Dealers across the country are beginning to panic. Even with enormous discounts and incentivized interest rates, people are just NOT BUYING. Inventory levels continue to soar and banks continue to clamp down on borrowers. It really is the perfect storm for a car market crash in 2025. The mystery is, what WILL a car car market crash actually look like? Some people dream of seeing cars, trucks, and SUVs for 50-75% off. That feels farfetched to me, 10-15% BELOW INVOICE feels more likely. Is that enough? Is that enough to make people buy new cars again? Dealerships are getting desperate and reality is beginning to sink in. Demand is not keeping up with demand, no where near it. Let me know what you think. What kinds of deals are you seeing at your local dealerships? Or are your dealers holding firm and hoping it will pass?
Points discussed in this video include:
Dealers begin to panic… huge discounts and no buyers!
- Dealers are sitting on enormous vehicle inventories that are growing faster than ever… even after slashing prices, they’re not selling. In today’s video I’m going to explain why that is, what dealers are trying to do to move inventory and what happens to cars trucks and SUVs that go unsold.
- discounts… list examples
- Inventory levels continue to rise …400K more start of 2025, 1.4M compared to 23.
- For every 5 vehicles being produced 4 are being sold, that’s a recipe for disaster.
- Production cuts imminent
- Turn away allocations
- Banks clamping down 1/5
- Highest 30, 60, 90 day delinquencies since 08-09.
- Tacoma sold 20% less vehicles than last year… WITH $6-8K discounts.
- Americans can’t justify current prices combined with awful interest rates.
- $48,405… 64,261… trucks… $760 monthly payment… over half of truck buyers spend over $1000 per month.
- 7% New 11% Used
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