Dealers Are FINALLY Paying The Price!

Added: 2026-05-14

[00:00:00]Hey YouTube, Untamed here. Dealerships are finally getting what they deserve.

[00:00:03]Throughout the pandemic, they were so quick to take advantage of their loyal customers. The loyal consumer who wanted to come in, buy a new vehicle, but because supply was low and demand remained steady, they were quick to take advantage, charging you a $10,000, $15,000, sometimes $20,000 or more over that MSRP, over sticker price. I tried buying a Toyota Land Cruiser when they first hit with the new LC250 redesign.

[00:00:26]Thank goodness I didn't buy it. But even dealerships then, well beyond the pandemic, were trying to get 5,000, $10,000 over MSRP, hitting me with an ADM. I tried buying an F-150 Raptor.

[00:00:37]Throughout the pandemic, the lowest I could find was $10,000 over sticker. TRD Pro models, the Seoia, the Tundra, the Tacoma, the 4Runner, you name it.

[00:00:46]Dealerships were extremely greedy. And the irony of it all is they now need their loyal customers back more than ever. But people overextended. They overpaid for their new vehicles in recent years. And because of that, they likely have a negative equity, meaning they owe more on their vehicle than what it's currently worth. So, they can't just roll that negative equity into their next vehicle purchase. Well, they can, but lenders, they're beginning to clamp down. So many lenders are actually declining customers right now because they just are seeing too many vehicles being repossessed. Too many people are failing to make their autoloan payments.

[00:01:16]So, they're not letting people roll negative equity into vehicles like they used to. They used to offer 140% 150% LTV loan to value meaning they would let you roll a giant sizable amount of negative equity into a new vehicle purchase far more than what that vehicle is currently worth a new vehicle but allowing you to extend a larger loan on it. That is not happening today. In fact, last year in 2025 over 20% of all auto loans that were applied for were denied. The sheer amount of vehicles that cost over six figures today is just baffling to me. So many vehicles are now over $100,000. vehicles that used to cost maybe 40, 45, $50,000 or a hundred grand plus. I find it quite baffling.

[00:01:55]And not to mention the depreciation hit that you take on buying a $100,000 GMC Yukon is going to ruin your bank account, right? Losing 50% of that value of that Yukon after the first three to four or five years. That is devastating for most Americans today. Our wages and salaries have not kept up with the pace of the cost of things, right? Everything is just far too expensive and we're not getting paid all that much more.

[00:02:16]Remember, it wasn't all that long ago when I used to think a $100,000 vehicle, I used to think an exotic or perhaps a supercar, right? A Lamborghini. But nope, you just get a Ford F250 or a Ford Expedition or a Chevy Suburban. That's what our new reality is. And to add insult to injury, tax season hasn't helped dealerships. Every single year, tax season tends to help them out a little bit because that gives buyers a little bit larger of a down payment to make on a new vehicle. So every year between March and I'll say maybe June, end of May, a lot of people have a few additional coins in their bank account.

[00:02:48]And while dealerships are not seeing that this year here in 2026, people are deciding to hold on to their money and will put it toward other bills right now and putting it toward their current vehicle, toward that current maintenance, toward that current service to keep their current vehicle on the road longer because they cannot justify going out and buying a new vehicle with current prices. What a lot of dealerships fail to recognize is people have long memories. They don't just forget the dealerships that try to pull the wool over their eyes. They don't forget the dealerships that try to stiff them with a $10,000 markup. And rightfully so, these people are not returning back to those dealerships.

[00:03:20]They're going elsewhere. And one point that not a lot of folks talk about is right now more than ever, we're seeing the highest turnover and the shortest retention rate of car salesmen across the country. They're showing up to dealerships realizing the inventory is just not selling and they're realizing, wow, they got to go elsewhere. They need to make a career change. And they're doing so. And cars are sitting longer than ever. Some examples are sitting between 500 and 750 days at this point.

[00:03:44]Which really begs the question, what type of discount is required to actually move the inventory from that dealership lot? Because flooring costs are beginning to eat those dealerships alive. A smaller to mediumsiz dealership, they'll spend anywhere from 15 to $25,000 per month on flooring cost. Flooring costs are the small interest rate, the line of credit per vehicle that they have on their dealership lot. And well, every single vehicle sitting there is just a compounding growth rate to that interest fee hitting that dealership lot. Larger dealerships, they get anchored down with $100 to $250,000 per month in flooring costs. Can you imagine? So, those vehicles that have been sitting on a dealership lot for over two years at this point, they've cost that dealership a tremendous amount of money and those lines of credit. Pretty crazy, huh? And why are the vehicles sitting? Right now, we have about 3.1 million brand new vehicles sitting on dealership lots across the country right now, higher than normal. And the prices, they've gotten extremely high. And that's the driving part of it. People cannot justify coming out and spending 60 70 $80,000 on a brand new vehicle today. If you need a full-size SUV, get ready to fork over $80,000 plus on the darn thing. In a truck today, average price $64,000. And that's for a mediocre trimmed example. If you're going to get a high-spec, high trimmed example, get ready to fork over dang near six figures for it. Monthly payments on a 90 to $100,000 pickup truck today, they're no joke. And most people, they're not putting a sizable down deposit on these vehicles, right? They're maybe putting 10 to 20% down if they're lucky. Most people are not putting down 50% or more on a new vehicle purchase today. They just can't afford it, right? You think that they would take that as an indicator that they can't afford the monthly payments either. Monthly payments on a 90 to $100,000 truck.

[00:05:19]Well, get ready for this. Between $1,700 and $2,200 per month, depending on how much you put down and what your interest rate is. people are just stretching out that autoloan duration as far as they can in order to make the monthly payment justifiable to them. They can make it bearable, which is why over 20% of all loans taken out last year in 2025 were for 84-month auto loans. That's 7 years.

[00:05:40]And nearly 3% of all the loans taken out last year were for 96 months, 8-year car loans. Can you imagine that? And on top of it all, people are getting stiffed with pretty high interest rates still.

[00:05:49]They haven't come down hardly at all over the last two and a half to three years. The national average new vehicle interest rate is right around six to 7% still on a used vehicle between 11 and 12%. That hasn't really changed. And well, when you look at how much you're paying toward interest versus how much is going toward the principal every single month over a 60-month loan or a 72-month loan, it's quite sickening. And a huge part of the problem is automakers just refuse to offer cheap, reliable options anymore. Everything is a high-spec, high-trimmed, expensive example because, well, that high country trimmed Chevy Silverado takes up the same amount of bandwidth and space on the assembly line compared to the LT trim, the sparse downtrimmed example, the Silverado. So, they figure might as well maximize that profit margin on the High Country versus, well, the barebones example. All new cars are stuffed with technology and creature comforts. And nobody really asked for this, right? But it all boils down to what those profit margins are. Not only does the auto manufacturer profit more on a high trimmed example, but so does the dealership. There's a much larger profit margin to be had on a high-spec example compared to the sparse down bare bones one. The gap between MSRP and invoice pricing on a Ford F-150 Platinum compared to a Ford F-150 STX or an XL is hugely different. And well, that's why the dealership is going to try their best to get you to buy that Platinum.

[00:07:05]Although you wouldn't believe it, we are currently seeing the highest levels of advertised incentives from all vehicle manufacturers right now. The most that we've seen in the last two decades anyway. And people are still overpaying, right? MSRPs have risen nearly 45% since 2019 pre- pandemic. And well, on top of just buying that vehicle today, more than ever, you have to worry about the finance officer, the finance box overcharging you on everything. They take advantage of people upcharging your loan, right? They uptick that interest rate. They get to secure a nice maybe 2.9% interest rate for you, then upcharge it to maybe 4.9% for you to sign on the dotted line. In addition to that, they're constantly trying to stiff you with a bogus add-on or protection package that you don't really want, and those are hugely inflated in price. Same goes with extended warranties. Safe to say that people have caught on. They've caught on to just how sleazy so many dealerships can be. And while they're choosing to keep a hold of their current vehicles for much longer, on average, most Americans would swap out their vehicle every 3 to 5 years. But as of the last 5 years anyway, people are choosing to hold on to it for maybe 5 to 7 years, maybe 5 to 10 years because they've realized paying for that necessary maintenance and service on their current vehicle is much wiser financially comparatively to buying a brand new vehicle every 3 to 5 years.

[00:08:16]The problem with it all is people have caught on too late. Far too many people have lost their vehicles to the repo man. Over 2.5 million vehicles were repossessed last year in 2025 and we are on track to surpass it here in 2026.

[00:08:29]Right now, we are seeing the highest levels of 30-day, 60-day, and 90-day delinquencies that we've ever seen in our country. And while consequently, we are now seeing the highest level of autoloan debt we have ever seen as a country. Over $1.65 trillion in auto loans across the United States. And that number there keeps growing at a compounding rate yeartoyear. Something has got to give soon. And for whatever it's worth, that $1.65 trillion debt right there, that's only second to our mortgage home loan debt within the United States. Pretty wild, huh? Many new cars that used to sell within a week or two are now sitting on dealership lots for several months at this point.

[00:09:04]And like I alluded to earlier, some cars, trucks, and SUVs are sitting over 750 days now. Can you imagine walking up on a dealership lot and finding a number of 2024 brand new 2024 models sitting there still? Pretty crazy. Cars, trucks, and SUVs that used to be sold with a markup or an ADM are now being sold at invoice. We see it with the Ford F-150 Raptor. It's not unheard of to get a Raptor at invoice pricing now, whereas before they always came with a $10,000 or more markup over sticker. Same goes for the TRD Pro, Tacoma, right? The Trail Hunters, they are being offered at invoice pricing often, too. And you would have never seen that in previous years. But you can't really celebrate it too much given the fact that auto manufacturers have hiked up MSRPs tremendously. Audi manufacturers witnessed firsthand what dealerships were getting for their vehicles. They thought, well, let's let's let's profit on that instead of the dealerships.

[00:09:53]Let's go ahead and upcharge them a bit more on that sticker price so we can make more money, not the dealers. Let's face it, everything has gotten so expensive within our country that now Americans have no choice but to just bury themselves in debt in order to keep up. And while people trying to keep up with the Joneses and people trying to keep up with what they see online, they're only hurting themselves tremendously, right? People are overextending themselves to a breaking point. They stretch themselves so thin with these monthly payments alone, they're not even considering the rest of their bills between their their rent, their mortgage, the cost of insurance, right? insurance has over doubled in the last two and a half to three years alone. That right there is a silent killer. But let me know what your thoughts are on the current car market.

[00:10:29]Do you see it crashing by the end of 2026 or perhaps 2027? Let me know in the comments. And let me know what your honest opinion is of what that true crash will actually look like within our country. And more importantly, what will it actually take for you to consider buying a new vehicle this year? 30% off with a 0% interest rate? 40% off? 50% off? Let me know in the comments. As always, I sincerely appreciate you taking the time to tune into these videos. If you enjoy it whatsoever, I do respectfully request that you please consider liking and subscribing. Your support means a ton, and I promise it doesn't go unnoticed. Till next time.