Are New Vehicles Too Expensive?
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First it was station wagons, then SUVs, then pickup trucks.
People will be commuting in 18 wheelers by 2040.
Bigger car = more rich?
People will be commuting in 18 wheelers by 2040.
Bigger car = more rich?
I don't consider $21k difference to be low depreciation.
Originally Posted by PimTac
Originally Posted by WyrTwister
Yes .
One problem is large number of people are only interested in " What will my payment be ? "
No idea what they are paying for the new car smell .
This is nothing new though. People have been focused on monthly payments for decades. Same goes for house payments and any other payment.
Living within your means is not easy to do when you're younger and first starting out.
Originally Posted by WyrTwister
Yes .
One problem is large number of people are only interested in " What will my payment be ? "
No idea what they are paying for the new car smell .
This is nothing new though. People have been focused on monthly payments for decades. Same goes for house payments and any other payment.
Living within your means is not easy to do when you're younger and first starting out.
Originally Posted by KrisZ
I don't consider $21k difference to be low depreciation.
The new truck had an MSRP of $54,090.00 . The deprecation would have been far less (per month)-had I kept the white truck longer.
The credit union I financed through actually appraised the new truck for $8,000.00 more than I paid for it.
I don't consider $21k difference to be low depreciation.
The new truck had an MSRP of $54,090.00 . The deprecation would have been far less (per month)-had I kept the white truck longer.
The credit union I financed through actually appraised the new truck for $8,000.00 more than I paid for it.
Originally Posted by JLTD
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
I looked at a Ford Predator at the local dealer and it was priced at $72,000.
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
I looked at a Ford Predator at the local dealer and it was priced at $72,000.
Originally Posted by hallstevenson
Originally Posted by StevieC
Some of us have "needs" for new cars, most don't though. So I partially agree with you.
I'm truly curious in what kind of case this is. Can you give examples ?
Driving 30K miles (50K KM) a year in a sales job that you need something dependable and with a warranty that will last the life of the loan that is being paid for by your employer. Also needing a rental agreement in that warranty to give you a vehicle to drive should your vehicle be in the shop more than 1 day so it doesn't affect loss of business.
A used vehicle assuming it had some miles on it already being 1-2 years old, I would kill before the end of it's loan which would be about the same time period of a new vehicle albeit at a lower price but at a higher interest cost. Then there is the warranty on the vehicle which is only the remaining warranty and would cost more to upgrade it. Really making the value proposition of the used vehicle less attractive than a new one. (Higher interest, extended warranty)
Plus who knows how the used vehicle was treated and using it for business I don't have time to work out bugs or problems caused by the previous owners lack of maintenance or if it was sort of a lemon and traded because of it like I traded my Highlander with the terrible transmission, and then it gets hairy because they might try to blame you for it if it happens after you drive away with it sort of thing because the failure happens in your possession but caused by the previous owner and not easily proven otherwise...
There is also the employers requirement of driving something that is 7 years or newer or with 250,000km (150K miles) or less for reliability and customer appearance whichever comes first usually.
My current employer doesn't care so long as the vehicle operates properly and the appearance is respectable. But previous folks I worked for have had this requirement where it was my own vehicle.
Previously I drove used vehicles because of my mechanical background in the family I'm quite capable of fixing things and pocketing someone elses depreciation as my gain but in this case I can't risk down time and drive too many miles to make it feasible and seeing as they pay for it as part of my compensation who cares.
Originally Posted by StevieC
Some of us have "needs" for new cars, most don't though. So I partially agree with you.
I'm truly curious in what kind of case this is. Can you give examples ?
Driving 30K miles (50K KM) a year in a sales job that you need something dependable and with a warranty that will last the life of the loan that is being paid for by your employer. Also needing a rental agreement in that warranty to give you a vehicle to drive should your vehicle be in the shop more than 1 day so it doesn't affect loss of business.
A used vehicle assuming it had some miles on it already being 1-2 years old, I would kill before the end of it's loan which would be about the same time period of a new vehicle albeit at a lower price but at a higher interest cost. Then there is the warranty on the vehicle which is only the remaining warranty and would cost more to upgrade it. Really making the value proposition of the used vehicle less attractive than a new one. (Higher interest, extended warranty)
Plus who knows how the used vehicle was treated and using it for business I don't have time to work out bugs or problems caused by the previous owners lack of maintenance or if it was sort of a lemon and traded because of it like I traded my Highlander with the terrible transmission, and then it gets hairy because they might try to blame you for it if it happens after you drive away with it sort of thing because the failure happens in your possession but caused by the previous owner and not easily proven otherwise...
There is also the employers requirement of driving something that is 7 years or newer or with 250,000km (150K miles) or less for reliability and customer appearance whichever comes first usually.
My current employer doesn't care so long as the vehicle operates properly and the appearance is respectable. But previous folks I worked for have had this requirement where it was my own vehicle.
Previously I drove used vehicles because of my mechanical background in the family I'm quite capable of fixing things and pocketing someone elses depreciation as my gain but in this case I can't risk down time and drive too many miles to make it feasible and seeing as they pay for it as part of my compensation who cares.
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JTK
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Originally Posted by StevieC
Originally Posted by JLTD
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
My neighbour and his Ram 1500. All the toys in it and it sits parked 5 days a week without moving, goes around town on the weekends.
(He drives his company van everywhere mainly and his fiance has a car that they usually go out in if they are going far because "it's better on gas".
Even without all the toys they're expensive. My brother just bought a 2019 Ram 1500 classic. 4x4, quad cab, pentastar, express. Very, very basic compared to most any pickup today. MSRP was just under $40K. After the ridiculous rebate and customer cash shell games, it came down to about $34K-ish.
Originally Posted by JLTD
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
My neighbour and his Ram 1500. All the toys in it and it sits parked 5 days a week without moving, goes around town on the weekends.
(He drives his company van everywhere mainly and his fiance has a car that they usually go out in if they are going far because "it's better on gas".
Even without all the toys they're expensive. My brother just bought a 2019 Ram 1500 classic. 4x4, quad cab, pentastar, express. Very, very basic compared to most any pickup today. MSRP was just under $40K. After the ridiculous rebate and customer cash shell games, it came down to about $34K-ish.
Originally Posted by hallstevenson
Originally Posted by CT8
Not if the Raptors are selling .
That ^^ is all that matters. If they are too expensive, people wouldn't pay for them. If they choose to pay these prices, they're okay with it. No one NEEDS a new car.
Problem is that they pay these prices by having an 8 year car payment. That is never a good thing.
New vehicles are crazy expensive, and I said I would never buy new again (bought my '12 Scion new).
But with recent rebates and such, I was looking at a new Chrysler Pacifica. Prices for new with rebates and end of year discounts and 2 year old low mileage were about the same.
Ended up with a 9 month old Santa Fe with 10,000 miles for $12,000 under what it would sell for new. I did a 5 year loan, but plan on having it paid in less than 4 (rates were the same regardless of loan term).
Originally Posted by CT8
Not if the Raptors are selling .
That ^^ is all that matters. If they are too expensive, people wouldn't pay for them. If they choose to pay these prices, they're okay with it. No one NEEDS a new car.
Problem is that they pay these prices by having an 8 year car payment. That is never a good thing.
New vehicles are crazy expensive, and I said I would never buy new again (bought my '12 Scion new).
But with recent rebates and such, I was looking at a new Chrysler Pacifica. Prices for new with rebates and end of year discounts and 2 year old low mileage were about the same.
Ended up with a 9 month old Santa Fe with 10,000 miles for $12,000 under what it would sell for new. I did a 5 year loan, but plan on having it paid in less than 4 (rates were the same regardless of loan term).
Originally Posted by jeepman3071
Cars are expensive because people are willing to pay it. Most people paying $55k for a pickup feel it's okay because it's "only" $1000 a month for X months. Many just accept car payments as part of life.
Not only that, but most people today lease (not me) so they are only financing the depreciation over about 3 yrs (most leases) so that even a $100,000 car is only costing them about $50,000 (depreciation over that time) The other problem is that, people who lease above their income, can't afford the maintenance.
Cars are expensive because people are willing to pay it. Most people paying $55k for a pickup feel it's okay because it's "only" $1000 a month for X months. Many just accept car payments as part of life.
Not only that, but most people today lease (not me) so they are only financing the depreciation over about 3 yrs (most leases) so that even a $100,000 car is only costing them about $50,000 (depreciation over that time) The other problem is that, people who lease above their income, can't afford the maintenance.
Originally Posted by Pelican
Originally Posted by jeepman3071
Cars are expensive because people are willing to pay it. Most people paying $55k for a pickup feel it's okay because it's "only" $1000 a month for X months. Many just accept car payments as part of life.
Not only that, but most people today lease (not me) so they are only financing the depreciation over about 3 yrs (most leases) so that even a $100,000 car is only costing them about $50,000 (depreciation over that time) The other problem is that, people who lease above their income, can't afford the maintenance.
Many leases are three years-with most maintenance under warranty. Lease returns are great used car buys-generally.
Originally Posted by jeepman3071
Cars are expensive because people are willing to pay it. Most people paying $55k for a pickup feel it's okay because it's "only" $1000 a month for X months. Many just accept car payments as part of life.
Not only that, but most people today lease (not me) so they are only financing the depreciation over about 3 yrs (most leases) so that even a $100,000 car is only costing them about $50,000 (depreciation over that time) The other problem is that, people who lease above their income, can't afford the maintenance.
Many leases are three years-with most maintenance under warranty. Lease returns are great used car buys-generally.
Originally Posted by JTK
Originally Posted by StevieC
Originally Posted by JLTD
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
My neighbour and his Ram 1500. All the toys in it and it sits parked 5 days a week without moving, goes around town on the weekends.
(He drives his company van everywhere mainly and his fiance has a car that they usually go out in if they are going far because "it's better on gas".
Even without all the toys they're expensive. My brother just bought a 2019 Ram 1500 classic. 4x4, quad cab, pentastar, express. Very, very basic compared to most any pickup today. MSRP was just under $40K. After the ridiculous rebate and customer cash shell games, it came down to about $34K-ish.
I don't know the sticker price of his vehicle but on a 8 year loan his payments are $1200/month CDN (So like $900 USD).
Originally Posted by StevieC
Originally Posted by JLTD
Originally Posted by E150GT
uuh yeah. Trucks that are $50k. Insane. Chevy colorado thats $35k. Insaner.
Try up to 70-80k with options on some trucks...."Insane" is right - at that rate you might as well buy a Peterbilt and go into business for yourself.
My neighbour and his Ram 1500. All the toys in it and it sits parked 5 days a week without moving, goes around town on the weekends.
(He drives his company van everywhere mainly and his fiance has a car that they usually go out in if they are going far because "it's better on gas".
Even without all the toys they're expensive. My brother just bought a 2019 Ram 1500 classic. 4x4, quad cab, pentastar, express. Very, very basic compared to most any pickup today. MSRP was just under $40K. After the ridiculous rebate and customer cash shell games, it came down to about $34K-ish.
I don't know the sticker price of his vehicle but on a 8 year loan his payments are $1200/month CDN (So like $900 USD).
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Originally Posted by StevieC
There is also the employers requirement of driving something that is 7 years or newer or with 250,000km (150K miles) or less for reliability and customer appearance whichever comes first usually.
This is a true statement. I was in outside industrial sales as a career-and while this requirement didn't apply to me-I worked with manufacturer's reps. from at least three different companies that had this requirement.
There is also the employers requirement of driving something that is 7 years or newer or with 250,000km (150K miles) or less for reliability and customer appearance whichever comes first usually.
This is a true statement. I was in outside industrial sales as a career-and while this requirement didn't apply to me-I worked with manufacturer's reps. from at least three different companies that had this requirement.
I was just explaining that while my situation is different it still creates a need and there are many folks in sales with these requirements so we can't say "No one needs a new car", It should be "many don't need a new car".
I'm not being a jerk, just explaining that some of us do truly have needs for new vehicles. Besides what would the used market have to drive if new vehicles were never purchased.
I'm not being a jerk, just explaining that some of us do truly have needs for new vehicles. Besides what would the used market have to drive if new vehicles were never purchased.
Quote
DETROIT — Average American consumers getting priced out of the new-vehicle market is "probably the biggest thing" that Peter Welch worries about...
I rather think that Average American consumers are buying more expensive cars than they ought to be buying.
It seems to me the "victim mentality" more and more Americans are adopting is not only hurting themselves, but also American society as a whole. This article opens with a line that invites readers to blame others (e.g., government, financing companies) for high prices rather than taking ownership of their own decisions such as buying a more expensive car or truck than what they actually need.
IDK, maybe I'm a little cranky today.
DETROIT — Average American consumers getting priced out of the new-vehicle market is "probably the biggest thing" that Peter Welch worries about...
I rather think that Average American consumers are buying more expensive cars than they ought to be buying.
It seems to me the "victim mentality" more and more Americans are adopting is not only hurting themselves, but also American society as a whole. This article opens with a line that invites readers to blame others (e.g., government, financing companies) for high prices rather than taking ownership of their own decisions such as buying a more expensive car or truck than what they actually need.
IDK, maybe I'm a little cranky today.
Haha, I'd like to open it up a little and say North America instead of just America...just noticed after I posted that there are some Canadians here on this thread and didn't want to leave them out.
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