People have completely stopped buying used cars... Much of it boils down to affordability. People Cannot Afford Used Cars in 2026… and they certainly won't in 2027. In this video, I talk through the following points:
Carmax just finished their 3rd round of layoffs this year.
Carmax is trying to restore their profitability.
Carmax goes profit is declining quick.
People are financially stressed right now.
Used cars aren’t affordable anymore…
Average used $27,239 according to kbb, the highest we’ve seen since the height of the pandemic.
Used car prices spiked 7% year over year.
Interest rates are still garbage. 11-12% is still the national average APR. 11.3% is the current average as of today.
Huge amount of your monthly payment goes toward your interest… vs the principal.
Average used vehicle monthly payment is $540.
Brand new cars have gotten wildly expensive. Average price tipped over $50K. This bumped up used prices.
Used cars aren’t affordable affordability is gone. Quality is gone! Too much tech, too many recalls, it’s pathetic.
Who wants to overpay for a car that has quality control issues and is out of its manufacturer warranty.
Dealer doc fees, protection packages, e tended warranty, etc… people are tired of getting nickeled and dimed.
People are holding onto their paid off cars now. People are refusing to trade in their paid off cars.
A lot of the people who have consistently traded in for a new vehicle every 2-5 years are rolling negative equity into their new auto loan.
22% of all auto loans applied for in 2026 were denied.
About 30% of all vehicles traded in last year had a negative equity.
The national average negative equity is $7900.
People are dragging out their auto loans too far… 25% of all loans taken in 2026 are for 84 months! Almost 3% were for 96 months!
Repair costs have gotten out of hand, people don’t want used out of warranty.
Insurance premium continue to skyrocket.
Fuel prices are high and that hurting people.
Carvana has performed better than Carmax right now. People are choosing to skip the dealership!
The second half of 2026 here has been painful for Carvana too.
It’s wiser to keep ahold of their current vehicle. Perform the necessary maintenance and service instead.
People are not confident in the economy right now… people aren’t confident in job stability right now.
Over 100M auto loans exist within our country.
Owe $1.67 Trillion on auto loans across the U.S. right now.
Auto loan delinquencies are on the rise… they’re well above the norm.
Vehicle repos are on the rise.
People cannot afford new cars in 2026.
Quite frankly, people can’t afford used cars in 2026.
Used car dealers are going out of business in 2027. Dealers are taking significant losses on their used inventory. The demand just isn’t there.
Average new vehicle ownership costs about $13K to own each year. This includes the cost of everything -considering someone drives… payment, gas, insurance, 15K miles of driving per year. Up for $11K in 2025.

What are you seeing at your local dealerships? Are they moving inventory? Are they successfully selling new and used cars? Or are they holding firm and collecting inventory? Let me know in the comments. Oh, and have you ever heard of homeless people sleeping in new cars on dealer lots? What in the world, haha.

Stay Untamed...

#carmarket #marketcrash #vehicles