Expert says car market is crashing and buyers now have the power

@tomislavmikula/TikTok itchaznong/Adobe Stock (Licensed)

‘I need the clearance rack to have a new Volvo XC90 on it’: Expert says car market is crashing and buyers now have the power. Here’s how to get a deal

‘These interest rates are killing me from wanting to buy.’

 

Melody Heald

Trending

In April, there were reports of the car market starting to crash and not showing any signs of stopping. One personal car-buying advocate revealed how to get a good deal on a car when the markets crash.

TikTok user Tomislav Mikula (@tomislavmikula) specializes in helping people get good car deals.

“Yes, the new car market has started to crash,” he tells his 160,000 followers. “You can great deals on almost any new car.”

Due to negotiations and the impending crash, the content creator was able to get his client over $4,000 off their Lexus RX-350 Hybrid, another over $3,000 on a RAV4 Prime, and the final one 10% off a BMW-X5.

“I’m sorry guys. The market is starting to shift, inventory is starting to increase,” he explains. “And as that increases, competition will always drive the price down.”

How to get a good deal on a car

This begs the question: How do you get a good deal on a car?

“Pinning dealerships against each other is the best way to buy cars,” Mikula states.

However, some cars can’t be lowered under MSRP ( manufacturer’s suggested retail price). This is the recommended price companies want car dealers to sell their vehicles for.

“The GX-550, for example, you’re not getting below MSRP,” he states.

But most cars can. “99% of them, the RAVs, the Hondas CRV, the Civics, Mazda CX-5’s, you should be able to get 7-10% off MSRP,” he concludes.

@tomislavmikula Replying to @queenJ Yes The New Car market has crashed. Dealerships desperate to sell cars #carbuying #delivrd #cardealership #cars #carsales ♬ original sound – Delivrd

The Daily Dot reached out to Tomislav Mikula via Instagram direct message and TikTok comment. The video racked up over 505,000 views and viewers shared which cars they wanted discounted.

Viewers weigh in

“I need the clearance rack to have a new Volvo XC90 on it,” one viewer joked.

“Waiting on a clearance for a Volkswagen atlas,” a second stated.

“I want the Honda Pilot with $10k off,” a third commented.

On the other hand, some pointed out discrepancies. 

“Only problem is the dealerships marked up pricing 20% to 30% from 2020. Pricing needs to come down more than 3-4K,” one user noted.

“Still refuse to pay the obscene interest rates right now so nope,” a second remarked.

According to USA Today, new cars have increased 29% and used 34%. 

What is the current interest rate now?

For new cars, the interest rate is 7.3% and 11.5% for used cars. However, the average car loan across credit profiles is “5.64% to 14.78% for new cars and 7.66% to 21.55% for used cars,” per Market Watch Guides.

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