Here's How the Car Market CRASH of 2025 UNFOLDS



The 2025 Car Market Crash Is Here — And It’s Getting Ugly Fast

There’s no debate anymore: the car market crash of 2025 is underway. The only question now is how far and how fast it falls.

In this post, we’re breaking down what this crash actually looks like — not in theory, but in reality. We’ll cover the cold, hard data behind the unfolding collapse, the warning signs showing up at your local dealership, and the broader implications for automakers, consumers, and the economy at large.

The Inventory Glut Is Real — And Alarming

The first red flag? Cars aren’t moving. At all.

  • Ram trucks are sitting on lots for 460+ days.

  • Toyota Tundras: over 220 days.

  • Tacomas: around 150 days.

  • Ford Broncos (non-Raptor): 180–200 days.

  • Even high-demand trims like Bronco Raptors are now sticking around 80–100 days.

This isn’t normal. Dealers are flooded with unsold inventory — and it’s not just a fluke. This is systemic.

The Consumer Is Tapped Out

People aren’t buying because they can’t. Financial stress is at an all-time high.

  • Average negative equity: $7,200.

  • Average credit card debt: $7,236 — and climbing every quarter.

  • Insurance premiums: more than doubled in just 2.5 years.

  • Interest rates: 7% on new car loans, 11.1% on used.

  • Average monthly payment: $760 (new), $525 (used).

That’s a financial anchor around the neck of every would-be buyer. Combined with inflated MSRPs and bloated inventory, people are finally saying “no.”

Sticker Shock: The Pricing Crisis

It’s not just inflation — it’s greed.

  • MSRPs have risen 42% on average in the last few years.

  • Some brands (Jeep, for instance) have seen increases of 50% or more.

  • Dealers can’t move inventory, but some still won’t discount. That’s suicide.

The result? Consumers are walking, and the market is collapsing under its own weight.

Layoffs, Closures, and Corporate Chaos

This isn’t just a dealership problem. The entire auto industry is contracting.

  • Stellantis stock is down over 50% this year. Their CEO bailed just before the warning sirens started blaring.

  • Nissan: CFO resigned; 9,000 layoffs announced worldwide.

  • Ford: cutting over 4,000 jobs globally.

  • Volkswagen: 3,000+ jobs gone in 2025, with plans to cut 35,000 by 2030.

  • Michelin: cutting 1,250+ jobs.

  • Auto parts plants in Alabama and Michigan: layoffs mounting.

Even production is taking a hit — not just the sales floors. The ripple effects are growing.

Consumers Defaulting, Loans Denied, Wholesale Plummeting

More cracks in the foundation:

  • Auto loan defaults: up 23% — the first bill many are skipping is the car payment.

  • 1 in 5 auto loans were denied last quarter — a record.

  • Wholesale auto sales: down 18% quarter over quarter — unprecedented. Expect retail to follow.

  • Inventory levels: nearing 3 million vehicles in the U.S. — up 120% from 2023.

EVs Are in Trouble Too

Outside of Tesla, the electric vehicle market is in a freefall.

  • Rivian: worst-performing stock of the year, down 55%.

  • Lucid: not far behind with a 48% loss.

  • Ford's Mach-E and F150 Lightning? Piling up on lots. Incentives aren’t working.

The Crash Doesn’t Look Like You Think

Let’s be clear: this isn’t a dream scenario where cars are given away for pennies. A crash looks like:

  • Dealers cutting prices 10–20% below invoice just to stay afloat.

  • Others folding completely, forced to return unsold inventory to manufacturers.

  • Quality control slipping across major brands.

  • Shareholders losing patience as sales stall and misleading reporting gets exposed.

Greed is driving many dealers and manufacturers toward disaster. And this time, there may be no bailout. Nor should there be. The system was bloated, overleveraged, and out of touch — now it’s correcting violently.

Some Bright Spots — But Not Many

If there’s a silver lining, it’s this: markups are disappearing fast. With a few exceptions, you can now negotiate well below MSRP — even on trims like the Toyota TRD Pro, Ram TRX, or F-150 Raptor.

But don’t mistake that for a healthy market. It’s desperation, not generosity.

Final Thoughts

This is what a modern-day car market crash looks like. It’s not dramatic headlines — it’s slow bleed: bloated lots, laid-off workers, frustrated consumers, and a market suffocating under its own weight.

What are you seeing in your area? Are local dealerships already showing cracks? Let’s talk about it — drop your thoughts in the comments.

Comments

Post a Comment

Leave Us Feedback