Nothing will significantly change. Car manufacturers have been consistently having less inventory for years . Covid accelerated things but it was bound to happen eventually.
Ok let’s get somewhere close to back on topic.
@Gazzy644 definitely not calling you out. Just replying to you since you made last on topic post.
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Rates go up and down. Nothing here is unique or even all that related to the party of POTUS. Rates are up in UK, Eurozone etc … This of course makes leasing less appealing and is the reason for this data.
ic.
Will be interesting to see what a period of 7% auto lending rates does do the price of new cars. New cars got so expensive since 1. We wanted bigger more well equipped trucks/SUVs and 2. Low rates made those vehicles affordable to more buyers.
And of course rates will go down again at some point and the cycle repeats.
Even at 7%+ it is just dragging it out. Cheap money isn’t cheap, you pay for it with inflation.
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This situation seems challenging. The presence of negative equity has the potential to harm the market.
It’s only negative if you try to roll it haha.
What is hurting the market more is these folks with so much disposable wealth (or borrowing potential) as to buy a trash-azz Tesla for $108,000 likely won’t be in a reasonable position to buy another car for like 6 years while they make outrageous loan payments on their trash car. This reduces demand in general while all these people remain kind of trapped in their current vehicles.
And oh my God, Teslas RATTLE SO MUCH after like 5,000 miles. Having to tolerate a Trash Tesla rattling and half-shaft vibrating for 60 months is torture. Sucks for this Brian guy.
I don’t know about the rattles, but I must say that the glass roof is utter trash. It’s burning for those in back seat. I can’t believe companies like Tesla and Lucid thought it a good idea to keep an uncovered roof. That alone is enough for me not to consider them. And for what, to save some money on a cover?
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Used car giant OffLeaseOnly is shutting down all 6 locations and has fired all employees. Siting unprecedented changes to automotive retail landscape.
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https://twitter.com/GuyDealership/status/1699481980587630655?t=Fd5RJ2ki-tvlnqPBfqZm-Q&s=09
Interesting to read a bit, i guess the new owners ran it into tthe ground
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If this does happen next week, it could affect pricing on GM, Ford and Stellantis vehicles over the next few months.
Giant of the industry? Or barely glorified BHPH?
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4xe LHrs commenting they are selling their cars for a loss.
Peak insanity is over.
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Pre covid at their peak, they were selling over 1,400 units per month. That isn’t your average independent used car retailer.
Yup, looks like they gambled on inventory. Bought at the wrong time and stuck with high priced inventory. Currently liquidating over 1500 vehicles. That has to be a decent size floorplan. That is nearly half the size of Vroom’s.
Ok so they juiced up their BHPH to industrial scale?
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Too bad there’s no way to see what is on their floorplan… I’m sure some LH’ers would want to score a good deal hah.
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i don’t think that’s necessarily the case. jeep inventory seems to be flooded and these people were mostly just trying to unload flips that they hung on to for too long.
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Not sure what your sources are but production of basically anything took a massive hit during and after Covid. Even when we had the manpower and equipment ready to produce here in the US, the supply chain of parts and materials we needed to make everything (cars, boats, refrigerators, et al) had dried up.
I’m in the airplane manufacturing business and as of today we’re still finding it incredibly difficult to source the parts we need. And when we finally get those more expensive parts we have to rush ship them (more expenses) to reduce the lead-time and hit our goals. In some instances were loading up fucking Antonov Cargo planes to bring stuff to us versus the cargo ship.
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High inventory at new dealers and crashing used prices/offers seems to indicate peak used car pricing is over to me.
The only ones that seem to be lacking overstock are the “economy” brands.
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I definitely noticed a dropoff in clients <$100K salary over the last year. That was a good chunk of my 3er and A3/4/5 buyers. 
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Tfs is getting crazy strict lately. Just had a sr 4x4 denied bc wife was primary husband co (for Reg purposes). He was high 700s with low 100k income, wife doesn’t work. The gm is calling it in tomorrow to chew them out. Redic. 475/mo lease…
It’s been happening more and more lately with Tfs. They must know/think something is coming
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