Is the Auto Market Crashing?

Is the auto market crashing? That’s what one expert alleges.

Consultant Brandon (@the1mr_gratitude) says that his business interactions with car dealers suggests their inventories are “overflowing.” In a recent TikTok, he argues that the current state of the market can ultimately benefit potential buyers.

“This message is for the ones that don’t watch the news,” the TikToker says. Continuing, he reveals what’s purportedly caused a “crash” in the industry.

Next, he addresses those who deny that this is the case. “So many people are like, not in my state. Not in Texas, not in Florida, not in New York. I work with dealers nationwide. Virtually every dealership across the country,” Brandon avers.

He says that there are salient indicators that prove the automotive industry is in dire straits. The first is an overabundance of stock.

“And here’s the telltale signs that you know we are in a true car market crash. For one, the lots are overfilled, they are filled to the brim. In fact they’re in overflow on their side lots because they’re so full,” he says.

This, Brandon states, is because folks just aren’t buying vehicles as much as they did prior to 2020.

“Cars are not selling. They’re sitting on lots an average of over 120 days,” Brandon claims. “And we have not seen that since pre-Covid. Sign number two: dealers manufacturers, dealers are really pumping out. The manufacturers are offering 0-2 percent financing right now. We have not seen that since pre-COVID days. The market is crashing and has been crashing since October of 2023. All you gotta do is look,” he says.

Is It Really a Crash?

There are a number of online community discussions and articles that echo Brandon’s sentiments regarding a car market crash. JC Whitney wrote that “the car market in 2025 is teetering on the edge of collapse, and the signs are undeniable.”

It noted that this is a buyer’s market, writing that even Ford F-150s “are struggling to move.” Additionally, other popular models, like the Toyota Tundra, “are sitting for 200-250 days on average, with dealers slashing $8,000-$12,000 off MSRP just to entice buyers.”

It also said that turgid pricing and reduced trade-in values contributed heavily to the market collapse. Motor1 compiled a list of 10 of the slowest-selling cars in 2025, and each has been sitting on lots much longer than the 120 days Brandon mentions.

In a Motley Fool discussion thread titled “Car Market Crash,” one person argued that inflated pandemic-era pricing ultimately had an adverse effect on the automotive industry, leading to massively inflated prices. Individuals who ended up financing expensive cars during this time have found themselves in a bad financial situation. Consequently, the prospect of trading in a vehicle will leave them with negative equity, so they’re tentative about trading up for a new ride.

Plummet Or Strain?

Analysis provided by S&P Global indicates that there have, indeed, been fewer cars sold between January-July 2025 when compared to the same six-month time period of previous years. During Q1-Q2 2025, approximately 8.25 million units were sold in the U.S. On the other hand, 2024 saw 9.07 million cars sold during this same time, and 8.96 million in 2023.

Dealership consulting firm, Haig Partners, writes that in the second quarter of 2025, dealership inventories did, in fact, rise. Car Edge also highlighted specific brands along with average lot wait times in February 2025, reporting that Dodge, Jeep, Ram, and Chrysler models are all sitting on lots well over 100 days.

Data also suggests manufacturers are slowing down production, presumably in reaction to sales dips. Some believe that this is a concentrated effort from automakers to short the market and create more demand for their offerings.

Can a Market Slowdown Work in Your Favor?

If what Brandon and other experts say is true, then it may work in consumers’ favor. Folks interested in a particular vehicle may want to use the lack of interest from prospective buyers as a negotiating tactic. To do this, Brandon reveals how you can determine how long a car has been sitting in the lot for.

“Go to a car aggregate site,” Brandon advises. “I personally use Car Gurus and Car Edge. It’s gonna show you how long that vehicle’s been on the lot.”

Equipped with this knowledge, Brandon says car shoppers have more ammunition to nab a good deal.

“That way when you get to the dealership you can call them out on their BS. And say, ‘Hey, look, I’m in front of you. I’ve got the cash, I’ve got good credit, I’ve got whatever it is. I don’t need debt. But you need to sell this car. And this car, I want it. It’s been on the lot over 120 days. I want it for X and I’m seeing discounts up to 40% off,’” he says.

Motor1 has reached out to Brandon via email for further comment. We’ll update this if he responds.