Yup, I just want a depreciated F15 x5. Having a hard time telling buyers that their car is not worth 6k more than market value. I found one, but unlucky me, someone else already looked at it and was ready to pay the same what i offered for a car that was destroyed by kids, interior was horrible.
@@baronvonslambert Id wager printing 5 trillion+ dollars had more of an effect than a slow down in production. Our monetary supply was increased by 30% in what, a year? So no wonder your avg car increased in value 20-50%.. Not to mention everyone had stimmy checks burning a hole in their pocket. You know how many people bought shitboxes with that? A lot a lot. Just caused even more demand in the low end of the market resulting in a domino effect.
@@vincentpapaleo4803 Everything that is a necessity has seen very high inflation and wages have not kept up. $40k for a RAV4 is insane. it is a little SUV dads buy their daughters to go to college.
I would add that the RAV4 and CRV are totals different cars than they were a decade or more ago. They are now an an entire class bigger and more luxurious. They are no longer small, simple cross overs. As such their price has gone up. It seems like car manufacturers love making their newer versions bigger and more luxurious and therefore more profitable.
If anything, prices are still elevated over normal. New car prices have increased so much since 2019, that it's still supporting higher used car prices
Also, it's not just inflation, but OEMs have stopped producing a lot of cheap cars. It's legitimately difficult to go out and buy a "cheap" economy car in the low-mid $20k range. Oh, but if you want a $50k SUV or a $70k pickup truck, the dealer lots are absolutely full of those.
Reminds me of when I worked for a paper shredding company in 2009 and we got a pallet of "how to get rich flipping houses" books printed in 2006 with a graph on the front with a chart arrow going up and up and up
Mrkt trends up...& down > ppl tend to cherry pick & then freak out > climate being a textbook example...but farbeit for me to digress > general trend however (over last 3 Decades) will likely continue trending on par or inline with historical averages > unless you buy a new EV 😳
People are confused about the difference between USED and COLLECTABLE. They think their 3 yr old BMW X3 should be worth 95% what a new one is, which is more than they paid.
True, but as Doug made an example with a 997 911, collectible cars are dropping too. A heap of people borrowed money at a cheap rate at market peak and are now underwater on their collectible cars.
I know all about this. It’s amazing how many people believe their car is a collector item and attempt to get way more than it’s worth. It’s all good and things are beginning to normalize. (:
A couple I know were buying brand new high demand premium cars and selling them within a week. They made sure to buy them in South Carolina as apparently the taxes per vehicle bought were very low there. Then they would sell them to smaller private car dealerships specializing in slightly rarer offerings, as while it's not legal to sell more than X number of cars privately per year else you would need a dealer's license, it's totally ok to sell as many as you like to a dealer. Our usually bland parking lot had some ridiculous high spec Euro vehicles rotating in and out for about three years. I was like "Done right, this could be a movie!"
All those Hellcat owners are crying right now too. A lot of people that bought Hellcats are just letting them sit thinking they’re gonna get a huge payday. Nope! I forgot to mention they paid well over MSRP for their Hellcat as well so they’re really screwed lmao!
I just wish the rest of the market would correct. When your car is worth half what you paid 2 years ago, selling it makes no sense because the rest of the market hasn't corrected with it. Both your dollars and your car are worth less than they were 2 years ago, so if you sell, you're selling at a major loss. I'm fine with depreciation but this economy is unsustainable.
@@Samtallica That's what happens when inflation runs rampant. Did all those people really need a new car back then? Does all these people need a new car after two years? The party is over, people made their bed, now they can lie in it.
@@SamtallicaFor a daily, the value in your car is its longevity. If you're someone who collects low mileage and/or classic cars I can understand why this would be infuriating, but for commuting, the value of your car IS your car. My car did exactly what you described. It lost HALF of its value (on paper). It's no less reliable/dependable than the day I drove it off the lot.
I'm glad Doug made this video. I have friends now that are trying to sell their used trucks for more than new trucks and they're not getting any bites and they are losing their mind.
@@AB-80X It’s not that they trying to sell over MSRP, but that full size trucks are back to being discounted $10-20k. They paid MSRP in ‘22 ($50k) and today the same trim but brand new can be bought for $40k. People selling a ‘22 want $35-38k (what they owe), but the rest of us can buy a new one for a few grand more.
Doug, we don't see enough of your Ford GT. You typically have the Countach and/or the Carrera GT in the background. Time to rotate the cars so the Ford GT gets in on some videos.
I think the problem isn’t that people are freaking out that they can’t sell their cars for greater or equal value. They are freaking out because their car has corrected value for the past 5 years in 3 months, as it would usually. For example, pre Covid you’d expect to lose 5k on a car a year (just throwing a number) this was usual. Well right now, that same car has lost 15k in 6 months because it’s catching up from the past 3 years.
As an employee of a dealer for over 14 years, I can confirm that Doug is correct about the current market correction on preowned cars. We are coming off the artificial highs of the Covid times, and things are normalizing back to the way things were before. It is a great time for deals to be had on collector cars right now. We will see prices rise on lower priced vehicles as the public won't be able to stomach new car prices much longer. Buy within your means and enjoy!
It is normal… it amazed me that people were paying 5-25K over sticker for Kia Tellurides. Car companies are going to have to come up with crazy incentives because so many people are going to be underwater with their car loans/values.
@@AB-80X Maybe, Not so sure. I still see plenty of people more or less oblivious to inflation, their ends are meeting nicely and the end of the month. Those folks buy new loaded Cayennes and Taycans. I see lower more mainstream brands possibly more at risk. Genesis or Acura may have a harder time than Porsche.
@@sburns2421 They do. The problem is more in regards to the used Porsche market. Even people who can afford cars in the higher mid tier range such as Cayennes and Taycans are still somewhat reliant on a used market value. Many still buy and finance based on the idea that their purchase will retain a good value. In this regard the market still needs to catch up. Wait six months and see. There are people who bought cars six months ago who can’t believe how much they have depreciated. That does not mean they can’t no longer afford them, it won’t change much in relation to their income, but it means that they can’t afford to replace them either. This is where the dealers will get stuck. And VAG will push dealers hard to get new lot cars because of the severe financial issues of VAG. Also while Porsche is not a budget car, it is by no means the highest end of luxury or exotic either. This is relevant because Porsche is actually one of the most financed car brands in the US. They are prestigious and desired enough so that many want them, but still so affordable that you don’t need an extremely high income to finance one. People don’t finance Ferraris and Porsche for the same reasons. Porsches are financed because it is a way into a car for those who can’t pay cash, where many opt to finance high end exotics because the money invested makes more of a profit than the interest rate of the finance. So now that the interest rates go up and finance becomes more difficult as there’s less security in the car, fewer people can buy them. Add to this all the bridges Porsche burned with loyal clients over the past 24 months by demanding extreme ADM’s. Porsche has a very rough time coming.
@@sburns2421 That’s interesting. Acura tends to keep their resell values but not at what everyone has had the last couple years. I’d be curious to know how that’ll impact Kia, Acura, Honda, Toyota, and Nissan.
Agree 100%. I’m always happy to see prices come down even if it means mine are less valuable. This means cheaper parts for the cars I have, and cheaper prices for the cars I still haven’t had a chance to own.
You know the market has collapsed because Doug can no longer afford cookies. In the old days, the fender or window sills of his car always had a nice stack of cookies.
*Hallelujah 🙌🏻!!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻. I was owing a loan of $49,000 to the bank for my son's brain surgery, Now I'm no longer in debt after I invested $11,000 and got my payout of $290,500 every month…God bless Mrs Christy Fiore ❤️*
in 2021 my parents needed a new car for my mom. I recommended a CRV so my dad called the dealer. The dealer had a 2020 with 20k miles for $30k or ONE unsold new 2022 CRV being delivered in December of 2022. It was their last unsold CRV yet to be delivered. So they bought it sight unseen with no test drive and no idea what options it had... It was wild. The dealer was in Upstate NY and stopped selling to NYC with huge markups and would only sell to locals at MSRP with zero discounts or haggling.
Im not a car enthusiast.. well maybe of large family van reviews haha ... but i know we had to purchase a car unexpectedly in 2020 due to ours being crushed by a tree.. and I remember telling my husband this is nuts! The prices were crazy. And we were looking at 2007-2010 and older minivans and larger passenger suvs... covid, the lockdowns, the chip issues all drove prices crazy. I FOR ONE am happy to see them coming back to more normal used car prices!
I'm seeing 10 year old Cadillacs go for under $5,000 now. . . I can't wait for things to go back to normal. Cash for clunkers was another blow. The most I ever paid for a car was $2500. I need cheap cars, I can't afford car payments.
So true. I was lucky to find mine. I got a 2000 panther body. That's what I paid $2500 for. I was able to get a good deal for it because mine is less desirable because it's before 2003 (pre rack-and-pinion steering) and it has a vinyl half-top (which looked like crap by the time I got it). @@jasonbrannen7598
Can you tell the same thing to real estate sellers who have an old home they bought for 100 bucks, lived in, used and worn out and now want to become a millionaire from one sale
The one problem Doug forgot to mention was that people were overpaying for cars with ADM’s, putting no money down and financing the car for 7-8 years…. Those people are about to receive a rude awakening…..
At least here in Sweden, there was a very few years some cars was worth more after 1 year then when new. The inflation was rampant, and it ended with a huge economic crash going thru our whole society was horrendous.
Just bought a used Nissan Frontier 2016, 72k miles for pretty cheap, to me seemed like they had no idea they could charge way more but I'll just hope the market is going down
I remember at least one past Doug video claiming prices on some of these same cars mentioned here will never come down again. Doug should stick with market reports instead of predictions because he just follows the trends.
Then, of course, there are are the rare collectors items (like an Coutach or a Carrera GT), where demand will always outstrip the limited supply and which will just continue to go up in price. Congrats to those who have made that kind of investment.
lol. Doug has a bond villain garage. Or it looks that way from that camera angle. And he gets 60s Bond villain acoustics. That said, I would take that garage if offered
A 996 owner here. When will the air cooled Porsche 911 prices are going to collapse? I've been waiting for 15 years but they just keep raising and selling for crazy money on BaT.
When the new bronco first came out there was one on my local dealers lot that was marked up to $120,000 (with a sticker msrp of 60k) It sold in a matter of days to some total sucker that is probably whining about the trade in value right now being 20k
Not to be unkind, but when people do stuff like this, I think "you kind of deserve it" When the first Raptor came out, they were going for 40-60K over sticker. I had a friend of my brother in law lay out 47K over sticker. he had no business buying a Raptor at his income level. Even at MSRP
Now the off-road cred suckers are drooling over the new Lexus GX550. The few used ones on the market right now are all going for over 100k. That's LX600 money.
@BrianEugeneLee193 No one ever said it was an Audi. I'm just glad TJ Wrangler prices have stabilized, I'm looking at getting one to replace my P71 Crown Victoria.
I feel the exact same way toward gas prices nowadays. did people forget when gas prices were rising back then, it was all everyone talked about? It fell, and now they rose again, and people act like this is something new 🤔 i dont get it
cars have always been a HUGE depreciation asset. Only a small percent of cars historically went up in value, and normally only when they were old, rare, and classic.
I have been watching 997s the past year and they haven’t really dropped, maybe $2-3k at most. I think the people who own 997s are not the type of people who are going to be affected by market headwinds. Also many people believe the 997 is the best generation so you are fighting against enthusiasts as well. At this point Im considering 981s which are 90% of a 997 at half the price and are 4-5 years newer.
@@Lorentz_Driver You’re correct, new car prices are very high, especially leases. I think that auto manufactures are re-setting how they do business. For a long time, they produced as many vehicles as they could, then did whatever they had to, to sell them (deep discounts, rebates, lease and finance deals) but now they’re only producing as many as they know they can sell. Lots of people who had been able to lease a new car every three years, now can’t.
I believe what people mean by collapse here is - are (used) cars not selling. They are not asking if prices have cratered from the seller's pov. They are asking if even with lower prices (normal depreciation), people are still not buying. They are curious if the US economy is collapsing, and it is reflecting in the car market. All economic indicators (discounting Wall St propaganda)are pointing towards immense economic hardship...already underway. So potential car buyers and car enthusiasts want to know - regardless of falling car prices is it becoming impossible for (most) people to buy a car. That's what they mean by collapse.
My late grandfather used to always say that “buying a new car is a poor investment. And as soon as you drive it off the lot, it’s already depreciated.” So he only bought used cars his entire life.
Doug just gave everyone a lesson on "speculation" using the car market. Speculative things (like homes!) are prone to this, it's literally why even when a home builder like Pulte or Lennar make a home ahead of finding a buyer who ordered it it's called a "spec" home. Because they know it's literally speculation.
Man I just want something that gets me to work. Hell if my job was on the bus line I would hardly ever drive. Cars are a fun hobby but mother of god everything is so overpriced (cars are improving but everything else is still getting worse), I will give up driving entirely if I'm able to just so I can keep a roof over my head. But all the better paying jobs are outside of town and nobody wants to pay a proper living wage, no matter how many degrees or certifications you have, no matter what experience you have, no matter what industry you work in. Everyone pays like crap and constantly overcharges in this "booming economy" because corporate overlords are greedy, and this stops us from buying fun cars and having a comfortable living. It isn't just a me problem, it's everywhere.
"People are disasters when it comes to finance and memory". So true. Even low level financial literacy only exists with a small percentage of the population. Love the line I've heard many time when Inquiring about a private owner used car for sale. "Well I've got $60K in it so I need to get that out of it as a minimum". Ah, no. You'll be keepiing the car and letting the tires flat spot and letting the battery go dead while you continue to insure it.
My biggest thing is, collector markets are going down. Muscle cars, 80s hot hatches, 90s sports cars, all of them are going down. People aren't going to a dealer, seeing 4 new cars on the lot and, instead of buying a new car, going and buying a 70 Hemi Cuda or a classic Land Rover Defender. I definitely wouldn't call it a collapse, but definitely a recession.
I'm dumbfounded. Sitting here in Canada (Québec) and not understanding what "crash" You're talking about. Sure, prices aren't as high as they were a year and a half ago, but they are not pre-pandemic whatsoever. Used cars are still very expensive, despite the added interest payments you're going to be making now If you finance.
That's his point. It's not crashing, but it is correcting. The crash will come when an eventual recession hits, the job lost that follows, and people have to give up the cars they can no longer afford.
Canada is an exception. We're currently seeing record immigration levels that are keeping demand up in every sector. I'm seeing 2004-2007 corollas with 250k km selling for 5-8k still.
Also, as someone who is looking into buying an F80 M3 in the near future, the market correction has made me so happy. They were really sitting in the $60,000s with 50k+ miles, insane. Now they’re finally more sensible again. Love to see it.
@@mitchhedberg4415so long as they’re employed, and paying a mortgage that’s significantly lower than renting, they’ll stay. Also anyone who bought in the last few years with low rates has paid down enough that they’ll remain above water indefinitely.
As a recent college graduate this is what was needed. Buying any simple car has become ungodly expensive and most people shell out an extremely high percentage of their monthly earnings on a car payment which is honestly a depreciating asset anyway. I love cars as much as the next guy, but the market became simply unattainable and not worth it.
Just about everything you buy is a depreciating asset, even a home if you do not maintain it. A cars "price" is only about 1/4 of the total ownership cost. Insurance and gas is more than the cost of many cars.
Nah, here's whats up: no one has any money out there - credit is more difficult as consumers are 1) over-leveraged 2) completely broke 3) feel entitled to something they can't afford
I dont feel bad for people who were trying to flip and held on too long, or the people who supposedly bought a vehicle thinking it would get more expensive. Honestly, buy cars because you need one or enjoy it. Any sensible person knew the market would correct itself, it was a matter of when, not if. The new car market is a completely different issue, but we all knew the used car market wouldn’t always be insane. If people thought these NPC commuter cars would stay on the bubble for 5+ years are insane.
