all right Falls right around the corner pops let's give everyone our market update let's start with new cars then we'll talk about used cars we'll spend some time talking about interest rates as well let's start with the good news it is a buyer market for the first time in a long time when it comes to new cars and that's because inventory is building and prices are finally starting to come down just a little bit let's start the conversation there dad inventory is up right like up significantly from the chip shortage and when uh dealers didn't have any uh vehicles on their lot it it is it is the first time in a long time where we've seen inventories build up close to pre-pandemic levels and the most wonderful thing about it is we have seen the percentage of incentives in order to get people to buy these vehicles as a percentage of the transaction price go up significantly we're up to slightly over 7% trying desperately to get back to the 10 to 11% uh that we were at pre pandemic so this all bodess well for customers moving forward on new cars as inventory builds up you have more negotiability more leverage and like you were saying D we have seen headlines go lower from automakers I'm thinking Nissan Mazda and others who have talked about how much they've had to increase their incentive spending to try and get their vehicles to continue to sell that's more good news for consumers another piece of good news for new vehicles in particular would be interest rates we expect interest rates to come down a little bit and at a minimum it ties back to the incentives we have seen significant interest rate subvented interest rate 0% 1.9% 0.9% Etc from the automakers so that's a good news story here as well for new cars as more inventory builds up you should expect to continue to see those incentives and as interest rates come down we should see slightly more competitive uh interest rates for people who can't even get the uh the subvented interest rate which would drive down that monthly payment which we know a lot of people are concerned about a absolutely probably about 84 to 85% of all buyers out there are what's known as payment buyers people who are only interested is into how much it's going to cost them on a monthly basis and with the lowering of interest rates and more subvented interest rates we should see payments drop to a degree that should become more affordable for more people hopefully now another storyline here for new vehicles Dead leasing is making a comeback in a big way we've got plenty of videos on the car Edge YouTube channel talking about how negotiate a lease and things like that move resources back on car edge.com for that as well but lent is taking a a bit of a foothold here more and more people choosing to at least especially new electric vehicles you get access to the federal tax credits which is really nice and also automakers are sub venting the residual values and the money factors and and they're trying to incentivize customers to lease more Vehicles Justin on our team has put together a great guide tracking all the best of leas deals right now but that's another thing that new car Shoppers should be considering maybe they've always financed in the past but in the fall and winter of 2024 leasing might be a really good option lease is the option if you are strictly payment conscious it is the least expensive way to get the most expensive vehicle so true you won't own anything but in most cases if you finance a vehicle for 60 72 or 84 months you're trading it in before you ever pay it off so you never owned it anyway so just for those who want a cheaper payment leasing is a viable option some examples D you can get a Chevy tracks for under $250 a month so again if you're a monthly payment Shopper which most of us are obviously we we really really really endorse and suggest you look at out the door price you negotiate the out the door price but at the end of the day if you're thinking about your monthly payment and especially that we know a lot of people have negative equity and one way to get rid of negative equity is to roll that into a lease that you then pay off Chevy tracks for $250 a month not such a bad idea right now sounds good to me let's talk about used cars for a moment pops we've seen used car price volatility for the past couple of years go crazy high and crazy low things are normalizing a little bit Ed car prices have been falling in 2024 which is a good thing but they've started to stabilize a little bit and that's because there are so many new vehicles that weren't produced over the past two and three years that are now not making it to the market as used vehicles so I think our expectation is generally that the used car market is not a buyer's market or a sell's market it's kind of neutral and we expect to see prices stay kind of flat maybe come down a little bit the bigger story on used cars dad will be tradein values my expectation I'm curious you're taking take on this my expectation is that tradeing values go down significantly as dealers you know they they're not going to want to pay up for that we're seeing dealers go out of business right now so I don't think they're going to really want to Pony up all the cash to buy all those trade-ins uh two to threeyear old uh lower mileage Vehicles dealers will pay all the money for things older than that higher mileage dealers are are really uh rethinking how much those type of vehicles are worth I I think used car pricing is kind of like Switzerland at the moment it's kind of neutral and will probably remain neutral um if you're looking for 2 to threeyear old younger lower mileage vehicles I Still Believe We will see those um bring a a premium and people will pay a premium for those type of vehicles um so if you want savings look for those four five-year-old vehicles with relatively low miles and definitely definitely definitely get a pre- purchase inspection on any used vehicle we know the quality of used vehicles that are making it to the market are you know not so great we know that the repos the amount of repo vehicles making it to the dealer auctions are up significantly from pre pandemic times 2018 2019 so you know there are more repo vehicles at the dealer auctions which means more repo vehicles making it onto the Dealer's floor and so you really need to be prepared to do a pre- purchase inspection and as always if the dealer won't let you do a pre- purchase inspection that is one of those red flags for a used vehicle you should absolutely feel comfortable having a get you know an independent uh set of third party eyes on a vehicle before you purchase it so definitely two to three-year-old vehicles I agree with you dad they're still going to command a high price point because there's so few of them those four five 6 7 8 9 10 11 12y old Vehicles pre purchase inspection you have to do it yep dealers have been reporting that the condition reports on the Pre-owned Vehicles being offered at auction are at the lowest point they've ever been dealers cannot believe the quality of some of these vehicles how how poor the condition is of the vehicles how much money they would need to spend to bring it up to Road worthiness and state safety uh guidelines so be careful on some of those older cars absolutely as Zach said a prepurchase inspection on any any pre-owned car is a must you can download our fall and winter kind of preview for what the car Market's going to be the link is in the description down below so take a peek at that and again the Mac Trends the big trends new car buyer Market dealer profits starting to come down inventory building incentives up used cars Switzerland I like how you said that that in interest rates potentially some good news around the corner as always we've got you covered here at car Edge make sure you subscribe to the channel if you like this information and again get that free guide it's in the link down below thank you Dad as always thank you handsome enjoyed it