Are New Vehicles Too Expensive?

[CT8]

Originally Posted by SirTanon
Depends on the vehicle, the buyer, and the market where you are, really...

On one hand, you can buy a brand new Kia Forte LX for around $12,500, and I don't consider that expensive at all.

On the other hand, there's this 2019 Ford F-150 Raptor selling for OVER $92,000!! That's almost as much as a small house! Definitely WAY too expensive.

Not if the Raptors are selling .

 

[E150GT]

Originally Posted by SirTanon
Depends on the vehicle, the buyer, and the market where you are, really...

On one hand, you can buy a brand new Kia Forte LX for around $12,500, and I don't consider that expensive at all.

On the other hand, there's this 2019 Ford F-150 Raptor selling for OVER $92,000!! That's almost as much as a small house! Definitely WAY too expensive.

I paid $95k for my first house in 2012.

 

[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.

 

[SevenBizzos]

i would say "yes" they are, but look at what we're paying for nowadays. My recent purchase has sensors for everything, cameras all over the place, a 11 speaker sound system, all-wheel drive, etc... Gone are the days when you you just got in cars and drove.

My dad showed me his invoice for his 1980 F150. You had to buy options like side striping, a cloth covered interior roof, and a radio. His AM only radio had one speaker. It's no wonder vehicles are expensive. Only have of the parts of a current vehicle are used for actual driving.

 

[Kjmack]

Originally Posted by Donald
Originally Posted by SubLGT
https://www.autonews.com/world-congress/affordability-tops-concerns-nadas-welch

Quote
DETROIT — Average American consumers getting priced out of the new-vehicle market is "probably the biggest thing" that Peter Welch worries about, the CEO of the National Automobile Dealers Association said Tuesday at the Automotive News World Congress here.

Welch said the latest figures he's seen — through October of last year — show new vehicle retail prices hitting an all-time high of $35,377, with an average monthly payment at $538 and interest rates up to an average of 5.76 percent on new vehicles and to about 9 percent on used ones. Loan terms are longer than ever, and now average 64.3 months. And the number of vehicles delivering $1,000-a-month payments has never been higher, he said.

"You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it," Welch said. "A lot of people don't think that's sustainable."

Welch said most of the customers at NADA's 18,500 dealer rooftops aren't affluent buyers — they're a single mom buying a used Toyota Corolla, for example. As pressure on affordability mounts, Welch said cost can go "hand in hand" with government regulation. While stressing that he's not taking a position on the government mandating things such as fuel economy standards or new safety features, "they all come with a price," he said. He added that new-vehicle prices appear headed toward hitting $40,000 with $800 payments

"That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles, Welch said....


So are my taxes. I could buy a new Subaru for less than two years property taxes.

That's a shame you are paying that much for taxes . Unless of course you have quit a mansion on alot of land .

 

[Hall]

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.

 

[BigD1]

That high tech plastic that's under the hood is getting expensive. Next stop plastic engines.

 

[4WD]

I know a Canadian that heard the V8 Raptor was coming to an end … flew to Houston ASAP and paid sticker (yeah) … hit an outfitter next … drove it all the way back to NE (wife in tow) …

 

[Kestas]

There are three forces acting on the rising price of vehicles.

- rising government requirements for safety and emissions
- manufacturers putting more content that is perceived as beneficial (a lot of gee-whiz stuff)
- consumers wanting more luxury and features than previous years' models

 

[kawie_guy]

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.


I guess you've never heard of people getting in over their head on something then?
People who can't afford new cars are still buying them because that's the American way. We have a whole system in this country to make everybody want the flashy stuff that's above their pay grade, then providing a way for them to get it through debt and long term loans. I know people who recently bought a $85,000 Ford F350 Platinum who have never completely filled up their tank because they have to choose between fuel or food. But they sure look "cool" driving around in it, right?! Meanwhile, their house needs paint and plumbing repaired....
Heck, most of the wealth in this country is in the top 2%. The rest of us are just working stiffs who have to finance things. But some of us simply have champagne tastes on a beer budget.

 

[Smokescreen]

I love it when people buy new....it allows me to swoop in and buy it slightly used 3-5 years later after the original owner absorbed the largest part of the depreciation.

 

[Hall]

Originally Posted by kawie_guy
I guess you've never heard of people getting in over their head on something then?
People who can't afford new cars are still buying them because that's the American way.

I'm not sure what your point is other than, you agree with me ? You just repeated and confirmed what I said - people choose to buy new cars at whatever the cost is.

 

[slacktide_bitog]

People can't afford new cars anymore. Every new car is a luxury car. Every new car is a muscle car.

The Mirage and Spark are overpriced by at least $3000.

Nissan sells the Micra in Canada for under $10k (in Canadian dollars)

The Micra already meets US standards. They can sell it down here in the US for $8000

 

[PimTac]

Originally Posted by slacktide_bitog
People can't afford new cars anymore. Every new car is a luxury car. Every new car is a muscle car.

The Mirage and Spark are overpriced by at least $3000.

Nissan sells the Micra in Canada for under $10k (in Canadian dollars)

The Micra already meets US standards. They can sell it down here in the US for $8000

A blanket statement like this is way off the mark. It all depends on the person and their financial status. Just over a year ago I bought the CX5. I wrote a check. Now not everyone can do that but plenty can.

Do people overbuy on cars? Definitely. People overbuy on most everything.

 

[kawie_guy]

Originally Posted by hallstevenson
Originally Posted by kawie_guy
I guess you've never heard of people getting in over their head on something then?
People who can't afford new cars are still buying them because that's the American way.

I'm not sure what your point is other than, you agree with me ? You just repeated and confirmed what I said - people choose to buy new cars at whatever the cost is.


You said, "If they were too expensive, people wouldn't pay for them".
My point is the opposite. People buy things all the time that they can't afford.

 

[StevieC]

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.

Some of us have "needs" for new cars, most don't though. So I partially agree with you.

 

[pezzy669]

I only recently learned about taking advantage of others depreciation free fall by buying used - I used to be the 'I want a warranty and the new car smell type' but not any longer.

The lightly used 8-9 year old E in my signature was purchased at 78k miles for $16.5k (excluding taxes and fees), had to sink $2.3k into engine and trans mounts that I knew were bad but other than that the car is truly a cream puff. The amount I spent including repairs is pretty much within a few hundred dollars of what I paid for a 2015 Jetta S 2.0 automatic that I bought new and only held onto for maybe a year, the E class is 10x the car the Jetta is and while I have to keep a repair reserve at the ready for the E the overall satisfaction with the much better used car with +70k miles is well worth it.

 

[KrisZ]

Why so many insist on making it their business how other spend their money? Who cares what others can or cannot afford? Market is the way it is. If some are upset because they cannot get their favorite truck or SUV cheap anymore, well suck it up. That's what happens when something becomes trendy. Or move on to something that is not trendy anymore, like sedans.

 

[PimTac]

Originally Posted by KrisZ
Why so many insist on making it their business how other spend their money? Who cares what others can or cannot afford? Market is the way it is. If some are upset because they cannot get their favorite truck or SUV cheap anymore, well suck it up. That's what happens when something becomes trendy. Or move on to something that is not trendy anymore, like sedans.

Exactly. My reason for buying new is that I hang onto these vehicles until the wheels fall off or my circumstances change. I also don't want to inherit someone else's maintenance mess or mistreatments.

If my neighbor pulls in with a new BMW X7 I'm going to admire it but also still be satisfied with my purchase.

It's none of my business how others spend their money.

 

[CKN]

Originally Posted by Smokescreen
I love it when people buy new....it allows me to swoop in and buy it slightly used 3-5 years later after the original owner absorbed the largest part of the depreciation.

Doesn't happen with trucks.