ALERT: Used Car Prices Fell By The Largest Amount Ever!

[@fourwheeltrader]

🎨Skip the waitlist and invest in blue-chip art for the very first time by signing up for Masterworks: masterworks.536u.net/c/3940468/1584005/10112

[@dsmithwc04]

What do you think about the alfa Romeo 4C and it’s short term and long term values?

[@fourwheeltrader]

@@dsmithwc04 You can find the latest price trend over here: kzbin.info/www/bejne/bp_PZaOdpNGbmpY

[@XennialGuy]

I would say, if you absolutely have to buy a car right now, do not pay over sticker, it is totally unnecessary. Go to another dealer, go to another brand, go to another state. You can get vehicles below sticker, I got vehicles below sticker throughout 2021 and 2022. You simply keep taking your business elsewhere until you find one that's willing to move their inventory. Dealers are getting desperate, they will negotiate, and you actually can buy a vehicle below sticker. But do not pay Dealer markup.

[@barbarusbloodshed6347]

Biggest drop still to come...

[@franticuploader3668]

When prices come down to where they should be, based on pre-2019 trends, then things will stabilize. If not, and we are at a "new bottom", it's very bad news, and we're all partly to blame because we're paying today's ridiculous asking prices.

[@milootje007]

And that is inflation of currency sped up while we're all just standing there looking at it lol

[@workspilot.]

No

[@benzagorski4136]

Another very good well thought out video. Hope you have a very good year. Thank you for your work.

[@TheProjectOverload]

Great video - Looking forward to an ongoing drop in both used and new cars. Thanks for sharing.

[@ElfinHilon10]

In my opinion, given the pricing that still exists in cars and the fact that both new AND used car supplies are increasing, I don't think we've seen the worst of the worst yet. If I had to guess, I'd bet that we are still in for another 15-30% (on the high end for certain segments) for a drop. I am unsure if this will happen before the end of the year or not, but I inclined to believe that it will be. Keep in mind, that car manufactures cannot turn on a dime and simply scale back production. They need months of time to do this, and/or a year. These new car allotments are based on contracts and need to fulfilled, baring some other agreement with whoever is supplying the raw or processed material to make these cars. Further, if a car company were to simply wholesale cut back production, they risk being caught with their pants down and completely missing out on a market, and potentially losing significant sales. I think in this coming year, we will really see which car companies have tight control over their supply chain or not, but I suspect most of the market will continue in their manufacturing and continue to pump out new cars and attempt to lower prices. The used market is only as valuable as the new market, and buyers continue to not buy new cars, used cars still elevated. Given the the pricing graph we saw on MSRP vs Markups, I suspect buyers will continue to stay home, or force new car sells to drop their prices, which IS is already happening (as shown in the video). Give it enough time, I think the market will "correct" back into the range I stated above. I don't suspect we will ever go back to pre-pandemic levels, especially since it's been 3-4 years since those days. Basic inflation will prevent that from ever happening. Anyway, that's my guess. Thanks for the video! I love your statistical analysis (Data Analyst here).

[@berniedmd1901]

Thanks! I prefer a general view on the market as in this video, since most of the time your videos may not pertain to mine. But these videos are better views that in general include mine.

[@fourwheeltrader]

I post quarterly market updates for the 'normal' and exotic used car markets. You can find them in this playlist: kzbin.info/aero/PLkx3WmwEN66eE4KxbIXZHxMf637v0CsVy

[@barbarusbloodshed6347]

"Hate to say I told you so!"

[@rdiamond655]

At least buyers have negotiating leverage again as demand is slowing and cars aren’t moving on the wholesale side.

[@David-dx5wz]

Not really lol. I sell cars and customers are screwed now tbh. Still no new inventory, no rebates, not dropping off MSRP. Super high interest rates and trades are worthless. Our profits have decreased on average by $1500 per deal since the summer but our customers payments are literally the same or higher than in the summer. It’s a shit show.

[@David-dx5wz]

@@john_belk I work for the 2nd largest dealer for my manufacturer in the North east region. My dealer group has over 10 brands and it’s been true across all of our stores.

[@terrytibbs6687]

Appreciate the videos and content 🙌🏻 but some European comparisons would be welcomed 👍🏻

[@milootje007]

The one thing you didn't take into the equation is the subprime crisis, people are starting to default on their loans because of coming economic pressures and high interest loans. I think more supply in second hand cars is coming, which is going to decrease the price further, and that might put pressure on car manufacturers to drop their prices until a new equilibrium is found again. Hyper and sports cars are a mystery to me though, it seems like luxury second hand goods keep being very coveted. I'm in the market for a 991.1 GTS and it's a challenge, prices stay high.

[@fourwheeltrader]

While the subprime segment might become an issue in the future, it currently is not yet influencing the market significantly. Default rates are increasing but are still below the long term average. Repo supply is slightly higher than 2019.

[@milootje007]

Yes, i was referring to the short term future. I also think that once everything stabilizes it's going to be at higher prices than it would have been with the natural curve. Too much money has been printed, the currency is simply going to be worth less, in a way it's a bit of a new reality we live in compared to pre pandemic.. Big fan btw, keep up the great work! I've been a sub for over 2 years now i think 👍

[@Nicky-dw2eu]

Is this study specific to the US? Im on the market to buy an Audi A3 in Germany and the prices doesn’t seem to be that inflated…

[@edmondilji339]

Im German too and the car prices went up like crazy here so idk what you mean for which audi a3 are you looking for?

[@fourwheeltrader]

This is for the US only.

[@Nicky-dw2eu]

@@edmondilji339 Im looking at 2018ish A3s with ~60k km for ~20k€ usually

[@Nicky-dw2eu]

@@fourwheeltrader thanks!

[@ZDY66666]

HELP FOLKS! Debated if I should consignment sell my Cayman GTS right now while prices are still fairly high, and then hold onto the tax breaks, and before the tax breaks expire in one year, I buy a 991.2 GT3 which in a year's time hopefully dropped more. This way I sell at a relatively high point for my Cayman and buy a GT3 at its relatively lower point (although not as low as MSRP still). Or I could just let my Cayman depreciate and pray the GT3 in the next 3 year keep depreciating MORE in total $ value (not %) than my Cayman??? I feel like this scenario is less likely given how hot GT3s are but with interest rate hikes lux goods like this should tank

[@diljitjedi]

Car prices in the UK at this present moment today are ridiculous but interest rates are going up the crash is coming the war in Ukraine hopefully prices will go down to what they were before this big surge manufacturers need to make basic cars as well for basic people

[@ricsu3462]

It sounds like a lot of folks are waiting for a 100k gt3, dream on lol!!! With inflation , end of ICE and strong wages ,prices on limited cars will never fall below 2019 levels