Are TRUCKING DEALERSHIPS The Next To Go Under??

Are DEALERSHIPS The Next To Go Under??
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We all know that the current status of the industry has impacted owner operators and fleet owners by a great deal, but what of the many truck dealerships? Join Ronen as he discusses the issues faced by dealerships including what occurs when owner operators and fleet owners are forced to cancel orders and the interest rates that dealerships have to pay across each unit and provides advice for what buyers should do during this time.
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📚 Chapters
00:00 Introduction
00:38 Cancellations by Fleet Owners and Owner Operations
02:20 What Happens When Cancellations Occur
03:09 How Interest Rates Affect Dealerships
04:10 How Dealerships Markup Rates Affected Buyers In The Past
05:26 How Should Buyers Approach Dealerships Going Forward
06:19 Upcoming Video! Used Market Update Coming Soon
06:50 What Will 2024 Hold For The Trucking Industry At Large
07:39 How To Get Your Product/Service Featured On Our Channel!
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[@roadsideservice2406]

I’m sure they will do just fine. My experience with parts and service has got to be the most predatory billing I’ve ever seen.

[@Icantevenstandit]

Omg I owned my truck a 2020.. and if you had cash they'dtake you 1st...the fukking thing could be a pos..the warranty trucks would there forever

[@Chinese080808]

I've never seen Volvo, Freightliner, Pete tractor dealerships so full as I have now. It's definitely a huge indicator that their inventory isn't moving. 😢

[@truckn]

In 2012 I bought a brand new truck for $140,000 + taxes & interest. 2024 a new truck is in excess of $200,000 and wages haven't budged I feel no sympathy for the Manufacturer or dealerships, mainly because these 2024 trucks are no better then anything that came before. Like my step-father taught me when I was coming up, if it has tits or tires it's going to give you trouble. I'll add if that offends anyone get a helmet, the world can be a tough place sometimes. Be Safe.

[@obamasucks0858]

You don’t know what you’re talking about , Peterbilt and kenworth brought back the hood trucks with modern tech just delete the def and you got brand new hood truck

[@void308]

​@@obamasucks0858deleting a truck nowadays? You get caught on a random inspection and the fines alone will leave you bankrupt.

[@stealthyelephant8090]

I've been trying to purchase a truck for about a month now. The closest kw dealership to me has not so much as returned a phone call. The other about 375 miles away did return my call but acted as though I was putting him out. Now the peterbilt dealership has called several times and they act like they want my check for a truck. I doubt the dealerships are having any trouble at all.

[@truckn]

Most likely a sales tactic to keep there overpriced units up. Hold on one more year and they'll be calling begging you to buy from them at a much better deal.

[@austinhunter6554]

Another thing. Insurance and repairs on new equipment starve new sales as well

[@loris5993]

Serves those thieves right

[@superteckmp]

My Volvo 2022 was bought at $180k. In 2023, they tried selling me another same unit at $220k. Now, the same as 2024 is at $240k, Canadian prices off course. But it is ridiculously priced.

[@void308]

Crazy!

[@kazithecanecorso2724]

I've been looking at trucks prices, and so many dealers in san antonio and Houston swear prices are going up. The prices they have for their trucks are ridiculous. I would rather gamble and buy cash from a private seller. They refuse to lower prices and now sit on their inventory

[@kevinpierce4605]

I agree. I called a dealer in Salt Lake Monday about a truck. He would not budge off the price because he said prices are starting to climb again. He wouldn’t answer me when I asked where he was seeing these prices at 🤦‍♂️

[@unknowndriver6652]

​@kevinpierce4605 Kenworth at salt lake pffer me today only 90k for my 2021 w900 with only 300k miles .. they full of shit my truck is worth at least 140k w

[@user-ge1mk7ch3m]

Yeah same here all these dealerships are still in delusional mode there trucks are still priced 20k to 30k over what they should be

[@porttrucker]

​@@unknowndriver6652 dude why would you sell your truck now ? It clearly is not the time to sell , it's a buyers market ,hold onto it maintain it till the market changes . But you do what you need to .good luck with it

[@theoBaba773]

Just copped a '24 579 =>> $194,000 base price

[@Joe_Hunt_Music]

Possibly. The ceo of Freightliner announced not long ago that consumers will soon be able to buy straight from the factory and skip the dealerships.

[@vdubbugman53]

against the law in most states unfortunately

[@gregorylyon1004]

Yep. But Freightliner wants full price for the rig.

[@davidowen9671]

Changing the subject a bit: Yesterday I drove on CA-17 down to Felton (near Santa Cruz) with a near weight limit load of lumber. The cruise control, which I only use to go uphill, disengages below a certain MPH, which it seems is 25. Then, on manual throttle the truck --- with its industry-leading Cummings X-15 --- slowed to less than 20 MPH. All this was after hours of slowed, sometimes stopped, traffic in San Fransisco metro. Is a 25% higher rate per mile in dense urban areas starting to lose some of its glister? (Oh' and a dispatch liason clerk, who all the while can't be pried off his fixation that running loads is as per Google Maps' times or other similar!)

[@shobankumar9769]

Dealership margins are more than 40% some models are even bit more ,, so don’t worry they will surview ,, and more over all truck are not paid to company upfront to dealers ,,, they have 180days credit few case more than that ,,, in difficult times companies will give other benefits to them ,,, I know what dealership is ,, because I was tractor dealer for more that 25 years ,,,

[@thomasswindle8288]

If you think markup is 40%, you are very mislead. That is not true.

[@tg9388]

please do another Semi MPG comparing 2023 models like you did with the older year models

[@porttrucker]

The way there making there money back is by jacking up the price on parts and service where it seems like there's no regulation whatsoever

[@NorthAmerican-Trucking-News]

Of course they are

[@ranjodhlidhar2912]

Thank you for sharing value-able information

[@NorthAmerican-Trucking-News]

Glad it was helpful!

[@Jerzeyguy]

The parts counter makes it up for them.

[@truckingwithcliff]

They'll just raise their shop rates even more.

[@NorthAmerican-Trucking-News]

If no one buys, that'd be pointless

[@truckingwithcliff]

@NorthAmerican-Trucking-News trucks still break down and trucks still need parts the thieves will still get theirs one way or another veh dealerships and politicians know how to screw someone over, they've had many years to perfect the art of conning folks out of money

[@gregorylyon1004]

Cancels for truck orders. Don't buy a new rig this year. Buy a used one or get a nice repo from the bank or finance company.

[@NorthAmerican-Trucking-News]

Sounds like the best bet

[@levibaker9789]

Ya I just bought a 2019 western star 4900 at rb auction for 34,000. The more desirable trucks like w9's, t800 and 389s were still selling for anywhere from 80 to 100k with 700,000km to 1 million km on them. The star I bought had 856,000 for reference

[@NorthAmerican-Trucking-News]

Those trucks have a dedicated audience so the rates are bound to be a bit higher than other trucks at the same or similar mileage

[@Gunning-for-Trucking]

Dealerships are going to be just fine, peterbilt charges $210 hour for labor costs and eom parts are crazy marked up. They make their money on repairs anyways

[@downundertruckerusa4733]

Great video. Thanks

[@austinhunter6554]

They want to sell new trucks? Charge the same price for single sale as they do for fleet sales. Especially with the quality issues new trucks are having. Plus people love a great deal. Offer prices we can’t refuse.

[@devilmax007]

They use to say that new trucks are all booked till 2025 and charged $160k usd for 400 k mile 3 year old truck in 21 22

[@georgekoko69]

Thanks for uploading something for me to watch during this storm loool Im stuck in traffic

[@kolejnipolscykrakersi]

They made so much money on markups, they should have some saved for this situation. If not - too bad. P.S. Trucks he skipped are KW. I can tell what this brand is doing recently.

[@snoman003]

Possibly an absolutely absurdly question however, what happens if enough dealers, lose orders and can't support their floor plan interest rates and go under? If there isn't enough stock, to support what's left of the purchasing market? Prices will drop suddenly at the auctions, then sharply spike up due to the lack of dealers. Add to that, the spike in interest rates, fuel costs and seemingly absurd climate regulations in states like California. On top of all that, trucking companies and brokers seem to be closing like crazy. What happens next?

[@NorthAmerican-Trucking-News]

One can only speculate

[@djvega05]

I paid $200,000 for My Volvo 2024 860 with 500HP and it’s a BEAST claiming those Hills!!!..

[@marcgglo9128]

US money or Canadian?

[@ne9835]

Jeez!! You can buy a house for that price!!

[@themiddlechild1988]

Dealers dont buy cars/ trucks from manufacturers. They only pay the manufacturer when the car/trucks sell

[@SolarWraith]

Seen some filthy cheap trucks on the Ritchie Bros. auction site...especially the single axle trucks. Granted many of the singles were Yellow trucks...and Yellow wasn't exactly kind to their equipment.

[@marqueswilsonn]

$225,000 for a new truck. Heck no

[@NorthAmerican-Trucking-News]

You are indeed right

[@ViktorVaughn86]

Heck?!…..F**K NO!!!

[@dvk7277]

Great video as usual Ronen. What do you think of us Canadians travelling crossborder and buying trucks in US instead of Canada. Is it worth it?

[@nicholas8793]

There isn’t a single new International LT at any dealer anywhere in Canada.

[@banksboy6806]

They got the used ones for 34-40,000 around here

[@davidowen9671]

Shouldn't option drop-down menus on manufacturer websites --- complete with embedded videos on every imaginable option, and part even --- have put dealerships out of business long ago?? What value do dealerships actually add? Put a number on it. Now, how does that value-added number compare to their markups (by whatever name), to what they actually extract? Of course, we shouldn't forget all the value they bring by strutting around and acting like they are the big boss man, the gatekeepers to prosperity.

[@crdougsol]

I requested a quote for a 589 with a really nice set up and it came up to $205000 which wasn't bad in my opinion. Now I'm waiting on the salesman for a discount since he evidently noticed I was really interested.

[@robertwells8169]

They have made it hard to care

[@IntrovertRockstar]

Them tables turn

[@NorthAmerican-Trucking-News]

Yup!

[@highball7347]

I’m guessing Volvo dealers were the ones that jacked up the price?

[@janalbertholwerda5954]

Wait, wait, wait and see what is coming. I just payed of the Scania lease. My broker still have good prices, and i think i will buy next year a canceld truck.

[@Rammstein1961]

Dealer never pay 190k for a truck the have a Big Discount, not only 20k

[@samo8204]

Ronen, I've heard Freightliner is getting rid of their dealers and we'll be buying direct from MFG moving forward. I won't put my dealer on blast but they DESERVE to go belly up!

[@NorthAmerican-Trucking-News]

HA! I get you 100%

[@michaelferro5268]

I bought a 2024 Cascadia in January for 187,900 . They threw in a ew-4 for 6-600k they also took off 750 on a total coverage warranty for the same years and mileage. My trade was also given top dollar for the market. They are making deals. But don’t think you will walk out with a “steal”. The manufactures will also bend for their dealers too. You will never see that because they will stub up to make what they need to.

[@hardeepchahal1233]

Usd or cad?

[@michaelferro5268]

USD

[@brokesttruckeronyoutube3256]

Those dealerships are making hand over fist in their service department and parts department. They are showing no remorse for the owner, rod or any business please

[@NorthAmerican-Trucking-News]

With the experience we've had... we get it

[@treyfeeley2519]

A local Kenworth dealer just built and moved into a beautiful , new facility not far from me. I ride by there and see all the new trucks lined up just sitting there!! So, is service and repairs the only thing keeping these dealers afloat!?? I had an idea about buying a used truck in a couple of months while prices are low and parking it until things get better. Then, I could start my business when things improve. What so you think of this idea??

[@sergiikononenko6125]

Unless you have a lot of cash that you don't have a plan of anything to do with it , it makes sense. Otherwise it is not the smartest idea

[@bentonja668]

You would be betting that used truck prices don't continue to fall.

[@treyfeeley2519]

@@bentonja668 Thank you!!

[@treyfeeley2519]

@@sergiikononenko6125 Thank you!

[@user-kw7zb8qw1u]

Of course u can buy cheap truck build up engine n electric axles meritor14xe remote control n still have money to put e axles on trailer as well n now I got two c15 all electric axles plus new engine n still have money left over like crazy u tell me

[@davidowen9671]

Mr. Gilkarov, You are Canadian, correct? You make frequent references to dollars. Default assumption is US$, not CA$, correct?

[@bentonja668]

Yes he is talking USD. When he means Canadian he will say it.

[@ardenbowman4489]

THIS WILL WAY PAST 6 MONTHS,TRY10 YEARS OR NOT AT ALL COMING BACK,PEOPLE YOU ARE LOOKING AT A WORLD WIDE DEPRESSION,HAVE A NICE DAY

[@Tj-xl3kg]

I don't feel for the dealer ship. They been so greedy for years. Let them eat it.

[@timheersma4708]

How long before they figire out DEF is a flop ?

[@thomasswindle8288]

Don't forget, 12% of that selling price is FET (Federal Excise Tax) . The dealership has to send that to the Government.

[@NorthAmerican-Trucking-News]

Yup!

[@michaelbleckler4379]

280 to 300 thousand at the peterbilt dealership up the street who can afford this?

[@krisbryant7100]

The Peterbilt in my hometown wants 100k or so for 2020 389. Used fleet truck... I'm like you who can afford these prices??? I've come to the conclusion that a lot of people can I suppose.

[@user-jd9nj5fg9s]

New trucks are over 200k there ain’t no way no one can afford a truck that expensive diesel is the main reason I been loosing almost 5-6k a month just on diesel there was a time I use to run California to Memphis for like $1800 total round trip in diesel now is like 3k

[@kat4393]

As long as you re a reputable company with good customer relationships and not a slimy crooked dealership then you should be fine

[@-LIONHEART]

Dealership wanted 40% interest I said go puck yourself

[@RomeoUrsu-fy9qo]

Can’t even make any money with equipment paid for it long time ago….and not much money for repairs also…

[@Super29Vegas]

Could careless about another truck focus on house market. 200k-100k I'll pass

[@NorthAmerican-Trucking-News]

Smart

[@truckerabdullah7414]

Good for them they over charged ppl greedy dealers

[@NorthAmerican-Trucking-News]

Haha.... we've had our experiences with them too

[@morrisdennis]

Few can afford a new one...

[@davidblaske6911]

It takes an economist to analyze the problem who will then insulate himself from the problem. We can't all be Rich.

[@morrisdennis]

Its systemic greed and corruption...

[@QODAS2002]

Used for 40k below 400k miles Clean title Why should I buy 240k? Truck?

[@elvissboh]

Good story man. F the diller

[@NorthAmerican-Trucking-News]

Thanks for watching!

[@brianhoppenrath8379]

Dealerships aren’t struggling, more ET bullshit. They charge extremely high rates per hour and take there time doing the repairs and in some cases are charging for 2 trucks while one mechanic works on both. They just built another new dealer here, they are not struggling, they are stealing.

[@skyeram]

Good...I hope they do go under. Charging over $200k with a huge az % for a Freightliner and call it Supply and Demand....they didn't mind to screw over truck drivers, I'm glad they're having problems.

[@guybuddyman838]

Tuff

[@overdp]

Don't feel sorry for them. If they took care of the customer, we would have money to buy new ones...

[@praxedeskyle5530]

😮

[@armanarmadillo]

Tax time, happens every year.

[@vladcom0]

Oh yeah write dealers buy from manufacturers for 190k haha they do have 30k in net profits

[@rd5991]

Pride truck

[@NorthAmerican-Trucking-News]

Seems to be a common one that others are reporting is shaking

[@randydavis6117]

Our economy has been in bad shape for years the thing we got right now and our representatives or media calls them law makers have gotten worse trump hasn't been in politics for years like what's going on now no one can get it back way need be until the mgg jobs come back here

[@Corleone_Napoleone]

So, Wha Hapen??😂

[@randydavis6117]

The salesman might hurt little bit but they'll make up the difference with labor cost for shop fees and jack you in parts department i would not buy a truck right now due to rates and in spring of 25 see how the economy looks and if we have this idiot we call president we'll be in a bad depression

[@bentonja668]

The economy was in shambles when Trump left office. Why would it improve if he comes back?

[@rondockweiler2663]

​@bentonja668 sir you need a brain.

[@sarfrazsae9226]

No one imagines recession in 2000 years but it hit the market in and around 2008 especially in real estate then what happens house prices goes down and people start establishing themselves with help of low real estate however they can afford, build equity, move on to their next project etc. But today's issue is about the same because if people don't make money then something will occur. So, at first priority needs to fix the job market but in trucking it is likely an owner operator.opertunityHow?? It is not so easy unless every one related in it do it's part. 1st, need to stop corruption and open up load board regardless that means if someone next to me pick up a load for 1000 dollars then I will have the same exact value for that same load. 2nd Step; now the ball goes to dealership because what ever a guy earn, dealer can see same thing by its log book and trip details. So the dealer can sell or lease its truck and trailer directly or indirectly (through investor) to someone who has a CDL license. That means the driver will put its skill and labor while the investor puts its money which is his truck and trailer plus insurance, license etc so whatever is booking or total earnings you just take fuel out before you divide in 50%/50% between both of them. This will change the entire trucking business in one day while the driver will not need 20% down to get a brand new truck and trailer and rates for load will go down or remain where is now.

[@user-ik3vi2xq9p]

It’s payback time beeches (dealerships)🤣🤣😂🤣😂🤣

[@NorthAmerican-Trucking-News]

Haha!

[@brianhoppenrath8379]

I think someone needs to shut up.

[@papasmurf1904]

I have no sympathy for the greedy b---s!!! 😮

[@user-kw7zb8qw1u]

Hybrid

[@AbdulAli-ci7mz]

u do not no what your talking about please stop the bs

[@NorthAmerican-Trucking-News]

And I suppose you do? Please inform us on the ignorance of our ways

[@AbdulAli-ci7mz]

do your research 1@@NorthAmerican-Trucking-News

[@brianhoppenrath8379]

This guys a foreign phony.

[@VarPb-wc6gd]

DeaLers are stealers 😂

[@bally1664]

They are greedy bastards

[@sarfrazsae9226]

No one imagines recession in 2000 years but it hit the market in and around 2008 especially in real estate then what happens house prices goes down and people start establishing themselves with help of low real estate however they can afford, build equity, move on to their next project etc. But today's issue is about the same because if people don't make money then something will occur. So, at first priority needs to fix the job market but in trucking it is likely an owner operator.opertunityHow?? It is not so easy unless every one related in it do it's part. 1st, need to stop corruption and open up load board regardless that means if someone next to me pick up a load for 1000 dollars then I will have the same exact value for that same load. 2nd Step; now the ball goes to dealership because what ever a guy earn, dealer can see same thing by its log book and trip details. So the dealer can sell or lease its truck and trailer directly or indirectly (through investor) to someone who has a CDL license and keeps good driving record That means the driver will put its skill and labor while the investor (may be a dealership) puts its money which is his truck and trailer plus insurance registration, license, dispach (with driver choice) etc so whatever driver has booking or total earnings you just take fuel out before you divide in 50%/50% between both of them. This will change the entire trucking business in one day while the driver will not need 20% down to get a brand new truck and trailer and rates for load will go down or remain where is now.