Topic: The car market is turning.

[rrocket]

. Lots of dealerships are going to be seeing some decent losses coming up.


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Good.

[Hannibalsmith]

Watched a dealer sell two Tesla’s yesterday for $43,000 less than what his buy in was. That’s a big pill. Lots of dealerships are going to be seeing some decent losses coming up.


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That's tough. If you're a dealer and have to buy then sell must be hard when prices of your product yo-yo

[Firm]

I'd think/hope that any dealer worth their salt would understand what goes up must come down....The sun has shone and they've made hay over the last couple years, hopefully they've had the foresight to save/invest those profits wisely to help ride out the tough times.

I'd be a lot more nervous if I was the lender holding the loan on all these dealer floorplans....

[ktm525]

It's what me real nervous about buying used last week lol.

[Firm]

It's what me real nervous about buying used last week lol.

You needed a car, you bought a car you like, with plenty of life in it, at a price you can live with and presumably bought it outright in cash. If it's trading for a few grand less 6 months from now, does it really matter? Just keep it, drive and enjoy.

If you're a dealer and you're buying something for the purpose of reselling, and/or your borrowing for it, then it matters....Nobody want to be paying interest on an asset that's depreciating like a rock.

[sailor723]

I'd think/hope that any dealer worth their salt would understand what goes up must come down....The sun has shone and they've made hay over the last couple years, hopefully they've had the foresight to save/invest those profits wisely to help ride out the tough times.

I'd be a lot more nervous if I was the lender holding the loan on all these dealer floorplans....

I think I read somewhere there is growing concern in the US about a car loan meltdown similar to the sub prime mortgage crisis in '08.

[WP v3.32]

I'd think/hope that any dealer worth their salt would understand what goes up must come down....The sun has shone and they've made hay over the last couple years, hopefully they've had the foresight to save/invest those profits wisely to help ride out the tough times.

I'd be a lot more nervous if I was the lender holding the loan on all these dealer floorplans....

I think I read somewhere there is growing concern in the US about a car loan meltdown similar to the sub prime mortgage crisis in '08.

Yes I read that too last.year.  Surprise loan for car would be bigger than the 2008 collapse

[ArticSteve]

I'd think/hope that any dealer worth their salt would understand what goes up must come down....The sun has shone and they've made hay over the last couple years, hopefully they've had the foresight to save/invest those profits wisely to help ride out the tough times.

I'd be a lot more nervous if I was the lender holding the loan on all these dealer floorplans....

Dealers are acutely aware. 

In my Tremor show and shine I posted a pic of a full size bronco loaner.  The reason I got this was that the Dealer called me up and said that they needed my son's 2020 F150 XLT supercrew the following morning because it was been loaded on a car transport to the US.  My Tremor, though delivered, was waiting on the lift kit.

The Dealer at no cost, transferred the son's lease to me and I received $6000K as a trade towards the Tremor.  But that's how fast wholesale prices where dropping then and I assume now because the primary market for used Canadian vehicles is the US.

[rrocket]

I assume now because the primary market for used Canadian vehicles is the US.

Know a guy who does this with trucks.

But his primary bread and butter is selling heavy trucks (semi, dump truck, etc) to Mexico.

[ArticSteve]

If people are interested in deflation then track RichieBrothers.


https://www.rbauction.com/

[PoweredSilenceGT]

I'd think/hope that any dealer worth their salt would understand what goes up must come down....The sun has shone and they've made hay over the last couple years, hopefully they've had the foresight to save/invest those profits wisely to help ride out the tough times.

I'd be a lot more nervous if I was the lender holding the loan on all these dealer floorplans....

Dealers are acutely aware. 

In my Tremor show and shine I posted a pic of a full size bronco loaner.  The reason I got this was that the Dealer called me up and said that they needed my son's 2020 F150 XLT supercrew the following morning because it was been loaded on a car transport to the US.  My Tremor, though delivered, was waiting on the lift kit.

The Dealer at no cost, transferred the son's lease to me and I received $6000K as a trade towards the Tremor.  But that's how fast wholesale prices where dropping then and I assume now because the primary market for used Canadian vehicles is the US.

What did your son get to replace the F150?

[WP v3.32]

Okotoks chevy lots is fairly full, right next to it is a Honda dealer with almost nothing.   Quite the contrast.   Deals are coming!

[Seafoam]

Okotoks chevy lots is fairly full, right next to it is a Honda dealer with almost nothing.   Quite the contrast.   Deals are coming!

Yeah on the stuff no one wants.

[Blueprint]

Spotted a Stellantis dealer ad in the paper this morning: RAM Inventory surplus! Selling at cost! Manufacturer rebates! Looks like the old days are back at Chryco 

[PJungnitsch]

Okotoks chevy lots is fairly full, right next to it is a Honda dealer with almost nothing.   Quite the contrast.   Deals are coming!

Yeah on the stuff no one wants.

Yeah, and especially for a 72 month loan at 8%. Am thinking the brands with good reputations will do just fine, but the bottom feeders have tough times ahead, especially if they persist in jacking up prices. Just saw a $48,000 Nissan Rogue advertised at our local dealer

[OliverD]

Spotted a Stellantis dealer ad in the paper this morning: RAM Inventory surplus! Selling at cost! Manufacturer rebates! Looks like the old days are back at Chryco 

Yup, local Ram dealers are advertising "huge discounts" again.

[WP v3.32]

Spotted a Stellantis dealer ad in the paper this morning: RAM Inventory surplus! Selling at cost! Manufacturer rebates! Looks like the old days are back at Chryco 

Yup, local Ram dealers are advertising "huge discounts" again.

same here. it's all over the Ramtruck site.   15% off MSRP but IMO they are still overprice. $45K for a basic truck is still too much.

[quadzilla]

One thing I've noticed is many 3 year old cars with 100K or more on them. I thought people were driving less?

[ktm525]

One thing I've noticed is many 3 year old cars with 100K or more on them. I thought people were driving less?

UBER

[revalations]

One thing I've noticed is many 3 year old cars with 100K or more on them. I thought people were driving less?

Crazy how many 50-60,000+ km per year rides I see. Looked at a 2019 Equinox the other day with 389K on it. One turbo, water pump, a/c compressor and a high pressure fuel pump were the only big repairs in those miles. Customer still figured it was worth $10,000. Sold for $7,200