Podcast "are prices about to get better for car buyers"

[SC Maintenance]

I listen to Adam Taggart's thoughtful money just about every episode. I listen in the car via spotify but this is the same episode . Its usually about stocks and bonds not cars, but I thought this might be interesting for some here. Mr. Taggart is a great interviewer.

I am not sure its worth the hour, so Spoiler alert, according to the guest:

1. Car manufacturers stopped making the cheap stuff, figuring times would always be good and gas cheap. Now they have too much high price inventory - especially a couple US OEM's
2. Used car prices will start rising again soon, no late model used supply due to low volume of sales in 2021, 2022. Old car prices will go back up
3. Best deal currently are used EV's if you want one.
4. He believes leasing will return in force to save the dealers (and debt enslave the buyers) - I added that last part myself

Predicting the future is hard, so not saying I believe him, but it at least seems plausible.

Enjoy.

 

[supton]

Maybe I'll watch later, but last summer I bought my Corolla as I didn't see how the used small car market would ever go back to normal. No one is making small cheap cars, and there are plenty of people (like me) unwilling to gamble on well worn older & bigger cars or SUV's so as to meet a price point.

After seeing my insurance bill I'd like to buy a 10 year old Mirage and have no collision on it, sheesh teen drivers are expensive.

 

[macarose]

Most of this has already happened, and the rest is just speculation that appeals to the emotional keys of a target audience.

The truth is, "We don't know." Even the most sophisticated auto retailers such as Carvana nearly went bankrupt with bad forecasting, and as a dealer for over 20 years now, I can't tell you anything other than the current trends.

Market speculation has done a ton of harm to shoppers and investors. We should avoid it whenever possible.

 

[The Lube Guy]

In North Carolina, car dealers are still engaging in questionable practices, and interest rates remain high.

The other night, I looked at a 2024 Chevy Silverado 1500, 4x4, with the 2.7L Turbo. It's a nice truck, initially listed at $42K. However, after entering my information, the price jumped to $48K due to $4000 in dealer-installed options—things like wheel locks, tinted windows, and scratch protectors for doors.

They called me early this morning, eager to "assist" me in getting into crippling debt. I firmly asked the young lady to remove my information from their database because I am not willing to endure hours of negotiation and mental exhaustion just to navigate through a deal that may not even happen, given their tactics. Despite her persistence, I politely ended the call and blocked their number.

I advise against providing your information on dealer websites to avoid falling victim to bait-and-switch tactics.

 

[slo town]

People have more control than they think. We’ve pretty much stopped shopping at Albertsons and Vons. Whole Foods? Haven't shopped there in two years. Screw ‘em. It’s TJs, Costco, and Target.

Between money printing inflation and corporate greed, things are out of control. Too bad more people don’t realize the power they have in their own wallets. Stop buying the over priced stuff that you don’t really need. Let the over priced stuff rot on the shelves or lots. Finally we’re seeing that with trucks and some cars. Yay!

For example, I just got done replacing the AC and radiator cooling fans on our beloved Honda Element. Aside from routine maintenance, one brake job, and 3 or 4 sets of tires, this was literally the first repair required after 14 years and 253K miles. What an incredible vehicle. I love that thing!

Anyway, Honda wanted $475 apiece retail ($300 apiece if you can find a willing dealer, and my selling dealer was not) for just the electric motors on those fans. I bought complete assemblies; shrouds, fan blades, and the motors, fully assembled and ready to install for $383 delivered (I put a new radiator and hoses in just because everything was right there and to throw a bone at the good 'ole Element). Fans were Continental/VDO brand from Rock Auto. Sometimes you have to draw the line.

Use your financial power, people!

Scott

 

[daves87rs]

People have more control than they think. We’ve pretty much stopped shopping at Albertsons and Vons. Whole Foods? Haven't shopped there in two years. Screw ‘em. It’s TJs, Costco, and Target.

Between money printing inflation and corporate greed, things are out of control. Too bad more people don’t realize the power they have in their own wallets. Stop buying the over priced stuff that you don’t really need. Let the over priced stuff rot on the shelves or lots. Finally we’re seeing that with trucks and some cars. Yay!

For example, I just got done replacing the AC and radiator cooling fans on our beloved Honda Element. Aside from routine maintenance, one brake job, and 3 or 4 sets of tires, this was literally the first repair required after 14 years and 253K miles. What an incredible vehicle. I love that thing!

Anyway, Honda wanted $475 apiece retail ($300 apiece if you can find a willing dealer, and my selling dealer was not) for just the electric motors on those fans. I bought complete assemblies; shrouds, fan blades, and the motors, fully assembled and ready to install for $383 delivered (I put a new radiator and hoses in just because everything was right there and to throw a bone at the good 'ole Element). Fans were Continental/VDO brand from Rock Auto. Sometimes you have to draw the line.

Use your financial power, people!

Scott

View attachment 223738

I love this here. I so wish people would follow this instead of getting caught up in all the politics. We as a people are simply be taken advantage of because they can. I mean, Coke and Pepsi just raised prices in an inflationary market because “They can”? And still have record profits? Something is not right there…

Cars and pretty much everything else is not going to change much unless we take control. I’m buying a lot less stuff now…… because I can! . Wall Street doesn’t want to good times to end. Most companies have been able to charge what they want, and just blame something else to keep that profit margin up there. If we as a people do not change are habits, they are not going to get the message.

It’s up to the people for change……

 

[fdcg27]

We can certainly observe that supply is much more plentiful now than it was a couple of years ago and dealers and manufacturers will have to reduce pricing, usually with incentives or concessionary financing offers, including leases, to clear the market.
Given the widely reported inventory backlogs of certain models, prices can only trend lower. Just as a rising tide lifts all boats an ebbing one can only lower all of them, including models completely divorced from those in vast oversupply.

 

[daves87rs]

Most of this has already happened, and the rest is just speculation that appeals to the emotional keys of a target audience.

The truth is, "We don't know." Even the most sophisticated auto retailers such as Carvana nearly went bankrupt with bad forecasting, and as a dealer for over 20 years now, I can't tell you anything other than the current trends.

Market speculation has done a ton of harm to shoppers and investors. We should avoid it whenever possible.

One answer : China

One the the automakers should have already learned- never leave an open hole in the market someone else can jump into…..

 

[SC Maintenance]

Market speculation has done a ton of harm to shoppers and investors.

I am not saying your wrong, but markets by there very definition are speculative.

OEM's at minimum must speculate given design cycles and approval times, and factory allocations.

 

[frankbee3]

People have more control than they think. We’ve pretty much stopped shopping at Albertsons and Vons. Whole Foods? Haven't shopped there in two years. Screw ‘em. It’s TJs, Costco, and Target.

Between money printing inflation and corporate greed, things are out of control. Too bad more people don’t realize the power they have in their own wallets. Stop buying the over priced stuff that you don’t really need. Let the over priced stuff rot on the shelves or lots. Finally we’re seeing that with trucks and some cars. Yay!

For example, I just got done replacing the AC and radiator cooling fans on our beloved Honda Element. Aside from routine maintenance, one brake job, and 3 or 4 sets of tires, this was literally the first repair required after 14 years and 253K miles. What an incredible vehicle. I love that thing!

Anyway, Honda wanted $475 apiece retail ($300 apiece if you can find a willing dealer, and my selling dealer was not) for just the electric motors on those fans. I bought complete assemblies; shrouds, fan blades, and the motors, fully assembled and ready to install for $383 delivered (I put a new radiator and hoses in just because everything was right there and to throw a bone at the good 'ole Element). Fans were Continental/VDO brand from Rock Auto. Sometimes you have to draw the line.

Use your financial power, people!

Scott

View attachment 223738

Well said Scott! A car is certainly not worth goin in debt for.

 

[slo town]

Well said Scott! A car is certainly not worth goin in debt for.

Too many people feel like victims. Collectively, the public has the power force a Fortune Top 10 company into bankruptcy in short order. Don't like the high price of trucks or other things? Well then, don't buy them!

200 million financial mice have the power of a herd of angry elephants when they organize themselves!

Scott

 

[frankbee3]

So true. I have been trying not buying products made in China. Taiwan is okay. I don’t want to support the CCP. I must admit that avoiding Chinese products is really difficult.

 

[AZjeff]

200 million financial mice have the power of a herd of angry elephants when they organize themselves!

Scott

100% true but it takes something like the Bud Light fiasco to make it happen.

Let me go find my rose colored glasses.

 

[slo town]

So true. I have been trying not buying products made in China. Taiwan is okay. I don’t want to support the CCP. I must admit that avoiding Chinese products is really difficult.

I agree about China but it's not just China. It's virtually everything, everywhere.

To use a cliche from decades ago - "The Power Of The People!" Each one of you has far more power and clout than you realize. Organize that power, it's the only way things will change.

Scott

 

[slo town]

100% true but it takes something like the Bud Light fiasco to make it happen.

Let me go find my rose colored glasses.

The Bug Light deal is mouse nuts. I couldn't care less what happened to the Bud Light brand. Completely insignificant in the big scheme of things, but I suppose a decent example.

But I do care about "the system" robbing me blind at every opportunity. It's nothing short of a conspiracy at all levels to herd the public around like a flock of sheep.

Don't not try or give up @AZjeff. We need you on the team.

Scott

 

[AZjeff]

It's a perfect example of the consumer showing their displeasure at a company with their wallets and is exactly what you're talking about. Those one or two customized cans of beer cost Budweiser 10s of millions in revenue.

The idea that 200 million consumers are going to agree on anything and act in concert is a bit optimistic.

 

[Allaneddie]

It's a perfect example of the consumer showing their displeasure at a company with their wallets and is exactly what you're talking about. Those one or two customized cans of beer cost Budweiser 10s of millions in revenue.

The idea that 200 million consumers are going to agree on anything and act in concert is a bit optimistic.

It's good to try to remember to buy only what you really need and only as much as you really need. That kind of self discipline is not common in our "I want it now" culture.
Buying because you "want" it is a way to surely end up in debt beyond what you should afford.

 

[Kurtatron]

I recently for the first time ended my Amazon prime membership to incentivize better savings habits and more importantly, because I’m not fond of Amazon’s cultural practices. When saving money is the best way to send a message, my life feels a little bit richer.

 

[SC Maintenance]

I recently for the first time ended my Amazon prime membership to incentivize better savings habits and more importantly, because I’m not fond of Amazon’s cultural practices. When saving money is the best way to send a message, my life feels a little bit richer.

Me too interestingly, after like 15 years. Additionally they make it so difficult to check out without Prime - I have to click I don't want to join Prime every time, then they purposely take a week to get it here even though the warehouse is nearby and they drive by every day. I now purposely avoid it, which I wasn't intending to do, I just didn't want to pay for Prime.

 

[supton]

I recently for the first time ended my Amazon prime membership to incentivize better savings habits and more importantly, because I’m not fond of Amazon’s cultural practices. When saving money is the best way to send a message, my life feels a little bit richer.

We've been kicking around the idea of dropping it. We don't think we are making that many rash purchases, but between cost of prime and not really needing it... it might go. Might miss the streaming services though.

I probably make more rash purchases on ebay.