Latest News SHOCKS The Car Market! Dealers Can't Survive This!
The car market is in a state of paralysis right now. Dealership inventory levels are through the roof. Many dealers are being forced to close their doors, they just can't stay afloat. In today's video I talk through a new grouping of facts, stats and figures that explain what got us to this point. The car market is crashing before our eyes, what comes next? In this video I talk through he following points:
2023 and 2024 models are still covering lots… 25s are now arriving.
Lot rot becomes a point of consideration
Large price cuts must happen
During pandemic we’ve normalized high car payments and overspending
Discounts are happening on vehicles that were recently marked up!
Raptors, Bronco Raptors, TRD Pros, TRXs, Escalades, Yukon XL Ultimate Editions, gx550 Overtrails, etc..
Huge discounts mean nothing if your Trade In value went down even more than the savings…
$10-15K off a vehicle that’s overpriced by 30K still isn’t a win.
Stellantis CEO recently resigned… laid off thousands of employees…
Nissan to layoff off 9K people.
Many dealers are losing money month to month. More than 50% of Nissan dealers
Dozens of dealerships that have been around for a long time have closed their doors this year. Ford, Lincoln, GM, Jeep Dodge Ram, Fiat, etc… they just can’t stay afloat.
They redirect inventory to higher turnover locations under the franchise.
Vehicle manufacturers are still living under the pandemic fassad… inflated price tags on everything. Prices of vehicles have far outpaced wages and salaries of Americans.
The vehicles in the 25-35K range are actually selling. Because people can actually afford.
Toyota doesn’t know how to handle an inventory crisis. Many Tacomas and Tundras are showing 200+ days on lots.
Backlots are filled to the brim.
Dealers can’t even hide their inflated inventory levels.
Dealership employees are quitting… salesmen are leaving. No vehicle sales means minimal paychecks.
Stock values have come crumbling for auto makers… 50% for Stellantis… Toyota has seen a huge drop too. $250 per share back in March is now $175.
Dealers need to cut losses right now to earn customers… re-earn the loyalty they burned during the pandemic.
Too many dealers apply a near-sighted business model and refuse to look at the big picture.
Across the board, MSRPs continue to rise while quality diminishes.
Toyota wants to put out “throw away vehicles” 3-5 years cycles… vs 10-25 years
The dealers that charged markups are kicking themselves.
New average new vehicle price is $48,401
MSRPs have gone up 42% since 2019
Wages have gone up 34% since 2019
Average auto loan monthly payment out on a new vehicle is $760… 1/6 auto loans are over $1000 per month… and 1/5 auto loans applied were denied last quarter.
Prices of rent, mortgage, insurance, groceries, etc have gone up in drastic ways too… rendering it nearly impossible for Americans to keep up.
Average 2 adult with 2-3 child household income needed to live comfortably now in the US is between 215-230K depending on region. There are 6 cities that require 300K to live comfortably.
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