It’s Over: The Car Market Bubble Just Popped
Published: 2025-06-26
Status:
Available
|
Analyzed
Published: 2025-06-26
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 6
Prediction
Topic
Status
Used car prices are predicted to gradually decrease over the next year, contingent on an increase in loan defaults and sustained high inventory levels.
"used car prices will continue to see a gradual downtrend over the next year, especially if defaults increase and inventories stay high."
Correct
New car prices are forecast to decrease by a few percent due to increased competition.
"Some forecast even suggests that new car prices could fall a few% as competition heats up."
Incorrect
Prolonged tariffs could counteract predicted price decreases for new cars, potentially making them more expensive and increasing demand for used cars.
"But there's also a chance that prolonged tariffs erase this decrease entirely and actually cause new cars to get more expensive, leading to more demand for used cars."
Pending
Tariffs will impact the price of all car purchases if they remain in effect.
"This is why no matter what car you buy, there will be an impact to its price if tariffs remain in effect."
Correct
Estimates suggest that tariffs could increase the price of each car by approximately $2,000.
"one estimate suggesting that each car might cost $2,000 more than it did previously."
Pending
Consumers should compare loan offers from multiple lenders to secure the best deal when financing a car.
"if you're getting a loan, shop the loan around to find the best possible deal."
Correct
New car price increases are forcing budget-conscious buyers to consider older used vehicles for purchases under $20,000.
"retail customers that want to purchase a car sub $20,000 are forced to look at older used vehicles because the new ones have increased in value beyond their budget."
Correct
The '2410 rule' for car affordability recommends a 20% down payment, a 4-year loan term, and transportation costs not exceeding 10% of monthly income.
"the general rule of thumb is what's called the 2410 rule, which suggests you make a 20% down payment on a 4-year loan where you spend no more than 10% of your monthly income on transportation."
Correct
The used BMW 4 Series has experienced a price increase of nearly 20% year-over-year.
"the largest increase was seen throughout the BMW 4 Series, up nearly 20% year-over-year in the used car market."
Pending
The used Infiniti QX60 has seen a price increase of 16.5% compared to the previous year.
"This is also the same thing being found with the Infiniti QX60, which is up 16 1.5% from a year ago"
Pending
The used Porsche 718 has experienced a price increase of 15.7%.
"and the Porsche 718, which is up 15.7%."
Pending
Tesla's used car prices have fallen by double digits over the past year, depreciating significantly faster than Chevrolet vehicles.
"on the other hand, the largest decrease was from none other than Tesla with prices falling double digits over the last year and depreciating 70 times faster than a Chevy."
Correct
Currently, 5% of auto loans in the US are over 90 days delinquent.
"5% of all auto loans in the United States being more than 90 days behind on their payments."
Incorrect
The delinquency rate for subprime auto loans has reached a record high.
"Subprime loans have hit a record high delinquency rate"
Correct
Total US auto loan balances have risen to $1.64 trillion.
"US auto loan balances have increased to $1.64 64 trillion"
Correct
Auto loan debt has grown by 70% over the past ten years.
"auto debt has increased 70% in the last decade."
Correct
Car inventory levels have returned to approximately 70 days of supply, indicating a balanced market.
"we're back to about 70 days worth of supply, which reflects a perfectly balanced and normal market."
Pending
Dodge has a current inventory supply of 111 days.
"Dodge currently sits at 111 days worth of supply."
Incorrect
Lincoln has a current inventory supply of 127 days.
"and Lincoln has 127 days"
Incorrect
Automakers are anticipating a 25% tariff on imported vehicles and parts.
"automakers are preparing for a 25% tariff on imported vehicles and parts"
Incorrect
Analysts predict that tariffs will add approximately $3,000 to the cost of cars manufactured in the US.
"analysts estimate the tariffs will add around $3,000 to the cost of US-built cars"
Pending
Tariffs are estimated to add $6,000 to the cost of vehicles produced in Mexico or Canada.
"and a whopping $6,000 to vehicles made in Mexico or Canada."
Pending
Experts anticipate a gradual decrease in used car prices and a potential few percent drop in new car prices due to increased competition, assuming rising defaults and high inventories.
"Overall, it seems like most experts believe that used car prices will continue to see a gradual downtrend over the next year, especially if defaults increase and inventories stay high. Some forecast even suggests that new car prices could fall a few% as competition heats up."
Correct