00:00I always get asked, when are the car prices going to go down?
00:02When are things going to change and turn around?
00:04Unfortunately, the way it works now is that unless you actually have people that are willing to walk away from deals,
00:11they're not going to basically lower prices.
00:13So dealers right now are over leveraged in their cars.
00:16They bought them, you know, three to six months ago at, let's say, top dollar.
00:21And then every month they have reoccurring costs.
00:23Their flooring line, which is their credit line, they put maintenance in it, cleaning it up, washing it.
00:27And so every month, traditionally, the book value of cars go down.
00:32So dealers are watching the book values go down, but they're still overpriced in their cars.
00:36They don't want to take them to the auction because they're so afraid that they're going to lose thousands of dollars.
00:40It's going to make them look bad.
00:41So their only hope is to find some customer dumb enough that's willing to accept overpaying for a car.
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