Posted on 02/16/2023 7:21:35 AM PST by SeekAndFind
Call it inflation, or supply chain issues, or the way it is, but buying a car these days is like looking for a new home. Check out this report at Fortune:
The average monthly payment for a new car has soared to a record $777, nearly doubling from late 2019, according to Kelley Blue Book owner Cox Automotive. That’s almost a sixth of the median after-tax income for US households. Even used models have climbed to $544 a month on average.
The sticker shock extends well beyond the US, where inflation is a thorny a political issue for President Joe Biden as the 2024 election looms. In Europe, prices are flirting with records. Used-car prices soared in Japan last year, and in China, a rapid push to electric vehicles means consumers will have to pay more in some cities.
At the root of the problem is automakers’ new mantra: Keep inventory lean and price tags fat. Three years after the pandemic triggered a global shortage of semiconductor chips and crippled car manufacturing, Ford Motor Co., General Motors Co. and their overseas rivals are notching big profits. Even as the chip crunch shows signs of easing, they’re pledging to keep production in check.
And because electric vehicles cost about 25% more than the average car, the shift to plug-ins is about to make the affordability crisis even worse. Add soaring interest rates to the mix, and new cars -- like home ownership and a college education -- are fast becoming the domain of the rich.
“The idea of a new car in every American’s driveway is not the world we live in,” said Charlie Chesbrough, a senior economist at Cox.
(Excerpt) Read more at americanthinker.com ...
“Car payment” is an interest carrying loan. The price of the car can go down but if the interest rate on a car loan goes up the payment goes up also. There is of course the problem of car price inflation but that’s not the story. Interest rates are the story.
I doubled down ~3 yr ago and bought one of the last Turbo-gas, m/t, AWD Station Wagons sold in the USA To twin with a near identical vehicle purchased ~1.5 yr earlier.
Hopefully these two will let me live out my life in Peace with the EPA, Auto Manufacturers and the Watermelon New Deal.
I am curious if those in power are intentionally inflating the cost of new conventional (cars that run on gas) cars to make electric cars appear more economical.
I’ve bought cars for less
Lots of people go for used cars from good brands. Much like everything else, even going back 10 years, some cars were just built better then. Uncomplicated, reliable natural aspirated engines. Less under the hood engine and other critical parts made of plastic, which gets brittle and breaks over time. Less total number of sensors that can fail and cause the car not to even be able to start.
Probably why more and more people are living in their cars?
The magic 8 ball says: it is decidedly so.
“Hopefully these two will let me live out my life in Peace”
I decided to finish fixing up my 2001 Jeep Cherokee, re-gearing the front and back axles now. Engine only has 176k, I am the original owner. I think I can go a million before rebuilding.
My 2016 Jeep wrangler has a lifetime unlimited warranty, I will keep that one too.
If we stop buying new cars, they will have to come down in price or go broke.
Of course. This article is non-specific BS and fear porn.
Always buy 2 -3 years old, always pay cash.
Period.
Was in the dealership yesterday for a car repair.
They noted I have 300,000 miles on the car.
I said, I hope to get another 200,000 out of it.
RE: I’ve bought cars for less
But are they sturdy and reliable?
RE: I hope to get another 200,000 out of it.
Just curious, what model/year car is it?
RE: Lots of people go for used cars from good brands
Which leads to the next question: which cars are good brands?
Whatever the truth is about high car prices, one thing is for sure, and that is that...
As long as ICE vehicles remain lower-priced than EVs, then, people will buy ICE vehicles and the left-wing climate-change agenda will suffer because people will not be buying the more expensive EVs and ICE vehicles will continue to rule.
Biden and democrats screwed their climate agenda by creating the highly-inflated prices on everything.
Honda and Toyota are the only GOOD brands for used vehicles, HOWEVER they are VERY PRICEY for used!!!
RE: As long as ICE vehicles remain lower-priced than EVs, then, people will buy ICE vehicles and the left-wing climate-change agenda will suffer because people will not be buying the more expensive EVs
Which is why people in the west coast ( California and Washington state ) are electing politicians who make laws FORCING people to buy EVs whether they like it or not. There are laws already passed stating that by 2035, no new cars sold can be ICE cars. EVs only.
I just leased a new car...no issues.
2007 Mercury Grand Marquis.
Dealership said I might get it out of that model.
But now that I work from home, I’m not putting many miles on it. 200,000 more miles will last me another 60 years unless I start traveling more.
I dropped $1300 on it yesterday for some Steering Column repairs. Shift Interlock went bad and the Shifter boot had become shredded.
And I’ll have another bill coming up for a tune up and a door latch repair. But then I’ll probably be set for another year.
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