The discussion centers on the current state of the car market, highlighting a significant decline in new vehicle sales and rising auto loan rejections, particularly among Gen Z consumers. The hosts analyze how inflated vehicle prices and credit strains are impacting buyer behavior, leading to a potential reset in the market. They also share insights on the consequences of high prices, including a troubling car deal that exemplifies financial illiteracy in vehicle purchases. The episode emphasizes the need for more affordable options and better education for consumers navigating the car buying process.
Today on CarEdge Live, Ray and Zach discuss the latest car market data. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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"...who has the money to be able, the average new car transaction price is once again approaching $50,000."
The average new car transaction price is how much people usually pay for a new car. It helps you see how much cars are costing these days.
The average new car transaction price refers to the typical amount buyers pay when purchasing a new vehicle, which can vary based on factors like make, model, and market conditions. This figure is important for understanding the current automotive market and consumer spending habits.
"...the average listing price for new cars is over $50,000."
The average listing price for new cars is what sellers usually ask for when they put a new car up for sale. It shows how much new cars are generally worth.
The average listing price for new cars is the typical price at which new vehicles are advertised for sale. This price can be influenced by supply and demand, vehicle features, and market trends.
"...If you use my 10% rule as to what you can afford, my 10% rule is 10% of your gross monthly income can go towards a car."
The 10% rule is a way to decide how much money you should spend on a car each month. It says you shouldn't spend more than 10% of your monthly income on car payments.
The 10% rule is a guideline suggesting that individuals should spend no more than 10% of their gross monthly income on car payments. This helps ensure that car expenses remain manageable within a person's overall budget.
"...the manufacturers have just continued to increase their MSRP's and ultimately there has been enough demand. And again, what we're talking about today..."
MSRP is the price that the car maker suggests you should pay for a car. It's a starting point for how much you might expect to pay when buying a new vehicle.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends retailers sell a vehicle for. It's important for consumers to know this price as it serves as a baseline for negotiations when purchasing a car.
The Ford F-150 is a big truck that many people use for work and everyday driving. It's known for being tough and reliable, making it a favorite among truck buyers.
The Ford F-150 is a full-size pickup truck known for its durability, versatility, and strong performance. It is one of the best-selling vehicles in the United States, popular for both work and personal use.
A '10% roll' is a way to think about how much of your income you can spend on something, like a car. It means taking 10% of a number to help decide if you can afford it.
The term '10% roll' likely refers to a common practice in budgeting or financial discussions where a percentage of a total amount is considered for calculations, often used to estimate costs or savings. In this context, it may relate to calculating affordability based on income and vehicle price.
"Do we wait until the sticker price is lower? Unfortunately, Dad, this is at least my thinking here."
The sticker price is the price you see on a car when you go to buy it. It's what the manufacturer thinks the car should cost.
The sticker price refers to the manufacturer's suggested retail price (MSRP) displayed on a vehicle's window. It represents the price at which the manufacturer recommends the dealer sell the car to consumers.
"Right now, it's about as good as it's going to get in terms of the new car market."
The new car market is where you buy cars that have just been made and are brand new. It's different from buying used cars that have been owned before.
The new car market refers to the segment of the automotive industry that deals with the sale of brand new vehicles. This market can be influenced by factors such as production rates, consumer demand, and economic conditions.
"And even for the used car market, probably, because there was such a significant decrease in the number of new vehicles produced for so many years there."
The used car market is where you buy cars that someone else has owned before. They usually cost less than new cars.
The used car market consists of vehicles that have had previous owners and are sold at a lower price than new cars. This market can fluctuate based on supply and demand, as well as economic factors.
Negotiation is when you talk to the seller to try to get a better price for the car. It's like bargaining to see if you can pay less.
Negotiation in the context of car buying refers to the process of discussing and reaching an agreement on the price and terms of the sale between the buyer and the seller. It often involves haggling to achieve a better deal.
"New car inventory is the highest level it's been in the past 18 months. We've seen significant increases in negotiability and leverage for customers."
New car inventory is the number of new cars that dealerships have available to sell. When there are a lot of new cars, buyers can often get better deals because dealerships want to sell them.
New car inventory refers to the stock of brand new vehicles available for sale at dealerships. High inventory levels often indicate that dealerships are more willing to negotiate prices, giving buyers more leverage in the purchasing process.
"We've seen significant increases in negotiability and leverage for customers. So if you want to buy a vehicle or if you need to buy a vehicle, now is definitely the time to do it."
Negotiability means how much you can talk about the price of a car with the seller. If there are many cars available, you might be able to get a better price by negotiating.
Negotiability in the context of car buying refers to the ability of customers to negotiate the price of a vehicle with the dealership. When inventory is high, customers typically have more room to negotiate lower prices.
"We've seen significant increases in negotiability and leverage for customers. So if you want to buy a vehicle or if you need to buy a vehicle, now is definitely the time to do it."
Leverage for customers means that buyers have more power to ask for better prices or deals when buying a car, especially when there are many cars available to choose from.
Leverage for customers refers to the advantage buyers have in negotiations, particularly when there is a surplus of inventory. This means customers can push for better deals and terms when purchasing a vehicle.
"...can't wait to take delivery of my new Honda CR-V. Love hearing that."
The Honda CR-V is a type of SUV that's great for families. It's known for being reliable and having a lot of space inside for passengers and cargo.
The Honda CR-V is a compact crossover SUV known for its reliability, spacious interior, and fuel efficiency. It's a popular choice among families and individuals looking for a versatile vehicle.
"So this is a deal that someone entered into on allegedly a new Ram 2024-2500. That's what it says up here."
The Ram 2500 is a strong truck designed for heavy loads and tough jobs. It's often used for towing trailers and carrying heavy items.
The Ram 2500 is a heavy-duty pickup truck known for its towing capacity and rugged performance. It's part of the Ram truck lineup, which is popular for both work and personal use.
"Now, this person thought that it made total sense to buy a truck for $112,000 or finance, $112,000 on a truck."
Financing means getting a loan to buy a car. You pay back the loan over time, usually with extra money added for interest.
Financing refers to the process of obtaining funds to purchase a vehicle, typically through a loan or lease. The buyer agrees to pay back the borrowed amount, often with interest, over a specified period.
"...and payback over that seven-year term, $47,548.76 in interest."
Interest is the extra money you pay when you borrow money. When you finance a car, you pay back the loan plus some extra for the lender's service.
Interest is the cost of borrowing money, expressed as a percentage of the loan amount. It is paid to the lender in addition to the principal amount borrowed and can significantly affect the total cost of financing a vehicle.
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It's noon here in Veteran City, New Jersey
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And this is Courage Live for Tuesday, November 25th,
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here in Ventner.
And well, that good looking young man
and some say I shouldn't say it,
but that handsome young man, Zach, in Washington, DC,
how are you today handsome?
I'm feeling great, man.
Thank you for calling me handsome.
Always puts a smile on my face.
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All right, Dad.
The car market reset is about to get so much worse.
And I got a few data points to show that.
First, from Car Dealership Guy News,
used car prices are falling fast over on CDG.
They're talking about what that means
for inventory and appraisals,
but that's putting some downward pressure
on the car market over at Cox Automotive, Dad.
November, U.S. new vehicle sales,
to not use new vehicle sales,
are expected to decline 8% year over year
as higher prices and slowing EV sales hit the market.
And then, Dad, we've got auto loan rejection surge
as Gen Z faces growing credit strain.
Those are the three topics.
Plus we've got a couple of really bad car deals
we're gonna review today as well.
A little bit of a public service announcement,
but those are the three topics
that I think we can tie together
to help frame that the car market
and the reset in the car market
is only just getting started.
I do have a question, a brief question.
Do we have any type of vaccine
or shot for that credit strain?
I'm sorry.
It's YouTube, man.
You know, some people are gonna run wild with that,
but that what's going on here,
what's going on here in the car market,
let's dig in pretty, pretty please.
Yes.
Use car price is crashing.
You've got new vehicle sales down,
almost double digits, 8% year over year.
And we've got more and more people
getting rejected for auto loans now.
So we've always talked about how access to credit
is what keeps the lights on in this dance club.
You know, I think the people keep dancing to the music
because well, the credit that is available.
It seems like the music stopped, the lights are out.
Like if people cannot get approved for auto loans
and now we've got Gen Z showing even more weakness
in their credit availability,
what happens as the boomers age out, stop buying cars?
I mean, there's a really precipitous downward spiral
potential here for the car market.
Well, it's what happens when the people with money
take themselves out of the car market,
which I think as we expect to see month,
year over year month sales decline in November
by about 8%.
I think that might be the indication
that it's finally starting to happen.
Even the people with money are saying,
I'm mad as hell and I'm not gonna take it anymore.
They are, people are sick and tired of the pricing
of these vehicles that we see.
And I think as you piss off a larger portion
of potential buyers because of these high prices,
you are really limiting yourself to a handful of people
that will still be out there looking to buy cars.
And Generation Z, was that who it was?
Or millennials, whoever that was?
No, Gen Z.
Yeah, I mean, who has the money to be able,
the average new car transaction price
is once again approaching $50,000.
The average listing price for new cars
is over $50,000.
If you use my 10% rule as to what you can afford,
my 10% rule is 10% of your gross monthly income
can go towards a car,
including insurance, your car payment,
maintenance, and fuel costs.
So if you are an average person
making $5,000 a month,
using that 10% rule, you can spend 500 bucks.
Now, I have seen comments when I have said this
in the past, they said, well, who could,
that's crazy, nobody could afford to buy a car.
That's the point, okay?
That is the exact point that I'm trying to make,
that everything is priced so high
that the average person really can't afford
to buy a car and we're starting to see it
in the sales decline.
Yeah, that's exactly what we're seeing, yep.
And I don't know, not the quibble
with the CDG car dealership guy.
But I don't know, I don't think we've seen
a precipitous decline in retail used car prices.
Oh, I am certain that used car managers
are doing everything in their power
to steal every trade in they can.
By saying, oh, well, the auctions,
the values are going down a little more
than a percent a week.
But we haven't seen that reflected
on the retail side of things yet.
We actually have, Dad.
Prices are down 10% on the retail side
since late summer.
Now, that usually takes a significantly longer period
of time to come down.
So we have seen used car prices come down a little,
but it is more on the wholesale side
to your point than it is on the retail.
And to be clear here, there's still 40% higher
where they were in 2019.
So used car prices are still quite inflated
relative to where they had been
if there wasn't a chip shortage
and a global supply chain crisis.
But I think you're hitting the nail on the head, Dad.
I posted a short the other day.
If you're not following us over on Instagram,
you absolutely should.
It's my car edge.
There it is right there, my car edge.
Look at some of these comments, Dad,
from Dan O'Hearn, can't be the 10% rule.
This isn't 1996 anymore and 38 people like that.
And then you come over to TikTok,
which also has a slightly younger demographic over here.
And you can see right here,
this isn't a realistic approach
when media new cars are $50,000
and the average gross income is $46,000.
And I think that is exactly your point
is this is actually the way to do it.
And we are finally starting to see
some material cracks on the new car market
and the used car market to a degree as well.
And 8% decline year over year is a big deal.
And we're actually talking about guys,
1.27 million vehicles sold.
That's down month over month and down year over year.
This number, the industry likes to see that number
like significantly higher, 1.5, 1.6, 1.7, 1.8.
Heck, there have been some months
where we've seen it close to 2 million.
So this is down significantly.
And I think when you pair it
with some of these other articles we're seeing
around auto loan rejections,
the credit strain for younger shoppers,
it's a pretty clear picture of what's going on here.
Then you read the comments on our videos.
It's a clear picture of what's going on here.
People can't afford these things.
They don't want to get overpaid for them.
They don't want to go through the hassle
and they're taking themselves out of the market.
Yeah, I mean, what it says to me,
and I know that there are any number of people
out there who will reject the concept of my 10% rule.
I get that.
But what it really says to me
is that everything is way overpriced.
Wages have not kept up with prices.
And so therefore, if you base what you can buy
on my 10% rule, if you wanted a new car,
you probably needed an $18,000 to $20,000 new car.
And guess what?
They don't exist.
And guess what?
Well, that's not a nice enough or a well enough
equipped car for me to want to buy it.
So a lot of people out there are thinking,
well, that should be 20% or 25%.
Well, I don't know how to break it to you,
but, you know, rents haven't gone down.
The cost of homes hasn't gone down.
The cost of food hasn't gone down.
So if you're going to say that 20 to 25%
of your income, your gross income,
should go towards your car,
you're out of your flipping mind.
You need somewhere to live now.
Yes, you can live in your car under a bridge
down by the river.
Absolutely you can.
Okay?
You might find it a little hard washing your clothes,
you know, in the winter months
when it's a little chilly out there.
But, you know, come on, let's deal in reality.
And the reality is that things,
incomes haven't kept up with inflation,
with the rising cost of things.
And people are trying to rationalize
why it would be okay to allocate more than they should
for the car that they think they need
that they don't really need
because they can do with something less expensive.
For sure, that's part of it.
And it's also the manufacturers
have just continued to increase their MSRP's
and ultimately there has been enough demand.
And again, what we're talking about today
is the reset is going to get so much worse
because we are starting to see the cracks in that foundation.
We've been seeing it for a while now.
But again, the big headline this morning for me
was the fact that we have an 8% decline year over year
in new vehicle sales.
I'll pull that back up on the screen again.
This comes from the industry conglomerate Cox Automotive.
This is a damning headline for the auto industry.
And to be one thing,
if it was the new car market getting a little shaky
and the used car market was totally fine,
but the used car market is starting to see
some cracks in its foundation as well.
Dad, we actually have an ask to our community today.
We've got our quarterly, or excuse me,
we're doing a monthly, our car edge car buying survey.
It's caredge.com slash CCBI.
I'm putting that link on the screen.
Please CCBI, the car edge car buying survey.
And we need, it's for our car edge car buying index.
We need our community to answer this survey.
It's anonymous.
And it's just a couple of questions here.
100% anonymous, no contact information.
We are every single month pulling together
our car edge car buying index.
And we want you to share your information with us
so that we can pull this data together,
pull our report together and share it
with the broader industry.
How much do you trust automakers
to treat consumers fairly?
How much do you trust dealers to treat consumers fairly?
We have questions on here
to add around affordability as well.
So please, please, please take a moment
to fill this out.
We'll talk about those results
in a future episode of Car Edge Live.
How long can this go on, Deb?
How long can these manufacturers continue
to just have a, what's it called, a case-shaped economy
where they're really just tailoring what they produce
for those that are affluent and can afford it?
How long does this go on?
Or do you think we are starting to see a reversion
back to where the auto industry used to be
where it was accessible to the masses?
How long can it go on?
I don't know.
Hey, if there's another 8% decline in sales
year over year in December,
and then another 8% in January,
at some point somebody who has been asleep at the wheel
for years is suddenly going to say,
I think we got a problem here.
Houston, we've got a problem.
Well, let me actually, can I share one more data point
with you to see how this frame's you're thinking?
Yes.
What do you think?
Actually, you know what I'm just gonna share.
The New York Fed has shown that auto rate applications
have been rejected at a double the rate
in the most recent month that we have data.
So 15.2% of those that who applied for auto loans
in October were rejected.
That's double where we've been earlier this year.
So I actually wanna add that data point
to the conversation.
Okay, what do you think that says?
I'll tell you what I think it says to me.
What do I think that says?
I think that says that this reset's real,
that it's not going to be sustained on BS
and approving people for things that they can't afford.
Well, I think it says that you have people
who need to buy cars that don't have the means to buy cars.
15% that's what it says to me.
Yes, so if double the number of people
who have applied for auto loans are getting turned down,
that means the quality of the shoppers out there
is considerably less than what the manufacturers
would have hoped for.
So that says to me,
you are running out of customers as a manufacturer
and as a dealer.
So how do you bring those customers back?
Well, you better figure out ways
to start offering less expensive cars.
You have, I don't know,
I can remember two or three years ago
and say you can't keep narrowing your customer base.
At a certain point, you have to broaden your customer base.
That you need a larger swath of the American public
to be able to afford to buy your products.
And I think if there was a doubling
of the rejection rate last month in October,
that is beginning to show the manufacturers
you need to figure out a way to make your vehicles
more affordable for a bigger portion of the population.
That it's not going to be sustainable
to just sell cars to 10 to 12% of the population.
You need to be able to sell cars.
I don't know, 30%, 40%, 50%.
You know, when we were in Dearborn
and we went to the Ford factory
and we watched the film about the history of Ford.
Yeah.
What was the thing that Henry Ford had in mind
when they started building cars
to make them affordable for the masses?
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Meet Christine.
She loves shopping.
And this is the sound of fashion overload.
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Ooh, you know what?
Because Henry Ford's whole thing was he wanted his employees
to have an affordable vehicle.
Shall we do a little live experiment, Dad?
You game for this?
I'm always game.
All right, here we go.
We're going to the Google machine.
What is the average salary
for a Ford employee?
Drum roll, please.
Okay, 126.
Wow.
Ford pays folks well.
Well, you didn't ask for factory workers.
But I'm looking at overall.
Everyone that they pay and you've got here, you know,
production workers around $50,000 a year.
So it's a wide range.
Yes.
It's a wide range.
Let's now do another tab.
Give me a second here.
What is the average MSRP of a Ford vehicle?
Let's do the F-150.
Bum, bum, bum.
Average use price $50,000.
We know, Dad, that for new F-150s,
the average MSRP is closer to $60,000, $65,000.
Yes.
Yeah, you can see here used ones are approximately $50,000.
So let's say it's $60,000.
Let's use your 10% roll for a second here.
Okay.
If I'm a production worker at Ford,
making $48,000 a year,
I cannot afford a $60,000 truck.
No, even if you were a production worker
at Ford making $60,000 a year,
which is $5,000 a month,
you couldn't afford...
I mean, and Henry Ford's concept was,
I want the people that are putting these things together
that are building them to be able to afford to buy one.
Now, he wasn't saying he wanted them
to be able to afford to buy one
because he was paying them too much.
No, he wanted to keep the costs down low enough
so that they could build the cars cheaply enough
and pay their workers cheaply enough.
But if they could still afford to buy the product
that they were building today,
they couldn't afford to buy a used one.
Yeah.
And that is malfeasance
at the highest levels of the manufacturing of automobiles
where they have decided,
these C-suite people have decided
the hell with us common folk,
we don't need you,
we don't want you,
we're not going to cater to you.
You figure it out on your own.
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Then one more thing here.
I want to look at just Gen Z.
Yes.
Consumers age out.
Yeah.
Stop purchasing new vehicles.
These automakers have to look for the next generation
of consumers for shoppers.
Gen Z's average FICO score drop
three points to 676,
the largest year over year decrease
among any age group since 2020.
And what is the generation Z age group?
Gen Z age range.
Give me a second here.
Thanks.
Someone who right now is 13 to 28 years old.
Well, yeah, them 13 year olds.
They don't have very good credit scores yet.
Sure.
But dad, early 20s to late 20s,
we're talking about a group that's starting to earn money,
starting their careers.
Yes.
This group is struggling from a credit perspective.
And ultimately that impacts what APR you're going to get
or the likelihood that you get approved for that loan.
And we know that the industry is already seeing
more people get denied for auto loans
with these insanely high prices.
It's a little bit of a one-two punch.
Yeah, which they set themselves,
the manufacturer set themselves up for it.
Now, the good news is...
Good news.
Let's hear it.
Yeah, the good news for those nice Gen Z folks
is that there will be a subprime lender out there
that's going to look at you and go,
you're worth taking a shot on.
You know, you're just the start of your career.
You're going to make more money.
And we want you to drive around in that nicer car.
So we'll help you out.
Now, okay, so your interest rate is going to be 24.99%.
But think of the impression you're going to make
when you drive up to your job interview
in that nice newer car.
That's good news.
Good news indeed.
Now, let's go to the chat for a couple of minutes here
and then we've got some pretty damning car deal.
I don't know, a damning car deal to look at.
Yes.
First here from Scott.
Thank you, Scott.
Thank you for your contribution.
I think Pops is right on with his 10% roll.
I'd like to hear a solution for us buyers.
Do we low ball?
Do we wait until the sticker price is lower?
Unfortunately, Dad, this is at least my thinking here.
Right now, it's about as good as it's going to get
in terms of the new car market.
And even for the used car market, probably,
because there was such a significant decrease
in the number of new vehicles produced for so many years there.
So it is, I think, a matter of negotiation.
You know, you don't expect to see really low prices.
You're going to have to put in work to get the lower prices.
Absolutely.
And as we said probably two years ago or three years ago,
as a large group of consumers, if you just stop buying cars,
okay, and we had what was the website,
stopbuyingcars.com or whatever that was.
If you stop buying cars, perhaps as the cars start
to build up an inventory,
the manufacturers will get the hint.
Which, to be clear, is exactly what's happening right now,
which is influencing my answer.
New car inventory is the highest level it's been
in the past 18 months.
We've seen significant increases in negotiability
and leverage for customers.
So if you want to buy a vehicle or if you need
to buy a vehicle, now is definitely the time to do it.
And it's not if you want to buy a vehicle
or you need to buy a vehicle that you have
more leverage today.
It's still not affordable for folks.
That's the real problem.
I completely agree.
And a lot of people watch this show and a lot of people
go to caredge.com because they need to buy a car
or they want to buy a car.
Might as well at least help them get the best deal
and have the best experience.
From Rich, thank you for the kind contribution.
Rich, Zach, quote boomers age out sounds so final.
How about mellow out excluding Ray?
It does sound final, but it's also reality.
When we age out, we're gone.
It's just that simple.
And it's 74 and a half and it'll be today.
It's exactly 74 and a half today for me.
Today's your half birthday.
I realize I'm on the last stages of my life.
Do I want it to end like tomorrow?
Hell no.
But yeah, I'm going to age out and damn it,
my kids are probably going to inherit more money
than I want them to.
I haven't spent enough of it yet, but it is final.
And maybe we shouldn't try and mellow it out.
You're funny, man.
You're really freaking funny.
Sam Flaventer, you're so funny, dad.
All right, let's keep going to the chat here,
and then we're going to look at that crazy car deal
from Luna Cheekweese 06.
Hopefully I did not butcher that too much.
In the final stages of my vehicle purchase
with the assistive car edge concierge,
can't wait to take delivery of my new Honda CR-V.
Love hearing that.
We've got another one here, dad, from Eduardo Hernandez 932.
Hi, I just want to thank you guys.
I got car edge pro and went through a lot of your videos
and managed to reduce the price well below MSRP,
increase my trading amount and get the finance rate I wanted.
Love, love, keep that.
And we've got here from Rich.
One of car edge's greatest benefits is how much of your time
you save using them.
Love these comments.
Thank you guys for the kind words.
We are super busy this time of year,
but it's really rewarding to help so many people.
All right, dad, shall we turn our attention
to this insane video that you shared with me?
Antonio actually in our community shared with us.
Yes.
All righty.
Here it goes.
Get it up on the screen here.
I'm going to press play and then we can pause it.
Let's just explain the damn thing.
All right.
Wait a second.
It's almost there.
Total payments, $159,000, Ram 2025.
Okay, dad.
Okay.
What the heck is going on here?
So this is a deal that someone entered into on
allegedly a new Ram 2024-2500.
That's what it says up here.
New 2024 Ram 2500 with $6,037 miles on it.
Yeah.
No, it wasn't really new, new, okay?
They sold it as new.
Normally you don't put 6,000 miles on a demo,
but what the hell do I know?
And so this was a truck where the person financed
$112,000.
Call it $112,000.
That's the number you're seeing right here,
111,916.
Because that's just such a great rate for 84 months.
And this person's monthly payment,
he or she, I don't know, was $1,898.
Call it $1,900.
Now, this person thought that it made total sense
to buy a truck for $112,000 or finance,
$112,000 on a truck.
I don't know how much the truck was.
And payback over that seven-year term,
$47,548.76 in interest.
If this doesn't prove the fact that the vast majority
of the population out there is financially illiterate
nothing does.
There is no way in hell using a 10% rule,
a 20% rule, a 50% rule that anybody should sign up
for a monthly payment of $1,900 a month
and payback $47,000 worth of interest.
It's a ram pickup truck.
It might not last seven years without a major repair
that's needed once you were out of warranty.
It is, this is the type of financial suicide
that we see people entering into in this country.
And there is something wrong with our education system
that somehow we haven't made people realize
that stuff like this is stupid.
And you need, as a customer, you need to do better.
You need to know better.
You need to, I don't know, buy a used one for $40,000.
Not a new one where you're financing $112,000.
And if you scroll to the right a little bit,
the person puts zero down, zero, zero.
Okay, why would you do that?
What is it that you think you're accomplishing
when you do that?
It is, I just, we need to do better.
We need to educate better.
We need to do better.
We need to reach more people before they sign
for stuff like this.
This is just an indictment on how stupid we can be
in this country.
Sorry about that.
No, don't be sorry.
I mean, obviously a bad decision that this person made,
at least based on the information that we have.
It's a decision that we wouldn't validate someone making.
And it's a hell of a lucrative deal for the dealership.
That's for Dog on the chair.
Sure, they made plenty of money on this.
And again, this is, we talk about new car interest rates
are typically better than used car interest rates.
And look at that, you're still ahead and pulling.
Think about, just think about this for a second.
Let's just, I'm just going to spitball here.
And let's say the buy rate on this auto loan
to the dealership was 8.6%.
And so there was a 2% spread in the building to the rate.
And that 2% might have produced an extra $10,000 in interest.
Yeah.
And the dealership, the normal split between dealerships and banks
is the dealership gets 70% of that.
So if it was 10 grand, the dealership made $7,000
on the back end just on the interest portion.
And the bank will make an extra $3,000.
And the customer will have paid a total of an extra $10,000.
So it is, yeah, the dealership made,
and I think the correct terminology here is a poop ton
of money on this deal, probably front end and back end.
So folks, for those of you that don't like how often I promote what we do,
I do it because it's like a public service announcement.
People get taken advantage of every single day,
and there are new people that tune into Car Edge Live every single day.
If you know someone who's in the market to buy a car,
please send them our direction, caredge.com.
And in addition to that, we don't talk about it that often,
but on the insurance front,
a lot of people have an opportunity to save money there.
On the warranty front,
a lot of people have a lot of opportunities to save money there.
So please make your way back to caredge.com.
Take advantage of what we've built over the past five years,
and please know that we are always here to help.
We are back tomorrow with more Car Edge Live,
the day before Thanksgiving,
and then we're back on Friday, the day after Thanksgiving.
So please tune in over those next couple of days.
Dad, enjoy your afternoon,
and thanks as always for preaching to everyone here.
Yeah, you do the same young man.
Thank you, everybody, for being here.
We hope to see you all back here tomorrow.
Tell all your friends, damn it, to join us.
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