{"version":"1.0.0","episode":{"title":"The USED Car Market Is Sounding The ALARM BELL | Episode 1009","url":"http://getcarcurious.com/episodes/the-used-car-market-is-sounding-the-alarm-bell-episode-1009","audioUrl":"https://pdrl.fm/3359a6/pscrb.fm/rss/p/mgln.ai/e/1385/injector.simplecastaudio.com/14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9/episodes/48b4b22b-3e37-4a46-a6e1-86f02ffb58f4/audio/128/default.mp3?aid=rss_feed&awCollectionId=14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9&awEpisodeId=48b4b22b-3e37-4a46-a6e1-86f02ffb58f4&feed=gkrQ6WSC","description":"Today on CarEdge Live, Ray and Zach discuss the latest trends in the used car market. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com\nfor information about our collection and use of personal data for\nadvertising.\n"},"annotations":[{"startTime":51.2,"endTime":53.0,"type":"term","title":"OTD","url":"/glossary/otd","quote":"We have taken all the OTD data. We've captured from hundreds and thousands of car dealerships and started to build out a transparency index.","canonicalId":"term:otd","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"OTD stands for 'Out-the-door' price, which includes the total cost of purchasing a vehicle, including taxes, fees, and any additional charges. It's an important figure for buyers to understand the full financial commitment involved in a car purchase.","simplifiedExplanation":"OTD means 'Out-the-door' price, which is the total amount you pay for a car, including everything like taxes and fees. It helps you know exactly how much money you'll need to spend to buy the car."}},{"startTime":57.7,"endTime":59.2,"type":"term","title":"transparency index","url":"/glossary/transparency-index","quote":"...and started to build out a transparency index.","canonicalId":"term:transparency-index","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A transparency index is a metric that evaluates how open and clear car dealerships are about their pricing and practices. It helps consumers understand which dealerships provide honest and straightforward information regarding vehicle costs.","simplifiedExplanation":"A transparency index measures how clear and honest car dealerships are about their prices and fees. It helps buyers find dealerships that are upfront about what they charge."}},{"startTime":254.5,"endTime":259.8,"type":"term","title":"new car prices","url":"/glossary/new-car-prices","quote":"This is exactly being exacerbated by the fact that new car prices continue to climb higher. Kelly Blue Book Report, new vehicle prices climb higher in January...","canonicalId":"term:new-car-prices","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"New car prices refer to the retail prices of vehicles that are being sold for the first time. These prices have been rising due to various factors, including supply chain issues and increased demand.","simplifiedExplanation":"New car prices are how much you pay for a brand new vehicle. These prices have been going up lately, making it harder for people to buy new cars."}},{"startTime":263.4,"endTime":266.1,"type":"term","title":"incentives","url":"/glossary/incentives","quote":"automakers cut incentives to help protect margins. The reason we see used car wholesale prices going up...","canonicalId":"term:incentives","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Incentives in the automotive industry refer to discounts or special offers provided by manufacturers to encourage customers to purchase vehicles. These can include cash rebates, low-interest financing, or lease deals.","simplifiedExplanation":"Incentives are discounts or special offers that car manufacturers give to help sell cars. They make it cheaper for people to buy a new vehicle."}},{"startTime":266.1,"endTime":270.4,"type":"term","title":"used car wholesale prices","url":"/glossary/used-car-wholesale-prices","quote":"The reason we see used car wholesale prices going up and the reason we will continue to see used car prices actually go up...","canonicalId":"term:used-car-wholesale-prices","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Used car wholesale prices are the prices at which used vehicles are sold between dealerships or at auctions, rather than to consumers. These prices can fluctuate based on market demand and supply.","simplifiedExplanation":"Used car wholesale prices are the prices that car dealerships pay for used cars before selling them to customers. These prices can change based on how many cars are available and how many people want to buy them."}},{"startTime":278.0,"endTime":282.7,"type":"term","title":"margins","url":"/glossary/margins","quote":"The manufacturers are actually choosing to protect their margins and not incentivize them more. This has got catastrophic potential, man.","canonicalId":"term:margins","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Margins refer to the difference between the cost of producing a vehicle and the price at which it is sold. Protecting margins means that manufacturers want to maintain profitability by not reducing prices too much.","simplifiedExplanation":"Margins are how much money a car company makes after covering its costs. Protecting margins means they want to keep their profits high and not lower prices too much."}},{"startTime":285.1,"endTime":292.0,"type":"concept","title":"auto industry inefficiency","url":"/glossary/auto-industry-inefficiency","quote":"Alarm bells being sounded in very obvious ways demonstrating the inefficiency and impracticality of today's auto industry in the United States.","canonicalId":"concept:auto-industry-inefficiency","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Auto industry inefficiency refers to the problems and challenges within the automotive sector that lead to higher costs, lower production rates, or difficulties in meeting consumer demand. This can include supply chain issues, production delays, and pricing strategies.","simplifiedExplanation":"Auto industry inefficiency means that there are problems in how cars are made and sold, which can make things more expensive and harder for people to buy cars."}},{"startTime":320.0,"endTime":323.2,"type":"term","title":"retail asking prices","url":"/glossary/retail-asking-prices","quote":"Now, even though I suspect that retail asking prices on these pre-owned vehicles will go up, there still will be a significant enough spread between those higher asking prices...","canonicalId":"term:retail-asking-prices","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Retail asking prices refer to the prices that dealers list for vehicles they have for sale. These prices can fluctuate based on market demand and the condition of the vehicle.","simplifiedExplanation":"Retail asking prices are the amounts that car dealers say they want for their cars. These prices can change depending on how many people want to buy the car and how good the car is."}},{"startTime":323.2,"endTime":331.3,"type":"term","title":"pre-owned vehicles","url":"/glossary/pre-owned-vehicles","quote":"...that retail asking prices on these pre-owned vehicles will go up, there still will be a significant enough spread...","canonicalId":"term:pre-owned-vehicles","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Pre-owned vehicles are cars that have had previous owners, commonly referred to as used cars. They typically cost less than new cars and can provide good value depending on their condition and history.","simplifiedExplanation":"Pre-owned vehicles are cars that someone else has owned before. They usually cost less than brand new cars and can be a good option if you're looking to save money."}},{"startTime":342.8,"endTime":347.3,"type":"term","title":"new car market","url":"/glossary/new-car-market","quote":"...people who were normally in the new car market will now find themselves in the two, three, and four-year-old used car market...","canonicalId":"term:new-car-market","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The new car market refers to the segment of the automotive market where brand new vehicles are sold, typically at dealerships. Prices in this market can be influenced by factors such as supply, demand, and manufacturer incentives.","simplifiedExplanation":"The new car market is where you can buy cars that have never been owned before. These cars are sold at dealerships and their prices can change based on how many people want to buy them."}},{"startTime":440.6,"endTime":445.0,"type":"term","title":"seasonally adjusted sales rate","url":"/glossary/seasonally-adjusted-sales-rate","quote":"...there was an under 15 million unit seasonally adjusted sales rate for the auto industry...","canonicalId":"term:seasonally-adjusted-sales-rate","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The seasonally adjusted sales rate is a statistic that shows the number of vehicles sold in a specific period, adjusted for seasonal variations. This helps provide a clearer picture of trends in auto sales over time.","simplifiedExplanation":"The seasonally adjusted sales rate is a way to measure how many cars are sold, taking into account that some times of the year are busier than others. It helps to see if sales are really going up or down."}},{"startTime":460.4,"endTime":464.9,"type":"term","title":"incentive package","url":"/glossary/incentive-package","quote":"...we have this bullet point, automakers reduce sales incentives in January. Last month, the average incentive package was equal to 6.5% of the average transaction price...","canonicalId":"term:incentive-package","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"An incentive package is a set of discounts or financial benefits offered by automakers to encourage sales. These can include cash rebates, low-interest financing, or special lease offers.","simplifiedExplanation":"An incentive package is a way for car companies to make their cars cheaper for buyers. It can include things like cash back or lower monthly payments."}},{"startTime":469.4,"endTime":469.4,"type":"term","title":"transaction price","url":"/glossary/transaction-price","quote":"...the average transaction price, or roughly $3200 a year ago...","canonicalId":"term:transaction-price","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The transaction price is the final price that a buyer pays for a vehicle after all negotiations, discounts, and incentives are applied. It reflects the actual sale price rather than the MSRP.","simplifiedExplanation":"The transaction price is how much you actually pay for a car after all the discounts and deals. It's different from the sticker price you see on the car."}},{"startTime":477.64,"endTime":482.3,"type":"concept","title":"used car market","url":"/glossary/used-car-market","quote":"Why is the used car market sounding an alarm bell? Because as all these things are happening on the new car market, the leading indicator we have to your point, Dad, about what will happen to retail asking prices for used cars is showing us that it is increasing at a faster rate...","canonicalId":"concept:used-car-market","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The used car market refers to the buying and selling of pre-owned vehicles. It often reflects trends in the new car market and can be influenced by factors such as depreciation, demand, and economic conditions.","simplifiedExplanation":"The used car market is where people buy and sell cars that have been owned before. Prices can change based on how many people want to buy or sell cars and how much new cars cost."}},{"startTime":501.2,"endTime":507.4,"type":"term","title":"depreciation","url":"/glossary/depreciation","quote":"Remember when minivans depreciated like 50% year over year? Yes. We could be setting the stage here for another used car appreciation fest...","canonicalId":"term:depreciation","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Depreciation is the reduction in the value of an asset over time, often due to wear and tear. In the context of vehicles, it refers to how much a car's value decreases after purchase, which can be significant in the first few years.","simplifiedExplanation":"Depreciation is how much less something is worth over time. For cars, this means they lose value quickly, especially in the first few years after you buy them."}},{"startTime":536.2,"endTime":546.3,"type":"term","title":"tariffs","url":"/glossary/tariffs","quote":"the increase in expense of tariffs. Yeah. Okay. So there's only so much margin built into a car, whether you're manufacturing it or whether you buy it from the manufacturer...","canonicalId":"term:tariffs","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Tariffs are taxes imposed on imported goods, which can increase the cost of manufacturing vehicles. This can lead to higher prices for consumers and reduced profit margins for manufacturers.","simplifiedExplanation":"Tariffs are extra fees that the government charges on products coming from other countries. When car manufacturers have to pay these fees, it can make cars more expensive for everyone."}},{"startTime":546.3,"endTime":552.4,"type":"term","title":"profit margin","url":"/glossary/profit-margin","quote":"...there's only so much margin built into a car, whether you're manufacturing it or whether you buy it from the manufacturer and you sell it at a retail level.","canonicalId":"term:profit-margin","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Profit margin refers to the difference between the cost of producing a vehicle and the price at which it is sold. A higher profit margin means more money is made per vehicle sold.","simplifiedExplanation":"Profit margin is how much money a company makes after paying for everything it costs to make a product. If a car costs $20,000 to make and sells for $25,000, the profit margin is $5,000."}},{"startTime":631.4,"endTime":638.5,"type":"concept","title":"pre-owned car","url":"/glossary/pre-owned-car","quote":"...absolutely cannot afford the new one because the incentives are less or the asking prices are too high, well, where do they turn? They have to turn to a pre-owned car.","canonicalId":"concept:pre-owned-car","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A pre-owned car, also known as a used car, is a vehicle that has had one or more previous owners. The pre-owned market often becomes a viable option for buyers who cannot afford new vehicles, especially when new car prices are high or incentives are low.","simplifiedExplanation":"A pre-owned car is simply a car that someone else has owned before you. People often buy these cars because they are cheaper than new ones."}},{"startTime":657.3,"endTime":661.0,"type":"term","title":"supply and demand","url":"/glossary/supply-and-demand","quote":"...the most demand are for affordable, reliable modes of transportation. And where you have the least amount of supply is exactly there.","canonicalId":"term:supply-and-demand","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Supply and demand is an economic concept that describes the relationship between the availability of a product (supply) and the desire for that product (demand). In the automotive market, this relationship affects car prices and availability, particularly for used vehicles.","simplifiedExplanation":"Supply and demand is about how much of something is available and how much people want it. If a lot of people want a car but there aren't many available, the price goes up."}},{"startTime":665.8,"endTime":670.4,"type":"term","title":"age of the fleet","url":"/glossary/age-of-the-fleet","quote":"...the age of the fleet in the United States is over 14 years old all of a sudden. People are just holding on to vehicles longer and longer.","canonicalId":"term:age-of-the-fleet","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The age of the fleet refers to the average age of all vehicles in a specific market or region. In the United States, the average age of vehicles has been increasing, indicating that people are keeping their cars longer before replacing them.","simplifiedExplanation":"The age of the fleet is how old the cars are that people are driving. If the average age is getting older, it means people are not buying new cars as often."}},{"startTime":694.5,"endTime":700.48,"type":"car","title":"Mazda Cx5","url":"/cars/mazda/cx-5","image":"https://upload.wikimedia.org/wikipedia/commons/8/85/2017_Mazda_CX-5_%28KF%29_Maxx_2WD_wagon_%282018-11-02%29_01.jpg","quote":"Mazda cut unseen costs in the redesigned CX-5 to protect margins from tariffs. A steering wheel stitching change is one of many cost efficiencies customers won't notice.","canonicalId":"car:mazda:cx-5","priority":0.5,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Mazda CX-5 is a compact crossover SUV known for its stylish design and engaging driving dynamics. It has undergone several updates to improve quality and technology features.","simplifiedExplanation":"The Mazda CX-5 is a small SUV that is popular for its good looks and fun driving experience. It's been updated to include better technology and quality.","imageAttribution":"EurovisionNim (CC BY-SA 4.0)"}},{"startTime":706.6,"endTime":712.0,"type":"term","title":"cost efficiencies","url":"/glossary/cost-efficiencies","quote":"A steering wheel stitching change is one of many cost efficiencies customers won't notice.","canonicalId":"term:cost-efficiencies","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Cost efficiencies refer to strategies that companies use to reduce expenses while maintaining product quality. In the context of the CX-5, it involves making changes that save money without impacting customer experience.","simplifiedExplanation":"Cost efficiencies are ways that companies save money while still making good products. For the CX-5, this means finding cheaper ways to make the car without customers noticing."}},{"startTime":756.7,"endTime":763.8,"type":"part","title":"steering wheel","url":"/glossary/steering-wheel","quote":"...the way that they stitched the leather on the steering wheel. It was a much more expensive way to do it than their competitors are doing it...","canonicalId":"part:steering-wheel","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The steering wheel is a crucial component of a vehicle that allows the driver to control the direction of the car. The quality and design of the steering wheel can impact the overall driving experience, including comfort and handling.","simplifiedExplanation":"The steering wheel is what you hold to turn the car in the direction you want to go. It's an important part of driving and can be designed in different ways for comfort and style."}},{"startTime":957.5,"endTime":964.1,"type":"term","title":"MSRP","url":"/glossary/msrp","quote":"...the average MSRP in January for a full-size pickup truck was again above $70,000 for the fifth consecutive month.","canonicalId":"term:msrp","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends for a vehicle. It's often used as a starting point for negotiations at dealerships.","simplifiedExplanation":"MSRP is the price that the car maker suggests you should pay for a new car. It's like a guideline for how much a car should cost."}},{"startTime":957.5,"endTime":964.1,"type":"term","title":"full-size pickup truck","url":"/glossary/full-size-pickup-truck","quote":"...the average MSRP in January for a full-size pickup truck was again above $70,000 for the fifth consecutive month.","canonicalId":"term:full-size-pickup-truck","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Full-size pickup trucks are larger trucks designed for heavy-duty tasks and can typically carry more weight and passengers compared to smaller trucks. They are popular for both work and personal use.","simplifiedExplanation":"Full-size pickup trucks are big trucks that can carry heavy loads and are often used for work or family trips."}},{"startTime":1016.0,"endTime":1020.0,"type":"term","title":"negative equity","url":"/glossary/negative-equity","quote":"the proportion of borrowers with negative equity increased by 220 basis points a month over a month to 56.3.","canonicalId":"term:negative-equity","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Negative equity occurs when a vehicle's market value is less than the amount owed on the loan for that vehicle. This situation can make it difficult for owners to sell or trade in their vehicles without incurring a loss.","simplifiedExplanation":"Negative equity means you owe more on your car loan than what your car is worth. This can be a problem if you want to sell or trade in your car."}},{"startTime":1278.9,"endTime":1280.0,"type":"term","title":"hybrid","url":"/glossary/hybrid","quote":"...they were saying, well, you know what, we think it's going to be hybrid...","canonicalId":"term:hybrid","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A hybrid vehicle combines an internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions.","simplifiedExplanation":"A hybrid car uses both a regular gas engine and an electric motor. This helps it save fuel and produce less pollution."}},{"startTime":1303.3,"endTime":1305.0,"type":"term","title":"credit rating","url":"/glossary/credit-rating","quote":"...the EV underwriting has really hurt many of these legacy automakers. The Lancet's credit rating was actually cut by Moody's...","canonicalId":"term:credit-rating","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A credit rating is an assessment of the creditworthiness of a borrower, indicating the risk of default on debt obligations.","simplifiedExplanation":"A credit rating shows how likely a company is to pay back money it owes. A higher rating means it's safer to lend them money."}},{"startTime":1308.6,"endTime":1310.0,"type":"company","title":"Moody's","url":"/glossary/moody-s","quote":"...the Lancet's credit rating was actually cut by Moody's...","canonicalId":"company:moody-s","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Moody's is a credit rating agency that assesses the creditworthiness of companies and governments, influencing their ability to borrow money.","simplifiedExplanation":"Moody's is a company that checks how likely other companies are to pay back their debts. They give ratings that help investors decide where to put their money."}},{"startTime":1347.0,"endTime":1350.0,"type":"term","title":"add-ons","url":"/glossary/add-ons","quote":"...this dealership's selling, some new ones as well. We can actually view, let me pull this open really quickly, the original out the door price worksheet that will then show you what this dealership is doing.","canonicalId":"term:add-ons","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Add-ons refer to additional features or services that dealerships may offer on top of the base price of a vehicle. These can include things like extended warranties, paint protection, or special memberships.","simplifiedExplanation":"Add-ons are extra things you can buy when you get a car, like insurance or special services. They cost more than just the car itself."}},{"startTime":1363.0,"endTime":1366.0,"type":"term","title":"out-the-door price","url":"/glossary/out-the-door-price","quote":"...the original out the door price worksheet that will then show you what this dealership is doing.","canonicalId":"term:out-the-door-price","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The out-the-door price is the total cost of purchasing a vehicle, including the vehicle price, taxes, fees, and any additional costs. It represents the final amount a buyer will pay to drive the car off the lot.","simplifiedExplanation":"Out-the-door price is how much you pay in total for a car, including everything like taxes and fees. It's the final amount you'll need to pay to own the car."}}],"speakers":[{"id":"s1","name":"Ray","role":"host"},{"id":"s2","name":"Zach Shefska","role":"host"},{"id":"s3","name":"Bleav","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/the-used-car-market-is-sounding-the-alarm-bell-episode-1009/transcript.vtt","type":"text/vtt"}]}