➡ Toyota is facing challenges due to a decrease in car sales and issues in the auto lending industry. To combat this, they are focusing on leasing cars rather than selling them, offering better deals to consumers. This strategy is similar to what Tesla did when they slashed their prices. The shift towards leasing is a response to falling car prices and market uncertainty, with Toyota becoming more aggressive in their leasing efforts.
➡ The speaker shares his experience in buying and selling vehicles, particularly trailers, and offers a course with tips on how to save money when buying new or used cars and how to profit when selling them. He emphasizes the importance of buying vehicles outright rather than leasing, and mentions that Toyota and Honda are becoming more popular due to their reliability and aggressive marketing strategies. He also highlights that Toyota offers a unique leasing deal where all maintenance costs are covered. The speaker encourages listeners to check out the course link for more information, but assures them that he will continue to share valuable insights regardless.

Hey everybody, Economic Ninja here. I hope you’re doing well. Toyota is in trouble, but they are actually taking some drastic measures right now behind the scenes because they see the writing on the wall. And that writing on the wall says, no one’s coming to buy cars, we’ve got problems in the credit industry, the auto lending industry, and you better do something now or you’re going to be in trouble. This is very akin to what Elon Musk did with Tesla when he says the auto market’s going to start crashing and then within four weeks he starts drastically slashing the price of Tesla.

I have an auto insider with me. He’s actually taught a lot of lessons and just did a new one for AutoTrader Pro. I’ll put an 80% off link down below if you want. He’s teaching people now how to lease cars and save a lot of money and interest. It’s absolutely crazy. But Andrew, how are you doing? I’ve never been better. Fantastic. Awesome. Well, it doesn’t sound like the auto industry is fantastic though. No, it’s not. It’s not like the picture behind me at all. Exactly. So, all right, let’s talk about before we go into Toyota specifically because this is some really good info that because of your ties in the auto industry, one of your insiders brought you some amazing info on how people can save money and all that stuff.

But let’s talk about the whole industry at first, then we’re going to dive into Toyota. What is going on? How many cars are being sold, new and used? Speaking with Toyota, industry as a whole. Industry as a whole right now? Industry as a whole, the day supply as a whole, it has moved north at 42 day supply. And just so you want to know, you want to be below 25 percent, 25 day supply. There were times during after COVID, during COVID that we were at 10 days. I mean, you could walk onto a lot and you couldn’t see a new car for miles.

Now you walk onto a lot, they don’t even know where to put them. You know, building or companies are expanding their lots. The day supply is huge and some of these people are 60 days. High end, 60 day supply, can’t get rid of them. And like you said, with Elon Musk, about to happen again because he’s about, you know, that’s what they’re afraid of is he’s about to do the slash again. And if I’m allowed to talk about this, the EV market is about, that’s about to take a drastic hit. I mean, like we discussed, you know, you’re selling a high end EV SUV.

I personally did the deal, $176,000. Five months later, same exact car went for $111,000. Wow, that’s amazing. Now, what about, we all know that interest rates have gone up and that with the price of cards made it so inexpensive. And let’s talk specifically about Toyota because a lot of people have abandoned Toyota after they marked prices way over MSRP. A lot of people weren’t happy with the brand, but something has shifted and Toyota is starting to get really aggressive. So let’s just start talking about that. What did your insider share with you? My insider shared something with me that you remember we talked about how we wouldn’t buy a new or used car right now.

Leasing is what they’re pushing. And the reason is because, you know, and you’ll learn this in the course, they have to because the leasing, they’re lowering their money factors to compete with the interest rates. And the leasing is giving the consumer a much better deal. And also remember with Toyota specifically, that’s why I wanted to focus on this. This goes back to your subprime lending and how desperate they are. You don’t have to have a 700 credit score to go buy, to get the premium rates on a lease. You do on a purchase, but not a lease.

Now, sometimes we’ll make exceptions on a purchase, but they’re doing the leases because you could have a 660 and still get the same credit score or same money factor as a 740. They have to move the inventory. And they realize what you just said, that people were especially on the tundras and even the cameras, they were 10,000 over because they just couldn’t get the vehicle. And yes, there was a lot of anger towards that company. Same with Honda. But they’ve gotten extremely aggressive on leases to where it makes no sense not to lease a vehicle.

So let me ask you this. It seems like they’re moving a lot of inventory to leases then because the consumer must be gone. Why would I buy a car when I’m seeing all these falling prices and I’m unsure of the market? So is that what we’re seeing? The consumers buying? Yeah, they’re leasing. But you’ve got some really interesting ways. And I know I don’t want to get into it because you just taught those lessons, but you’re teaching people how to do certain things with leases to save a lot of money because of this thing that just changed in the market, this dynamic where Toyota is moving a lot of vehicles into the lease category.

Right. And I don’t want to get too deep into that because, like I said, I did a thorough lesson on that for the course. I just think that that’s something that they should go because it’s something that they need to watch over and over and apply because it’s a little bit more in depth than what we talked about last time on the live video. And I just don’t think that it’s necessary to go over all of that with leases because it’s a lot more complicated. But it’s very easy once you watch the video, maybe one and a half times.

But it’s a huge way for a consumer. And by the way, you know, and I like to make digs at it every now and then because it’s been, you know, in the auto industry, you know, Dave Ramsey is like our arch nemesis, you know, arch nemesis because he’s always like buy used, buy used, never lease, never lease. Not now, not in these economic conditions, not at all. It is absolutely if you and like we said, if you must buy a new or used car, lease the vehicle because you can. There is ways that you’ll find in the course that you can lease a vehicle if you know you’re going to buy the vehicle that you don’t even have to worry about the miles.

You don’t have to worry about nothing. That’s crazy. And but this is something that nobody’s thinking about right now, but it’s because very difficult times are now causing companies to make very difficult and aggressive decisions. Is there anything else your insider is talking about with Toyota specifically of what’s going on in that space in the company? They’re with regard because I really stuck with him on leasing with regards to leasing. They’re up 45 percent. That is massive with with their dealership specifically that that is not normal. They’re they’re 10 percent, 12 percent. They’re they’re closer to 40 percent.

That’s that’s that’s huge. Huge. So this is this is something that’s you said it’s huge. But let me just throw this out there. What what kind of percentages of leasing vehicles where the company says you’ve worked for a lot of different car brands. Right. You had your hand in a bunch. What’s like typical the percentage of leases to sales that a company does. Well, that’s that’s going to depend on the brand. So BMW, it’s going to be higher. Cadillac’s going to be higher. Audi’s going to be higher. You’re looking at 60 percent leases at like those brands on brands like Honda and Toyota twenty fifteen.

Well, that makes a lot of sense because those brands tend to last a lot longer than BMW is Audi’s where you get electrical issues, things like that. Every car company has their issues, but I could see that making sense. The question I have is because a lease is technically it’s owned by the corporation, right? Toyota Corporation. This is technically a way of them being able to get rid of shadow inventory because it’s the company, the brand, the corporation. You go to your local Toyota dealer and it’s owned, let’s say, by some local family. Let’s say it’s a small mom and pop.

If they lease that Toyota, they’re just the middleman in that transaction. The car still stays in the possession of Toyota Corporation, the ownership until it’s paid off or or handed back. Right. Right. And this is what I want to say. This is a plug because I’m not going to do it right here. You want to know how to really take advantage of this. It’s in the course and it’s in the disc. It’s it’s in it’s laid out in detail how to really, really, really take advantage of this opportunity that’s going on right now. Yeah, you know, and let me just go ahead and throw the plug right now to everyone that has the course.

Two new lessons just popped up. They’ll be live tonight. We put this course together and Andrew helped me with some of the lessons and he’s going to start putting even more lessons on. I said I’ve been buying and selling vehicles for a long time. I’ve made some pretty good money, especially in the trailer world. And so I wanted to share that with you. So if you guys want to check it out, I got an 80 percent off link down below. It’s going to help you either save money, lots of money buying a new car, lots of money buying used car, and then how to make money when you go to sell it back.

If you want to check those out, the description is down below the link. Andrew, thank you so much. In closing, is there anything you want to close on? Yeah, I want to close on things. I don’t want to feel like that I’m just pushing them towards the course. A lot of the stuff that we talked about when you’re going to buy a vehicle, purchase it outright, not lease it. Those terms still apply to when you’re leasing. So when you do it, still go through the same process, still act like you’re ordering, still do those things.

And those deals still will apply. And it’s just it’s amazing. You know, this guy’s got I can’t wait to talk with him. There’s going to be a lot more to come that’s going to be added to your course that people are really going to find very, very interesting because I’m telling you. I know that I had mentioned domestic because a lot of us in the car industry call Honda and Toyota domestic because we sell so many of them here. I know that it’s it’s not a domestic vehicle, but we own the southeastern division of Toyota here in the United States.

A lot of the parts are made here. There’s going to be a huge uptick in discounts for those those two specific brands. And that’s in reality, Travis, you as well as I know that people are going to be moving towards those kind of vehicles. You know, just I agree. Yeah, I’ve been a Toyota family for a long time and Honda growing up because of their reliability lately, it’s just been disgusting, you know, with all the the supply chain issues and markups, you know, stuff like that. Last thing, last thing you asked me in closing, this is nothing new because you can go with this.

What to tell you what Toyota has done because they know how catastrophic it’s going. They’re the only brand. OK, that when you lease a vehicle, if you pay for anything other than gas, you’re doing something wrong. You don’t pay for anything. There is no more. When you turn it in, you start to pay the disposition, but you’re not worried about anything. This is if you don’t buy. So all maintenance that I mean, oil filter brake pads, if they need to be done, windshield wipers, it’s all done. And when you and he was telling me, he said it’s incredibly easy.

If you do a 15000 mile lease, just ask for that bump, you know, from the 12000. So that’s something huge that your audience needs to know that these two brands on in Toyota, they’re getting highly aggressive because that used to be a finance problem. Yep. So yeah, I agree. Well, hey, thank you so much, Andrew, for coming on. If you guys want the links down below, if not, no worries. We’re going to keep bringing you good nuggets of information. And what he’s already shared with you is definitely worth it. So I hope you guys have a great day.

The economic ninja is out. [tr:trw].

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