Car Market Reaches BREAKING POINT! Jeep, Dodge and Ram step toward BANKRUPTCY

The Car Market crisis continues to get worse... Vehicle manufacturers like Stellantis are struggling and are heading toward a breaking point. In todays video I talk through some staggering fact, stats and figures surrounding Jeep, Dodge, Ram's demise and the current state of the car market at large. It's not looking good for vehicle manufacturers.... but the market is softening for the consumer, which is good.

Points I discuss in this video include:

- Inventory levels are stacking up:
-- Currently 2.84 million new vehicles available… as of Sept 2024
-- Sept of 2023 it was 2.21 million
-- Sept of 2022 it was 1.32 million

- Stellantis is being sued by stockholders for conveying misleading inventory levels that painted the company to be in a better position…

- Stellantis is suing UAW because they can’t put more money into plants.

- Stellantis has countless 2023 units just collecting dust on lots right now.

- Floor plan costs per month… Dealers can't keep up!

- No more markups… silver lining of the current car market.

- Lenders are turning people away. 1/5 applications denied within last 2 months.

- Lenders won’t fund an inflated vehicle… Need to be MSRP or better.

- Repossessions are up 23% in recent months.

- MSRPs are up nearly 40% since 2019!

- Manufacturers are taking huge losses each month …nearly 50% of Nissan dealers are losing money month to month.

- Toyota saw a 21% slump in sales last month.

- Dealers are turning down allocations!

- This has a ripple effect to production lines… layoffs are happening.
-- $8-12K off on Tundras
-- $15-20K off higher trimmed Silverados and Rams

- Ford, Stellatis, GM, Toyota have gotten away from affordable vehicles.

- They’ve priced their primary audience out of the market. Toyota especially...

- Higher trimmed vehicles have a larger profit margin. They’re not selling though.

- Cheaper vehicles have a smaller margin…

- Desirable vehicles that used to sell with markups are now going for MSRP or discounts:
-- Ford Raptors
-- Ram TRX
-- TRD Pro trimmed Toyotas

- Trade ins have taken a tremendous hit. If new vehicles are coming with a 10-15% discount, your trade is worth 15-20% less.

- People are struggling right now. People can’t afford these new vehicle prices, average new vehicle sold in the US is now over $48,300. Insurance has over double since 2019… many states saw a 50% or higher increase just since last year!

- 14 brands currently in Stellantis’ portfolio are to be reviewed… which are worth keeping.

LOAN COMPARISON:
$50K vehicle breakdown…
- Modern American Loan:
- 10% interest rate… 7% sales tax… 2500 in registration and miscellaneous fees. Paying $69,741 over a 60 month loan… 0 down. 22% in interest… 78% principal. $1061 monthly…

- Carmax loan:
- 23% interest rate… 7% sales tax… $2500 in registration and miscellaneous fees. Paying $90,571 over a 60 month loan… 0 down. 41% in interest… 59% principal. $1409 monthly…

- Good ole days down:
- 2% interest rate… 7% sales tax… $58,583… only 5% interest… 95% principal. $876 monthly payment.

- Stellantis has taken a nearly 60% drop in stock since March…
- Toyota has taken a nearly 40% drop in stock since March…
- Nissan… 30% drop…

You as the Buyer are in the driver seat. Patience will serve you well.
Expect a large discount AND a incentivized interest rate… walk from the dealer. There will be another deal down the road. Or you’ll get a call back. Finding and negotiating a deal same day is a rookie move right now. The car isn’t going anywhere.

If you enjoy this type of car market analysis content, please let me know. I thoroughly enjoy making these videos... and really like engaging with you all on these topics. Let me know your honest thoughts, is this car market crisis going to get worse before it gets better?

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-Stay Untamed...

#carmarket #markettrends #dealership

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