Posted on 07/04/2023 2:10:20 PM PDT by Libloather
Cars costing under $30,000 make up just 8 percent of the market - down from 38 percent before the pandemic.
According to data from car shopping app CoPilot, cited by CNBC, expensive SUVs and trucks are in high demand, prompting carmakers to continue to upgrade their lineups and scale back on more affordable models.
Not only are new vehicle prices near an all-time high, but the interest rate to finance a purchase is also soaring.
'It’s the least affordable car market in modern history,' CoPilot CEO Pat Ryan told the outlet.
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.
Ivan Drury, director of insights at Edmunds, told the outlet how consumer tastes have shifted towards more luxury vehicles with high-tech features such as touch screens, heated and cooled seats and 360-degree cameras.
In response to this demand, dealers began stocking up with more expensive cars, and carmakers scaled back on cheaper models.
'It only makes sense to continue to ratchet up the price to offer more features and increase the size of the vehicle with each redesign,' he said.
Elevated interest rates also continue to drive up costs for those financing a car purchase.
Despite the Federal Reserve pressing pause last month on its consecutive interest rate hikes, the cost of financing a vehicle remains at an all-time high.
According to Edmunds, average monthly payments reached a record-breaking $733 in the second quarter of this year.
(Excerpt) Read more at dailymail.co.uk ...
And, I just got an email from my car insurance company that my new rate is 25% higher than last renewal. Bidenomics; what a great idea!
No real upsides now to new cars.
Too much breaks too quickly and are too expensive to fix.
Buy a supply of head gaskets.
Subaru makes a decent car but...
(Mainly a joke. I *think* ru finely figured out head gaskets and did away with the timing belts)
It’s not the cars,
it’s the value of the money, stupid
My God, that is just nuts.
I have never bought a new car, even when I could have more than afforded to buy a nice one. But I always liked old rides in good shape and that's what I've driven through the years.
Now I live in Italy where I drive a 26 year old Fiat Cinquecento which costs very, very little to keep running well. Parts are dirt cheap, I do my own work and this little box gets 40-50mpg, which is a big deal in a place where gas is $7-8 per gallon. Is it glamorous or sexy? No. Is it a boxy looking plain jane? Yes. Does it get me from A to B in relative comfort? Yes. Can I stuff it full of firewood and throw a few sheets of drywall on the roof? Yep. Job done.
I do miss my gorgeous, restored 1972 Chevy long bed sometimes. . .
My first vehicle I bought new was a 1998 F-150, single cab, short wheelbase. It was $11,500.
I will hold onto my 1997 Toyota Corolla. As long as I can find parts for it I’m good.
Gesundheit.
Go for sticker price? Now that would be a good deal. Here, dealer markups have the lowest trim above $30k.
The Price is Right is on TV during my cardiac rehab sessions and they often have a new car as a prize. No matter how small, very few are under $20,000.
Shop elsewhere.
All by design.
Cash for clunkers (Biden’s boss) planted the seeds for this car market set of conditions.
I have a 2010 Ford Expedition and just rolled 325K miles. Still going strong.
My first vehicle I bought new was a 1998 F-150, single cab, short wheelbase. It was $11,500.
1995 F-150 short bed...$16,000. Bought new..Still drive it today..174K miles. Without exception, everywhere I go someone approaches me to ask if it’s for sale. Intend to die owning that truck.
Deep State just bought off Big Auto with MTO.
Those are all death traps.
And compared to cars of the late90s they are all complete crap
Ford mavrick is like 23k msrp base model, hybrid
You can get a 2.0 ecoboost engine with or without awd as options.
V8 or the L6?
Best pickups I owned were a 1991 long wheel base and a 90 with a tool bed. Both had the 300 and the 5spd manual.
Mpg was garbage, but that’s the cost of doing business, so to speak.
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