That won't stop the American consumer
not smart enough to know they shouldn't be spending borrowed $ on depreciating asset(s) 
Its official - 60% of households and 82% of singles can't afford a new car.
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not smart enough to know they shouldn't be spending borrowed $ on depreciating asset(s) Steps are so easy to become wealthy or at least comfortable in USA, however human behavior stifles folks :
* spend less then you make
* build an emergent fund
* avoid any and all consumer debt(including auto loans)
Thankful for grandfather in early 1980s embedded this into me along with immigrant parent.
I used to help a friend pick up food for a local food bank until one day I went when they were handing out food. Yes some people run in to hard times but the people picking up food were interesting, some had nicer cars that I have, most smoked had tats and I thought poor decision making so I stopped helping.
A lot of discussion on the macro and personal finance side.
What actually hit me when I read the article is the new car industry is ignoring 60 to 80% of the public. Seems like an opportunity for someone. Even the few that offer lower cost vehicles, they don't build the stripped down ones, or the dealers add a bunch of crap and a market adjustment.
Someone is going to figure this out. I hope its not an Indian or Chinese company. The "people only want $80K SUVs" doesn't work for me. I want a mansion on the beach. I live in a builder grade shack in the burbs.
What actually hit me when I read the article is the new car industry is ignoring 60 to 80% of the public. Seems like an opportunity for someone. Even the few that offer lower cost vehicles, they don't build the stripped down ones, or the dealers add a bunch of crap and a market adjustment.
Someone is going to figure this out. I hope its not an Indian or Chinese company. The "people only want $80K SUVs" doesn't work for me. I want a mansion on the beach. I live in a builder grade shack in the burbs.
What would we speculate the cause of the problem?
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The US subsidizing global manufacturing.
We've done it twice in our car buyer time frame, the base 2018 base Outback here has heated seats, big enough screen, apple carplay, but no eye sight system, steel wheels and no power trunk, but IMO the interior is pretty nice and has power everything.
We also bought a 2003 Tracker that didn't even come with a radio, but it came wired for it with 4 speakers installed, but the big issue was no A/C, which was actually kind of OK before kids as we mostly drive 55 hwys. Manual trans and transfer case too, but that's a plus IMO. It had no power anything but both of us could reach all 4 window cranks and locks while driving, and we live in the country so rarely ever locked it up anyways. Hard grey plastics everywhere, but was reasonably quiet at 65mph, fit down ATV trails and I regret selling it. North America probably will never see a vehicle like that again.
IMO the car manufacturers are responding to the increasing income inequality, where the top 25% buy most of the new vehicles and have money to burn on options for comfort and for status, and the next 25% who buy new cars will stretch a bit to make it look like they have money to burn.
Also the EPA seems to have been run by lobbyists for GM and Ford, and the EPA has killed the manual transmission and the small simple diesel, and small and mid size car, with rules that favor of "light truck" SUV's(Like a Trax) and large pickups.
Also with the increasing seating heights of all these SUV's and aging north americans relatively low physical fitness and obesity, many want/need a higher seating position and then seem to accept that the same basic vehicle with a higher CoG is worth paying 10-20-30% more for?
I think we may buy another new vehicle in 10 years when the Outback is likely done, to get a decent awd PHEV wagon, but for the second car, a KISS mtx cheap wagon/hatch is prefered and the old versions of these still seem to be an amazing deal compared to new stuff, given I can do brakes, suspension, and engine accessories on these simple cars.
So the so called news story is a big lie and the drones of the media believe it.
If it was true, the market would adjust or there would be no cars to sell.
The story is a farce because its based one one factor and it has NOTHING to do with whether someone can afford a car.
Gosh, I noticed it in less than 60 seconds. Maybe someone else picked up on it?
The ONLY premise for that headline is one opinion from Market Watch. "...which says you shouldn't spend more than 10 percent of your monthly income on car-related expenses" Then they use a $30,000 car as an example instead of a 15 to $23,000 car. What a load the story is.
That is how the so called hit piece justified saying those percentages cant afford to buy a new car. Good god, the American public cant think for themselves subscribing to that trash. Oh and by the way, the auto industry would not exist if it could not produce cars people can afford.
If it was true, the market would adjust or there would be no cars to sell.
The story is a farce because its based one one factor and it has NOTHING to do with whether someone can afford a car.
Gosh, I noticed it in less than 60 seconds. Maybe someone else picked up on it?
The ONLY premise for that headline is one opinion from Market Watch. "...which says you shouldn't spend more than 10 percent of your monthly income on car-related expenses" Then they use a $30,000 car as an example instead of a 15 to $23,000 car. What a load the story is.
That is how the so called hit piece justified saying those percentages cant afford to buy a new car. Good god, the American public cant think for themselves subscribing to that trash. Oh and by the way, the auto industry would not exist if it could not produce cars people can afford.
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Yes, the $30K number is random, which are added for color only - ie 10% of cars are below $30K. Its not the basis for the article.
The jest is new car prices are rising much faster than median household income. - the math is pretty obvious.
Well said and the prices will keep rising as long as people will pay them. The day they stop paying them is the day they stop going up.
Not promoting this but it seems like an antidote to buying a new car.
https://www.auslandervlv.com/restorations
https://www.auslandervlv.com/restorations
So people should stop buying new cars and buy used...but they won't.
You can add Bill O'Reilly to that list as well. Much like Trump, people love to hate him because he gets boisterous at times. But it doesn't change the fact that 99% of what he preaches about personal economics and investing is true.
People have always loved to hate the messenger when it comes to economic criticism.
Yes, quite a simple concept. Yet people like to blame a grand conspiracy from the manufacturers for pushing "expensive" models.
If no new cars are sold, there won't be any used cars for sale. But like I said, I don't see this as some great conspiracy.
My personal opinion is this is a unfilled market need. I think someone should fill it. Henry Ford did the same thing in 1908. Everyone then told him that no one wanted a cheap horseless carriage either.
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Mfgs with supply constraints decided to move metal that had the highest margin, it was a pure business decision. As a result lower trims ceased to exist, so naturally consumer choice was limited.
Nowdays supply constraints no longer exist, and consumers are somewhat tightening their checkbooks, so it made sense to reintroduce lower trims. Again a business decision based on market.
https://www.spglobal.com/mobility/e...entory-trends-advertised-prices-dropping.html
Only 60%? I was expecting the percentage to be much higher!
And yes, this is why they can't keep the Trax / Corolla / Civic / Rio / Versa type vehicles in stock.
And yes, this is why they can't keep the Trax / Corolla / Civic / Rio / Versa type vehicles in stock.
You are an outlier.
Most people don't want manual transmissions, it's not the EPA, it's the consumer. The manual transmission has been on a steady decline since the late 80s-90s. If it was caused by EPA or some other factor, there would be a sudden drop in the market around that time frame. I think I read somewhere that the during the pandemic there was an uptick in manual transmission sales.
Same thing with other features. Can you even buy a new vehicle today without AC? Probably not. That's because manufacturers noticed a trend of people choosing more and more vehicles equipped with AC. Same thing goes for power windows, leather seats etc. These things didn't show up all of the sudden. It was a steady and slow process of manufacturers offerings these things more and more.
I can't help but laugh when I read garbage like this. 20 year olds talking about how they're not interested in doing something they'll most likely never be able to afford to do in the first place.
There is a big difference in choosing to work, and having to work. "Soft Saving Strategy" = No savings strategy at all. I wish them luck in another 40 years, when they'll have to work until they drop.
https://www.cnbc.com/2023/11/04/gen-z-leans-into-soft-saving-less-focused-on-retirement.html
There is a big difference in choosing to work, and having to work. "Soft Saving Strategy" = No savings strategy at all. I wish them luck in another 40 years, when they'll have to work until they drop.
https://www.cnbc.com/2023/11/04/gen-z-leans-into-soft-saving-less-focused-on-retirement.html
