Скачать или смотреть It’s Over: The Car Market Bubble Just Popped

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Let's talk about the Used Car market - which auto values are rising / falling the most - and what this means for you - Enjoy! Add me on Instagram: GPStephan | Check Out The CarEdge Blog: https://caredge.com/guides/

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CAR DEPRECIATION:
In 2021, because of a shortage of auto manufacturing, a limited supply of parts, record-low interest rates, and a surge of demand - used car prices were 40% higher than the year prior.

In 2025, new cars are still $12,000 more expensive than they were a few years ago. The typical family would have to spend 70-80% of their entire years’ pay just to buy a vehicle at today’s prices (double from what it used to be in 1990) and all of this simply means: car prices are outpacing incomes, and more buyers - than ever - have payments that exceed $1000 per month month.

HIGHER AUTO DEBT:
85% of new car purchases are bought with debt, along with 55% of Used Car Purchases. As prices rise, 5% of all auto loans in the United States are more than 90 days behind on their payments, subprime loans have hit a record high delinquency, and 39% of all buyers are underwater on their purchase.

To make matters worse, an Iowa Law Review found that - contrary to popular belief (over the last 10 years), car dealerships have begun making more profits from the financing of cars, rather than the car sale itself.

US Auto Loan Balances have increased to $1.64 trillion dollars - which, is now the second-largest debt category, after mortgages.

RISING INVENTORY:
Dodge currently sits on 111 days worth of supply, Ford has 99, and Lincoln has 127 days - reflecting a lot of unsold inventory and plenty of discounts. On the other hand, Toyota, Honda, and Subaru are still in high demand, with certain models under 40 days worth of supply - so, prices throughout these automakers are staying firm.

TARIFF IMPACT ON USED AND NEW CARS:
Analysts estimate the tariffs will add around $3,000 to the cost of U.S.-built cars and $6,000 to vehicles made in Mexico or Canada. There's also talk that automakers might actually stop making lower-priced cars altogether if they just aren’t profitable anymore - and if certain parts get too expensive or hard to find, we could also see more production delays.

CarEdge pointed out: “Retail customers that want to purchase a car at a sub $20,000 price-point are being forced to look at older used vehicles because the new ones have increased in value beyond their budget.”

If you’re in the market for a car, I recommend to take your time, don’t be afraid to negotiate, and - most importantly - if you get a loan: please shop it around to find the best option.

In terms of what you could afford, the general advice follows what’s called the 20/4/10 rule, which means: stick with a 20% down payment, on a 4 year loan, where you spend no more than 10% of your monthly income on transportation.

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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.