New Car Prices Update
What’s going on YouTube family welcome to Automotive life my name is lucky and today before we roll into Christmas we actually have some good news now I know a lot of you guys always say oh man you only report on stuff that’s bad but I do
Report on a lot of the good stuff people just don’t really care about it and they seem to make a bigger deal when they hear something negative just like the regular news but today like I said it’s all about the good news we’re going to talk about how prices are going down and
How incentives have raised up all the way up to 136% year-over-year so that means that dealers are offering a lot of incentives to push Vehicles out we’re going to talk about pricing special offers all that and a whole lot more now just a quick Market recap as you guys
Know cars are just not selling the way they should EES have pretty much stand to a halt even Teslas I know the Tesla Fanboys always chime in Teslas are selling but the only reason they’re selling is because they’re dropping the price four times this year just to stay competitive and make themselves outprice
The market the downfall with that is they hurt a lot of their previous owners that purchased cars last year and they’re basically putting a lot of people in negative equity positions but I digress but the demand for EVS is pretty much dried up so a lot of the manufacturers started offering
Incentives and showing people that you know we’ll do what it takes to get these cars out of here now at first they were really holding off and they were trying to keep the over MSRP thing going but every week we’re starting to see more and more dealers just wipe that away and
Start to actually lower the price and sell cars under MSRP So today we’re going to talk about a lot of the new offers that people are putting out so the first we’re going to be talking about our 0% Finance deals so here’s the list of all the cars right now that you
Can buy at 0% interest because dealers are trying to get rid of these cars we have a Fiat 500 subro sutera which is electric car Ford Edge Nissan Titan Hyundai Santa Fe uh Mazda CX-5 Ford Escape Lincoln Nautilus Ford Mai the list goes on and on and on now the
Reason why they’re giving you 0% is to entice you to help move these these units because they’re becoming stagnant but also you have to remember even though they’re giving you 0% there’s going to be a catch now the first catch is more than likely they’re going to
Sell it to you at MSRP or above MSRP there’s going to be some reason why there their own captive lender is going to give you 0% on a brand new car so you have to pay attention to that so don’t sign the deal right away thinking you’re
Going to get 0% when you’re getting a great deal they may be charging you full retail or even on top of that adding some extra features it may require you to have maybe a 2-year warranty a service plan something like that so definitely pay attention to that also if
You look only two cars qualify for 72 months at 0% interest the rest are anywhere from 60 to 36 months the reason why is they know a lot of people are making really high payments because the average new car interest rate is 8% so they figured okay if we’re giving you 70
Months to pay off this 8% what is if we give you 40 months 60 months 36 months to pay off this loan because you can afford a little bit of a higher payment since we’re giving you 0% interest so like I said there’s always a flip of the
Coin when it comes to this now looking at this list I don’t really see any cars that really stand out to me you know a lot of people are asking me is now the time to buy if one of these cars in this like list appeals to you and you can’t
Wait any longer and you need to get a car I would say you can do that so just look at some of these list take your time but like I said just remember that that 0% is not what it’s all cracked up to be now let’s talk about average days
On Market or average days on lot this is the most important Matrix when it comes to being a dealer this is how we see what the market supply is out there and how we price our cars competitively now during the pandemic we were averaging anywhere from 3 to 7 days that meant
That inventory was sitting on your lot average 7 days it was just blowing out and people were buying well fast forward to today we’re hovering anywhere from 71 to 80 Days Which is higher than pre pandemic levels so there’s ‘s more cars out there that are just sitting far
Longer and they’re actually lowering the prices now unfortunately new car prices went up about 36% since 2019 so even though the new cars are technically almost the exact same as some of the cars that came out in 2020 the prices are 36% higher so people are not seeing the benefit of
Upgrading or buying a new car like if you buy a 2021 Dodge Charger and a 2023 Dodge Charger there’s really not that much of a difference very very small minute so all they see is the 36% um increase when it comes to the sales price this is one of the other things
That are causing people not to buy which is helping dealers realize that now is finally the time to get aggressive and lower the actual prices now there’s a really cool article from uh Kelly Blue Book that I’m going to leave a link down in the description and they were talking
About how new car uh prices are averaged about 23% higher than 3 years ago go now this is a conflict from the actual Auto news uh numbers that I read that were around 36% but just just reinforces the fact that they’re actually selling for more money than what they were compared
To three years ago but one of the big things I wanted to talk about is they’re saying that manufacturers incentives average about $2,500 in November incentives are up 136% since last year so that just lets you know that like I said they’re not selling the same amount of cars they
Need to get rid of them how are they doing this now a lot of the dealerships get creative when it comes to incentives they don’t want to lower the sales price so you’ll see some manufacturers say hey we’re going to give you 0% financing or
We’re going to give you 72 or 84 months whatever they can do to try to shrink your payment without actually lowering the price because what happens is once people know that they can buy a car under MSRP the word starts to get around and dealers have to basically lower
Their prices to stay competitive that’s what it was like back before 2019 so we’re seeing that this Market is slowly turning into a buyer’s market instead of a seller’s market another thing that I saw is that um they’re talking about how you can find some of these newer models a lot easier than
What you could find older models so the next chart I’m going to put up is the one that has the average days on market and the reason why I’m showing you this is not really for the days but to show you which models and which manufacturers
Have the most Vehicles up there so let’s go ahead and check that out so here’s the new up updated list from Kelly Bluebook of average days on Market or average Supply days now if you look right here jeep has the highest days of Supply they have up to 128 days supply
Of brand new jeeps now during the pandemic they became super popular people were buying these things going off-roading getting Outdoors because you know they couldn’t uh hang out inside and I think that they really oversold their cars and so when they went into that mass production to push these units
Out they realized that they’re just not selling and a lot of these Jeeps are like $40 to $60,000 which is a far cry from what they were back in 2018 and 2019 so I don’t think that regular people can afford a Rubicon now they’re just absolutely priced out of the market next
One is infinity which is kind of unique now this is a luxury car and a lot of people say they’re overpriced Nissans and I used to not agree with that because they did have some make some models a little bit different but now I mean they’re pretty similar I don’t see
A whole lot of difference so I don’t see the demand there the next one is RAM now trucks remember trucks were the most highest sought-after things you could never find a brand new truck Ford Chevy Honda Toyota um Ram none of these guys everybody had their trucks sold out but
As you can see right here Ram is got 114 days Volvo we’re looking at 106 days Mazda which I’m shocked is at 106 because Mazda really stepped up because you’re going to see at the end of this list Toyota and Honda they decided to make less units and keep the prices high
So this way they can make more gross off of less units so Maz decided to step up and kind of fill that market um next we’re talking about Buick Ford Audi Nissan Genesis which is no-brainer the new genesis they’re nice but I’m not paying 80 $90,000 for a Genesis uh
Mitsubishi that one was a shock they were usually the most affordable new cars you can buy now they’re priced almost the same as most Fords and Toyota Camry so I wouldn’t waste my time with those minis I don’t even know who buys mini anymore Acura Volkswagen Mercedes
Now some of the luxury cars I thought would be a little bit higher up because this are one of the things that people can’t qualify for and banks are being very strict when it comes to financing a luxury car because they are taking the biggest hits if you remember in one of
Our luxury videos the fastest appreciating cars are luxury SUVs which was a G wagon losing almost $100,000 in value since last year and the Mercedes uh electric S-Class or whatever I can’t it was eos S550 um that one lost $80,000 of its value in one year which is absolutely insane so
You know I’m not going to go through the whole list but you can kind of see that you know at the very end you see Honda and Toyota like I said those are the two manufacturers that refuse to bulk up uh production so this way they can keep
Their prices High and a lot of their cars they’re already pre-sold so there are still some dealerships that are haunted Toyota that are selling cars over MSRP I know here in Vegas if you want a Rav 4 and and I believe a Toyota Sienna those are the only two cars that
They’re still trying to charge over MSRP a lot of the other ones they kind of just threw away the overmarking looking at buying a car now I know a lot of you guys have waited 6 months a year some people two years to
Get a good deal on a good new car and I believe that we’re getting closer to it now if you can wait I’m always going to suggest waiting because the market is stabilizing a lot has changed in six months like I said we went from a sellers market now to a buyer Market
Everything is flipping we have incentives coming out um remember last year cars are selling over MSRP Now cars are selling under MSRP so there’s a lot of things that are just haven’t really settled yet so if you could wait till probably the first quarter of 2024 I
Think you’ll see better prices I think you’ll get better interest rates because more captive lenders are going to try to figure out how can we move our units and they’re going to offer maybe extended rates on some of those 0% financing hopefully matching the 72% or even going
All the way up to 84 months but you’re going to start to see the market change quite a bit now if you need a car now and you’re okay with paying 0% and you’re okay with the price and you’ve just been waiting so long and you and you can’t wait anymore I totally
Understand definitely go do that now when it comes to the used car sector it’s a little bit different prices are going down quickly but they’re not going down fast enough because what’s happening is you’ll see a lot of cars on Craigslist and Facebook that prices are are still kind of high and you’re
Wondering why well a lot of these people purchased these cars during the pandemic or at the all-time highs and they’re trying to get rid of them but now they owe more than what the cars actually were so they can’t sell it and and pay out of pocket for the difference so
You’re going to see a lot of cars not only from the dealership side but from the actual private party side where they’re not giving out those deals now traditionally when the economy goes down prices of used cars kind of stay stagnant because you know people are getting out of expensive cars and buying
Cheap cars but you usually find good deals but this is one of the only times in history where it’s probably not going to happen because even the people buying cheap cars paid way too much for them and a lot of them have loans title loans
Like we did in our other video and some other things so it’s making the affordable cars a lot harder to get so if you’re a dealer watching this my advice to you is stock up as many cars as you can from five to $118,000 that is going to be the sweet spot for
2024 now if you’re wanting to get into that market and you want to buy those cars I’m going to do a video video later after Christmas going a little bit more into how the used car market is changing because remember last year I was saying
The used cars are going to be gold the cheaper cars are going to go up in value and the expensive cars are going down and now it’s almost on par where we’re getting to that point where it’s exactly trending that way so tax season coming
Up I’m going to explain that in our next video too but what do you guys think of a lot of these incentives and how dealers have switched lowering the prices giving incentives to actually lower the actual MSRP of vehicles getting rid of Mark on MSRP and offering 0% financing have you guys taken
Advantage of any deals what are you guys seeing in your markets I’d love to know your thoughts and opinions on this also I want to wish everybody a Merry Christmas if you don’t celebrate Christmas happy holidays I just want you and your families to have the best year
Next year because there’s going to be a lot of great things now Monday is Christmas I’m actually going to put out a video I don’t think anybody’s going to watch it but I’m going to talk a little bit about myself my plans for the next
Year and some of the fun things we have coming up in the auto market but anyways I want to thank you guys so much for watching thank you so much uh for supporting the channel and everything you do this has been an absolute dream and a blessing and I just want to thank
You guys so much um once again you can follow us on Instagram at lucky Lopez and if you enjoy the video and my stupid commentary a like and a subscribe would mean a lot um thank you guys so much again and we’ll see you next Video
New Car Prices Update
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