So they get a loan on a depreciating asset that they can't afford.
Average buying cost for NEW car is around ...
- Thread starter odie
- Start date
$50k is fine if you can pay off in 0-4 years. Otherwise setup for staying middle class. It’s getting worst as this creeps up.
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SammyChevelleTypeS3
$50 site donor 2023
Well, I have never had one or even known any owner of a Subaru SUV but I been doing lots of research. It WAS between Honda CRV or Toyota Rav4 or a Subaru Outback or Forrester. I been seeing quite a few new Subarus about and they really look well made. Another plus about them is the Subaru dealership happens to be a new part of a long time local Chevy dealer where a couple of my Chevelles came from in the 70s. They also have a great body paint shop who did a repair so good it looked new to my last Chevelle I wrecked in 2009. . They have always been held in high regard and a a good quality & family owned place. The fact they sell the Subies and are local, plus I know a couple employees there has me leaning that way. I still know what you mean about nothing screaming "buy me" though. Just so much out there to choose from these days.
The Honda Accord for the model year 2000 had an 10 trim levels with MSRP that ranged from $15350 to $24550. If you bought the EX Sedan or Coupe (the middle models of the trim range) you paid $21,050. The US BLS CPI inflation calculator says that $21.050 in Nov. 1999 has the buying power in August 2025 of $40,521.
The $49k mentioned as being the cost of the average car (or vehicle) today is 21% more than $40.5k.
I would bet that in 2000 fewer people were buying pickup trucks as their daily-driver or family vehicle, and even those that did weren't paying a lot for them compared to today's prices. I'd like to see these price stats break out purchases of cars vs trucks.
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The MSRP of a 2000 Dodge Ram ranged from $15k (WS Regular Cab) to $24k (4WD Quad Cab)
Surprisingly similar to the price range of the 2000 Honda Accord.
The $49k mentioned as being the cost of the average car (or vehicle) today is 21% more than $40.5k.
I would bet that in 2000 fewer people were buying pickup trucks as their daily-driver or family vehicle, and even those that did weren't paying a lot for them compared to today's prices. I'd like to see these price stats break out purchases of cars vs trucks.
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The MSRP of a 2000 Dodge Ram ranged from $15k (WS Regular Cab) to $24k (4WD Quad Cab)
Surprisingly similar to the price range of the 2000 Honda Accord.
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It depends. Earlier this week, I bought a new 2025 F150 XLT (3.5TT) for only a few thousand more than that average.
My son seems happy with his Impreza. I have a friend that keeps buying Foresters. He doesn't like to be out of warranty. His brother has a Forester. Another friend is on his second Outback. His wife has a Legacy.
SammyChevelleTypeS3
$50 site donor 2023
I am expecting to and going to attempt to keep the price of the next one under $40,000. I always finance for 4 yrs even with a down payment of about 1/2 the sales price. Then I usually will pay $100 to $150 extra with each payment and before you know it belongs to us and not the banks....
You are not rolling negative equity in year 4-generally. Assuming a 5 year loan .
I look at the price of cars and I am just shocked.
I have the cash. I am not spending it.
I can't see the center holding on this. Sub-prime auto loan delinquencies are back to where they were in the GFC https://www.axios.com/2023/03/01/low-income-households-are-falling-behind-on-car-bills
I paid $30k for my Camry 10 years ago. Drove my mother in laws 2022 Corolla with 3500 miles on it on the highway for 15 miles to her dr. Couldn't wait to get back into my Camry. My old 2004 Corolla was a much better vehicle than the 2022 version. Seems you don't get good for $30k in 2025.
I believe you.
However I paid $29K for our Rav4 XLE premium in 2019. I thought that was highway robbery for a basic car. Its close to "loaded" - such as a Rav4 can be.
Its $40K now. Same car - model hasn't changed. It will next year.
I remember my early days in Silicon Valley parking lots. So many beautiful German cars... "How much money do these people make?"
Well, let's just say today my homes are paid off and many of them have to leave because they basically drove their houses...
If I am not comfortable writing a check for a car, I cannot afford it. I have no business buying it.
Money scares me. Homelessness will do that to you.
I'm not so sure about that, I've listened to my buddy talk this way ever since he and his wife got into DR. I'm at the end of my career, less than 11 years to go. I just bought a Chevy Tahoe and last year, one would be darned to keep that first digit from turning into a 9. for 2026 forget it, you want it, it's gonna be high 9's on the way to six figures, it went up $5k.
My buddy said you'd be surprised, DR would tell you that you can afford it, congrats, and you deserve it. I said ha I doubt it, he'd tell me you deserve 20 year old cars lol
I sold a mutual fund to pay for this car. Not the greatest move as day after day is a new all time high. I sold after 2 of them end of June. If a person said good move, you financed 100% and kept the money in the market, you'll be thanking me Oct 3, 2025, I woulda told them what you've said. But it would have been incorrect.
How I get through all the mental gymanstics and semantics of "financial advice" found online and in the office? That car was an outrageous price, a little more than a new M3 (it's a Cheverolet, not a GMC nor a Caddy), but we needed a new car. I tell myself that car is less than 2.5% of your net worth and you're no spring chicken, let the money go.
To use whether or not a person paid cash (I did) as a determining factor of affordability, is not wise. That would mean nearly nobody can afford to have a home. My .02
We all know your home is paid off, you tell us every other day
These folks follow DR. My preference is not to owe and not to borrow. But that's my preference. From 1994 to 2025, there was never a good time over the long term, to sell stocks. So that lends credence to leverage. Not everyone wants to take on that risk, especially when closer to retirement. When I knew we were getting a new vehicle in August, that it was an outrageous amount of money on a so-called depreciating asset, a total waste and an amount I never thought I'd part with for a vehicle, I sold a mutual fund to cover it very last day of June. I said I don't want to use savings and I don't want a $1600/mo. payment. I was correct in doing that, for about a week.
That's me. The difference is if someone else has a $1600/mo payment and kept their money in the market, they've made on paper probably $5k+ and they would have been right, as of 10/3/25. Anything can happen next week, next month, next year.
The reason I can live with that is nobody could have predicted nor timed the market, and even the big boys take money off the table regularly. Then I look for the % that I took off the table, less than 3. So rather than dwell on missed money, I think about the 97.5% that was left in the market, that is at an all time high. That's me and how I think about it, everybody is different.
In theory, you are correct in what you're doing. The really strange thing is when people tell you, "you can't afford it, you didn't pay cash." There are things you can pay for with cash, and still not afford it. I could run out today after hockey practice and buy rib eye steaks for $19.99/lb, pay cash. But at my income level, I cannot afford that. Afford is highly subjective and mostly judgemental, imho. People enjoy that. Especially here.
Retired guy in new Corvette. It's part of the retirement dream.
You need one of these. You may never see the dye. In fact if you don't already you probably will not. @Nukeman7 suggested it to me and it worked great.
https://bobistheoilguy.com/forums/t...oubleshooting-101-help-me-get-started.395707/
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