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Experts warn it's the 'least affordable motor market in modern history'
Inflation has slammed us pretty hard, along with supply chain disruptions and the labor shortage. Post-Covid, everything is going to pot. Living is getting tough and retiring is getting tougher on a fixed income.
I think a part of this a problem catching up with chips and car parts. If you are Toyota and you are facing a bottleneck in supply, are you going to keep building Corollas or just focus on building expensive Lexus models or premium Toyota models?
Excerpts:
Not only are new vehicle prices near an all-time high, but the interest rate to finance a purchase is also soaring.
The average cost of a new car in May, according to Edmunds, was $47,892 - up from around $37,000 in 2019.
According to the car shopping website, 10 percent of all vehicles sold now cost more than $70,000 - up 3 percent from five years ago.
And just 0.3 percent of new vehicles cost less than $20,000, compared with 8 percent five years ago.
Here are some of the reasons cars cost more: they have more "stuff" in them. "Most standard equipment in cars today wasn’t even an option decades ago."
"Vehicle safety has changed drastically over the years, and today newer cars are safer than ever before. Thanks to advanced engineering, in-depth research and analysis of crash data, newer vehicles are built better and have more safety features to protect you. Advanced technologies that have emerged in recent years give you even more safety options — you can choose what features are best to keep you and your family safe on the road. "
Many of the "options" aren't really optional because they are now standard equipment.
Here are some of the reasons cars cost more: they have more "stuff" in them. "Most standard equipment in cars today wasn’t even an option decades ago."
"Vehicle safety has changed drastically over the years, and today newer cars are safer than ever before. Thanks to advanced engineering, in-depth research and analysis of crash data, newer vehicles are built better and have more safety features to protect you. Advanced technologies that have emerged in recent years give you even more safety options — you can choose what features are best to keep you and your family safe on the road. "
Many of the "options" aren't really optional because they are now standard equipment.
I mean, I'll admit the 8% under 30k is concerning because that means there's very little reason for car manufacturers to go after such an irrelevant slice of the market. My first two (and my only two) new car purchases were both under 30k... and importantly even now those cars in 2023 are still under 30k. That used to be an important price range, nearly 40% of cars were under 30k. Now it's.. well, 8%. It's really at why bother with it size at this point. Stuff like the Honda CR-V, for example, is north of 30k now while you can still barely eek into a RAV-4 or Subaru Outback. They've made all of them nicer though as people want to spend more money than 30k for cars. Being competitive is much more about being nicer than being less expensive. Market has very clearly indicated that preference and manufacturers have responded to market demands. For younger adults though with student loans, expensive housing, maybe starting families... that move away from simpler <30k cars is kind of troubling. There's always used cars though.
I’ve never owned one but after renting a couple of Subarus this year I’m considering it and across their lineup they are relatively affordable. Skip them if you are looking for gas milage but for 30-40k+/- I think they are a solid value
I’ve never owned one but after renting a couple of Subarus this year I’m considering it and across their lineup they are relatively affordable. Skip them if you are looking for gas milage but for 30-40k+/- I think they are a solid value
i have a 2018 outback and it is pretty nice …. i am ready to go more high end again though .
one thing mine lacks is power .
for my 70th birthday my wife said i can get a porsche macan t …
I’ve never owned one but after renting a couple of Subarus this year I’m considering it and across their lineup they are relatively affordable. Skip them if you are looking for gas milage but for 30-40k+/- I think they are a solid value
I bought a Forester Premium for about $30,200 during the COVID lockdowns in 5/2020. It's been a terrific car. It has a large sunroof, blindspot detection, variable cruise control, CarPlay, and loads of other things.
I bought a Forester Premium for about $30,200 during the COVID lockdowns in 5/2020. It's been a terrific car. It has a large sunroof, blindspot detection, variable cruise control, CarPlay, and loads of other things.
only complaint i have is the head unit in our year is very problematic….batteries stink
Most vehicle manufacturers are not offering low-end basic compact cars any longer in the USA. Part of the blame goes to the EPA which allows manufacturers to classify almost anything as an SUV so they don't have to meet the fuel economy standards of standard "passenger cars". So, all the manufacturers are selling SUVs and CUVs instead, at much higher prices than the simple econo-cars of just a few years ago.
In 2019 I was living in Tucson and bought a new Honda Fit base model for about $17,000 plus tax and registration. It was all I needed for good transportation and I liked the car. I sold in in April 2021 for $19K before I came back to live in Germany. Honda discontinued the Fit after the 2020 model year, about the same time Toyota did the same to Yaris, Ford killed the Fiesta and Escort, Chevy killed the Sonic, etc. Even Kia and Hyundai got rid of almost all the small hatchbacks, aside from Kia Rio. No surprise that there aren't many new vehicles sold that cost less than $30K USD.
Outside the USA, I see plenty of small econo-cars that are still sold in Germany and most other countries in Europe. However, the average new car price in Germany is a bit over 40K Euro, which is about $43K USD. That price includes almost 20 percent taxes, so a comparable sticker price (not including taxes) to the USA would be about $35K USD.
for my 70th birthday my wife said i can get a porsche macan t …
Got to drive a Macan GTS. Very nice vehicle. I'm kinda having the itch for one..
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