[cabzilla]

Nope, not ready to pay up. I have an immovable mental block somewhere around $35k, and the rapid acceleration of new vehicle pricing and the introduction of massive ADMs just makes me nope out. My income has also basically gone backwards in the last 3 years.

Hoping my Tacoma runs forever at this rate.

Income is a controllable

 

[vwpiloto]

I didn't read it all, but is including ADM?

 

[Uber Wagon]

I didn't read it all, but is including ADM?

More than likely including Deluxe package (tint and alarm), Undercoating package, Tire protection package, Pinstripe package, and then the dreaded ADM.

 

[vwpiloto]

More than likely including Deluxe package (tinit and alarm), Undercoating package, Tire protection package, Pinstripe package, and then the dreaded ADM.

jokes aside, it's probably skewing that number a bit. How much it's hard to say, but it's likely a combination of ADM, inflation, automakers suffering from supply chain woes still and thus favoring to make higher margin vehicles with the limited supply. It also helps as they can reduce their workforce (white collar) or replace existing talent with more qualified talent as they switch full force to EVs, therefore they're not investing in cheap cars.

 

[Senior Member]

We're heading to 15-years car loans.

 

[BrianC]

...I finally got told I could WFH permanently and now almost two years later I have 8500 miles on mine, and it's like do I really need a $700+ payment to drive to Target once a week?

And it's not just the payment on the car, also consider insurance which probably adds another $100-$150 per month depending on your locale.

This is the thing that always gets in my head when thinking about car purchases. A little over 1-1/2 years ago I bought a cheap used BMW for cash as a daily driver since I work from home. I just sold it to CarMax with ~6000 miles more on the odo than when I got it. My wife uses our Outback for a 10 mile r/t commute three days per week, and I now drive the Elantra that we got for my son until he needs it again (he dailies his Miata for now).

When that happens, we will be a one car household again. So I've ordered a $30k Ford Maverick, which is cheap by new car standards, to be my new daily. I figure I will at least get some additional utility out of a small pickup - assuming it gets built.

 

[Egz]

So I've ordered a $30k Ford Maverick, which is cheap by new car standards, to be my new daily. I figure I will at least get some additional utility out of a small pickup - assuming it gets built.

Its a great way to go. Compact-ish, good fuel economy, and practicality, and doesn't break the bank if you get it at MSRP.

My "top trim" came in at 32k, and that was more than I would like for a new vehicle, but I'm also a tightwad. The idea of paying $60k+ for a car just makes me gag.
(I also drive, a lot. So a $60k would lose value so fast, and would not be leasable either)

 

[Cooper]

Neighbor on OBX, they have one child and a dog, bought a Jeep Grand Wagoneer last year. I asked if he ever thought he would buy a $100,000 vehicle. Said he didn't know what it cost. His wife wanted it. Thinks it was $85,000.

Fitting the old man rant thread title ... That's twice what my dad paid in 1965 for the raised ranch on an acre in Huntington, CT that I grew up in. 😀

 

[slats]

Why isn’t CPO listed as an option?

 

[strapontin]

THIS. Even new Mitsubishi Mirage is selling for $20K these days, and that's absolutely worst car ever in history of mankind.

Blows my mind how expensive cars got in the US. That $20k USD Mirage is how much out the door? (with registration, taxes, etc.) Must be another 15% at least so figure $23k USD. For a Mirage. That's $34.6k AUD drive away. Here, that puts you in a Hyundai i30 (Elantra), Kona, VW T-Cross, Mitsu ASX, Yaris Cross, etc. etc. etc.

In Oz land, the cheapest cars are things like a Kia Picanto. Which I'd say is leaps and bounds better than a Mirage. And a Picanto is $23k AUD drive away for a loaded model. That's $15k USD drive away so figure $13k USD msrp.

 

[DrivinAW8]

Inflation. It's all about inflation.

$48,763 2023 dollars are the equivalent of $29,824 2003 dollars.

most notably are covid-19 related financial policy rearing some ugly shockwaves from now until ..?? but also, yea, since 2008/2009 (ahem….), cars have gotten from the 20-30 realm to the 40-70

cars also meaning CUV/SUVs. and in these kinds of articles i wonder if 1/2 half passenger trucks factor in… $$$$$

 

[rudyr]

We own and rent out "luxury" properties (either home is worth $1m+ or property is extremely upper tier in a low col city) on the side, so I get pretty good insight into people's incomes and overall financial position when they apply. My observations:

• A lot of people carry tens of thousands of debt on credit cards like it's no big deal.
• A lot of people think they're "out smarting" the system via high debt loads because they stock market was, for a brief period of time, giving great returns.
• People who have $100-200k hhi genuinely think they're "rich" and it's usually people in this income bracket that seem to be buyers of luxury goods (German cars, Rolex watches, fancy handbags). I can spot them out easily when we do the open house for applications.
• There is a very healthy market for people who can pay $3000-$5000/month in rent but are unable to ever save up a down payment to buy a home.

I don't totally blame people for their decisions, as a society we push the concept of debt, and my favorite bs term "good debt", on people. Our banker was trying hard to get us to pay our taxes out of our line of credit so we would have more money to invest. LOL, if I had done that, the line of credit that was ~2.75% is now 6% and the stock market has taken a huge dive; I'd have lost a bunch of money and would have a very expensive debt obligation. However, I could totally see people listen to a financial advisor and convince themselves that it'd have been a smart idea at the time to follow that strategy.

 

[ValveCoverGasket]

There is a very healthy market for people who can pay $3000-$5000/month in rent but are unable to ever save up a down payment to buy a home

This seems surprising, especially as you said if you're in a low COL area it seems like these folks shouldn't have an issue stacking some cash.
Interesting!

 

[puma1552]

This seems surprising, especially as you said if you're in a low COL area it seems like these folks shouldn't have an issue stacking some cash.
Interesting!

Well, it's because they are blowing $3,000-$5,000 a month renting that guy's million dollar side rentals.

 

[Dave_Car_Guy]

I must be the oldest dude here, because I feel like cats were far more expensive at the low end 30 years ago. They’re just more expensive for the high end models now. More car for the money.

I got married in 1988. My fiancé at the time bought a Honda Accord hatchback for $14,700. Adjusted for inflation, that’s $37,000 in todays dollars. But a new accord can be had for $25k now. So the entry level and mid level cars are cheap now. It’s only consumer preferences that cause the higher average price. It’s not that you CAN’T buy a cheap car, it’s that people DON’T.

Plus. Your typical car loan back then was prob 13-16% annual rate. So Today’s cars at $48k and 8% are cheap. Relatively speaking. In 1985 I bought my 1985 Kawasaki Ninja ZX600 on a 22% loan. Now THAT was expensive !

 

[tone228]

I don't think a thread can be both compelling and useless.

 

[Silly_me]

1988. ..... Honda Accord hatchback for $14,700. Adjusted for inflation, that’s $37,000 in todays dollars. But a new accord can be had for $25k now.

That was the point of my Camry post. It isn't inflation driving the average cost up.

 

[Ark6]

This seems surprising, especially as you said if you're in a low COL area it seems like these folks shouldn't have an issue stacking some cash.
Interesting!

Is it really wise to pick up an house now with ever increasing rates, but no price decreases in homes at the given moment? There is a multitude of reasons to rent vs buying outside of not wanting to fork over a down payment.

And personally, I hope we're not tracking to an environment where double digit rates are the norm on cars but it's getting close.

 

[KKatso5]

I must be the oldest dude here, because I feel like cats were far more expensive at the low end 30 years ago. They’re just more expensive for the high end models now."

@Dave_Car_Guy - OK, we all make typos but that made me LOL.

(I'm a cat owner and agree)

 

[KKatso5]

I would argue it's the customers who are abandoning the lower end of the market and manufacturers are simply responding to customer demands.

I think that's a huge part of it. The car companies will sell what the buyers want...it just so happens that the higher end cars/trucks make them way more margin so they aren't exactly fighting the trend. If small cars were more profitable than trucks, I am sure there would be a marketing push, but since the US buyers, in general, don't want basic cars - the manufacturers double down on the strategy. Plus for the last 10 years, money was relatively cheap so buyers could stretch to the higher end.