The Auto Market Bubble Just Popped
Published: 2023-11-22
Status:
Available
|
Analyzed
Published: 2023-11-22
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Auto loan delinquencies are predicted to rise in 2024, peaking around 10% before starting to decline.
"autoone delin quencies will continue to rise into 2024 and Peak at about 10% before they start to fall"
Pending
Tesla's price cuts on EVs are predicted to force other auto manufacturers to lower their prices to stay competitive.
"EV prices because when they slash prices in order to sell more cars it caused every other auto manufacturer to drop their prices to remain competitive"
Pending
Dealerships are becoming highly motivated to sell inventory and may soon sell cars at a loss due to rising interest costs on financed vehicles.
"this means the dealerships are starting to get very motivated to sell off existing inventory and most likely they could soon be losing money in the cars that they sell if they wait too long"
Pending
The average car loses 63% of its value within five years of purchase.
"the average car is worth 63% less than than it would cost new"
Pending
Car owners are defaulting on payments at the highest rate since 1994, with 6.1% of subprime auto borrowers being at least 60 days past due in September.
"car owners are falling behind on payments at the highest rate on record according to fit rating the percent of subprime Auto borrowers at least 60 days P do on their loans Rose to 6.1% in September the highest in data going back to 1994"
Pending
Given that auto loan delinquencies are at their highest since 1994, the situation is unlikely to improve soon.
"delinquencies are the highest they've been since 1994 and to be honest I don't see a situation where this gets better anytime soon"
Pending
Now is the optimal time to negotiate car prices as the market is shifting in favor of buyers.
"if you're looking to buy a car now is the best time to negotiate the market is absolutely changing in your favor"
Pending
Used car prices remain 33% higher than pre-pandemic levels.
"used car prices are still 33% more expensive than they were prior to the pandemic"
Pending
For the same amount of money, used car buyers in 2023 are purchasing vehicles that are over twice as old and have 40,000 to over 100,000 more miles compared to what they could buy in 2019.
"used car Shoppers have to buy cars more than twice as old is what the same money bought them in 2019 it's also worth noting that given the average car is driven between 10 to 15,000 miles a year these cars are not only more than twice as old but have between 40 and 100,000 plus more miles for the same money"
Pending
While most car values are declining, pickup trucks have seen a 7% average increase in value, suggesting strong demand for utility vehicles.
"if you're planning to buy a car anytime soon that's good news except if you're planning to buy a pickup truck because that category increased by an average of 7%"
Pending
Electric vehicle prices have decreased by 32% compared to the previous year.
"electric vehicles are selling for 32% less than a year ago"
Pending
The market for used electric vehicles now surpasses the availability of new electric vehicles.
"this is also the first time where used electric vehicles are outnumbering the new cars for sale"
Pending
Auto loan delinquencies are predicted to rise in 2024, peaking around 10% before declining.
"analysts predict that autoone delin quencies will continue to rise into 2024 and Peak at about 10% before they start to fall"
Pending
Used car prices remain 33% higher than pre-pandemic levels.
"used car prices are still 33% more expensive than they were prior to the pandemic"
Pending
Consumers are extending the duration of car ownership.
"people are holding on to their cars for longer"
Pending
Tesla's price reductions are forcing other auto manufacturers to lower their prices to stay competitive.
"when they slash prices in order to sell more cars it caused every other auto manufacturer to drop their prices to remain competitive"
Pending
Car repossessions and defaults are expected to increase due to consumers' inability to sustain loan payments.
"consumers are not able to sustain those payments then I have a feeling we'll continue to see car repos like this in defaults Skyrocket"
Pending
Rising interest rates are significantly increasing the daily cost for dealerships to hold unsold inventory.
"when interest rates are their highest level in 20 years every single day a dealership doesn't sell a car is a day that's costing them a lot of money"
Pending
Historically, 80% of new cars were sold above the Manufacturer's Suggested Retail Price (MSRP).
"80% of new cars were selling above MSRP"
Pending
Auto loan rejections are at their highest point in a decade.
"autol loan rejections are occurring at the highest rate in 10 years"
Pending
Car prices have seen a decline of nearly 1% over the past 30 days.
"prices are down almost 1% in the last 30 days"
Pending
The percentage of subprime auto borrowers who are at least 60 days past due on their loans reached 6.1% in September, the highest since 1994.
"the percent of subprime Auto borrowers at least 60 days P do on their loans Rose to 6.1% in September the highest in data going back to 1994"
Pending
Year-over-year, crossovers are down 6.3%, hatchbacks 9.1%, wagons 9.8%, and vans over 10%.
"crossovers are down 6.3% hatchbacks are down 99.1% wagons are down 99.8% and the worst from everything Vans are down more than 10%"
Pending
The same amount of money spent on used cars in 2023 buys vehicles that are more than twice as old as those purchased in 2019.
"used car Shoppers have to buy cars more than twice as old is what the same money bought them in 2019"
Pending
Auto loans represent the third-largest debt category in the US, totaling approximately $1.5 trillion.
"auto loans are now the third largest debt category behind mortgages and student loans coming in at roughly $1.5 trillion"
Pending
The daily interest cost for dealerships to hold a pickup truck on their lot has increased from $2-$4 two years ago to over $12 today.
"two years ago holding a pickup truck on a lot might cost the dealership only $2 to $4 a day in interest but now it's costing them more than $12 a day"
Pending
On average, car buyers owe $6,000 more on their loans than their vehicles are currently worth.
"buyers are underwater on their loans by an average of $6,000"
Pending
Prior to early 2023, record-low interest rates and extended loan terms made purchasing cars significantly more affordable.
"up until the beginning of 2023 buyers were able to obtain record low interest rates with terms as long as 12 years meaning just like real estate cars became that much more affordable to purchase"
Pending
Searches for 'give my car back' are at an all-time high, indicating a growing trend of owners walking away from their car loans.
"the term give my car back is trending at the highest level ever in history"
Pending
Automakers have intentionally limited production to maintain higher prices.
"automakers realize that they could charge more if they manufacture less"
Pending
Consumers are keeping their vehicles for extended periods.
"people are holding on to their cars for longer"
Pending
Cars historically depreciate significantly, losing 11% upon driving off the lot, 25% within a year, 46% after three years, and 63% within five years.
"historically when you go and buy a car that loses an average of 11% the moment you drive it off the lot within a year it's lost 25% of its value after 3 years it's lost 46% and within 5 years the average car is worth 63% less"
Pending
For some Millennials and Gen Z, car payments have surpassed their rental expenses.
"car payments now exceeding rent for a small portion of Millennials and gen Z"
Pending
The rate at which car owners are falling behind on their payments is at a historical high.
"car owners are falling behind on payments at the highest rate on record"
Pending
Previously, used car values had outperformed housing, fine art, and the stock market.
"used car values previously outpacing that of housing Fine Art and the stock market"
Pending
Manufacturing delays, labor shortages, and supply chain issues resulted in a semiconductor chip shortage, leading to fewer new cars being produced and artificially low inventory.
"manufacturing delays a lack of Labor and a supply chain crisis led to a shter of semiconductor chips which led to a shortage of new cars being built and created artificially low inventory"
Pending
While most car values are declining, pickup trucks have seen an average increase of 7% in value.
"if you're planning to buy a car anytime soon that's good news except if you're planning to buy a pickup truck because that category increased by an average of 7%"
Pending
Individuals unable to afford their car payments and who owe more than the car's value should consider contacting their bank to renegotiate payment terms.
"if you own a car that you can no longer afford and you can't sell it because you owe more on the car than what it's worth then it might be a good idea to reach out to the bank and see if you could renegotiate your payments"
Pending
Tesla vehicle prices have decreased by 33% compared to a year ago, contributing significantly to the drop in EV prices.
"The biggest decline came from none other than Tesla with prices now 33% less than they were a year ago"
Pending
Auto loan delinquencies are predicted to continue rising in 2024 and reach a peak of approximately 10%.
"autoone delin quencies will continue to rise into 2024 and Peak at about 10%"
Pending
The number of used electric vehicles for sale is now exceeding the number of new electric vehicles for sale.
"this is also the first time where used electric vehicles are outnumbering the new cars for sale"
Pending
Dealerships are facing significantly higher daily interest costs for holding inventory, with costs for a pickup truck increasing from $2-$4 to over $12 per day compared to two years ago.
"two years ago holding a pickup truck on a lot might cost the dealership only $2 to $4 a day in interest but now it's costing them more than $12 a day"
Pending
Car owners are defaulting on their payments at the highest rate recorded in history.
"car owners are falling behind on payments at the highest rate on record"
Pending
On average, a car loses 46% of its value within 3 years and 63% of its value within 5 years compared to its new purchase price.
"after 3 years it's lost 46% and within 5 years the average car is worth 63% less than than it would cost new"
Pending
Used car prices remain 33% higher than they were before the COVID-19 pandemic.
"used car prices are still 33% more expensive than they were prior to the pandemic"
Pending
Auto loan rejections are happening at the highest rate seen in the past decade.
"autol loan rejections are occurring at the highest rate in 10 years"
Pending
The automotive market bubble has burst.
"the auto market bubble has popped"
Pending
Vehicle prices have experienced a decline of nearly 1% in the past 30 days.
"prices are down almost 1% in the last 30 days"
Pending
For a segment of Millennials and Gen Z, car payments have surpassed their rent expenses.
"car payments now exceeding rent for a small portion of Millennials and gen Z"
Pending
Dealerships are becoming increasingly motivated to sell off their current inventory, and may soon incur losses on sales if they delay too long.
"the dealerships are starting to get very motivated to sell off existing inventory and most likely they could soon be losing money in the cars that they sell if they wait too long"
Pending
On average, car buyers owe $6,000 more on their vehicle loans than the car's current market value.
"buyers are underwater on their loans by an average of $6,000"
Pending
The percentage of subprime auto borrowers who are at least 60 days past due on their loans reached 6.1% in September, marking the highest level since 1994.
"the percent of subprime Auto borrowers at least 60 days P do on their loans Rose to 6.1% in September the highest in data going back to 1994"
Pending
While most car values are declining, pickup trucks have seen an average value increase of 7%, indicating strong demand and higher resale value for these utility vehicles.
"if you're planning to buy a car anytime soon that's good news except if you're planning to buy a pickup truck because that category increased by an average of 7%"
Pending
Analysts forecast that auto loan delinquencies will continue to increase throughout 2024, potentially reaching a peak of around 10%.
"analysts predict that autoone delin quencies will continue to rise into 2024 and Peak at about 10%"
Pending
The search term 'give my car back' is trending at an all-time high, indicating a growing number of car owners are abandoning their loans and vehicles.
"the term give my car back is trending at the highest level ever in history"
Pending