
Жыл бұрын
It only happened because of covid lockdowns.. selling fewer cars at higher margin only works when all your competition is doing the same.. and they were because lockdowns created shortages for all of them. They have all increase volume lately and cars aren’t selling they will have to offer discounts eventually.
@Chris_at_Home
Жыл бұрын
@@jonathantaylor6926Exactly, these dealers are usually paying interest to have unsold vehicles sitting on their lot and eventually they will be forced to sell at lower prices.
@mikea5745
Жыл бұрын
@@jonathantaylor6926 No, fewer cars at higher margins has been the trend for decades. That's why manufacturers pushed trucks and SUVs so hard in the past 20 years. Trucks and SUVs have much higher margins, and are now the majority of car sales. Consumers do what the car industry wants, which now includes paying sky high prices
@rstorms4564
Жыл бұрын
I always wondered what the person responsible for the “market adjustments” and screwing over the consumer looked like. It’s this guy.
@josecuervo3351
Жыл бұрын
No. Interest rates aren’t the problem, it’s the inflated car prices. Lower the price to at least pre-pandemic level, and the inventory will start selling again. Even better would be to get rid of the Dealerships (bureaucratic fat) and use on demand direct sales. Dealerships provide no real value to the costumer, it’s just red tape.
@cristinareiser5447
Жыл бұрын
I agree, but how would you test drive a brand new car? Would they have those available? You'd have to find a "similar" used car and that wouldn't exactly work. For the record, I complain about dealerships all the time.
@josecuervo3351
Жыл бұрын
@@cristinareiser5447 - the showroom store could have a small number sample vehicles in the lot, for folks to test drive.
@russellbraeuer2512
Жыл бұрын
Blaming interest rates is insulting to the consumer. A truck needs to hit the $30-40K range. A compact SUV in the $23-28K range. Being "disciplined" = companies illegally working together to price cars and keep profit margins high at the cost of the consumer. Hope our politicians are paying attention and are on the consumers side.
@BrandAccount-ec2rx
Жыл бұрын
hope buyers pay attention and hold on until prices come down
@oneone5028
Жыл бұрын
Dealers and Manufacturers have incentive to keep the inventory low after tasting the extraordinary margin for the last 2 years. Don’t expect anything to change unless there is a hard landing recession if not worse than 2008.
@brandon8574
Жыл бұрын
I sold a car of mine in early 2022 when used car prices spiked. So that left my wife and I with our HD truck and a crossover. I work from home, so I typically don't drive every day. And my wife is only minutes from work. I want to add a EV maybe later this year but I'll absolutely refuse if the prices and rates stay this way.
@jacobc1355
Жыл бұрын
The prices of Tesla's dropped significantly recently because of their volume in inventory. Not sure what the prices are at now but its worth to take a look.
@chudson4500
Жыл бұрын
@@jacobc1355 Tesla prices only dropped because the legacy manufacturers are coming out with more more EVs. It hurt for the consumers who already had a Tesla only to find out their value dropped 20%. Once again showing that their selling model is just as bad as dealerships.
@mikea5745
Жыл бұрын
So both of you have minimal need for a car and you want to buy a 3rd one...? People like you are why the car industry knows they can keep jacking up the prices. You're addicted to cars, and you'll come crawling back no matter the price
@Buck9s
Жыл бұрын
Me and my wife are both professionals and have traditionally had two vehicles "nice" (i.e. bought new, kept for 4-6 years) vehicles and kept them for 5-6 years. However, now that I'm working from home I have no desire to replace my now slightly older car. I'm not going into the office, which was my primary use of my vehicle so now we'll keep one nice/newer vehicle and I'll be keeping my older car. Unless I need to start going into the office on a daily basis I doubt we'll ever get back to have two "nice" cars again.
@alexknaus4511
Жыл бұрын
As a former car salesman… 20 years ago… My current office is right next to a Toyota dealer and a jeep dealer… I always look at the inventory. It’s crazy how many more jeeps are for sale than Toyotas
@eh567
Жыл бұрын
Stellanis cars suck. Toyotas are reliable. Not hard to see why.
@alonsogonzalez1169
Жыл бұрын
Does it mean that Toyotas sell better than jeeps
@sjragusa2910
Жыл бұрын
Pricing combined with just people can't afford new jeeps but also backlog of sales . Bob buys a car from Toyota, waits 4 months, 2 cars come off, 1 goes to Bob, versus jeep who has more supply or a closer supply chain maybe, but just not as many sales. 39 grand for a jeep, 46k for a new vehicle overall and like 60-69 grand for a truck, I could not afford that. 800$ a month is basically doubling someone's rent.
@rummimg
Жыл бұрын
Selling Jeep is the problem. Buying an unreliable car during the recession? Really? It's not even F150 or RAM.
@jonathantaylor6926
Жыл бұрын
Toyotas aren’t cheap anymore
@waltchan
Жыл бұрын
Yes, the lower the price than Jeep, the easier to sell.
@AbidAli-bo8sv
Жыл бұрын
Toyota always sells better, regardless of the price, reliability is a big factor, there's more Toyota cars with 300K+ miles than any other company.
@robertcretu4363
Жыл бұрын
Mr. Lee is basically saying that he’d like prices to stay high.
@kayrealist9793
Жыл бұрын
Do not buy a car right now. The car industry needs to feel some pain to wake up to reality and drop prices.
@Slowcarfastbeans
Жыл бұрын
The two will squeeze the consumer first before they budge, and the consumers’ options become more limited. Here are the consumer options, Opt 1: Keep existing vehicle + spend the money on corrective or preventive maintenance, and hopefully it results in a net savings to put down for a new car later thereby avoiding getting pinched on both sides by high rates and overpriced cars. Opt 2: Buy the car and accept (or ignore) the financial loss that you’ll never get back. Opt 3: That’s it, those are the best options.
@ibewill
Жыл бұрын
4 buy a used car once your original car stops working
@raymondcanessa7208
Жыл бұрын
Best advice buy a 10 year old corolla or camry . Drive it for the 10 years 1 tenth the cost per mile!
@JJs_playground
Жыл бұрын
I guess I'll be keeping my 2015 much longer than I thought. Won't be buying anything until the prices come down to reasonable levels.
@joshuawang5859
Жыл бұрын
Chip shortage is the best excuse to raise the price to a crazy level
@inthendwealldie
Жыл бұрын
Lol, they told me the same exact thing when I was at a Ford dealership, the chip shortages from Taiwan, etc. for like V8s I think. They were like our lot and back lot was filled to the brim, but they aren’t shipping out new cars and trucks cuz of chips
@whatever_12
Жыл бұрын
I don't think prices will go down to pre pandemic ever! Car manuf.. has seen the price that people will pay for their products. Every new model from now on will keep going up until it hit a new baseline
@B86432
Жыл бұрын
Car prices are insane since 2017/2018
@viverrine1580
Жыл бұрын
It also seems like car manufacturers aren't keen to going back to a buyer's market where the buyers have control over pricing and want to keep the current seller's market after seeing increase in revenues over the past 2 years. These suckers are in cahoots together in sucking consumers dry of their money. I hope people stop buying cars for a while see these companies struggle
@CarsandCorey
Жыл бұрын
As a new car salesperson, I am cautiously optimistic for 2023. Like the owner interviewed, I am not eager to return to the massive inventory and deep discounts from pre-pandemic (and I’m also not eager to return to feeling uncomfortable asking for thousands above MSRP on the rarest vehicles). The rising interest rates are certainly worrying, but finding the sweet spot between supply and demand should allow for dealers to maintain pricing around MSRP without getting greedy, or deeply discounting vehicles to make the sale. This should hopefully mean that customers get a fair deal in the long run, not having to worry that they either overpaid or their vehicle will face steep depreciation because a certain model gets massive rebates and discounts in order to sell. As always, time will tell!
@ivaoh9425
Жыл бұрын
They are planning to keep low production, that's ok because I'm also planning to keep my cars for a longer time, no way I pay these crease prices
@herculesrockefeller8969
Жыл бұрын
Comparing Jeep inventory to Toyota inventory isn’t fair. One is a quality product that is reliable and well made. The other is a Jeep.
@dang75790
Жыл бұрын
Jeep = junk.
@rajupreti0000
Жыл бұрын
Dealerships would be a positive contributor if they stopped overcharging in the name is “ market adjustments “.
@speedonmodela2109
Жыл бұрын
IMPORTANT TIP: NEVER, EVER negotiate your car deal based off the monthly payment. ALWAYS tell the salesperson to give you the Out The Door Price on the vehicle. Negotiate the total/final price of the vehicle and get the best deal you can. Your monthly payment will work itself out. If its too high for you, then you CAN'T afford the vehicle. This is Economics 101 people...its simple!
@Rec-cl7ns
Жыл бұрын
There is no mention at all concerning the employees at these auto plants who will be the victims of "inventory discipline".
@Boston82bl
Жыл бұрын
Toyota and Honda are by far best cars around.
@marcusvision
Жыл бұрын
This video is very true, when I went to my local Toyota dealership for regular maintenance. I was shocked by the emptied lot behind the scenes.
@dannyso8366
Жыл бұрын
for the people that complaints about dealerships making a profit, and wanna skip the middle man. why not just build your own car? you can skip the manufacturer altogether since they will also be making money off you!
@khaynes4825
Жыл бұрын
This asymmetry is pushing a lot of people to shop online and now these local dealers are competing against all the dealers (whether OEM affiliated or not) who carry the vehicle the person is looking for. Once they realize they can do everything online, you will see a lot of dealers scrambling to change their models: service focused rather than sales and service focus.
@badtoro
Жыл бұрын
I hope dealerships go bust after their 2021 and 2022 greed.
@ecoRfan
Жыл бұрын
Stealerships
@iali00
Жыл бұрын
So maintaining discipline is basically colluding to keep prices high.
@LawrenceMarkFearon
Жыл бұрын
5:25 The more cars sold, the more interest rates shall be raised. The Fed won't let car prices increase -which is a core inflation indicator along with the corresponding price of gasoline. All those additional dealer markups [ADM's] and fuel costs last year crippled the country with inflation.
@TheBigdutchster
Жыл бұрын
I want a very specific new car model and I do want to order it and I am in a position to pay cash for it. I was told last fall that they might accept orders this spring. The closet model that I found was in AL and I live in MI. My current car was delivered just prior to the pandemic.
@TPM188
Жыл бұрын
My local TOYOTA dealer sell at MSRP during pandemic, you just need to wait 4-9 month. Other car makers are adding price like crazy.
@vianad9285
Жыл бұрын
With Toyota you’ll get your money’s worth compared to junk overpriced fiat jeep
@economiccrisis9267
Жыл бұрын
Some Toyota dealerships are doing market adjustments
@JS-cz6cj
Жыл бұрын
@@vianad9285the new Jeep grand Cherokees and wrangler have been maintaining their prices well. I don’t know about Toyota tho…
@kennynguyen2105
Жыл бұрын
When I see a mark up at a dealer, I just walk away. No time wasted.
@May-qb3vx
Жыл бұрын
Meanwhile I’ve bought all my cars from individual sellers and they’ve been amazing. Should the day come that I have to buy from a dealer, I’m gonna be absolutely floored
@kingGar27
Жыл бұрын
Great explainer video. It would have been good to understand the margin breakdown between dealers and manufacturers though.
@counkev
Жыл бұрын
As most have already mentioned many people now are holding stead fast until markups are gone. But I'm also curious as to where the base price of the vehicles are going. I remember before the pandemic a base model compact sedan (Corolla, Civic, etc.) was under $20k and a base mid-size (Camry, Accord, etc.) was just over $20k. Now the MSRP is about $5k over what it was prior.
@jamesstpatrick8493
Жыл бұрын
40k is not cheap, rather get a 25k Honda that will last 15 years
@JenPurple2022
Жыл бұрын
We went to dealers and said our budget is 20k for an used car and many of them said that’s not gonna get you a great car after all the taxes, fees and charges. … seriously?
@justinfowler2857
Жыл бұрын
Golly gee the stealerships are hurting. A single tear rolls down my cheek.
@fireflyers7800
Жыл бұрын
I have an X5 45e which is now 2 years old and I'm paying 700 a month (bought during the first lockdown Dec 2020) Wifes car was due up in Feb we was looking at an X1 35e and they cheeky salesman wanted us to pay 800 a month. I asked what I'd be paying on my highly spec'd X5 and I nearly threw up. £1400 a month.. These dealers need to realise noone in their right mind is doing to pay those sorts of prices and the ones that do will likely be repossessed within a year or so
@dang75790
Жыл бұрын
BMW = bring my wallet
@TotalState
Жыл бұрын
Ford CFO basically admitted to anti-competitive practices. If we had a functioning government, his offices would have been raided by now and he would be getting questioned about exactly what he meant by "maintaining discipline", under oath.
@937553
Жыл бұрын
39K for a basic Jeep Compass which isn't a great car.
@stoundingresults
Жыл бұрын
plus DMV fees and BS from dealers
@jonathantaylor6926
Жыл бұрын
Inventory will be back to pre-covid levels one day. The automakers can’t help themselves. Ultimately it’s volume that makes them money. Designing a car and building out an assembly line cost billions of dollars… shutting them down to reduce supply is a short term strategy investors will quickly grow tired of.
@seankim2743
Жыл бұрын
I like that Lee guy. He's so... relaxed, speaks in honest voice, and puts me at ease almost immediately - good quality for a car sales guy I guess.
@OhioStateBuckeyefanstuckinMI
Жыл бұрын
These automakers and dealers are so predatory it’s unbelievable
@TUMBA0
Жыл бұрын
One super convenient strategy that could save the entire auto industry billions of dollars would be to abolish the antiqueted dealership only model and allow consumers to purchase vehicles direct from manufacturers. No need to go thru a middle man who attaches on millions of dollars of useless warranties and charges 600-700% markups on floor mats and steering wheel convers. People are comfortable ordering cars online and visiting a showroom like tesla or having the vehicle delivered like carvana. Dealerships offer absolutely no value to the manufacturer or the consumer.
@Alarios711
Жыл бұрын
They absolutely bring value to manufacturers. They spread and dampen the risk and allow them to operate with huge amount of inventory. The ones being shafted here are just the customers.
@robertagren9360
Жыл бұрын
They're selling you the brands. Ford had the excuse that they had no brands for their car that they couldn't sell them. It was on the news on how Ford had a brands crisis. Not spare parts but the brands which is the reason why you think that original parts for a car matter when those parts have been branded or rebranded. Not only the company but repair shops are using the brands to earn money on the customers. The car industry doesn't earn money on making cars but to brand them so that you have to buy their products like a barbie doll house.
@KingDavid-jj7tk
Жыл бұрын
-The Fed is no doubt at fault when they were too slow in controlling inflation in the beginning and now they are trying to do extreme catchup. The pandemic, the supply chain issues, and the Ukraine war all contribute to this perfect storm of brewing inflation. Don't forget the big spike in housing prices, that's another reason the Fed is having a hard time-fighting inflation. All in all, cash in king now and milk that high savings rate if you got the cash...
@WeekendToasty
Жыл бұрын
I love how dealers blame interest rates when it's the general price of vehicles and markups. The average auto loan is $700/mo for 84 months! Whatever happened to being able to afford a mid-trim car and pay it off in 3 years?
@Anon1mous
Жыл бұрын
NEVER EVER buy a Jeep or any Dodge Chrysler Fiat product!! Thats why there are so many of them still on lots. Americans have come to learn that most domestic auto makers make horrible products. That is why the Toyota lot is so empty.
@Stopinvadingmyhardware
Жыл бұрын
Jeeps are way overpriced.
@LordStaind
Жыл бұрын
Overpriced trash!!
@stachowi
Жыл бұрын
idiots keep paying...
@JS-cz6cj
Жыл бұрын
I agree especially the compasses starting around 31k+
@andrzejkulakowski
Жыл бұрын
Mr Lee seems like a very down to earth type of a guy I wouldn't normally expect from a salesperson.
@briefcomedy8747
Жыл бұрын
Looks are deceiving
@andrzejkulakowski
Жыл бұрын
@@briefcomedy8747 You're probably right
@venskus2009
Жыл бұрын
Translation: the dealers love the markups so they see no reason to increase supply when demand will come regardless.
@fabiang89
Жыл бұрын
Manufactures need to reduce their greedy profitmargins, let the retail price drop from redicuolus asking prices and the buyers will come again. Will happen eventually.
@HH-le1vi
Жыл бұрын
It's not so much manufacturers as dealerships. Manufacturers aren't selling direct to consumer
@Ukacip
Жыл бұрын
@@HH-le1vi they are both working together they are in the same bed!
@HH-le1vi
Жыл бұрын
@@Ukacip not really. Manufacturers don't make money from dealerships selling at insane prices.
@tnickknight
Жыл бұрын
Toyota builds great affordable cars,. Americans build overpriced junk . Hopefully more Asian providers will provide vehicles for normal families !
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