Car Crash Economy – Used Car Prices Plummet!
Summary
➡ Meridianlink faced a complaint from Black Hat after ignoring a security breach disclosure and a data ransom, claiming they weren’t required to report till the end of the year. Similarly, Samsung admitted to a major data hijack affecting its UK customer base, which was ongoing for over a year. Prominent investor Gary Schilling warned about an imminent financial collapse, projecting a 30% stock market drop and exploding interest rates. Meanwhile, banks are experiencing contraction in lending and seeing huge outflows, and some are reportedly planning to strip bonuses to force resignations. Finally, remote work is predicted to decline as employers demand increased onsite hours, and Citizens Bank has withdrawn from the wholesale market given lean mortgage demands.➡ Due to the current real estate market, leveraging foot traffic at well-visited businesses can generate leads for sales. Meanwhile, Amazon’s entry into the car sales business poses competition for traditional car lots. The Florida real estate market is struggling with inflated prices while consumer fees are increasing. Please, remain cautious and observant of market patterns.
Transcript
Hey, it’s Dan. Welcome back. You’re watching. I allegedly, and got a good one for you today. Not in front of Caesar’s palace, in front of these fountains. And we are in a bear market for a lot of things, but mainly the car industry. The car industry is completely upside down. And we officially got the numbers on this. And walking right in front of Hell’s Kitchen, which is a very cool restaurant.
And before I get into it, please, as always, like these videos, share these with your friends. And today we have a sponsor, Patriot Gold. And don’t forget to subscribe. First things first. Mannheim is the company that does the auto stats on sales. The industry. Think about this. For the first 15 days of November, we are officially in a bear market for the auto industry, especially the used car industry.
Nothing escaped this. You had smaller cars taking the biggest brunt of the price decline, and that was 5. 7%. You saw some SUVs only get hit by 4%, but overall, the average was over 5. 3%. Now, when you compare this to two years ago with the price hikes that we had in 2021, when everything was feverish and people were borrowing money hand over fist for these cards and paying astronomical amounts, you’re seeing the complete opposite, which is what I told you guys would happen, that it would just take a matter of time until the auto industry got caught up and everybody realized what a complete disaster this was going to be.
Now, the inventory, yes, it’s growing. Some of these places are hiding this. They’re hiding these numbers. But if you read the story below, you can’t hide this anymore. You cannot argue with what’s happening right now. And this is real right now. This is a real, real problem when it comes to the auto industry because the average interest rate has gone up and it basically doubled since the 2021 spike in prices.
So now you’re seeing the prices drop dramatically and you’re seeing interest rates. For some people, it’s right around 10% for a car loan. If you’ve got great credit. If you don’t have great credit, it could be in the people don’t want to hear that. Okay, so absolutely amazing that we’re seeing this and just a mess. Just an absolute mess. But once again, if you have patience, there’s deals out there.
There will be more and more deals out there. They cannot keep this inventory hidden for long. What do you think? End of the year, all the auto auctions, there’s more cars getting repossessed on a regular basis right now than in history, and they’re not telling us this. Ask the repo guys. Are you busy? Yes, we’re very busy, but they are giving people every chance under the sun to get out of this.
Now, in the last video, we covered something I just brushed on a little bit, and that is that the forbearance for mortgages is done. Everything is done as far as putting your money off and putting your payments off. If you go to your bank now, if you are behind in your car payment, this is your last chance. It really is, to fix it. If you have a family member that has it tough.
Oh, don’t worry, Ted will get a job. My husband always does. Work it out with the bank now, because what’s going to happen is they’re going to flip a switch and then they won’t be able to do this. I’m going to give you an idea of flipping a switch and what I’m talking about. The solar industry in California was fueled by federal grants and rebates and different incentives, low financing, and they sold this as a solar lease.
Okay? And what they did was, listen, what’s your monthly payment? Okay. And back ten years ago, they were saying, listen, do you know that by the time we hit 2020, which is already coming, when that your electric bill is going to be $1,000 a month for your regular basic house here in Southern California, you need to lock in your payment now and have a $350 a month solar payment and you’ll be ahead of the game.
That sounds great. Let’s do that. Okay. Only problem was deregulation never happened. The spike in these electrical prices never happened. And the solar incentives now have all but disappeared. The first thing that we’Re seeing right now is we’re seeing that the solar prices, and by the way, the cops are out inspecting everything before the race. The solar prices right now, the incentives have completely disappeared. Okay. So you have none of the rebates right now that you had before, and the rebates are gone, completely gone.
Okay. So the other thing is that when you have a solar system on your house, you could sell the power back to the power companies. It’s gone. They took the rate from here down to here, completely eviscerated any incentive for you to own solar and produce extra power. Now, the problem also in some areas of Southern California, this is criminal. People will go out and spend 25, $30,000 on solar, and I don’t want that many panels.
I don’t need that much. And basically there’s a year audit with your power company at the end of the year. Okay? Dan, let’s see. Your solar produced this many kilowatts of power, and you use this many kilowatts of power, you owe us $6,840. Holy cow. My solar’s power is free because I have solar. No, sir, you don’t. It’s just enough. And you’re producing power at this level. When you’re using this level that’s happening.
There is basically no incentive at all to have solar here in California. It is absolutely crazy that people have done this and they are stripping away these incentives and these entitlements and these programs, and you’re going to see this more and more and more right now. Okay, so share your thoughts on this stuff. The car inventory. If you can get to an auto auction, that would be great.
The problem with it is that think about this. Let’s just use a Prius. If you have a Prius and you want to spend $10,000 and somebody overpaid for it, it’s at the auction for 18,000. I don’t want to buy that, Dan. I don’t want to spend that kind of money on that car. It’s not worth it. Exactly. The problem is you’re going to see these banks have inventory that they’re going to have to make deals on, that they don’t know how to do this.
Show me a bank that can sit there. Oh, Ted’s great at negotiating price of car prices and discounts and everything. I’m freaked out because the cops are out here investigating and doing everything prior to the practice again starting. There’s more practice later on for the race right now, but it is just a matter of time until there are more deals out there. Just be patient. But if you need to sell something now, get rid of it today.
Do everything you can. Be creative. Get rid of it. Guys, I have a friend who buys cars, fixes them up and sells them. He gave me his little laundry list of questions he asked, and it saved us. It took us six weeks to find my son’s car. And the reason for that was we wanted to pay a certain price. We wanted mileage, we wanted a trackable service history that we could sit there and say, oh, this is what they did in the car so it wouldn’t be a lie and it wouldn’t be made up because the car flipper, the guy that buy the car, oh, listen, the transmission is bad.
Let me fix the transmission. I can do that for $600. And then they put the car on the road when it could have a dozen other things wrong. With it. So correct me if I’m wrong, guys, but share your thoughts on all this stuff so far. To this point all let’s talk about our sponsor, Patriot Gold Group. Let’s face it, everything in the economy is so precarious right now.
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8833 00:14 31 Here are two cyber stories that are absolutely amazing that blew me away when they were sent to me. First one is think about this one, Alpha V and Black hat. Okay? They’re a ransomware gang. They took over MeridianLink, which is a social platform, and they took the data, they got customer access, and they went to Meridianlink and said, hey, listen, we’ve got all this data.
You need to pay up. They refuse to. What does Black hat do? They went and filed a complaint. Think about this. The bad guys filed a complaint with the securities and Exchange Commission because the company didn’t file with the securities Exchange Commission that they were compromised. And you’re supposed to do this within four days. Now Meridian says, wait a second, that law doesn’t go into effect till the end of the year and we’ve still got about a month until we’re supposed to report this.
You’re kidding, right? So that’s insane, guys. They didn’t report it because they said we don’t have to. Okay? So how would you like to be a Meridian link user and know that they’re like, yeah, we don’t have to report this. That’s insane. Guys, I’m in front of the fountains at Caesar’s Palace. Okay? It’s just nice. Thought I’d park it here. There’s no music, so it’s really nice. Second thing, Samsung.
Samsung just admitted that they have been the victim of a attack and the majority of their customers for over a year in the UK. So if you are a Samsung customer, all your data is gone, guys. All your data has been hijacked. And this is bad, guys. But the problem with this is, again, a year long data. Wow. Gary Schilling. Gary Schilling is a famed investor. He steps forward and he says, listen, we are at an imminent point of a financial collapse.
And with that financial collapse, you’re going to see the stock market drop 30%, you’re going to see interest rates explode. You’re going to see the value of the dollar get eviscerated. And people need to understand that this is going to happen and that the S and P 500 could easily drop 30% at any point now. Because when reality sets in, that’s when everybody’s going to realize that there is a huge problem.
Okay, so no one’s hit that. No one’s realized that. And what do you think? You think it’s going to be bad? You think it’s going to hit us all at some point to where it’s going to be upside down? I don’t think it’s going to be like that. I think it’s going to be the slow burn because the Fed’s going to do everything they can to keep things going as long as possible.
Right now, the cops are kicking us out, but this is so far it’s been incredibly safe. Guys doing everything they can for security. Thank you. Thanks for letting me film out here. Okay. Just really, a lot of people. Crowd has been good. Crowd’s been nice. But when they shut something down. Goodbye. Have a nice day. Tell your story walking, pal. Okay, so let me know what you think about this stuff, but these cyber attacks and these ransomware attacks are getting crazier.
How about Alpha V and Black Cat? No. You’re going to report this or you’re going to pay us. Oh, you don’t want to report it. You don’t want to admit that we did this. Then they filed with the securities and Exchange Commission. The criminals did that. Have you ever heard of any such thing in your life? I have never heard of anything like that. This is absolutely crazy.
Share your thoughts on this stuff so far. One thing that’s crazy that I want to explain to you guys about the F one race and what happened in the practice the other night was the Ferrari car hit basically a drain cover. It came up and sparked and did know almost a million dollars of the damage to this one car. They’re talking about how this was a catastrophe because the first night of racing, people left.
I met a woman from England that flew here for one day just to see the practice round because it was the least expensive round. And she goes, I Got to see four minutes of racing. Four minutes. It was absolutely catastrophic. So they say that they spent half a billion dollars here. I think it’s a lot more. If you see everything that’s out here, it is crazy. Okay. Last week with banks, there was $64 billion worth of commercial outflow from big banks.
There’s also a contraction in lending right now. You’re not seeing the lending that you normally see. I’m talking normal lending, normal credit lines, normal things. With banks and institutions. You’re seeing more people get denied right now for credit line increases, regular business loans, things like that are just getting eviscerated right now. And everybody wants to think, oh, gosh, what did we do? It’s us. No, it’s everyone. This is happening to everyone right now.
Don’t think it’s just you. It’s everyone right now. And I love these stories because people send me things that work at, like, Wall street banks, and they say, dan, we want to get rid of people right now. We just don’t want to fire them. We don’t want the incentives we have to pay. We don’t want to make a deal. We don’t want to give any type of severance package to anyone.
We want them to leave. So what they’re doing, and now I’ve heard this from two people, and there’s a great article below on this exact subject, and that is what they’re going to do with people, is they’re going to strip them of their bonuses this year. So, hey, listen, Dan, I need you to work 75 hours a week. I need you to do this, this, and this between now and the end of the year.
And don’t worry, it’s bonus time. It’s bonus time. And then what they’re going to do, they’re going to strip them and give them a bonus. That would be embarrassing right now. So, hey, forget this place. I’m out of here. This is the last place I would work at. I’m not giving them any of my time. How ridiculous is this? So there’s a lot of ways to make people quit right now.
Okay, great story that somebody sent to me about a Taco Bell Christmas party last year. And I’m thinking, wow, Taco Bell got a little crazy last year on Gaffey street in San Pedro. What happened was the manager was there and they had debauchery, okay? They had people doing things that were debauchery. I can’t even say what these people were doing, but they were drinking, vomiting, throwing up, doing stuff with each other, adult stuff, and it was crazy.
And one woman said, this is terrible. I brought Guacamole to the party and people were throwing up in my guacamole. I want no part of this place. So she reported it to HR and guess what? Got blacklisted. So now she has to sue almost a year later. So again, that’s what happened outside of health’s kitchen, which is nice up here, but just craziness. Guys, what have you seen? Okay, I’ve told you guys stories about getting quitting and I got fired once unjustly from a job.
I didn’t like the way I got fired, and I doubt if I ever got, if I was ever in that position again, I would make a statement and I’ve done that ever since. So again, I don’t know of any true entrepreneur that has been fired from a job. Share your stories. If you want to email me anything, let me, you know, risk, reward life. You gotta pay the price every now and then to do something.
But listen, Taco Bell on Gaffey street in San Pedro, man, they know how to party. Okay? So craziness, okay, you’re going to hear about this. This will make national news when this gets out, okay? Share your thoughts on all this stuff so far. Here’s a few stories that are kind of interesting. The golden age of remote work. People not wanting to go to the office, they say could be over.
CNBC had a great article talking about how these days of just sitting there at your house and getting paid a full time wage could be finally done once and for all. With that happening, you’re going to see changes. Here’s the thing that I’m seeing. I’m seeing employers that are saying, listen, we’re going to get rid of people and you’re going to do a job and a half. You’re going to do more than you’ve ever done if you want to keep your paycheck every other week.
And what are you going to do? You’re going to go look for a job right now? No, you’re going to go. I’ll do extra work. Oh, you need me to come in? That’s what they’re doing. Remember, this also killed San Francisco. This is one of the problems you have with some of these tech hubs and these cities is that it absolutely destroyed people going to work, know, not going to work there.
Pardon me. The other thing is Citizens Bank. Citizens bank is getting out of the wholesale end completely. Now, they did think about this, over a billion dollars in mortgage loans in 2023 so far, and it’s done. We’re not doing this anymore. Now, we’ve talked about all the problems that they have. But guys, what’s next? They’re not writing mortgages because people are not getting mortgages. So that’s the problem with this.
This is very interesting that you’ve got to be realistic with what’s happening right now, because when mortgages are not being written, you don’t have business right now. Now, one thing that you’re going to see, and I’ve done this, and it’s the most brilliant thing you can do if you want to generate leads, place your business in somebody else’s business that has major foot traffic, and that would be a great way to move product, a great way to get leads, great way to sell things.
Okay. You can pay little or no rent, maybe a commission on the sales, and that’s that. Amazon in 2024 just announced that they are going to go in the car sales business. Okay, well, if you’re a car lot, how do you compete with Amazon? Now? You’ve got all these different online retailers out there selling, but they just struck a deal and signed it. You can read below on this.
They just stuck a deal with Hyundai. So between now and the middle of 2024, you’re going to better go on Amazon and buy cars right now, crazy guys. And you’re going to see more and more of this stuff. So share your thoughts on this. And crowds definitely picking up right now. But let me know what you think about all this so far. I’m going to finish this video with these last couple of stories.
This, if it wasn’t a business news story, this would be a comedy. Okay. I want you to think about this. The state of Florida has such a problem with its real estate right now. You’ve got inventory problems. You’ve got things that are on the market for 150 days right now. You’ve got things that won’t sell. You’ve got people dropping prices in so many markets that were hot a year ago.
Okay. Completely night and day change. Lawrence Yoon, who’s in charge of the Florida Realtors association, steps forward. And Mr. Yoon says, listen, we’re going to see price increases of 15% next year. I mean, he must be drinking the cooking sherry, guys, because that’s crazy. You’re not going to see price increases of 15% next year and we’re going to see interest rates that are going to hover between six and 7%.
If you own the bank, you’re going to be able to get that. But if you’re like you and I, you’re never going to get that. You’re never going to get that. Final story that I want to share with you guys is one thing I always tell you guys is look at all your bills. Look at everything. We have a subscriber who has a friend who rents an apartment and it was kind of a neat place where you could take your trash out your front door and they would pick it up and they would take the trash, you put it in the right receptacles and it was clean, they would take it to the dumpster for you.
Well, guess what they did last month? No, we’re not going to do that anymore. We’ll do it, but we’re going to charge you $25 a month. There’s going to be a trash administration fee of $0. 50. There’s going to be a trash fee separate from the valet. Trash valet fee of $18. Crazy. By the way, the cops are here checking this place out. But again, about $50 a month to have them walk the trash 50ft for you.
Okay. Pass criminals. Okay. Be careful. You’re going to see more and more things like this right now. So please don’t forget to hit the like button. Please don’t forget to subscribe to the channel. And if you want to email me, send me a great story. Hello@iallegedly. com? Onward and upward, guys. I’ll see you guys very soon. You close. .
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