Car Market Crash Deal MEGATHREAD

[Clever]

I was at 3 dealers over the weekend and the Lexus dealership was the busiest and this was at the end of the day.

[ExtraSlow]

People are having no trouble paying these prices. Demand has not gone down.

[mr2mike]

I'm assuming the realtor mindset has gotten into people.
The price keeps going up forever, good time to buy is now.

[ExtraSlow]

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I'm assuming the realtor mindset has gotten into people.
The price keeps going up forever, good time to buy is now.

yes yes sir, I can't hold this price past the end of the day.

[Xtrema]

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People are having no trouble paying these prices. Demand has not gone down.

Yup


Don't know how but people are still buying houses and cars (at least in Calgary) like interest rate is still at 0%.

[Buster]

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People are having no trouble paying these prices. Demand has not gone down.

Price is determined by the marginal buyer. This all changes when that marginal buyer is exhausted and you get into the may of the market.

[haggis88]

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Don't know how but people are still buying houses and cars (at least in Calgary) like interest rate is still at 0%.

Rich uber drivers from Brampton

[max_boost]

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Yup


Don't know how but people are still buying houses and cars (at least in Calgary) like interest rate is still at 0%.

Feels like we been saying this forever lol just sign here and APPROVED

[killramos]

Vehicles are funny in that they aren’t a terribly elastic market imo.

Vast majority of buyers either are buying a vehicle becuase they need one, or are buying a car they have already decided they want as a splurge.

Neither of those pools scream price sensitive to me.

[ExtraSlow]

Price clearly too low.

[Xtrema]

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Price clearly too low.

According to Globe and Mail, we are way too rich.

https://www.theglobeandmail.com/busi...wdown-unusual/

“Common sense is if you increase the price of the product, and make it more expensive to finance, it’s gonna slow things down,” said Chad Zender, the president of Ford and Stellantis dealerships in Spruce Grove, Alta., just outside of Edmonton. “But so far, especially in 2023 on both brands, the sales rate is higher than it was last year.”

Since 2020, households in Canada have collectively saved more than $400-billion – a sum that is way higher than usual – thanks to pandemic income supports and fewer spending options, particularly during the acute phases of the crisis. These savings have mostly accrued to wealthier households, who have a higher propensity to spend on restaurants and travel.

[heavyD]

I have to admit I'm kind of surprised at the lack of restraint by the general public. I really don't understand why anyone would pay over MSRP new or the inflated used car market unless you are in a situation where you absolutely need a new vehicle. We have hit that stage in our evolution where everyone wants everything right now and to hell with future consequences.

[pheoxs]

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According to Globe and Mail, we are way too rich.

https://www.theglobeandmail.com/busi...wdown-unusual/

I think two things come from that.

A) People are addicted to cheap credit and won't feel the brunt of higher rates until they're a few years into the loan and have barely made a dent
B) 400B across all households isn't really meaningful as similar articles have said the top few % have swallowed up nearly all those gains. The average household isn't significantly better off toward then 3 years ago.

Things get real ugly in a few years, here's an example:

That same 50k car loan where they four square your payments to be the same. Adding 2 years on to keep your payments around 700/month.

At the 3 year mark you owe 35k on your trade in rather than just 25k.
At the 4 year mark you owe 28k on your trade in rather than just 17k.

Lots of people going to be heavily underwater on the vehicle after this round.

[bjstare]

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I have to admit I'm kind of surprised at the lack of restraint by the general public. I really don't understand why anyone would pay over MSRP new or the inflated used car market unless you are in a situation where you absolutely need a new vehicle. We have hit that stage in our evolution where everyone wants everything right now and to hell with future consequences.

People are stupid. I wholesaled(sold?) my GLA45 a little while back, and the guy who bought it from the scummy dealer had it listed for sale again within a couple months. When I messaged him about it to try and give him the extra key the dealer didn't take, he said he was selling cause he couldn't afford the payments. He also never bothered to come pick up the free second key from me, which reinforces his level of intellect.

[killramos]

To be fair MSRP is just a made up number.

being fixated on paying above or below it is like being fixated on list price on a house

[haggis88]

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People are stupid. I wholesaled(sold?) my GLA45 a little while back, and the guy who bought it from the scummy dealer had it listed for sale again within a couple months. When I messaged him about it to try and give him the extra key the dealer didn't take, he said he was selling cause he couldn't afford the payments. He also never bothered to come pick up the free second key from me, which reinforces his level of intellect.

I laugh every time I read this

[Xtrema]

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I have to admit I'm kind of surprised at the lack of restraint by the general public. I really don't understand why anyone would pay over MSRP new or the inflated used car market unless you are in a situation where you absolutely need a new vehicle. We have hit that stage in our evolution where everyone wants everything right now and to hell with future consequences.

Well, if some idiot ruin my daily driver, I'll be participating in this as well.

And looking at the MB showroom, only things that ain't moving are over $120k or EV.

[BavarianBeast]

Anecdotally speaking, most of the friends I’ve kept around are doing better than they ever have. Lots of them now have the cash to buy sports cars/luxury family cars in the $100k+ range in cash and are doing just that. There’s been a massive amount of wealth generated over the last 3 years and most people don’t seem to understand that.

[ExtraSlow]

Agree with that. Probably the net weath of my social circle has gone up massively. $0 oil made people a lot of money because it was such an incredible buying opportunity. Not for me, I'm poor.

[killramos]

Inflation is a great tool to enrich the wealthy at the expense of lower rungs of society.