Chris Collins and Sam discuss what's shifting in the auto service industry right now. They cover luxury car brands, the automotive market, and what's happening with used vehicle inventory.
Foreign.
So one of these you sent to me and then the other two, you.
Have that one in there.
Yeah.
What did you think of that? Oh, I guess you got to tell everybody what it is first.
Yeah, so let's do that first. So Toyota just announced that it's creating an ultra luxury brand above Lexus. So think about like Maybach is what I was, when you sent this to me and I read through it, I was like, oh, okay. So it's like Ben's doing Maybach, but they're gonna have a luxury brand above Le Texas and it's called Century. And so I can't show you. Maybe Kevin can put the inlay in. But essentially there's a, they're starting with an SUV that is going to top out at about $220,000. And if you look at it, it looks a lot like the Rolls Royce SUV if you've seen that thing. So they're, they're dipping their toe in that pool. But it debuted in September of last year and it's.
And they haven't decided if they're debuted where? Europe.
Oh, really?
Yep. So they, they haven't confirmed it that it's going to come to the U.S.
Oh, wow.
But yeah, so that's, it's on the horizon for Toyota. But you wouldn't believe how many people.
In my, in, you know, Beverly Hills or my neighborhood in Hollywood drive half a million dollar cars.
Like it's nuts. Yeah.
You know what? Actually.
Kind of a cousin of that, I didn't print that, but I saw it while I was looking at all this stuff, is that, you know who had their best year ever last year, which supports what you just said. Bentley, Lamborghini. Yeah, most Lamborghini sold ever was last year.
It's crazy.
So there's a lot of people that can afford $500,000 cars. It's pretty crazy.
But yeah, so they're gonna, they're going into the.
If you could afford one, would you have one?
No.
Yeah, that's the thing. I don't know necessarily that it's about affording because like, you know, you can lease a Ferrari like for I think on the low end for 3, 500amonth or something, you could lease one. So I mean, that's a lot.
But yeah, but by the time you use it as a business write off, it's not near as much as you might think.
Yeah, but would you like. It's just not a practical.
I think about it as, as no matter what, no matter how much I do really like cars, it's not an investment. Like if you have that much money, you could be making it work for you.
Yeah.
So that's probably why I don't.
I agree with that.
Yeah. I've got a level where no matter how successful I am, I think that I probably won't hit past a certain amount. Like I, I don't mind having a nice car. I wouldn't, I wouldn't.
Yeah. But 220,000 is more than I would do.
Yeah, because you could, like I said, you could turn 220,000 into 400,000 if you play your cards right. So that is my, that's my thought on that. Okay. So speaking of cars, this was off of Cox Automotives report that used vehicle supply closed 2023 at the highest levels of the year. So again, pay attention if you're in the service department. So I think that that's really interesting. So used vehicle inventory rose to 2.39 million units, which is a 56 day supply. So almost two months. So that tells me Right. When you're thinking about February and March in terms of the service department is I would expect to have less internals because they're going to try to clean out that inventory first.
So that's something that everybody should kind of be paying attention to. But the levels of.
Inventory keep going up. I would also suspect it doesn't say this on this report, but.
I'd love to know the percentage of dealers that are underwater on those cars. Remember how it had that huge bubble and it's starting to correct.
Well, they're going to be underwater just in the sense that they're going to go down in value quicker. We're going to see.
A depreciation because the new car supply is there. Right. So used cars had a, I remember I, during.
I don't know, is it 2022? I sold the car I had for more than I paid for.
That's right.
Yeah. Which made no sense.
That may never happen again as long as you live.
But people bought it for more than I paid for it and they now are in it for more than I paid for it. Right.
Yeah.
And that car isn't going to be worth that. It's going to go back to the old value.
Thanks so much for watching this clip of Service Driver Revolution. We're uploading new stu every day, so make sure you subscribe and click the bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333 Ask SDR. And we'll answer your question on the show. That's 8333 Ask SDR for special deals on our books and training. Head over to offers.chriscollinsinc.com now that's offers.chriscollinsInc.com I'm Chris Collins and I'll see you in the next video.
Sam.
