3 Million New Cars Sit Unsold

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Summary

➡ Dan shares that there are over three million unsold cars sitting on dealers’ lots, making it a great time for consumers to negotiate a good deal. He suggests that potential buyers should research and make a low offer, as dealers are eager to sell due to the costs associated with holding onto these cars. However, he warns that the average price of these cars is over $50,000, leading to high monthly payments and increased insurance costs. He also mentions that some car models may not even be insurable, so it’s important to check with your insurance provider before purchasing.

Transcript

Hey, it’s Dan. Welcome back. This is I, Allegedly, and I’ve got a good one for you today. I am in Viva Las Vegas, an active consumer electronics show. But there’s a lot of business news to cover before I get over to the show. First things first, there are over three million cars. Three million. Sitting on dealers’ lots that remain unsold. Three million cars unsold. Unbelievable. Like, subscribe, a lot of business news to cover. But you guys have wanted this. You know, I spent six weeks looking for a new car recently and saved $8,000 off the price by doing so and getting the car that I want with the mileage that I want.

And yes, I bought a used car for a very, very, very specific reason because I’m not going to let the dealer take advantage of me in any way. I didn’t finance the car, just paid for it, and got it. Now, here’s the thing. If you have ever wanted a time to go out and get a deal on an automobile, this is the time right now for the simple fact, you know, Dan, I hate to talk, I hate those car guys, I hate negotiating. Okay, okay, I get it. But now they have so much inventory, and I’m just going to cover this on this video.

Okay, let’s just get into this. Think about this right now. The excess inventory, people do not have the extra money to finance these cars. It has been everything from interest rates, to production problems, to recall problems, to everything. And with the economy that we live in right now, people have been putting off for the longest time new purchases for everything. We can live with a new, we don’t need a new dishwasher yet, we don’t need a new car yet, you know. So, it’s crazy because what you’re seeing is that it doesn’t matter what type of brand that you have.

Nothing is selling like it used to sell right now. I’m going to walk into the Bellagio shopping area. Now, why is this a big deal? First things first, the dealers have to pay interest on those cars sitting on those lines. The lie for the Americans has always been that a car is considered sold when it gets pushed to the dealers. So, oh, these cars, look at how many cars have been sold in 2025. No. The truth is that there’s 3 million cars sitting there. These dealers have lost the power. The power has shifted back to you, the consumer, where you can sit there and make any deal you want.

I am telling you, you and your wife want a car. Find the car. Find the car. Go out and get yourself an amazing, you know, have a game plan and make a ridiculous offer. And look to see multiple dealerships in your area that have this. Now, living in Southern California, I mean, every other block it seems like there’s a Starbucks and there’s a car dealership. And we have auto malls all over the place. So, it’s very easy to go from place to place to place if you live in Southern California. You may not have that luxury, but the incentives and the rebates, you need to walk in and ask for everything.

I want to see everything that the manufacturer is offering. I want to see every rebate that I could possibly get for this car, any special financing. Here has been the big problem. These cars average over $50,000 apiece. So, you’re seeing payments easily in excess of… Now, walking is too difficult, so you ride your suitcase. Anyways, so with that, you can go out and you can make these deals and just make a ridiculous offer. But I am loving this because the high interest rates have crushed affordability. You’ve got payments that basically are over $1,000 a month for these cars.

And nobody is going out and financing things at 36 months. That’s what you should finance a new car for. Is it 36 months for the affordability question? And if you want to have actually equity in the car, you’ll stay out of the casino right now. Isn’t that crazy, though? Here you’ve got $1,000 a month to drive a car. Now, the other thing is the insurance on cars. Insurance in California for your automobile has basically doubled over the last two years. Doubled in price. How much is it for a new car? I asked my insurance salesperson from State Farm and they just said, oh, you know, before you look at any car damage and not buying a new car, before you do, how does it quote you? Because there are some models we won’t even insure.

Kind of like the fire stuff that they talk about all the time. So, $1,000 a month. The subprime space was destroyed by tri-color. I found a great article talking about how the tri-color financing has made it so that when you walk into dealerships, one thing that they do right now is, hey, we should have a conversation about your credit to see if you qualify and what you can qualify for. Where they used to be able to get people through, you know, like one guy told me, if you could fog up a mirror and you were breathing, I could get you financing with tri-color.

Okay, well, that’s done. Now, your interest rate may be 22% in that new car, but they could get that. So, isn’t this wild? It’s clearly a warning sign for the economy. Now, this is where this gets better. At the end of December, I was sent an article from CarScoops. CarScoops is an auto blog like TK’s Garage. You want good auto information, go to TK’s Garage on YouTube. He’s fantastic. TK was talking about things like the inventory and the problems that they had left over from 2024. We haven’t seen anything yet, guys. We have not seen a thing because what you’re going to see is that all these dealers that have 2024 inventory, Dodge, Jeep, Alfa Romeo, it’s a lot.

Now, people say, oh, Dan, it’s a percentage of the inventory. It’s nothing. It’s not a big deal. Dodge Hornet PHEV tops the list. Eighty-two percent of the units were unsold. Eighty-two percent. Oh, my gosh. So, eighty-two percent of that inventory. First behind, Jeep Cherokee. Well, wait a second. That’s not an EV car. Seventy-one percent. The Alfa Romeo has fifty percent of their inventory left from 2024. If you know this and you walk in anywhere, you can get yourself a tremendous deal on this. I love this because we’re told how great the economy is. Everything’s going in.

It’s unlike anything we’ve ever lived through. But if you want to purchase anything right now, go out and do an ounce of research. Just, you know, as my friend says, use the Google and search it. Look at whatever your favorite search engine is. And go out and just start researching prices and terms and what this inventory increase means to all of us. It’s going to save you a bloody fortune on this. So, gosh, eighty percent of the inventory. Now, here’s the final thing to the car situation. General Motors just announced that they’re going to stop production at their latest plant for three weeks.

It will not reopen until January 2026. There are well over a thousand workers that are currently not working right now. Are they getting paid? Some have deals where they in their contract where they are getting paid. Most people are not getting paid during this time. But you have a thousand people out of a job right now when it comes to General Motors. Now, one thing about filming in Las Vegas is you have to navigate the music constantly for YouTube so you don’t have a problem, which is fine. But what’s funny is that Corvette plant that they were talking about, think about this, 1,145 people got laid off from two plants.

And this is kind of an oxymoron that’s kind of funny. GM’s flagship EV plant laid people off. That makes no sense because they’re not selling their EV cars. Could you imagine Grandpa getting an EV Corvette? You know, I’ve always wanted one and now I feel safe driving it. It’s like, it’s ridiculous, absolutely ridiculous. The cars are too expensive, nobody can afford these things. And they laid off 1,145 people through the 26th of January because of how bad production is. You’re going to see this a lot. You’re going to see them stop production on everything right now.

I think you could see a three month stoppage for work and new car inventory. Now, executives are going to sit there and say, that’s crazy. But we’ll see. Final, final story, and don’t forget to look at newvideos.com. Don’t forget to look at our private channel, iAllegedly Live. You want to email me. Remember the email address right now is iAllegedly.gmail until the site gets up. That will be shortly. And final, final thing, which I had to add this because it was funny because of the comments. We are about to celebrate 250 years as a country.

Sorry, 250th anniversary from 1776 to 2026. And they’re printing new coins. Oh, that’s great, Dan. Who has a problem with that? Well, it’s old presidents. And people have already been on money before, but they’re mixing things up a little bit to do something just innovative and different. Okay. Well, there’s not going to be a Trump point, is there? No, not right now. They’ve talked about it like a dollar Trump point, which would be funny, but they’ve never had a sitting president with a coin. So it’s not going to happen. It’s not going to happen.

The funny part of this is that the back of some of the coins are pilgrims. And people have a problem with pilgrims. This is ridiculous. This is horrible. I mean, who has a problem with pilgrims? I am telling you this right now. We live in a complaint upon complaint road. You could give stuff away for free, which we’re going to do. And you could have it so that… How do you offend people with the pilgrims? Well, there are people that are offended by this. Read the last article below, and it’s great. It’s funny.

I found humor in it. Like, subscribe. Again, you want to email me temporarily. It’s, I allegedly, at Gmail. Send those stories and fun stuff over. And I cannot wait to show you this show. It’s going to be absolutely amazing. I’ll see you soon. Thank you. [tr:trw].

See more of I Allegedly on their Public Channel and the MPN I Allegedly channel.

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