You CAN'T AFFORD A Used Truck, I'll Show You WHY

Summary

In this video, the host takes viewers inside a used car auction to reveal what dealers pay for vehicles like the Toyota Tacoma, Ford F-150, and Chevy Silverado. The video highlights the shift in the car market as new car dealers, overwhelmed with inventory, are sending more high-quality vehicles to auctions. Viewers also learn about how the limited truck supply of the past few years has influenced dealership practices and pricing. The auction reveals competitive bidding for well-maintained trucks, showing that the car market is slowly recovering and becoming more favorable for both dealers and consumers.

Takeaways

• 😀 The auction features a variety of cars, including popular models like the Toyota Tacoma and Ford F-150, which are expected to bring high prices.
• 😀 The increased inventory at the auction is due to year-end sales and trade-ins from new car franchises, especially as we enter tax time.
• 😀 A V8 Toyota Tundra with 140,000 miles stands out due to its strong appeal among buyers, with slight cosmetic blemishes affecting its price.
• 😀 Auctions are seeing more trucks, especially those that were previously kept by new car dealers due to limited supply and high demand.
• 😀 The 2009 Chevy Silverado with 152,000 miles is a basic work truck with a somewhat lower bidding price, starting at $9,000 and selling for $7,600.
• 😀 A 2016 Ford F-150 with 218,000 miles stands out due to its pristine appearance despite the high mileage, with a final bid of $8,600.
• 😀 The increased availability of better-quality inventory at the auction, like trucks and SUVs, signals a recovery in the car market, especially for used cars.
• 😀 Franchise dealers are now moving more of their inventory to auctions, signaling an overstock of new vehicles and a decline in the need to keep used cars on their lots.
• 😀 The car market is repairing itself after production issues, with more vehicles being available for auction, especially from major brands like Ford, GM, and Stalantis.
• 😀 The 2017 Toyota Tacoma with 117,000 miles has a high resale value despite some interior stains, reaching a final bid of $20,000, illustrating the high demand for these models.

Q & A

Why are there so many cars at this auction today?

The auction has a large number of cars today because it's after the new year, and many vehicles are being sold as end-of-year trade-ins from new car franchises. These cars come from consumers who traded them in as part of deals offered by dealerships.

What is the significance of the Toyota Tundra being discussed in the auction?

The Toyota Tundra being discussed is a V8 model with 140,000 miles. It's a popular truck model because it features the sought-after V8 engine, which is preferred over the newer six-cylinder turbocharged models. Despite its high mileage, its condition made it appealing at the auction.

Why are certain trucks not appearing at auctions, and how has this changed?

In the past, due to limited truck supply, new car dealers would often keep trade-in trucks instead of sending them to auction. They could sell these trucks at a premium. However, now that supply has improved, more trucks are appearing at auctions.

What is the main takeaway from the 2009 Chevy Silverado at the auction?

The 2009 Chevy Silverado, despite being a basic model and having 152,000 miles, was still able to fetch $7,600 at auction. It highlights that even older trucks in decent condition can perform well at auctions, especially if they're well-maintained.

What factors made the 2016 F-150 stand out at the auction?

The 2016 F-150, with 218,000 miles, stood out because it was in excellent condition both inside and out. Despite the high mileage, its appearance was close to brand new, making it highly desirable. It sold for $8,600, indicating that condition can greatly impact the value of a vehicle.

How has the availability of newer vehicles at auctions affected used car dealerships?

The increased availability of newer vehicles at auctions is benefiting used car dealerships, especially smaller, independent ones. They no longer have to rely as much on lower-tier vehicles and can access better-quality inventory, which ultimately impacts pricing and market competition.

What was the impact of the new car dealers’ behavior during the pandemic on the auction market?

During the pandemic, production shortages led new car dealerships to hold onto used vehicles, especially high-quality ones, because they couldn't get enough new inventory. As a result, many of these used vehicles didn't reach the auctions. Now, as the car market recovers, more of these vehicles are being sold at auctions.

What role do trade-ins play in the auction process?

Trade-ins from new car dealerships play a significant role in the auction process. These vehicles are often sold at auction after being traded in by consumers. The quality of these trade-ins can impact the availability and pricing of used vehicles in the market.

How does the auction market reflect the broader state of the car industry?

The auction market reflects the broader car industry by showing trends in inventory supply, demand, and dealer strategies. The influx of higher-quality vehicles at auctions indicates that new car dealers are no longer constrained by low production and can now offer more inventory for resale.

Why do smaller used car dealers benefit from more inventory at auctions?

Smaller used car dealers benefit from more inventory at auctions because it allows them to access a wider variety of vehicles, including those of better quality. This improves their ability to offer consumers more reliable options, which could increase sales and profits for these dealerships.