Doomsday For Car Dealers | Inventory SPIKES 54%

Cox Automotive Article:

All right dad we read the comments all the time and most of you are suggesting that used new card prices are not falling so i thought we’d take some time dad run through the latest data from cox automotive who has let’s just cut to the chase new car inventory is up 54 year over year for the month of september and then we’ve got two success stories from the community

Forum where i thought we could spend some time actually i don’t know looking at some people who recently bought cars and i’ve got good deals oh my god let’s start here first dad the headline from cox automotive reads new vehicle inventory closes september up asking prices down inventory levels are up to 1.32 million vehicles in inventory supply at monsoon was 54

Higher or 465 000 units higher than september of last year now we have some issues with how cox automotive looks at inventory but still the trend is the trend inventory levels are going up um yeah because they they might take in transit inventory in canada’s inventory because well it’s in transit so even if you even if you subscribe to that that way of looking at

It um it is a significant increase in the amount of uh inventory that dealers will have whether it be actual on hand or in transit inventory and my supposition is that not as much of the incoming inventory is as pre-sold as it had been because um more and more people are taking themselves out of the market uh because prices are so high interest rates are so high

That they just don’t find themselves being able to to purchase a vehicle at this time so there’s less demand than there’s been so if we consider that for the longest period of time the the inventory levels are running at about a million cars in inventory of months and we’re up to they’re suggesting 1.32 million um that’s still significantly significantly below

What it had been in the past when it used to be somewhere around three and a half to four million september 2020 though for context this is when we were just getting into the thick of the pandemic still a lot of unknowns 2.46 million vehicles in inventory then so we’re back consider considerably from where we were in september of 2020 i mean we’re clawing our way

Back broken down by types of vehicle debt vehicles excuse me there’s a 5 42 days supply up from a 40-day supply of non-luxury vehicles 1.12 million vehicles in inventory compared to 1.02 million a 47 days supply compared to a 44-day supply of luxury vehicles and inventory nearly 200 000 luxury vehicles in inventory up from 125 000 vehicles and inventory now not all

Brands are created equal we talk about this it sounds constantly we’re constantly talking about this let’s dive into it asian non-luxury brands in japanese and european luxury brands have the lowest inventories non-luxury brands are the lowest inventories were get ready kia toyota honda and subaru no surprises there those are going to be the vehicles that are most

Difficult to get soon and also at or below msrp we then have dat on the luxury category lexus bmw acura and land rover those are the vehicles that are also commanding the greatest uh uh you know uh price yeah thank you that was the word i was looking for yeah on the other end of the spectrum dad volvo had the highest inventory of all brands then we also have in

Terms of a date supply yes lincoln buick and audi above average days supply and of course in the non-luxury side it is slantus town ram jeep and dodge they have the highest inventories we’ve seen many folks get invoice deals on rams ram 1500s there was even recently it’s no longer active but a 72 month zero percent financing option yep and stalantis just closed

A third shift at one of their production plants because uh because yeah and the only reason you slow down production is because well what you’ve produced hasn’t been selling thinking about getting auto insurance compare quotes from all the major carriers in one place join insurance it’s quick easy and no spam all right now let’s look at one other piece

Before we go to the success stories to again demonstrate that we are not just what’s it called when you just like uh talking cats we’re not just talking heads we literally have an entire business that is helping people every single week we help about 100 people a week buy a car yes okay so it’s not just the youtube channel okay here we go dead full-size pickup

Trucks cox says over a 60-day supply of inventory high-end luxury cars over 60 days supply full-size car about 60 days supply the national average they have is around 40. high performance cars compact cars mid-sized cars minivans and hybrid vehicles subcompacts as well those are at the lowest the lowest yes all right dad now let’s switch gears okay let’s look at

Some of these success stories not on a high-end vehicle how about a mazda cx-5 carbon edition carbon edition hosted 24 hours after we filmed this video from kevin okay okay this may be useful for anyone looking for a car in the phoenix arizona area that’s not where we are we’re in maryland okay so although we we did spend quality time in phoenix because we used to

Live there initially i was looking for a used 2018 mazda cx-5 but after realizing the prices were about a four thousand dollar difference than buying new and with higher interest rates i started looking for new vehicles instead after doing hours of research i settled on the 23 cx-5 carbon edition instead of trying to do the typical dealership dance i attempted to

Reach out to eight different dealerships with the email templates we provide email templates yes i only got quotes from two and negotiated the final out the door with the third one who asked me to give them uh who asked me to give them my price the first two quotes were from burge mazda oh my god i used to work there 37 700 okay this is this is real guys this is

Absolutely real 37 741 out the door the second was from mark mazda at 35 991 it’s important to note that mark mazda’s sales rep quoted me the price with a two percent msrp discount without asking any questions only added accessory was tint for 700 that arizona sun i guess that makes sense with burge mazda on the other hand that was a joke by the way if you’re new to

The channel do not pay 700 for window 10. the burge mazda on the other hand i spoke with a guy named m who not only included a desert package yes this guy used to do that yes he also quoted me for data dots i very much suggest staying away from that dealership and that guy he also told me if 35 000 is your number i’m afraid you’ll be disappointed with every mazda

Dealer in the state of arizona which is the price i requested anyways i then got a response from cardinal way mazda and martin alleyway thank you i was born in mesa it’s quite a bit of negotiating with them although it was a pleasant experience talking with the sales rep gerardo uh who helped with get the best price possible we ended up on an out the door price

Of 35 500. look at that and they showed me that it was around 900 below their invoice and as well as 3 120 below msrp after looking at the documents later i realized their doctor was a thousand dollars which frankly is ridiculous but i cared more about the otd price and how they got there yeah perfect exactly he goes on to finance and information there but dad

This is this not proof that that new cars and we could talk about used cars but they’re negotiable again just because the asking prices haven’t changed their negotiable damn it it is proof okay and and you know if you just want to look at the prices that are online and you actually don’t go in to try and negotiate then you’re never going to find out that they’re

Negotiable but they can be and they are and you can you can try and pit one dealership against another or in this case in this case three dealerships against each other and eventually you come up with a price that that is a little bit more than what you would hope to spend but considerably less than what one of the dealers had suggested to you considerably it

There are dealerships out there if you will if you are willing to put in the time effort and energy to be patient and persistent that will work with you and the thing is that we literally built a business and a team like you don’t even have to do as much work as you would have had to do a couple years ago you just joined we have a three month ninety dollar excuse

Me 60 90 day car buying program you don’t even have to become an ongoing member anymore we’ve tried to make it even simpler just join yeah just join and work with us we’ll point you in the right direction we’ve got another one here from joss okay because of zach using sensational youtube headlines about the used car market crashing which always caught my attention

I decided to sell my wife’s much loved 108 000 mile 2019 traverse okay friendly reminder use the sell your car functionality back on our website the buyer paid almost a thousand dollars over the home uh the high home sale kbb a price i could not resist letting it go for as well might guess my wife was pretty mad at me but she came around to understand my reasoning

Sorry there joseph yeah you could throw me under the bus that’s fine we decided to get her a new one with the equipment the last one was missing okay including that kid stain looking smell all right here we go thanks to yaa we were able to get her the exact vehicle she wanted for an all-in price that was less than we paid for our 2019. look at that the dealer did

Not install or charge us any extras and we got it for 500 less than msrp on a chevy product right now yes i had to check with almost a dozen dealers some over 100 miles away to find one not selling a traverse for one thousand to four thousand over msrp and all of them had some sort of add-on or they refused to remove from the price the one we found had just gotten

Off the delivery truck the night before they prepped it for sale allowing us to negotiate the vehicle without add-ons on the ro for the pdi yes no no no additional dealer avalons on the ro that’s the repair order for the pdi which is the pre-delivery inspection my wife is happy with malcolm and loves her new traverse as much as she has her prior to big thanks to

Everyone at ya for the help keep those sensational headlines coming zach they give some of us a good excuse to make decisions that are needed that we might otherwise never follow through with again just proof that whether it’s looking at the data from cox automotive or more importantly the stories from people who are on the ground buying cars right now say it with

Me here cars are negotiable again yes prices are negotiable they are they just are

Transcribed from video
Doomsday For Car Dealers | Inventory SPIKES 54% By Your Advocate Alliance (YAA)