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Ray and Zach go over the reasons why car prices will continue to fall during 2023, including the issue of rising negative equity situations among some 2021-2022 buyers.
Watch more new videos about Car | Synthesized by Mindovermetal English
Here are Ray's big predictions for the car market in 2023: https://joinyaa.com/guides/car-price-predictions-for-2023/
Search hundreds of FREE car buying, selling and ownership guides: https://joinyaa.com/guides/
Thanks for watching and Happy New Year!
Best to do is keep car to loan is paid off before trade it in or sell to anyone . You will have the title in hand and no need worry of dealer paid off your existing loan already or not. Even though u are willing to add the upside down $ ( roll over into new car loan)
True
We have friends paying $7K over MSRP for KIA Tellurides ($55K to $60K). I would have never ever done that. Paying over MSRP for a KIA? We are talking Lexus pricing for a KIA. One of them had an issue with the screen and he knew that he had made a mistake based on the awful dealer experience he had. He was expecting a Lexus experience based on what he paid for the car but instead, he got the Midas treatment. The car needed to be at the shop for over 4 days and they did not provide him with a loaner. He expected a nice cup of Joe along with some snacks in the waiting room and they had a coffee mug and bottled water. LOL!!!!!
It depends on the situation. I bought two cars in January of last year. I am not concerned at all due to the fact that I was able to secure incredible trades on both of my older vehicles. One of the cars I traded was a 2019 Acura RDX which I sold with a $9K "profit" from a lease buyout I did. The Second car, I traded was a 2018 Sonata which I traded in for $7K more than what I paid two years before. I was also able to lock in a 1.9% loan on both new purchases. The new purchases were 2021 CPOs with only 5K miles and purchased at an OK price based on market conditions. On the other hand, I can see how many will get wiped out. Especially those who did not trade in a vehicle and purchased a vehicle over MSRP. with a history of high depreciation. The exception or the buffer will be vehicles from Honda and Toyota. These cars will do better. But if anyone purchased a KIA or an American-made vehicle, most likely are going be stuck for years to come.
I believe this is going to be a never ending trend. It’s now going to go up and down, up and down. Very interesting talk!
In my area all the smaller car dealers are selling out to the bigger car dealers
It has kind of turned into hobby with me – looking at the ads and finding a great truck or suv and I think – that is a winner but still too much for me – I think it is the attitude – the way you are treated – don't need that in this day and age – but anyway – I spot these winners and sure enough when I check back in a day or week later they are gone. And I think well maybe some person really needed that vehicle to help them feel better – like maybe they got a fat wife or kids on drugs – or they just realized they are kind of a loser in so many different ways – and for a while that vehicle that they overpaid for and just had to have will give them the will to live so that they might be tormented in other ways – if I had enough friends I would put together a new kind of game – of who picks the car or truck or SUV that sells the fastest once noticed – I got three great running vehicles – but okay about three weeks ago I fell off the wagon and was down at this salvage place I know trying to trade for a really well rehabbed Tacoma – Owner is friends – and he just said some weird story about he would not know what to give me for the salvage vehicle I wanted to trade since it had been in two accidents and his had only one accident and I smiled and laughed and said "so you don't really think I need another vehicle?" — and he was right I didn't and on that Tacoma I was wrong = it is still on his lot but he wants a lot – he sells enough 10 grand cars and makes about a grand on each so he can sell some for 30 or 40 grand and he don't mind if they sit on his lot for 4 or 5 months. —- it is a real spiritual thing to realize you have a lot of money but you have got too old to really do anything – you don't have the energy to move to another rural home – when you see a real good house for a real cheap price – or you see a great vehicle but it cost too much and even though you have the trade and money to get it – because of your age and the way you have lived life and been a good manager of your funds you just can't bring yourself to be ripped off by car people. — Honestly would rather leave the money to animal charity. The lessons — the lessons – never stop. — there is a dealership here that has two prices for their cars – one is the cash price which is 1000 dollars more than the finance price — I don't know how that is legal, but the place has always been scuzzy – and yet they do big volume – I don't know maybe people think they are getting a deal over the cash payers and feel smart for financing — totally blows my mind.
Whoever paid msrp or over is a fool…
The correct way is…. depreciating liability. Not an asset.
Just to add some feedback here with some personal anecdotes: in the past 2 months, I’ve made approximately 20 offers on used sedans and used SUVs ranging in price from 32k-42k and my offers were always, always at least 95% of asking price. 19 out of 20 wouldn’t budge on price or even entertain movement, wouldn’t even remove doc fee or pay for shipping if paid asking price. They want the whole enchilada or nothing. One was willing to come down 0.5%. And these were dealerships all across the country. They always quote market price and some of them think it’s a major benefit to have 3 months left of a factory warranty on a 2019 vehicle. I’ve been watching the same make and models for the past 3 years. Cars that I’m currently offering 37k for were literally 26k eighteen months ago. I’m trying to keep from being under water, but if one needs a car it is hard to wait forever. Dealerships have absolutely zero fear at the moment, all of the convo that we are engaging with regarding the ever changing market, Carvana, interest rates, are esoteric to almost all dealerships and salesman and they could care less. Most dealerships are behaving as if they are resilient to any fluctuation in the market and they don’t mind holding onto the same car for 6 months. I’ve noticed that almost every dealership would rather keep a car for 6 months and not sell it than sell it today for 95-98% of asking price. This is my feedback ❤
You need some new content. The last 5 videos are about dropping prices.
Ya got anything else?
Only way out is 120 month loans😁😂🥸
So wait… during normal times one in three new car purchases with a trade includes negative equity? What are you guys out here doing???
I understand that accidents happen and cars get stolen, however too many Americans like shiny new toys and want new cars every few years. Always having a car payment is one of the dumbest things someone can do. I’m 56 years old and have bought and owned four cars since I bought my first car when I was 18 years old. I currently drive a 15 year old car with 277K miles. Cars are way too expensive and I’m holding out on buying another for as long as I can.
Depreciating 'asset'?
More like depreciating LIABILITY 😱
If people can't afford a new car, there's going to be less trade-ins for the used market and the price of used cars will also go up. IMHO
Buffett once said that if you have to mortgage a car, you can't afford it.
Right, but the dealers are STILL burying people on the purchase after UAing the trade.
It never ends
60% of American don't have $500 for emergency but we do have credit cards. Lmao.
Some real knucklehead suckers went in and paid thousands over sticker for some of these cars. What a joke. It’s insane that it never dawned on them that their overpaying would result in being severely upside down.
I drive a rare luxury sports car (2019 Mercedes Benz E63 S AMG) and the dealer is trying to buy it from me every chance they get, LOL.
So I don’t think this applies to all cars. Invariably, if you paid over sticker, I truly feel bad for you because you got horribly conned. It was literally criminal and if a person of sane mind and body agrees to it, it’s on them
A local Honda dealer had a "budget used car" lot that was populated with more non Honda than Honda. Not sure what it means but the showroom and lot are empty now.
Buyers will afford larger down payments. How? I have 5 letters for you…
H
E
L
O
C
man all you guys have been saying this for the last 9 months and I am just not seeing it in the retail used car market. A 2012 CRV with 100,000 miles are still selling for 15k+. that is still at least 3k higher than it has any reason to!
I'm just so very thankful for you both! GREAT. INSIGHT FOR AUTOMOBILES 🌟🌟🌟🌟🌟🇬🇧⚡
Does Edmunds give a wholesale or retail price?
You are only in for a loss if you bought when the prices were inflated.
If you get underwater, you should find a way to buy gap insurance. You are one insurance claim from personal bankruptcy if you don't.
A car is a depreciating liability. With that being said here is the good news, You will eventually have equity, just keep making your payments and you probably have an interest rate that is really good compared to todays rate. Not so bad . Always look for the positive not the negative. Life is to short.
If I previously used Edmonds, kbb, black book, etc. for their car values before buying or selling, what do I use now since these books were fairy tales in past 2 years. Who can you trust for real values?
I still doubt a crash is coming. Dealers will auction off their losses rather than give a customer a discount. If the prices drop 5% people will flood the dealer and reduce supply and prices will go right back up and above the current prices.
I like how you call it a "correction". The prior pricing was a mistake!
3:25 https://www.youtube.com/watch?v=OJWJE0x7T4Q
This young guy is wrong!
I check daily. I’ve only seen a minor price change. But not enough to make me run out and buy a used vehicle. Maybe by June 2023.
You are only under water if you go to trade your auto now,wait,pay off the car,eventually there will be equity in the car! Don’t be stupid and always want the next new thing!