Average new car price is $50K ? Insanity.

[andrew_j]

56% of Americans can’t cover a $1000 emergency expense. The amount of personal debt Americans are carrying is absurd. Think about that alongside the new car price statistics. Americans are in denial about the quality of their lives falling.

Get used to living a simpler life and having less “stuff”. For most of the worlds history there has been peasants and serfs (feudalism). The middle class we have now is an just anomaly or blip in the history of the world. The wages of the middle class are falling behind fast.

The most comical reason for buying a different car, I can’t afford a $1500 repair so they trade likely upside down vehicle into next vehicle.

 

[userfriendly]

The most comical reason for buying a different car, I can’t afford a $1500 repair so they trade likely upside down vehicle into next vehicle.

Sure, why not? Instead of pouring $$$ into a money pit, buy a new car with a 5 year warranty. Hakuna matata.

 

[SeaJay]

Growing up a refrigerator was 1 week salary, and could be expected to last 3-5 decades. Same with washing machines, driers, dishwashers, etc. How about TVs. Used to last 30-40 years. Now, 5 years and they burn out.

You can get a pretty impressive TV these days for well less than a week's salary. In 5 years time you will want a new one just because the technology has improved and an even bigger one costs less than the smaller one you purchased 5 years ago.

 

[leadcounsel]

You can get a pretty impressive TV these days for well less than a week's salary. In 5 years time you will want a new one just because the technology has improved and an even bigger one costs less than the smaller one you purchased 5 years ago.

Typical flat TV is around $300 but the more elaborate ones can be 10x that or more. The point being, they don't last very long and are not cost effective to repair. I talked to a TV repairshop once, and he had about 100 broken flat panels on site that he used to harvest parts out of in futile attempts to be able to fix the occassional TV. In general he said they break very easily and are usually not cost effective to try to fix. He only did it because people would dump broken TVs there for free (after doing the analysis) so he had a lot of free components he could harvest from, in attempts to get the occasional repaired working TV so sell. From 100s of broken TVs, he could cobble together a working power source, unbroken screen, etc. and fix the occasional TV and sell it. So while it might be amazingly beautiful and do a lot of wizbang features, replacing it every 5 years, along with your dishwasher, dryer, laptop, cellphone, etc. is an unsustainable consumer debt ecosystem. It's a wasteful non-environmentally conscious disposable consumer driven society, and sadly automobiles (which require massive resources to make) are now in the hopper to go to early graves.

 

[userfriendly]

Typical flat TV is around $300 but the more elaborate ones can be 10x that or more. The point being, they don't last very long and are not cost effective to repair. I talked to a TV repairshop once, and he had about 100 broken flat panels on site that he used to harvest parts out of in futile attempts to be able to fix the occassional TV. In general he said they break very easily and are usually not cost effective to try to fix. He only did it because people would dump broken TVs there for free (after doing the analysis) so he had a lot of free components he could harvest from, in attempts to get the occasional repaired working TV so sell. From 100s of broken TVs, he could cobble together a working power source, unbroken screen, etc. and fix the occasional TV and sell it. So while it might be amazingly beautiful and do a lot of wizbang features, replacing it every 5 years, along with your dishwasher, dryer, laptop, cellphone, etc. is an unsustainable consumer debt ecosystem. It's a wasteful non-environmentally conscious disposable consumer driven society, and sadly automobiles (which require massive resources to make) are now in the hopper to go to early graves.

You should meet my brother. He plays the violin, makes vaccines and dives a Subaru.

 

[Blueshound]

Typical flat TV is around $300 but the more elaborate ones can be 10x that or more. The point being, they don't last very long and are not cost effective to repair. I talked to a TV repairshop once, and he had about 100 broken flat panels on site that he used to harvest parts out of in futile attempts to be able to fix the occassional TV. In general he said they break very easily and are usually not cost effective to try to fix. He only did it because people would dump broken TVs there for free (after doing the analysis) so he had a lot of free components he could harvest from, in attempts to get the occasional repaired working TV so sell. From 100s of broken TVs, he could cobble together a working power source, unbroken screen, etc. and fix the occasional TV and sell it. So while it might be amazingly beautiful and do a lot of wizbang features, replacing it every 5 years, along with your dishwasher, dryer, laptop, cellphone, etc. is an unsustainable consumer debt ecosystem. It's a wasteful non-environmentally conscious disposable consumer driven society, and sadly automobiles (which require massive resources to make) are now in the hopper to go to early graves.

Good example. We're on our third dishwasher in 5 years.

 

[tbm5690]

With cars, appliances, etc. it is true that they don't last as long when compared to decades past, but there is still something to be said about doing your homework before purchase and not just buying the one you think looks the nicest. Your average US consumer buys purely on emotion...anyone on this forum has somewhat of an analytical nature and therefore I would assume most on here don't fit into the typical consumer group. Anyone can have a bad run of lemon appliances but was any thought put into researching longevity prior to purchase?

 

[Blueshound]

... was any thought put into researching longevity prior to purchase?

Yes but I was overruled.

 

[AlphaOmega]

A Toyota exec feels average new cars prices could exceed $50,000 this year. How can anyone afford this?
The 1st new car I ever bought was my strippie 1993 Toyota 4wd PU for $14,000 all in. And that scared the heck outta me.

Well, about 20% of US households earn $150k annually OR more.

There are about 124 million households in US.

20% of that is about 25 million households. Or, roughly, 50 million mom+dad combos that earn $150k/year OR more. Each one needs his and her own car (typically).

If one adds 2 + 2 together, it is not too difficult to imagine an average price of new car being $50k. US of A is a very rich country with 340 million people.

*Los Angeles, Miami, Chicago, New York and other large cities skew the average price upwards for the rest of the country

 

[leadcounsel]

Well, about 20% of US households earn $150k annually OR more.
View attachment 148062
There are about 124 million households in US.
View attachment 148063
20% of that is about 25 million households. Or, roughly, 50 million mom+dad combos that earn $150k/year OR more. Each one needs his and her own car (typically).

If one adds 2 + 2 together, it is not too difficult to imagine an average price of new car being $50k. US of A is a very rich country with 340 million people.

*Los Angeles, Miami, Chicago, New York and other large cities skew the average price upwards for the rest of the country

But any astute person with basic economics understanding will tell you $100,000 ain't what it used to be.

With real inflation around 20% +/- year over year, average house in America costing $400,000, and now interest rates in high single digits, CC rates in the high 20% range, crushing consumer and student loan debts, even people earning 6 figures are struggling. Here is a report that states about 2/3rds of Americans [including 1/2 of those earning greater than $100,000 bracket] are living paycheck-to-paycheck. This was from 2021-2022 figures. The economic outlooks have all gotten materially worse, not better in any metric.

https://thehill.com/changing-americ...rly-half-of-americans-making-100k-are-living/

"Sixty-four percent of Americans are living paycheck to paycheck as of January 2022, the study found — a 3 percent increase from December 2021 and a 12 percent increase from April 2021.

The survey found that among those earning more than 100,000, 48 percent said they were living paycheck to paycheck, an increase from 42 percent in December 2021. The number has increased since May 2021 when 39 percent of six-figure earners said the same.

In fact, the number of those earning between $50,000 and $100,000 who are living paycheck to paycheck is rising.

In May 2021, 53 percent of earners in this financial bracket reported living paycheck to paycheck, compared to 67 percent in January 2022."

 

[AlphaOmega]

But any astute person with basic economics understanding will tell you $100,000 ain't what it used to be.

With real inflation around 20% +/- year over year, average house in America costing $400,000, and now interest rates in high single digits, CC rates in the high 20% range, crushing consumer and student loan debts, even people earning 6 figures are struggling. Here is a report that states about 2/3rds of Americans [including 1/2 of those earning greater than $100,000 bracket] are living paycheck-to-paycheck. This was from 2021-2022 figures. The economic outlooks have all gotten materially worse, not better in any metric.

https://thehill.com/changing-americ...rly-half-of-americans-making-100k-are-living/

"Sixty-four percent of Americans are living paycheck to paycheck as of January 2022, the study found — a 3 percent increase from December 2021 and a 12 percent increase from April 2021.

The survey found that among those earning more than 100,000, 48 percent said they were living paycheck to paycheck, an increase from 42 percent in December 2021. The number has increased since May 2021 when 39 percent of six-figure earners said the same.

In fact, the number of those earning between $50,000 and $100,000 who are living paycheck to paycheck is rising.

In May 2021, 53 percent of earners in this financial bracket reported living paycheck to paycheck, compared to 67 percent in January 2022."

how does above negates a fact that there are 50 million pairs that earn AT LEAST $150k OR MORE a year and that fact’s relation to the fact that the average sale price for a car is $50k? The OP asked “how can ANYONE afford a $50k new car”. Easy peasy in US of A for 10s of millions of people

P.S. when was the last time debt wasn’t crushing and other such similar statements? The United States has been going down the drain for a long as I’m alive, yet its wealth is only growing. Doesn’t mean there are no groups that have missed the train so to speak, as the OP clearly lives in that America, but that’s a different topic

 

[leadcounsel]

yet its wealth is only growing.

The US wealth is not growing. We, the US, are in radical decline in terms of wealth.

 

[AlphaOmega]

The US wealth is not growing. We, the US, are in radical decline in terms of wealth.

This is US GDP history 1960 through 2021, in 2021dollars - meaning it takes account of inflation. As can be seen, it’s nearly a continuous upward line, save for 2008. The GDP has nearly doubled since 2005 - so like in less than 20 years, America, as whole, became twice as rich!

And what would you know, back in 2005, average price of new car sold was nearly twice less!

You are very wrong in your assessment. Someone is internationally hoodwinking for secondary, undisclosed to you, reasons

 

[ls1mike]

Not sure I will ever have a brand new car ever again.

 

[IndyIan]

This is US GDP history 1960 through 2021, in 2021dollars - meaning it takes account of inflation. As can be seen, it’s nearly a continuous upward line, save for 2008. The GDP has nearly doubled since 2005 - so like in less than 20 years, America, as whole, became twice as rich!
View attachment 148288


And what would you know, back in 2005, average price of new car sold was nearly twice less!
View attachment 148287

You are very wrong in your assessment. Someone is internationally hoodwinking for secondary, undisclosed to you, reasons

Wealth inequality has also gone up though, and rich people don't buy more Chevy Malibu's, when they make more even money...
We make around $150k but a $50k car would be a terrible waste of our money, there is a lot of other bills to pay and things to save for. Flushing $50k into a overly complex car that might cost way more as it ages every 10-12 year, is a sure way to retire at 65 or older at our income level IMO. A $50k car is more like a $250k+ income trinket to me at least. And even then, there's lots of fun hobby's to spend that kind of money on, but for some having a new nice-ish car/truck, every few years is their hobby.

 

[ls1mike]

Wealth inequality has also gone up though, and rich people don't buy more Chevy Malibu's, when they make more even money...
We make around $150k but a $50k car would be a terrible waste of our money, there is a lot of other bills to pay and things to save for. Flushing $50k into a overly complex car that might cost way more as it ages every 10-12 year, is a sure way to retire at 65 or older at our income level IMO. A $50k car is more like a $250k+ income trinket to me at least. And even then, there's lots of fun hobby's to spend that kind of money on, but for some having a new nice-ish car/truck, every few years is their hobby.

We make close to 250,000 combined...you see my fleet. Good Ole Malibu. I don't want a BMW, Lexus, Mercedes. Well you get the idea. I don't want to work past 54 or 55.

 

[AlphaOmega]

Wealth inequality has also gone up though, and rich people don't buy more Chevy Malibu's, when they make more even money...
We make around $150k but a $50k car would be a terrible waste of our money, there is a lot of other bills to pay and things to save for. Flushing $50k into a overly complex car that might cost way more as it ages every 10-12 year, is a sure way to retire at 65 or older at our income level IMO. A $50k car is more like a $250k+ income trinket to me at least. And even then, there's lots of fun hobby's to spend that kind of money on, but for some having a new nice-ish car/truck, every few years is their hobby.

Wealth inequality has gone up for sure. I take it cars are not your hobby? .

 

[AlphaOmega]

We make close to 250,000 combined...you see my fleet. Good Ole Malibu. I don't want a BMW, Lexus, Mercedes. Well you get the idea. I don't want to work past 54 or 55.

May I ask, why do you need 5 cars if you are trying to retire early?

 

[SC Maintenance]

Good example. We're on our third dishwasher in 5 years.

What on earth failed on them? We have an el cheapo builder quality GE dishwasher that is 9 years old. I have replaced a few parts. The level sensor twice. The soap dispenser. Like most appliances there easy to fix - there is like 6 parts, some sheet metal and some plastic.

Same with dryers - only a handful of parts that can fail, usually the control board or the heating element. Were on heating element number 3 in 9 years - but that dryer is a higher price Samsung. Also replaced the rollers. Belt is original.

 

[ls1mike]

May I ask, why do you need 5 cars if you are trying to retire early?

They are all paid for. In my house I have 3 drivers, 4 in May. The Trans Am has been paid off since I bought it in 2004. The Caprice was 20,000 dollars 7 years ago. The Buick was 3900 bucks. The Malibu was 24,000 in 2015. The truck, 2017 Silverado, is the most expensive vehicle I own. It was 36500 out the door in 2019. None of those break the bank or require much maintenance at all. All my cars combined are cheaper than some people with 2 cars. I not rolling a Ferrari over here.