Are We in a Car Price Bubble?
video description
I agree that with the average new car sticker price being around 47K, the majority of people cannot afford to buy a car. Even if they can get financing, eventually a bunch of these loans are going to be under water. When that happens, the used car market should see a correction.
Date: 2022-02-07
Related videos
Comments and reviews: 9
Kiley
Unfortunately having been forced to buy my wife a car after she was rear ended, and her SUV totalled out, we had to go through this market.
We started local, went to a half dozen lots. Only one was actually open. The second lot we went to had 6 people walking around, doors locked, no one answered the phones. And this happened at the rest of the lots we visited.
I expanded my search into the entire state and three neighboring states. Of the 30 or so dealers called, emailed, and texted, one responded besides the first dealer we went to.
We ended up after a week, back at that first dealer, buying a moderate mileage AWD IS250 for just under 10k. A couple years ago these were 6, 000 cars. But, that low inventory, and the fact dealers just seem to work, and answer their phones when they want, meant dealer number one made out by being open.
Luckily, this dealer has been in business for decades, and is reputable. I feel like we actually made out in the current market based on seeing others having even more issues than us. Good luck fellow buyers that are forced into this current marketplace.
reply
Unfortunately having been forced to buy my wife a car after she was rear ended, and her SUV totalled out, we had to go through this market.
We started local, went to a half dozen lots. Only one was actually open. The second lot we went to had 6 people walking around, doors locked, no one answered the phones. And this happened at the rest of the lots we visited.
I expanded my search into the entire state and three neighboring states. Of the 30 or so dealers called, emailed, and texted, one responded besides the first dealer we went to.
We ended up after a week, back at that first dealer, buying a moderate mileage AWD IS250 for just under 10k. A couple years ago these were 6, 000 cars. But, that low inventory, and the fact dealers just seem to work, and answer their phones when they want, meant dealer number one made out by being open.
Luckily, this dealer has been in business for decades, and is reputable. I feel like we actually made out in the current market based on seeing others having even more issues than us. Good luck fellow buyers that are forced into this current marketplace.
reply
Carlos
This is what happens when people want to be lil and let China steal all our shit And use it against us then want to make deals where China is literally our backbone for shit like cars. CARS thats literally American culture we invented the first car but let s make China our backbone cmon there literally the worst country when it comes down to freedom. One child and worst air and worst quality of life unless rich which like everywhere is a small. 00 percentage but yeah let s make them our backbone because there cheap and not have back up stock on it. This here is what happens when you vote for people who aren t strong about foreign policy cough cough Biden. So the next time y all are wondering why shit like this just remember Presidents can be good people and all but are they really THE BEST domestic and foreign because America is very much reliant on foreign. Countries however we don t have to be we can make everything here no problem all that means is that the people who have 500 milllion and above will have 250 million. Got dayum 250 m is ballin why you complaining
reply
This is what happens when people want to be lil and let China steal all our shit And use it against us then want to make deals where China is literally our backbone for shit like cars. CARS thats literally American culture we invented the first car but let s make China our backbone cmon there literally the worst country when it comes down to freedom. One child and worst air and worst quality of life unless rich which like everywhere is a small. 00 percentage but yeah let s make them our backbone because there cheap and not have back up stock on it. This here is what happens when you vote for people who aren t strong about foreign policy cough cough Biden. So the next time y all are wondering why shit like this just remember Presidents can be good people and all but are they really THE BEST domestic and foreign because America is very much reliant on foreign. Countries however we don t have to be we can make everything here no problem all that means is that the people who have 500 milllion and above will have 250 million. Got dayum 250 m is ballin why you complaining
reply
KenniBoii
10: 03
For a guy who doesnt get paying 50k+ for luxury watches, you pretty much perfectly justified why it's a smart idea right now, and in general.
The same way you bought and enjoyed your 225, 000 Ford GT that's now worth 350, 000, you could've bought a 38, 000 Patek Phillippe Nautilus that's now worth over 250, 000, or countless Richard Mille's that were 70K- 100K that now sell for over 300K and in some cases over half a million.
If you think of it as just a 50, 000 watch that tells the time, yeah it sounds absurd, but if you think of it as an item that costs 50, 000 that you have to do nothing but hold onto for a few years (and in certain cases, just several months) and can sell for for double what you paid, what's the difference from doing that with cars?
reply
10: 03
For a guy who doesnt get paying 50k+ for luxury watches, you pretty much perfectly justified why it's a smart idea right now, and in general.
The same way you bought and enjoyed your 225, 000 Ford GT that's now worth 350, 000, you could've bought a 38, 000 Patek Phillippe Nautilus that's now worth over 250, 000, or countless Richard Mille's that were 70K- 100K that now sell for over 300K and in some cases over half a million.
If you think of it as just a 50, 000 watch that tells the time, yeah it sounds absurd, but if you think of it as an item that costs 50, 000 that you have to do nothing but hold onto for a few years (and in certain cases, just several months) and can sell for for double what you paid, what's the difference from doing that with cars?
reply
es
everyone wants to own things, but society itself doesn't want to put the work in to get those things, so prices naturally increase in these situations, it becomes that no matter how much money you have there is not enough things to go around for everyone, we seen this in some parts of africa where not enough farming and food but everyone needed to eat their solution was give out more money but this didn't solve the core issues of not enough food for everyone and so people still was hungry and prices inflated through the roof.
this is why stimulus checks did way more harm than good, it didn't solve any of the core issues society is facing, it was just like a sugar rush for all the people who don't understand how society actually works.
reply
everyone wants to own things, but society itself doesn't want to put the work in to get those things, so prices naturally increase in these situations, it becomes that no matter how much money you have there is not enough things to go around for everyone, we seen this in some parts of africa where not enough farming and food but everyone needed to eat their solution was give out more money but this didn't solve the core issues of not enough food for everyone and so people still was hungry and prices inflated through the roof.
this is why stimulus checks did way more harm than good, it didn't solve any of the core issues society is facing, it was just like a sugar rush for all the people who don't understand how society actually works.
reply
Chris
I was able to take advantage of this over a year ago. Knowing how the pandemic affected the global economy this was going to be expected. Bought a 2021 Hyundai Palisade Limited almost 8k less than what they re offering today, bought a 2020 Tacoma TRD OR 4x4 manual transmission back May 2020 at 10-15 grand less than what they re offering today! I waited for the market to hit rock bottom and then sold my 2017 infinity QX50 for 2k less than what we bought the car for 4 years ago and 38k miles later! Those of you just finding out about it, you re basically a year and a half late to the ballgame.
Also took advantage jn the stock market and real estate but that s another story.
reply
I was able to take advantage of this over a year ago. Knowing how the pandemic affected the global economy this was going to be expected. Bought a 2021 Hyundai Palisade Limited almost 8k less than what they re offering today, bought a 2020 Tacoma TRD OR 4x4 manual transmission back May 2020 at 10-15 grand less than what they re offering today! I waited for the market to hit rock bottom and then sold my 2017 infinity QX50 for 2k less than what we bought the car for 4 years ago and 38k miles later! Those of you just finding out about it, you re basically a year and a half late to the ballgame.
Also took advantage jn the stock market and real estate but that s another story.
reply
joe
That was good Doug, except you don't get it, THEY ARE PHASING OUT CARS, IN GENERAL, all they will offer are little electric cuck mobiles that becky can drive to starcucks/shitpolte/chick fil a/walmart, the damn things will also be robotic and only drive to said places, just face it, ANY ONE who has a high powered V8 is sitting on GOLD! but, will they stop selling gas? yes they will, so your v8 gas guzzler could be worthless soon too, I just know a Benz SL(for example) from 2000 -2015 will be worth its sticker price used in the next few years because they will stop making them new.
reply
That was good Doug, except you don't get it, THEY ARE PHASING OUT CARS, IN GENERAL, all they will offer are little electric cuck mobiles that becky can drive to starcucks/shitpolte/chick fil a/walmart, the damn things will also be robotic and only drive to said places, just face it, ANY ONE who has a high powered V8 is sitting on GOLD! but, will they stop selling gas? yes they will, so your v8 gas guzzler could be worthless soon too, I just know a Benz SL(for example) from 2000 -2015 will be worth its sticker price used in the next few years because they will stop making them new.
reply
Marko
Doug, that is, car journalists, is also a big problem.
These people simply lost touch with reality. constantly glorifying 400-500-600+ horsepower cars.
I understand, it's nice to sit in it and drive, especially when it costs nothing. but does man need it?
Or does he need an car to take him to work and to the store?
They constantly belittle cheap cars and people just don t buy them even though they are enough to meet the need for transportation.
So, cheep cars does not exist anymore.
reply
Doug, that is, car journalists, is also a big problem.
These people simply lost touch with reality. constantly glorifying 400-500-600+ horsepower cars.
I understand, it's nice to sit in it and drive, especially when it costs nothing. but does man need it?
Or does he need an car to take him to work and to the store?
They constantly belittle cheap cars and people just don t buy them even though they are enough to meet the need for transportation.
So, cheep cars does not exist anymore.
reply
Branflakes129
I agree with staying away from new cars considering their strong depreciation after leaving the dealership lot. But I think used cars equals itself out if you re doing a trade in. From my experience I ve gotten top dollar for my trade ins which make up for the inflated asking price. I recently got rid of my 2014 V6 Camaro LT with 55, 000 miles and a dealership gave me 16, 000 and I bought a 2017 2SS Camaro with 20, 000 miles for 38, 000.
reply
I agree with staying away from new cars considering their strong depreciation after leaving the dealership lot. But I think used cars equals itself out if you re doing a trade in. From my experience I ve gotten top dollar for my trade ins which make up for the inflated asking price. I recently got rid of my 2014 V6 Camaro LT with 55, 000 miles and a dealership gave me 16, 000 and I bought a 2017 2SS Camaro with 20, 000 miles for 38, 000.
reply
Dominique
As far as new cars go, the dealers are the only ones stealing money from every customer, I hope all of them suffer, greed has a price. What happens when you crash a car in 2 years that you grossly overpaid for, you aren t going to get back anywhere even close to what you paid, so the customer is screwed. All dealerships that are screwing over people should be remembered, use social media to identify them, drive them out of business.
reply
As far as new cars go, the dealers are the only ones stealing money from every customer, I hope all of them suffer, greed has a price. What happens when you crash a car in 2 years that you grossly overpaid for, you aren t going to get back anywhere even close to what you paid, so the customer is screwed. All dealerships that are screwing over people should be remembered, use social media to identify them, drive them out of business.
reply
Add a review, comment
Other channel videos
