BANKS Are In TROUBLE And The Car Market Is SCREAMING IT

In this video we talk about how so many people are upside down on their auto loans. The economy is in big trouble and the car market is screaming it! Repos and auto loan delinquencies are souring. I also take you to a used car dealer auction and show you what car dealers pay for some car repos.
My name is Brandon and I am a used car dealer. I created Car Questions Answered to share the ins and outs of the used car market from my perspective. I share with you updates on car prices, what's happening at the dealer auctions, and what it's like being a dealer. My goal is to share information to help you make the best decisions while buying a car to save you money. I do not want car dealers taking advantage of you.
Thanks for watching and please feel free to leave any comments you may have in the section below!
And make sure you don't forget to LIKE, SHARE AND SUBSCRIBE FOR MORE!!
*None of this is meant to be construed as financial advice, it's for entertainment purposes only.
#UsedCarMarket #CarPrices #carmarket #usedcarprices

[@number1pappy]

Im really trying to feel sorry for all these people who are upside down in their vehicles! However, i can't forget these are the same people who volunteered to pay the outrageous prices the dealers and manufacturers were asking for these vehicles, litterly causing the prices to continue to be inflated for the rest of us! Knowing this, i have zero empathy for these people!! Its seriously hard not to take glee in watching dealers and manufacturers squirm because they are going to lose massive amounts of money! They definitely have it coming to them!

[@mikejohn7273]

Let them keep these overpriced cars screw them even old used cars are crazy high prices w high miles to!!

[@brokeboii4103]

yup and the ones who live way above there means are fxked

[@jamesyoung6379]

Yep...

[@JohnRamz-ww4sd]

Most of these people bought vehicles using all pandemic stimulus money too.

[@plebeian_egalitarian]

Agreed, it’s fun to watch capitalism self correct like this, if the government will keep their nose out of it.

[@vap0rland]

my '89 Buick looks better every day!

[@1968CudaGuy]

3800cc V6 motor in that Buick was one of GMs best motors!! Love my 1992 Mercedes, 2000 Jeep Cherokee, and 2004 Ford Ranger.. All paid for..

[@silverback8183]

My 06 P71 Crown Victoria still runs like new!

[@digitalwitness77]

So does my Bullitt.😂

[@vtking310]

I hear that! My 06 Chevy pu all paid for is a dam good truck!

[@kaiserpuppydog7174]

I wish I could get a brand new Park Avenue from the early 90s. The design was so classic.

[@aldomassa7473]

Dad said “ Son , if you can’t pay it off in 36-48 months…. You don’t need it. “ Exactly why I drive a carolla and 4 runner, they are paid for and perfect, well done Brandon.

[@antoniocoleman8380]

That’s what my granddad told me and I’m sticking by it

[@boboutelama5748]

This is something I was awaiting for a long time now. The car-loan crash. It was absolutely clear that this system couldn't be going on. I'm curious to see how bad it's going to be.

[@MrKongatthegates]

Its bad for 1 or 2 out of a hundred, but the banks expect that, thats just a cost of doing business. Its pretty normal the economy goes up and down.

[@SpressoHead]

This could end up being similar to the crash of ‘08 for cars. Get your game on and be ready to pounce!

[@jwigley3835]

My car is 23 years old. I'm so tired of fixing it. The repairs are getting more and more frequent and I really want something newer. But there is no way I'm paying these prices. I'm holding off for now. I'll just keep fixing my old car, it's cheaper anyway.

[@user-tu1ot8ol1u]

I feel you, I bought a $500 Accord that needed a new head and fixed it up. Its running rougher each month so Im hoping shit hits the fan real soon

[@jwigley3835]

@@user-tu1ot8ol1u Yeah and it's starting to get tough to buy a few components now too. I needed to replace a speaker and I found out that no one makes them at all anymore. Even the dealership doesn't have any old stock. It's to the point now where I have to cut into the mounting brackets and start gluing stuff in that wasn't meant to be there. At least I haven't run into anything on the motor that isn't produced anymore.

[@robertott2631]

Exactly

[@EldePHX]

Same bro I’m always tempted on buying a newer car, but this market is crazy. Hopefully our cars last a little longer

[@calila650]

I’m in the same situation. Waiting it out.

[@Tuberuser187]

When you are $6,000 behind on your car payments you worry, when countless thousands of people are behind on the payments then the banks worry.

[@keithdaniels5918]

@@Tolbat I spoke with a 300 credit score last week, they had the same attitude. You will own nothing and be happy is really catching on.

[@vladimirofsvalbard9477]

That makes no sense; why would the banks worry? They have collateral on your vehicle; they own it. If you stop paying, they get it back. If you financed with the dealership; they get it back.

[@james-p]

@@vladimirofsvalbard9477 If that car they take back is worth $6K less than what they are owed, they worry!

[@davidburke4101]

@@vladimirofsvalbard9477 Because they can't get their money back. If the truck MSRP's for $40,000 and all the markups put the truck at $70,000, and they default after a year the loan probably still has 60,000$ on it. However, because people aren't paying retarded prices anymore they can only sell the truck for $30,000. They just lost $30,000 because the truck was already sold, and once the car is repossessed there won't be any payments on the loan. Now multiply this by millions of trucks across the US. The banks are down BILLIONS of dollars that can't be recovered. You starting to see the issue?

[@Tuberuser187]

@@vladimirofsvalbard9477 As the other guy explained, enough collective toxic debts can start to sink banks, it starts off with bad forecasts, increased collateral requirements for transfers, banks and lenders and even governments have a "credit rating". While an automotive collapse wouldn't cause a 2008 by itself if you start to factor in how it would affect the banks, then mix other debts and economic issues then it can get out of control quickly.

[@marblox9300]

I'm still driving my 1993 Geo Prizm that 21 years ago paid $2,500 plus tax. Along the way a $1,500 trans and $900 Timing Belt/Water Pump. STILL goin.!!!

[@brucejezek5248]

I had a friend that has a geo metro 330 thousand miles still gets 48 mpg @ 50mph original price new 12k 3cyl manual transmission

[@johnjennings2672]

I remember this being the case back in 1980-1982. Interest rates were 18% and people would trade in many times, and go "under water" quickly. But at least the cars could be easily repaired.

[@kalasmournrex1470]

Sorta. Cars from the early 80s were all rust magnets.

[@johnjennings2672]

@@kalasmournrex1470 Nothing changed, new cars just hide it a little better...

[@mikehertz6507]

Newer cars are 10 times more reliable

[@andyp91]

Just like in the craziness of '07, many unsophisticated folks figure if the bank approves a loan that means they can afford it.

[@outwiththem]

Same with houses. They got their commissions, and F up families and the whole country. Mortgage Processors did it. Crooks..

[@jordez1]

God, I just wanted to say thank you for keeping my 1994 Sentra still running and in good health. Also, bless those companies that still make good OEM/aftermarket parts for old cars like mine,Amen.

[@severinjohn]

Wow, that's a 30 year old car in 2024! Congrats on that and I support you 100% to keep that Sentra running at least another 5 years. How Many miles on it? Is is an SR?

[@blazingfuryoffire1]

Gotta love aftermarket. For just about anything over 3-5 years old, you can get high grade aftermarket parts that's better than stock.

[@bdlii]

Amen

[@ozzierabbit587]

Maybe the lord is punishing you for something if he's responsible for you still being stuck in that Sentra.

[@brettloo7588]

+1

[@cmc5394oparva]

A repo on a 2013 Honda Pilot with nearly 200k miles is just crazy to me. No way in a normal economy should a vehicle like that, in that condition, be under a repo cloud.

[@MrKongatthegates]

It was probably bought for at least 15k! One layoff is all it takes

[@SmartestDumbGuy]

These are actually the type of cars that get repoed the most because they are sold at "buy here pay heres" by people who have horrible credit (aka people who have a history of not paying their bills.)

[@FuckPalestineFuckHamas]

Most likely a single mom living off the government

[@SpressoHead]

I’ve always tried to pay cash for clean, low-mileage pre-owned vehicles. It’s American glut and instant gratification that has gotten us here. I just paid cash for a late model, low-mileage van, at a reasonable price. I looked for 4 months. Patience paid off. It’s becoming a buyer’s market, but ya gotta have CASH

[@justinlanglais9825]

Amen brother ! 👍🏼

[@dalton-jon-f5791]

I bought this 2003 Odyssey 10 years ago with 135K on it for $3300. I've spent $3000 on repairs on stuff that goes out like alternator, PS pump, radiator, shocks and struts,, and timing belts have to be done every 100k, not a peep out of the engine or drive train and have 325K on it now. This just runs smoother than silk to this day,, original starter motor !

[@1squirreldog]

We offered 4 dealers the advertised sale price + our states sales tax & tags . None of the dealers would sell us the vehicle ! They all said the sale price is for financing and not for buying it !! Then they wanted to charge us a bunch of add ons and an extra charge of $2000 for not financing . Some of the add ons were 1/2 of the price of the vehicle. This was all on Chevy 1/2 ton trucks . Idk how these dealers stay in business !

[@JG-kv4oi]

Buy it on financing to get the good price and pay it off after a month, that's what I did.

[@dave3657]

Walk away, there’s another dealer that would love to take your money.

[@1squirreldog]

@@JG-kv4oi my son is the one looking to buy the truck & he follows Dave Ramsey & has never had debt & does not want a credit score . Thats why he just wants to purchase it . Although he’s not going to pay more for working hard & having the money .

[@1squirreldog]

@@dave3657 I’m thinking the same thing . So far no takers . I thought one of them would take the deal before the year ended but they didn’t .

[@kp1260]

A lot of people are still buying cars. Look at the sales report. It's actually up.

[@20TIL6]

A banged up Honda Pilot, 226k miles and nasty nasty interior.. asking $4500. Insane. That’s a sub $1k car 5 years ago. I can definitely remember not long ago cars in that shape being some hundreds of dollars.

[@dozerroman4325]

Just found your channel today. You’re an absolute legend my dude

[@jeffb957]

I had a car blow up on me unexpectedly. I needed a super cheap bridge car to get me by. I bought an absolute shit box early 90's Buick for $1200 cash. I was utterly flabbergasted when the little dealer that sold it to me didn't give me a title. He gave me a "Georgia Certificate of Repossession and Auction." I didn't have any trouble getting a title issued at the courthouse. Some poor bastard was making payments on that shit box at a place called "YesCredit" and couldn't make it work. Surprisingly, I had that car for 6 years. It was mostly used as an emergency spare, and still ran fine when I gave it to a family member that was having trouble. Tires, a battery, and spark plugs were all I ever did to it.

[@JLocauto]

Wow some people are in deep trouble

[@toddprater14]

Buicks baby , especially ones with the indestructible 3.8l v6… all you need or a foreign shitbox if that’s your thing… a car gets you from a-b and back to a… yes it’s nice having a new car, but payments go on forever and are not worth it, especially in today’s economy…

[@davidhoover3347]

NoCredit went out of business. 😂

[@dougrobinson8602]

@@toddprater14 My Dad gave me his '97 Buick Limited to use as a winter beater with around 150,000 miles on it. I drove that thing for years, then gave it to a friend who was in hard times. He called me a couple years after I gave it to him and he said it finally went to the junkyard. I asked if it was running, and he said it was purring like a kitten with over 300,000 miles. It was the rust that did it in. That full sized sedan got over 30mpg on the highway, too.

[@ellwoodwolf]

In spring of 21 I sat across from a sales rep at howdy Honda in Austin, tx I asked about ordering a manual civic ( 23.5 k ) he said they can, but they sell them close to 30k... I literally laughed in his face and he asked what’s so funny- I told him “ that car is not worth 30k” he said yes it is, we are selling them at that price - and I said “well then I will get a 2021 in 2024 when that car is only worth 17k and everyone who bought is screwed”

[@JA-zh5xi]

And that is coming true now!

[@The2ndFirst]

You had the ability to do that. Not all do.

[@lvsqcsl]

And of course, people were STUPID enough to do it.

[@jpdemer5]

Very simple, commonsense rule: NEVER buy a new car, unless you have money to burn. Let some other idiot do it, then pick up the car used.

[@oleradiodudea.m.4735]

Does a salesperson have anything to say about what price their employers ask for cars? This guy was probably a poor working schmuck with bills to pay, two ex wives and child support eating him alive. (normal salesman)

[@lazerusmfh]

I haven’t paid car payments for awhile now, sometimes I get worried…. Then I remember I paid cash for all my vehicles 😅

[@acr4715]

Thanks for sharing all this info

[@DoctorAgita]

Some of this is also backlash for dealer gauging during COVID and thereafter. When you are paying 85k on lot for a 62k corevette, people are going to be pissed.

[@airthrowDBT]

You wouldn't be pissed if you took accountability for your own stupid decisions 😂

[@CarMaintenanceGuy]

No, you don't pay $85k for the Vette. YOU WALK OUT and tell the dealer to go F themself. EVERYBODY NEEDS TO DO THIS! I warned hundreds of people to NEVER pay market adjustments and nobody listens to me. You all dug your own graves by paying over MSRP. Nobody to look at but the person in the mirror.

[@Sarcastic_Asmodeus]

Blame the dumb average consumer.

[@michaelsnively3621]

Yeah right. Who paid the money to purchase the vehicle? Most don't have to buy it.

[@Poopster4U]

I bought my C7 GS in 2019 and never looked back. New C8 is 100k! What a joke!

[@stevebrackett2676]

With all of the “above MSRP” sales in the past 2-3 years … there was no way this situation could be avoided…. Was very obvious when it was happening!

[@iknklst]

Onvious to you becuase you're financially literate and understand how supply and demand affects pricing. I've ben waiting to buy a late model pickup and will wait just a bit longer into the year. People who bought in '21 and '22 will be getting even more desperate as the economy tanks even harder and they get even further underwater.

[@alanbrossett4744]

I have bought four cars in the last four years and paid under msrp for each one. You just have to haggle more and not be afraid to walk they will still chase. They want that sell.

[@diegoharo7943]

@@iknklstthe economy has only been getting better

[@iknklst]

@@diegoharo7943 Don't do drugs, kids, or you'll end up like this guy. ^ I I I

[@diegoharo7943]

@@iknklst Other than inflation which had been decreasing for 12 straight months (currently around 3.2%) the economy is doing FAR FAR BETTER under President Biden than when donald left office GDP Unemployment Rate Stock market Jobs created The deficit Pay rate Etc,……

[@northwestmechanic8991]

When I was looking for a Honda Odyssey, I decided to go to my local Honda dealership first and found the one I want the only problem is they wanted $1,500/month on it and after trying to talk to them for 3 hours I said no and walked out. I went onto Facebook marketplace and found a nice one with 229,000 miles on it for $3500. I was able to talk the owner down to $3000. I still have the van today and it now has 245,578 miles on it. The dealership tried to gouge me so I gave my business to a private seller instead.

[@ian2372]

So glad your channel is blowing up, well deserved dude!

[@jonathantaylor6926]

These 72 and 84 month loans are going to be a real problem. Unless you have a big down payment (and many do not) it’s a guaranteed upside-down situation. The interest is front heavy so the first two years you don’t make much progress paying down the principe and adding equity.

[@markodhamlin]

Down payments are illegal according to TILA!

[@taylorjackson7908]

Anything over 60 months is crazy . If you have to trade and it isn’t paid for you are in big trouble.

[@iolacowgirl]

@@markodhamlin what's TILA?

[@BoilingBroth]

@@iolacowgirl united states truth in lending act

[@oneshot3552]

Car loans aren't like mortgages. The interest in mortgages is front heavy as you say. However, car loan interest is spread out

[@DamonWilliams-ry1vn]

I work for a major insurance company and the total loss claims are getting bad! To many people owe way more than the actual value. If they don't have gap, they're in a tough spot and it's my fault of course. Tired of getting yelled at, I wish people would make better decisions. No one should ever buy over msrp and a down is a must.

[@_PatrickO]

Being underwater was always a concern even when car depreciation was normal. Anyone not buying gap insurance after buying an obviously marked up car has only themselves to blame. These overpriced vehicles have caused everyone's insurance to go up. The people buying these cars were lucky that insurance companies screwed up and did not spike rates on new policies for cars with inflated values.

[@toddprater14]

I remember when gap became a thing in the mid 90’s I believe.. that right there was telling you cars were overpriced and not worth it… back then buying a 25,000 ride and if you had to take it back the next day they would be giving you 20k max … can’t imagine today financing a 75,000 truck and 6 months later a job loss and you take it back to dealer and they give you 52,000 you’d be 23,000 in negative equity yikes

[@OldYgg]

Gap should be required on most auto loans.

[@marsman69mh]

It's the same with the housing market also!! Houses that were $200,000 a couple years ago are now $350,000,$450,000 or half a mil!! And renting costs even more than a mortgage payment!! Pure greed!! And record 40 year high inflation!!

[@brianstansfield4367]

Plus, these inflated values are driving up insurance costs! I have never made a claim or gotten a ticket and my rates keep climbing!

[@FREDDEMONIZER156]

Happy New Year Brandon and everyone else! Always great info and you make the channel entertaining. Hope you become one of the biggest channels

[@gregschurman6026]

Love the bloopers, and the spot on info.

[@richardthomas1743]

The Honda , when a vehicle looks like that on the interior you can bet your last dollar that it has had zero maintenance!

[@toddprater14]

If you bought a car in the last 2.5 years , other than extreme dire need- you’re a fool..

[@1968CudaGuy]

Mr. T says.. .. I pity the fool!!!

[@Mrbfgray]

I'd add that anyone buying more than bare minimum econobox, anytime, is a fool if they can't pay for it *twice in cash.*

[@aerostar9376]

I paid 12.9k for 135k mile charger rt awd did I overpay?

[@JA-zh5xi]

Exactly

[@JA-zh5xi]

@@aerostar9376yes, anything above zero for a Chrysler product is too much.

[@Dawgator]

Spot on accurate brother! You’re a soldier of truth!

[@robertprado7657]

Dude. You are awesome. Keep up the good work.

[@michaelpilot1000]

I financed a vehicle in 1976 when Jimmy Carter was President. Interest was 12%. That was avg. Paid off in 1977. I never financed anything ever again. I pay cash for what I can afford.

[@user-pv5ju5uo1e]

Even in the late 80's interest rates were higher than they are now; it's just been very very low for a long time now and people it seems very unusual.

[@joe2mercs]

There is psychological effect when car prices are falling. Customers are aware that dealers were charging ‘market adjustments’ a couple of years ago and this sent a message that dealers had the upper hand because demand exceeded supply. Now everything is reversed the psychology is ‘why should I buy a car that nobody else wants? And If I buy it now I may miss out on a much better deal a few months down the road”.

[@MrKongatthegates]

There is no deflation tho. Just lower inflation. Waiting doesnt really help

[@Old_Man_Pool]

My 2009 Pontiac vibe has been paid off for a little over 10 years and still runs like a champ. So happy I stayed with it.

[@bprince1447]

I really enjoy watching your videos. Keep up the good work.👍

[@dustoff1472]

I recently inherited a 2005 ford focus with 50,000 miles in perfect condition with new tires. I was thinking of selling and getting a newer auto, but after listening to you over time I’m keeping the car. Did I mention it also has great gas mileage. Tks for sharing.

[@glorgau]

The best car to have is one that runs and has no payment.

[@Bootyeater999]

You would be dumb to trade in no payment for a payment. 😂

[@ronj9124]

Pay yourself for the next car in the meantime.

[@markjohnston2675]

Come on don't you want an $85,000 F-150 at 8% interest with good credit....You will look so cool.

[@james-p]

Start making "car payments" into a savings account, keep that '05 Focus, and drive it 'til the wheels fall off! By then, you'll have a tidy sum you can go buy another one with.

[@Su-Jo]

Happy owner of a 2000 Saturn wagon here! I'm the third owner and have driven it for the last 12 years. I put 2 to 3k in maintenance every 4 or 5 years, keep the oil changed, and it runs like a champ! 190k miles and still running strong. I'm retired now and drive 20 miles or less a month so I'll die waaayyyy before this car does 😆

[@aradoran]

Fellow Saturn driver here! ‘05 Ion RL. It’s a little more GM than the OG Saturns but still been a great car. Got 160k miles on it. Have put probably $5-$8k total maintenance since buying in ‘08.

[@skynative0099]

This is why I leased mine 3 years ago with the option to buy. I put down $3k at lease signing and opted to buy my Tacoma when my lease ended this past October.

[@75jrwhite]

Banks should have never approved the loans for those market adjustments. They knew this would happen.

[@Luke-hs3bf]

The one thing that isn't mentioned by most auto podcasters.....getting the car repossessed really can screw your credit up and make it even harder to get a loan or financing for anything later.

[@albinklein7680]

It is better that way. The most stupid things in this world are consumer loans. It has been the #1 rule for my family for generations. Don't buy anything (and I mean ANYTHING except for maybe a house) you cannot pay for in cash.

[@petethehawk5186]

Probably because that goes without saying lol. They sometimes make it seem like a lot of folks are just “dumping” cars but it’s not that easy to do. On cheaper used cars maybe it’s not as severe but on a new car you’ll definitely be on the hook for the balance after the car auctions (for probably much less than you think it will) plus all the auction and bank fees related to that. You’ll either be told to pay that sum right then or at the least get put on a payment plan (which I don’t think has interest) to pay it off. Refuse that and it’ll likely go to an attorney and you’ll get served court papers where garnishments and whatnot can occur. So there’s no “I’m just gonna bail on this car” and move on easily thing happening.

[@alexleal7643]

Yup i made that mistake back when i was 21. My credit took 7 years to start to rebuild, and it was tough getting approved for anything.

[@TheBandit7613]

@@alexleal7643 Then do what most people do. Run up the credit cards then claim bankruptcy. Start over. Within a month, you'll get several offers for credit cards. Pay on time for a couple years and your credit rating will be back to average. While you are in the bankruptcy process, all bills will be on hold legally. Don't piss that money away, save it in a drawer.

[@BoJackHorseman_eatshay]

@@albinklein7680 ... This is outdated thinking. Refinancing can save you literal thousands and build your credit. You're hurting yourself.

[@chevyguy-hf1yq]

Gotta say this brother. I am 53, had a dealership all my adult life. I'm no dummy, pay cash for every single thing I own etc. I learn something from every last video you make. Look at things from a different perspective etc.. You are a VERY intelligent young man and I appreciate ALL the time you are investing into growing this channel! You are gonna be big someday. Mark my words.

[@carquestionsanswered]

Thank you so much for saying this... These kinds of comments are what keep us going!

[@ozzierabbit587]

You even pay cash for a house?

[@rockyroad7345]

​@@ozzierabbit587You might be surprised how many people do pay cash.

[@samtx5518]

This⬆️

[@Antares_451]

Lol .. Not even super wealthy ppl pay with cash only the poor don't know how to maximize their cash .

[@juanzingarello4005]

Honestly, what should happen (and may even reach that point) is banks should start treating cars like homes. Perform appraisals of the vehicle before issuing the loans and the bank will say "Nope! We are only paying MSRP or market value of the car. Any extra will be covered out of pocket by the buyer and is not our problem." If this happens, you'll start seeing dealer markups go away unless people actually have the cash to cover the difference but the banks will have washed their hands of the problem.

[@stimproid]

This makes sense. Inevitability, one lender will start offering to lend more than the vehicle is worth and accept the risk. Other lenders will see that first one getting a big chunk of the market share and follow suit.

[@mtnmosin2740]

that is amazing

[@juanzingarello4005]

@@stimproid well it stuck with housing probably because more money is put at risk with housing ($500k as opposed to $40k). But if enough damage is done with automobiles going to people that can’t afford them the banks are going to have to start covering their rears. Appraisals are done to protect the bank not the consumer. If you as the consumer feels that you still want to be the dumb @** and pay $10k (or $100k if its a house) over the actual value then thats on you. It will come out of YOUR pocket but the bank will only cover 80% of the appraised value with the loan. So you won’t be bringing the bank down with you when you default.

[@TheChrismeg34]

The problem is the banks don't have the money in the first place, yet they still over leverage themselves by giving out the loans. This is the point that's being missed

[@TheChrismeg34]

It's a dumb monopoly system that wasn't built to last in the first place. It's meant to death spiral like this so that more can be stolen from the consumer even during a downturn, while also putting all blame on the consumer 😂😂😂

[@edjovi3677]

i love when you show your bloppers it funny to watch !!! keep up the work u do as a you tuber

[@TheMrAshley2010]

Videos like this should be required viewing for high school seniors, for college students who don't own cars, and for parents of people in those aforementioned categories. I am so blessed to have not bought a new car since 2002...that cost less than $15k, that I paid off in 4 years, that I was able to drive for 16 years before replacing it.

[@one5thofwhiskey738]

There's a reason basic finance isn't taught in school, or the time value of money. This country wants debt slaves.

[@jamesj.7750]

I paid off my car 5 years ago. I will fight to never do car payments again.

[@drew9073]

I doubt that. You will again once your old car is dead😂

[@mitchhedberg4415]

@@MikeW-xs8rf LOL, you are paying way too much in depreciation and sales commissions

[@shortyorc121]

​@mitchhedberg4415 I bought a Honda last year because my pos jeep was nickel and diming me monthly. I hate having a car payment, but being stranded or waiting for a week to get your car back isn't always an option. I went 6 years without a car payments it was glorious, but it is what it is. Sometimes your hand is tied and you have to get a new car. Atleast I did pay over msrp.

[@southjerseyautosales6583]

Here’s an idea I’d like to float -if dealers want to sell more cars - they should put a secondary sticker on their cars that say “market adjustment” minus -$3000 or market adjustment -$2000 or higher -I’m sure it will catch some buyer attention 😊

[@johnputney8052]

I know a person that has a 2019 Ecosport that has defaulted three times on the loan. The loan holder each time has reset the payment schedule and added the missed payments to the end of the loan to avoid repossessing it.

[@bronjefferies2612]

My father gave me some great advice as a teenager "if you cant afford to pay for it up front, you probably can't afford it". This advice kept me debt free my entire adult life. We have a mortgage yet we pay significantly less then market rent. Nothing wrong with second hand cars.

[@mitchhedberg4415]

Not the worst advice, but building credit responsibly is better advice. Unless you have enough money to buy a home with cash, you will need credit. Some jobs even require a high credit rating now.

[@bronjefferies2612]

@@mitchhedberg4415 Im in New Zealand. You build a credit score by paying bills on time and other simple factors. I was told buy everything with a credit card and pay by the end of the month. Never did hire purchase or anything like that, still had a good credit score. Their main concern was my income, savings and kiwi saver account. Suppose every country does it different, unnecessary debt will never be helpful though.

[@albinklein7680]

​@@mitchhedberg4415I bought everything in cash during my entire life. That includes my workshop and my home.

[@PatrickAllen-yi9us]

​@@mitchhedberg4415just put your monthly bills on a credit card and pay it off every month. You will build credit and not pay interest.

[@tommurphy4307]

don't kid yourself- there's a right way and tons of wrong ways to use credit. depreciation and dollar-values play an important part over time.

[@meastwood274]

There’s nothing better than a car you paid cash for. Besides a home.

[@TheWormsEquals]

None of this is new. Car values have always dropped like a rock. Most people driving around are upside down in their car unless they own it outright. There have always been plenty of repos to go around. Those numbers may be slightly worse right now. Who cares it's throwing an ice cube into a swimming pool. Its only a problem if you try to sell your car. The idea that this is the world ending is stupid. The idea that this issue is going to bring the entire economy down is also stupid. Prices were really high for a little while. Prices are coming down to earth. Spinning that into something negative is for politicians.

[@1notgilty]

Good. Car dealers were charging outrageous prices and people were paying 30 to 50 percent more than vehicles were worth. They made stupid decisions and drove the price sky high. People were paying up to $85,000+ for a Ford F-150 pickup truck and over $100,000 for some SUV's. Now they're underwater on their dumb purchases and the banks are screaming about the high interest "sub-prime" loans they made to people with shaky credit. Play stupid games win stupid prizes.

[@allenhanks7719]

You get a car repo and your screwed for 10 years. Hundreds of bill collector calls, penalties, fees, lies, and you will owe ten times what you borrowed.

[@dzerres]

It's always the banks enabling bad consumers. That happened during the housing bubble and collapse back in 2008. And if it's bad the government will once again bail them out - including the manufacturers who'll also go bankrupt shortly. Yes, a lot of customers are stupid but greedy banks, greedy dealers and stupid manufacturers putting out $80k pickup trucks are a huge part of the problem. This time when GM files for bankruptcy we need to let it happen.

[@buckhorncortez]

During the housing bubble, Janet Reno threatened to take banks to court for discrimination for not giving loans to low-income people. She directly threatened Chemical Bank for turning down low-income applications. But, that's okay because Fanny Mae and Freddie Mac bought the loans from the banks...so, you can thank Bill Clinton and Janet Reno and the rest of the federal government for setting up that bubble.

[@karlschauff7989]

Why do you think it's going to be GM? Stellantis is in the worst shape considering they have brands that only sell 1 or 2 vehicles and those vehicles aren't selling, and their biggest brands, Jeep and Ram, were surviving on overpriced Wranglers, $100k grand wagoneers, and Ram 1500's that are $10k higher than competitors and now they no longer offer a V8. Ford is surviving on F-series pickup trucks and sales were down 10% in 2022 and 2023 isn't looking good either. I don't think Ford even paid off their 2008 bailout yet and they were begging for $8 or 9 billion dollars from the gov this past summer for EV's that they now say aren't selling.

[@chance0marasso]

​@karlschauff7989 Ford didn't take the bailout money, they got rid of their stakes in other brands and closed brands. For all their faults don't lay that one at their feet.

[@ROB-12013]

Ford didn't take bailout money in 2008, the other big two did.

[@redlegs8184]

Ford didn't take the bailout that was GM and Chrysler @@karlschauff7989

[@jsd354]

I grew up in a time when people paid their debts whether it was a car loan or a signature loan. I realize the car dealers screwed their customers and put them in a situation they couldn’t get out or. Maybe a script to point out these unscrupulous dealers. Many dealers are not honest and I hope they all go out of business. As for the banks and credit unions who are taking these hits…they should have been more responsible when making their credit decisions.

[@howtomoscow4764]

353,000 views in 4 days with only 203,000 subscribers? Your channel has blown up. Congrats!

[@ogles824]

I went to a dealership here in northeast Texas this past Saturday with my son to get some tires installed and an alignment on his Jeep. We sat in the service department waiting room while they were doing the work. It’s next to the showroom and the sales department. It appeared to me they had no traffic at all. I never saw anyone but the sales staff in the showroom.

[@robertswift6101]

same here in mass,,i went in for service,,saw nobody looking at cars to buy and some woman from there called me on my phone while i was waiting to see if i was interested in trading mine in or buying a new or used car from them,,i literally just laughed under my breath as i told her i am all set,my car is paid off

[@toddprater14]

The games over people are broke.. the new car payments a grocery bill… everything has gone up… there’s no wiggle room for a car payment and an expensive 800-1300 one.. this end is here, these automakers better rethink their strategy and start making cheaper affordable rides…I bet gm wished they kept lordstown open and kept making the Cruze, stupid…

[@brycethomas6080]

I found after having bought an expensive vehicle and paying it off that its not worth it. I bought a vehicle and by the time I paid it off it was worth 3X less than what I bought it for. I drive older vehicles now and put a little work into them occasionally.

[@beehappy7797]

If you borrow money to buy a car, you should be able to pay part of it in cash. But at the same time being able to save a bit for the next car. A car budget gives a better car. It doesn't have to be a new car. The car will drop in price regardless. If you can't save money, you can't buy an old car either. The older the car, the more costs for repairs.

[@jpdemer5]

What the hell does " 3X less" mean?

[@_hector__]

​@@jpdemer53 times less 1/3rd what it used to

[@jamesbecker4326]

good video, thank you

[@kenmohler4081]

I have a very long history in the banking business. In my experience, anyone taking a five or six year loan on a car is going to be under water if they don’t pay the car off early. And 2% seriously delinquent on used cars sounds about right. Not alarming.

[@Michael-ur5qb]

I wonder how many people refied their homes and turned around and bought all the $60k+ cars.

[@jakehensler3842]

I would say about 60% of the buyers fall into this situation

[@SiXiam]

That's a very good point. Oh my that is so funny...lol xD

[@kevinduveneck1504]

One other big point...dealers overcharged, fools agreed to still buy, AND banks loaned money so people could buy these overpriced cars and trucks. Who would figure that trouble was going to eventually come. Same thing in the housing market.

[@sparkydogsparky2992]

It took three to tango in this case, eh?

[@mennovanlavieren3885]

All enabled by the FED flushing the banks with cheap money.

[@markjohnston2675]

The banks should of only lent up to MSRP anything over should come out of the buyers pocket. This would have curbed the price gouging, slowed the interest spike and would have reduced the retarded nitrogen, pinstripe, paint sealant etc. BS dealer add-on's....Greed always wins...Brave new world.

[@ed5308]

I went to dealer and asked to buy 10% under MSRP he laughed and said someone will buy this at our price. I said correct just not me.

[@noosphericaltarzan]

I bought a new Toyota on a whim in 2021 for 20k. I swear to God last time I checked it was worth about 29k about six months ago. It’s not like I can claim I saw all this coming. I lucked out because of the unbelievable unreliability of Jeeps. I had this 2016 Jeep Renegade with less than 50k miles, and all these little things were breaking. I could just see maintenance bombs in my near future and traded it in for a new, reliable car. I got one of the 2020 models they still had despite the 2021 inventory already in. The 2022 models supposedly didn’t even come with the electronic features, but sold much higher. I baby this car, man. It has to survive the times when driving becomes a bougie luxury. I have been considering taking auto mechanic classes and getting an old Ford truck or something I can maintain until the Veterans Administration finally manages to cause my death. This is the American dream now.

[@pennywise8182]

Still drive my "87 Dodge Diplomat every day of the week...... 2 bbl Carburetor......318 V8......Rear wheel drive....Column shift automatic......Bench seat.......Manual windows......Spring loaded hood ornament.....Full wheel disc hubcaps......Chrome bumpers....Etc.If the car manufacturers were to wait on me to buy a new car every other year,they all would have went out of business long ago.......And I'd still be driving my "87 Dodge.😭😭😭😭😭

[@the1one132]

That Repo Tomorrow is awesome 😂😅

[@joejensen4691]

My 09 honda civic is still running great. I have to replace the lower A-arm and all 4 struts. Zero payments! I don't have to look over my shoulder for the repo man.

[@jimburg621]

I like these here video's, like them as I look at my 2001 Subaru and my 1998 Chevy truck, sitting outside the house, all chill and paid for. My buddys.

[@rogergonzalez7386]

My 1999 Dodge Ram and 2000 Toyota Camry paid off a long time ago. Never had motor problems. I can't see paying 45 to 65k for a car.

[@duanehamdorf2228]

With all these upside down car loans i think the banks did to car loans what they did to house loans back in the early 2000s.

[@mitchhedberg4415]

That was mostly from middle and upper class people trying to buy and flip homes. When the market went down, they defaulted as much as the sub-prime loans.

[@estuardo2985]

Besides the dealership, these cars (especially anything from stellantis) are just way overpriced straight from manufacturer. Just to point out to Stellantis (dodge, chrys, fiat, etc) the vehicle values just drop like a rock because they are disposable junk. You see brand new vehicles with leaks, poor build quality, built with flex pipes that are failure points, cheap engines/turbos, cheap parts/plastic, super weird decisions like alternators that you need to remove a compressor to get to etc.

[@m.687]

Just paid mine off early. I'll have to check out one of these auctions next time I'm in the market.

[@Superset__]

Great video my guy , I was wondering if it was real

[@mikeburnett7028]

Love my 55,000 mile, 1998 Tahoe. Runs great

[@MCPorter83]

I've never bought a new car. I've always made sure that I looked for a vehicle in my price range without needing to adjust my finances around too much. And most importantly, I only buy another vehicle once my old one starts to nickle and dim me. The cheapest vehicle you own, is the one that's already paid for!

[@vollste]

I LOVE ❤️ ❤❤❤ my paid-for ‘07 Lexus IS350 with 191k miles on it and is still nicer and more reliable than a lot of new cars today.

[@billbry]

I am loving my 2003 Silverado 2500 Duramax king cab long bed truck more than ever after watching this video! It is a sweet bonus that my land Ark still averages 20.3 Mi per gallon LOL with almost 500 horsepower on a tuner

[@richhenry8004]

All the problems track back to the dealers. The overcharging. The loans to people who can't afford the vehicles. DAs in various states should start looking deeply into their practices, charge a few of them with fraud as a dose of "act right".

[@johnnyrocco]

The consumer was part of the problem also. No one put a gun to their head telling them too over paid. You don't have to have a college degree to know a car dealer will screw you to high heaven if you don't have enough brains to say NO. I'm driving the same truck from 2004, it looks bad, but I'm debt free and just waiting to clean up when the market collapse.

[@hopefully2224]

Im predicting another tax payer funded "too big to fail" moment

[@petethehawk5186]

@@johnnyroccoAgreed. The dealers being greedy is part of the overall problem as well as the banks giving loans so far beyond vehicle MSRPs, but ultimately the true fault is anyone dumb enough to agree to it and sign papers saying they’ll pay it. If you’re buying a car and can’t tell that adding thousands on top of what it’s worth at the time you’re buying it and that’s not great then that’s on you. Idk if people today are just dumber or what, but if you aren’t able to see larger pictures you shouldn’t make big purchases lol.

[@teams3345]

The dealers just need to (in blue states) go take $950 at a store every day, twice a day, or three times a day. Then sell that merch online to make up for the repos.

[@sonny79d]

But they have 760 credit score and make 10hr

[@Thoringer]

Bought a car from a VW dealer last week, was a demo car with 5k-ish miles. Instead of $34k list, paid $27k - certified preowned 5/'23 Tiguan SE. VW bank offered 5.99% interest - but it was after hours and wasn't checked by a person. Get a call next day: "Hey, if you come back to the dealership, that would be great, we got new paperwork to sign. The bank approved a lower rate after manual check. That's 4.90% instead, saves you about $3k over time!" They didn't have to do that, but they did. Was Onion Creek VW near Austin. Kudos.

[@albinklein7680]

Why the f**k are you financing a used VW sh*tbox?

[@jimjim6803]

​@@albinklein7680because he works there 😅

[@Thoringer]

@@albinklein7680oh, you are so elegant in clever - bet you are fun at parties!

[@larryreed4607]

The same thing is happening in the housing market the people who bought the houses during the peak when houses were going for ridiculous prices now the prices are coming down and the value of the house is not what it was when they purchased it

[@user-pv5ju5uo1e]

I guess it depends on where you live, real estate is not increasing like it has been but it's by no means decreasing in value where I live(Florida)

[@anthonydent616]

Dealers are still inflating prices! I tried to buy a ZL1 1LE, and they marked it up to 104k in Florida and 121K in Cali. I left the offer on the table.

[@shadowprep5304]

Transporter here and also auction driver. Yeah, Ive seen some messes from purple paint all over a kia van from the kids to... Ill just say biohazard. That stain, other than from not being cleaned of course, likely old food waste that was sitting back there for, likely 4 months. Complete with open containers of liquid. Cleaned out for the auction by the detail crew. Yeah, I have explored and let me tell you, thats clean compated to some that come in. Horder cars for example... oof. Now for the rest of your report, yep you are pretty on point. Most auction cars we have been working with at the Manheim auction have been repos, minus the "wholesale trade ins" which is actually starting to lack as well. My company normally moves those trade ins. The auctions have been keeping us up more than the actual moving. Its getting bad out there. Car market/housing market goes down, it just starts a chain reaction.

[@Cupidstuntfc]

Being from the UK I don’t understand how a dealer can ask for more than the recommended retail price. I’m 99.9% sure that this doesn’t happen in the UK as dealers are allowed to discount prices but I’ve never seen any dealers advertising a car for more than the manufacturer recommends. Also I’ve watched other videos of yours where there are rows and rows of brand-new cars which just doesn’t happen over here. The only cars on dealers lots ready to buy would be secondhand. I have always bought brand-new cars for the last 30 years and the minimum I’ve had to wait for a car to arrive is six months. I’ve never heard of anyone just going into a dealers and walking out with a brand-new car over here. Obviously you get ex demo models with Low mileage on them but never brand-new. Maybe it’s just part of the capitalist system of the USA and that’s why so many trucks are overpriced and not selling now. Has it been like this in the USA or is this a new phenomenon? Maybe it’s just because we are used to waiting for things over here whereas if you got the money over there you get your car straight away.

[@airthrowDBT]

Generally in normal times, for new, you only have to wait for a car if it's extremely in demand, or if you are specific about spec/color and options and they don't have that specific combination locally.

[@kenik2023]

Bought mine off the lot with 11 miles mate. Demo? 😂 Cheers👍🏿

[@Cupidstuntfc]

@@airthrowDBT maybe our financial regulations are different over here. I can’t imagine any bank or lending source in the UK or Europe lending someone 10% more than a car is worth. When you buy a house over here with a mortgage you have to get it valued and lenders will not give you more than the house is worth and that has a chance of increasing in value so it’s madness to loan money on a depreciating asset like a car.

[@Youtubeuser1aa]

What is a recommended retail price? A made up number? The market value is what people are willing to pay. If the bank loans out more than what it worth, then that’s on them, but the dealer should take whatever someone is willing to pay.

[@chrislane7283]

Porsche

[@glpdrum]

Right before the start of the current fiasco I sold my Ram Laramie Diesel ($890.00 a month) to a landscape company. Part of the deal was they gave me a 2008 F 150 with 98,000 miles on it. The Ford is a total beater with roll down windows and no extras except windshield wipers, A/C and headlights. Everyone told me I was a fool to do the deal and I came very close to backing out until they said they would put new tires on it to sweeten the deal. I've put 30,000 miles on it and a new battery, my insurance went from $130.00 a month to $50.00. Got an offer for it for $5,000.00 a while back and turned em down. As they say sometimes it's better to be lucky than smart. I've saved almost $40,000.00 since making the deal. If I win the lotto I'll probably get it washed😳

[@t_ford]

Subscribed because I keep coming back

[@michaelb7718]

Everything in the universe seeks equilibrium and this is just another example of it

[@michaelb7718]

I think this summer will be the best time to buy. After the tax season the prices will go down even further and by then, hopefully, interest rates will be down too making it the perfect 1-2 to pull the trigger and buy

[@dubc4179]

I love your sentiment but I just have to fact-check you on some of your analysis. We are not experiencing a massive spike in Repos (at least not yet). The Current Repo Rate @ 2% is still historically low and has been trending down since it's last peak in 2019 at about 3.6%. You are however, right on the money regarding the negative equity situation, I think it will cause the repo rate to creep up, but it will likely take another year or 2 for that to happen. As always, thanks for sharing your knowledge and experience.

[@stevenvass7127]

Bro I can’t stop laughing. “Let’s play a game. What happened in that seat?” Bahahaha love the channel

[@asknwclips7672]

if you buy a new rig for $60K and finance it at 5%, you'll likely be at underwater by at least $6K as soon as you drive it off the lot, right? sounds like it's on the dealers and banks for selling and financing overpriced vehicles, yeah.

[@BLACKAAROW]

I was wondering that too, but I guess if you managed to at least make $6k of payments in that first year you'll be a break even i think...

[@michaelsmith5583]

In love with my paid off 2018 Toyota Camry hybrid. I won’t over pay for a depreciating asset. I will bike first.

[@JuniorJocker28]

That makes me feel really good about doing due diligence before purchasing. I have about 4k in positive equity on my ‘18!

[@Mustangshow67]

For this reason is why I bought a 1970 Ranger XLT for 17,000 10 years ago for a daily driver, It still runs and its in great shape because I care about what I invest in. Not only is insurance cheaper but after 10 years of ownership the Truck is worth 24,000 now. FYI

[@GiannaPGP]

My husband had his foot partially amputated in September, this year. Diabetes and sepsis. He had a full size work van. Payments were $400 a month. Well, since he’s now still unemployed we offered to relinquish the van. The dealer was super awesome. Even offered to work with us. But with my husbands right foot partially amputated, along with his self employment going down the tubes…they finally came to get it after 2 months. They had no tow trucks available to get it. We told the dealer from the beginning “it’s in the driveway it’s not going anywhere”. So maybe that’s why they were in no rush? 🤷‍♀️. It’s still a red flag on his credit but truly, at this point, I’m happy he’s still alive.

[@stevenbrooks1243]

Stand by him and help him as much as you can. Sir Godspeed

[@markjohnston2675]

I hope things work out for you...Stay positive and with your husband things will get better.

[@GiannaPGP]

@@markjohnston2675 that’s so sweet. Thank you! Things are on the upswing. I work 2 jobs and will work 3 if I have too. I’ve worked 2 jobs since I was 21. (Not gonna admit to how long ago that was). lol.

[@ShowMeWhatINeedToKnow]

Was he unwilling to cut carbs out to save his foot and reverse his diabetes? Or at least manage it with type 1?

[@Taylor-dt2wd]

@@ShowMeWhatINeedToKnowwe know the answer to that. Soda was more important. This lady is trying to get sympathy for her husband being willingly obese.

[@charlie__kelly3690]

I suspect Cox Automotive Group is going to get named in a class action for manipulating KBB's values amongst other shady practices that helped catalyze this looming crisis.

[@drewaksparky1013]

Great work again! How do I find out about my states recalls, repos etc?

[@coreymccraw8871]

Just bought a 04 Cadillac with 94,000 miles on it, rides like a dream. Clean as a whistle. 5800 . That’s with tax, tag, title. Dealer tried to mark it up on me, got in my car and left, didn’t get 10 minutes down the road before my phone rang.

[@markevans6109]

Great video as always. It would be cool to hear first hand the story from one of these people who got their vehicle repo’d. How did they get in that position? Was it all stupidity or bad luck? You would be great doing the interview if you know of a willing party.

[@bradlwykfulbright]

"Lets play a game, what happened in THAT seat?"~ Brandon, the greatest car salesman in the world. Had me on the floor😂😂😂😂

[@scaramouche8244]

Big dog

[@stitchinggoods774]

Cat hairball

[@christinapennell5073]

I laughed right out loud, dude I don't want to know!

[@theairstig9164]

Someone had a birthday. As in “they got born”

[@markfcoble]

African American culture.

[@sixpoint3]

I can summarize this in one phrase. Greedy dealers, stupid buyers (actually: borrowers, because buying actually assumes payment)

[@SimpleLife1971]

Dealers are greedy! Banks are greedy! Cars and Trucks are overpriced by 65% or more from the factory! Income is at an all time low! Buyers are tired of becoming screwed!