Transcription
$700 worth of dealership add-ons, you're at $42,000. We are at a Ford dealership, but I go dealership to dealership, and right now the whole car market has completely flipped. Now you have dealerships advertising manager special, manager special, manager special. Every vehicle on this dealer's website, especially the trucks, 10 grand off, 10 grand off. Broncos, trucks, 10 grand off. 51 grand right here for this Bronco. But is it enough? That's the big problem, people. That it's not enough.
The discounts are not enough, and even Ford's most affordable vehicle they have, which it just doesn't exist. Like this Bronco Sport right here, 41 2 for a Bronco Sport with a 1.5T EcoBoost engine. This is considered an affordable vehicle in 2026 because, guess what, the average new vehicle is over $50,000. This video is being filmed July 2026, and guess what, these are all 2025 model years going into 2027. And if you know anything about the car business, they're always ahead. So right now, manufacturers are already sending 2027s out. But guess what, dealers are still stuck with 2025s. This is a 2025. This is a 2025. Even this is a 2025. Every single vehicle you're looking at. Let me show you this real quick. It's also a 2025 sitting at a Ford dealership, brand new, not sold, going into 2027, already a year old. Really, no matter what dealership we go to, we'll still see 2025s.
This is a 2025 Volkswagen ID.Buzz at $73,000. You guys see that? 2025, brand new. And who thought about building a $73,000 Volkswagen van? No wonder they're still sitting at Volkswagen dealers brand new in their 2025s. Dealership to dealership, they all have old inventory. This never happened before 2019. This is a thing because prices went up like crazy and who's going to spend 70 grand on a Volkswagen van?
And one of the biggest things that's going on with car dealerships is the finance box. Like these finance box and you have the managers over here and basically F&I profit is down so massive. People are getting discounts. This vehicle, 5K off. This one, 5,500 off. So, discounts are back. That's how the market has completely changed and now you have, you know, people are making a little bit less gross profit than they did in the past. $48,000 for this WRX. Good thing it's built in Japan, but 48 grand, that's the MSRP. They used to sell it above the MSRP and they would get you in the, you know, they call this the box, the F&I box. You could buy warranties, you could buy this, you could buy that. But now the bank's saying, you know, we got to be a little tighter with the loan. We can't just add a bunch of stuff. So, overall profit for dealers is down so big compared to what it was just a few years ago.
Now, this is the other option. Either your dealership goes out of business or you have a dealership that is completely full of inventory like this. Completely full of inventory. So much inventory they don't know what to do with, but half this stuff is discounted. Unless you look at one of their lifted trucks like this one right here with wheels and stuff like that. I think it is uh 75, but then they add $10,000, brings it up to $85,000. But most, even this truck though, they're going to have to discount it 20 grand to sell it. Normally it's 10 grand off, but when you add 10 grand, you got to double it. You got to give 20 grand off. So, either dealerships are just completely going out of business or they're overflow with inventory. I mean, do you see how full this lot is? It's hard to tell on camera, but it's completely full. Like days and days and days worth of inventory, but dealerships purchase this stuff, and this one's actually sold, but dealerships purchase it on something called floor plan, and the longer it sits, the more it costs the dealer every single day. I think you can really see what's going on from this end, man. Just car dealerships completely full. So, either they're going out of business, they're completely empty, or they're completely full. Those are pretty much the options.
Now, I do see some more add-ons over here. This dealer is supposed to not have add-ons, but what do we got right here? We got another $1,900 30 grand for this Envesta. This one has a 1.2 turbo. Yeah, how much smaller can you make the engine, man? How much smaller can you make the engine? 1.2 turbo. But, it's just crazy. Look at how many they have. 1 2 3 4 5. You just want to sit here and count these? Because you will be counting for quite some time. I mean, just look at how many they have. It just keeps going. It is honestly laughable the amount of inventory these dealers have. It's going to be an issue. It is going to be an issue, and it's going to take some time to sell because the only way you can sell it is with discounts. 2026 Envision 2.0, and this one is 53,000. So, discounts discounts, but this was a good vantage point to really see how many vehicles they have sitting here in this lot. I mean, you guys saw it over there. It just keeps going. So, it just keeps going and going and going. Dealerships are not doing good. They are getting what they deserve in the point of their profit is down big time from 2020, 2021, 2022. All those times. It's a completely different market that we're in today in 2026. Big discounts, but it still ain't enough. Let me know what you think. Have a great day, and stay blessed.