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Try living in a place where imported cars have a duty that can more than double the cost of the car, and pretty much everything is imported. Like Israel. Oh, and gas is $8+ a gallon as well.
Some people finance and are in bad financial situations because of it. However, many more can "afford" their new car just fine too. Whether they pay cash, or pay on financing.
This concept that new cars are so expensive that people are in a state of perpetual debt they cannot afford is just not always true.
Maybe I am an outliar, but I have never bought a car which cost more than I could comfortably and easily afford within a responsible budget. Most have been cash deals, unless the interest rates were too good to pass up. I am not rich or independently wealthy either, have plenty of savings, well on pace for retirement, etc.
Location: By the sea, by the sea, by the beautiful sea
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Quote:
Originally Posted by trlhiker
As long as people are willing to finance them, they will keep getting more and more expensive.
Quote:
Originally Posted by GnomadAK
No worries, welcome to the 84 and 96 month finance plans. Not only can you finance more vehicle than ever, you can finance the upside down into your new overpriced new car and be a proper debt serf for as far as the eye can see!
Glad to hear it! This will continue to give us bottom-feeders who have no problem driving 10 year old cars that function perfectly well a choice when in the market.
Between safety regulation, emissions regulations, efficiency regulations (which drove Ford to go to an aluminum body for the F150), etc., I don't think it could be done. And, lets face it, the expectation of what the minimum features users expect on a vehicle has increased greatly. So even if they could do it, I doubt too many people would buy it.
Especially in pick-ups you can get stripper models. How do those sell vs. loaded up versions?
Quote:
Originally Posted by thecoalman
I think that If someone brought to market a simple line of truck and cars they would make a killing. When I say simple I mean no power windows, no fancy interior with 20 lights, regular light switch etc.
Between safety regulation, emissions regulations, efficiency regulations (which drove Ford to go to an aluminum body for the F150), etc., I don't think it could be done. And, lets face it, the expectation of what the minimum features users expect on a vehicle has increased greatly. So even if they could do it, I doubt too many people would buy it.
Especially in pick-ups you can get stripper models. How do those sell vs. loaded up versions?
This is a lot of it. The same way that people's expectations of what they want in a house has increased so have the expectations in a vehicle.
My first new car was a 76 Grand Prix. No air, bucket seats, floor shift and AM radio. Also had black wall tires.
The next one was a 79 Grand Prix. Had air and AM/FM radio with cruise control. Still had manual windows.
Both were pretty much the base model for the year.
Fast forward until 2003. In between were several cars, each had a bit more in standard equipment but were still pretty much the base models.
In 2003 bought a F150 XL, the base model. Air, power steering, automatic, manual windows, vinyl seats, rubber floor. Standard.
2014 rolls around and a new F150 XL is sitting out front. Super Crew model. Power windows, InSync with Sirius radio/CD. More truck than I should be allowed to have. It's still the base model.
I use to buy used up until around 3yrs ago. Although I had some luck with 2nd hand cars, I've also had some bad luck. At this point I just don't have any patience to deal with shady shops and trying to diagnose and foot the bill for certain issues that arise in vehicles nowadays. I just lease now. Many people frown upon it but it works for me. It gives me peace of mind to know that my vehicle will always be covered under warranty for any major repairs that may occur.
What I don't understand is when someone comes out of pocket (not a company or write off) to lease a high end vehicle to only give it back. I'll be damned if I come out of pocket $30k+ only to give the car back. Instead I lease affordable cars with high residuals. For example....I'm currently leasing a 2014 Honda Civic EX. $0 down/$229 a month. At the end of my 3yr lease term I would have only paid $8200. Not bad for a car that has a great reliability track record and that will be covered under warranty for the duration of my lease. If at the end of my lease I decide to keep it I can just buy it out and pay the residual of $13,000.
The cash for clunkers program that the gov't did back during the recession slaughtered an entire generation of cheap used cars. This distorted the used car market, making it more expensive. So for a while there, buying used didn't make as much sense as it used to.
I don't know if things have gotten back to normal yet.
However, in point of fact, cars are more reliable, and longer lasting than they used to be.
Another thing about car prices is that they are basically the same no matter where in the country (USA) you buy them. So, cost of living plays a huge part. If you live in Florida, making 30K a year which can be perfectly fine for the area, you will have trouble buying a 30K priced car. Now, if you live in San Diego where you are making 100K a year doing the same job as the Florida person, it will be easier to buy that 30K priced car.
We have a household income around $150k a year, and we're still not willing to spend over $30k on a vehicle. How someone making $60k can afford a $40k SUV is beyond me. They must not have any savings.
They will start saving later. Plenty of time for that. The new car is a MUST now.
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