Its official - 60% of households and 82% of singles can't afford a new car.

[Jackson_Slugger]

The article is yesterday. Its up to date - it mentions drastically increasing prices in 2022 but only 1% increase in 2023. However its not about inventory - its about the percent of the population that can afford a new car, by using reasonably common metrics of 10% of gross income for auto costs.

Your lots are filling because presumably as not as many can afford them?

Meh, it's showing what we saw months ago. You can now get inventory at your local dealer. A casual search showed plenty of local inventory of small cars but guessing maybe trucks are a waiting list IDK out of the game...

The lots aren't bristly and I know guys selling them pretty consistently. Many ignoring the fact a lot of people from GenZ to Boomers stashed lots of money for the day of availability...

 

[Jackson_Slugger]

I don't know about, "shoddily made". 2 guys at our gun club recently bought both a F-350 Diesel dually, and a really nice Suburban. Both we're $80K+ vehicles. They couldn't be happier.

I will submit the diesel 350 is a different animal and Ford dares not repeat past "International" blunders (see 6.0L diesel for more info) so yes they take care and produce a better product and those are lower volume production. I think a lot of the pickups in the 1500 range have declined though is seems Dodge RAM might be a cut above...

 

[Jackson_Slugger]

Ummmm no
Chevy Trax, Chevy Spark are two examples of many.
Automobile companies are in business to make money. The vast vast majority of the population can buy cars or they wouldn’t be priced as they are.

Ford's Trax equivalent, the EEEECCCCoh Sport, was canceled aways back...

 

[fantastic]

I will submit the diesel 350 is a different animal and Ford dares not repeat past "International" blunders (see 6.0L diesel for more info) so yes they take care and produce a better product and those are lower volume production. I think a lot of the pickups in the 1500 range have declined though is seems Dodge RAM might be a cut above...

That Ford "Blunder" got me one of the best deals I've ever bought..
Ford's 6.7L is definitely a great engine that will go down in history as one I'm sure.

 

[Jackson_Slugger]

That Ford "Blunder" got me one of the best deals I've ever bought..
Ford's 6.7L is definitely a great engine that will go down in history as one I'm sure.

The 6.7 is, the 6.0 to be fair wasn't Ford's in house engine in was from Navistar IIRC. The 6-cyl 4.5 rendition was worse. To be fair using cetane additive and better fuel filters helped a lot...

 

[BLND1]

I love basic. All of the vehicles in my sig are base models or rental spec models. The most basic is my 2015 Nissan Versa S that I bought 4yrs ago. Crank windows, no power locks, $2 ignition key, 4spd AT. My 2022 Frontier is also an S-model, but a ~$36K one being a 4x4 crew cab. The 2016 malibu is a rental spec "LT". Not sure you could get an 8th gen more basic than this and the 2019 Pathfinder SV 4x4 is also an ex-rental.

I am frightened at the cost of vehicles presently and will likely have to downgrade from pickups and SUVs to CUVs and sedans going forward. If my truck got totalled tomorrow (Gawd forbid!), I would replace it with a FB Marketplace Buick sedan or similar for now and bank the rest.

My 2021 Atlas is an SE 2.0T FWD.

When I requested this trim the salesman asked if I was sure as it was one of the few non AWD, non vR6 optioned vehicles on the lot.

 

[fantastic]

The 6.7 is, the 6.0 to be fair wasn't Ford's in house engine in was from Navistar IIRC. The 6-cyl 4.5 rendition was worse. To be fair using cetane additive and better fuel filters helped a lot...

That's right, I mentioned Ford, as you did, b/c Ford is the one that suffered losses not International. I suppose we could say that since Ford dropped them & built their own in house engine Navistar lost in the end. I've read they put that 4.5L in some cabover's but I never heard much about them. Love my 6.0L!

 

[benjy]

could care LESS about a new vehicle with TOO much problematic tec!!! KISS keep it simple STUPID!!

 

[joekingcorvette]

What would we speculate the cause of the problem?

Too many big businesses unwilling to pay employees what they are worth. This world has a lot of people willing to work for almost nothing. If you don't want to do the work someone else will. There are plenty of jobs and many people that will work for less.

 

[Jackson_Slugger]

That's right, I mentioned Ford, as you did, b/c Ford is the one that suffered losses not International. I suppose we could say that since Ford dropped them & built their own in house engine Navistar lost in the end. I've read they put that 4.5L in some cabover's but I never heard much about them. Love my 6.0L!

Reviled by most but loved by a dedicated few. The problems with the coolant systems and FI was far worse than the 6.0L

Not many left on the road, but there was a dedicated following of small business owners that would scoop them up for a song and fix them. they claimed the issues were self-inflicted and they ran fine with added cetane and FI cleaner additives in every tanks and oversized fuel filters and were as good as an Isuzu at a fraction of the cost...

 

[proveitwithdata]

Ummmm no
Chevy Trax, Chevy Spark are two examples of many.
Automobile companies are in business to make money. The vast vast majority of the population can buy cars or they wouldn’t be priced as they are.

I think you mean that the vast majority of the population will buy more car then can afford up until recently. Whether its purchased out of pure want, versus bought due to necessity because thats the only trim available on a model is another story.

Average transaction price of new luxury segment is $62k

atp for non lux cars was at $45k


In addition besides higher borrowing costs, we have auto credit availability worsening. Banks are not handing out loans as they were say a year or two ago. Right now captive finance arms have the best rates with little work, but they too are not approving as they were before.

 

[alarmguy]

Too many big businesses unwilling to pay employees what they are worth. This world has a lot of people willing to work for almost nothing. If you don't want to do the work someone else will. There are plenty of jobs and many people that will work for less.

Maybe in South Dakota but otherwise there are labor shortages all over this country. We are at a point where making coffee for people in Starbucks pays $40,000 a year *LOL*
Employers begging for help. Work at ANY auto plant in the South and get a great income, full benefits surpassing the best corporations and best of all enough to buy a home and raise a family.
Work at almost ANY police department in the country for much the same. To give an idea (I don't have the ad) but recently saw a starting salary for a Deputy Sheriff in Alameda County CA at $110,000 a year with a $75,000 sign on bonus. Not sure where the ad is right now but this stuff is ALL over the USA. Here is an example of just ONE county.

https://www.jobapscloud.com/Alameda/default.asp

Nassau County NY Police officer, easy $120,000 a year. Many make $200,000 or more after ten years plus you can advance.
https://www.nassaucountyny.gov/agencies/hr/employment.html

Life has never been more easy in mankind history.

 

[joekingcorvette]

Maybe in South Dakota but otherwise there are labor shortages all over this country. We are at a point where making coffee for people in Starbucks pays $40,000 a year *LOL*
Employers begging for help. Work at ANY auto plant in the South and get a great income, full benefits surpassing the best corporations and best of all enough to buy a home and raise a family.
Work at almost ANY police department in the country for much the same. To give an idea (I don't have the ad) but recently saw a starting salary for a Deputy Sheriff in Alameda County CA at $110,000 a year with a $75,000 sign on bonus. Not sure where the ad is right now but this stuff is ALL over the USA. Here is an example of just ONE county.

https://www.jobapscloud.com/Alameda/default.asp

Yes, it is a complicated issue. I am not complaining and have decent vehicles. People need to budget their money better and as far as the high costs of vehicles they are high priced however if maintained properly they last a long, long time with a little luck. I have had 4 vehicles for two people including myself for the last 35 years and therefore I cannot complain but do like to stick up for the less fortunate.

 

[fantastic]

Reviled by most but loved by a dedicated few. The problems with the coolant systems and FI was far worse than the 6.0L

Not many left on the road, but there was a dedicated following of small business owners that would scoop them up for a song and fix them. they claimed the issues were self-inflicted and they ran fine with added cetane and FI cleaner additives in every tanks and oversized fuel filters and were as good as an Isuzu at a fraction of the cost...

Ah, that's right "Low Cab Forward" was the name based on that LCF door tag reminder. I'd love to have their payload capacity. Looks like Ford used 10 lugs instead of the 6 big wheel lugs Isuzu uses.

 

[billt460]

Manufacturers and dealerships aren't stupid. They know that most of their customers have rather diluted financial thinking. And a lot of the profit in the sale of new vehicles comes in on the financing end of the deal.

If people today can't borrow the money, they can't purchase the product. Customers think in terms of monthly payments, not purchase price.

These dealerships make these purchases happen based on the size of the monthly payment. Big price + high interest rate = longer financing = smaller monthly payment.

Most of these people want these things so bad, they simply don't care how badly they're getting screwed. Sure, they'll talk differently, even brag about the "great deal" they got. But when you break it down it's all B.S.

It's why financing is now running up to a decade on some of these things. In the future it will go even higher. The manufacturer and the dealers are laughing all the way to the bank.

Because they know the people will simply learn to accept it. There will always be sticker shock..... Until the huckster in the plaid sportcoat, "shows you how YOU can, "afford it".

I remember looking at a brand new 1969, 427 Corvette when I was in high school. The sticker was $6,300.00. As a broke teenager I said to myself, how could anyone possibly afford that?

Fast forward to today and people are saying much the same about the 2024 Jeep Grand Wagoneer stickered at $105,000.00. It will get purchased same as that Vette did 55 years before it. And the wheels on the bus go round and round.

 

[joekingcorvette]

I totally agree with the high cost of financing and pay cash up front or I do not buy.

 

[PontiacHO]

Help Wanted signs in every business around here but we have folks that “can’t feed their families etc.”
Most choose not to work. They can make almost as much sitting at home eating donuts and weighing 300lbs.
They don’t need a car!

 

[andrew_j]

I'd like to see a survey of how much those young people spend on things like stupid tattoos, Starbucks coffee and eating at fast food restaurants, the latest iPhone, expensive monthly cell phone and data plans, Netflix and cable bills and using credit cards to pay for unnecessary things that they want now instead of saving for, and paying 25% interest rates on.

But they aren't paying off their student loan debt and expect Uncle Sugar to bail them out and can't afford a new car.
I find it difficult to have sympathy when lifestyle choices have a lot to do with their situation.

 

[willbur]

We have all lamented on the crazy prices of cars in the last few years. Seems Newsweek has made it official.

"60 percent of American households currently cannot afford to buy a new car, based on Census data. For individuals, the numbers are even worse, with 82 percent of people"

Also -

"Since 2020, new car prices have risen by 30 percent, ... Within the same timeframe, used car prices have jumped by 38 percent."

They also comment on how car makers are no longer making cheap, econo models.

Full article, for those interested. https://www.newsweek.com/americans-can-no-longer-afford-their-cars-1859929

It's all relative. McDonalds ppl are making $20/hr in Ca. and traffic flaggers here are making $54+/hr. Newsweek needs headlines to sell and leaves out the rest of the story.
I look at the number of hours I had to work to buy a very stripped down small new car when I got my first job and the same for a new car now as a comparison. Today's car is somewhat more expensive time wise but has alot more equipment, much safer, much better milage, more reliable and probably can last 3x longer if I wanted it to. Alot nicer car. IMO, it costs less.
Ppl then were much more responsible money wise than todays.

 

[robertcope]

New cars just don't make sense to me. My 2011 Range Rover cost $15K in very, very good condition. Runs great and is a pleasure to drive. Sure, a used car is going to have some issues, but I can afford to spend a _lot_ of money on a $15K car before it becomes a bad choice vs a new $50K car, right? And, frankly, the RR is nicer than that $50K car to me. I just hope people keep buying enough new cars keep my supply of used cars going, lol.