The Future of the Vehicle Market: A Warning for Buyers

✅Negative equity rates are at an all-time high, making it difficult for people to trade in their vehicles without taking a loss.

🔺Repossession rates have increased by 21% compared to the previous year due to overpriced vehicles during the pandemic.

💰Interest rates for vehicles are high, even with excellent credit. Those with poor credit face even higher rates.

📅Average lot times have increased to 70-80 days, indicating dealerships' reluctance to drop prices.

📉MSRP prices have increased by 36% since 2019, putting more financial strain on buyers.

When is the best time to buy a vehicle?

—The best time to buy a vehicle is likely in April 2024 when retail prices are expected to see a notable drop.

Why are repossession rates increasing?

—Repossession rates have increased due to people overpaying for vehicles during the pandemic and facing negative equity.

Are interest rates high for vehicle loans?

—Yes, even with excellent credit, interest rates for vehicles are high. Those with poor credit face even higher rates.

Why are average lot times increasing?

—Dealerships are reluctant to drop prices and still have vehicles lingering on their lots for 70-80 days.

Have MSRP prices increased recently?

—Yes, MSRP prices have increased by 36% since 2019, putting more financial strain on buyers.

00:00The vehicle market is experiencing a downward swing, with negative equity rates at an all-time high and repossession rates up by 21%.

01:04Interest rates for vehicles are high, even with excellent credit. Those with poor credit face even higher rates.

02:26Average lot times have increased to 70-80 days, indicating dealerships' reluctance to drop prices.

05:13MSRP prices have increased by 36% since 2019, putting more financial strain on buyers.

07:52The best time to buy a vehicle is likely in April 2024 when retail prices are expected to see a notable drop.