More than 80% of Amercans can't afford a new car

[CKN]

And yet the affordable cars like the Mirage, Rio, and Altima are being discontinued.

For example- 2 year old low miles Hyundai Venues their small SUV Offering can be had for 20 grand.

There are still affordable vehicles-but yes they will not be sedans.

 

[CKN]

Well, tenants scare the you-know-what outta me.

So, for guys like us, no, real estate leverage isn’t an appropriate way to build wealth.

We saved, invested, in some cases bought well, and grew it that way. Real estate isn’t the only way for “regular” folks to build wealth.

But both discipline and time are required no matter which route you choose.

I didn't say "only way". IT IS one of the few ways.

 

[macarose]

The market is already slowly regressing back to the pre-COVID norms.

With Chinese EVs about to be launched with Volvo, Tesla slashing prices with an eagle eye on expanding to the lower end of the car market, and nearly every major legacy automaker willing to sacrfice their profits for the unyielding altar of temporary marketshare thanks to government subsidies, we'll likely see the average price for a vehicle slide right back down to $40,000 by around 2026.

Even with inflation, Americans are starting to lay off the throttle of debt. The boomerang that was $7 trillion in 'free money' is over and what you see now is a growing army of overextended Americans.

The new car market will soon be offering an orgy of penurious plenitude.

 

[CKN]

BITOG: where other people’s finances are none of your business, unless you disagree with the choices…

Quote of the month.....

 

[Leo99]

I know people who have what must be close to their annual family income tied up in cars. They don't go anywhere because gas is too expensive and their idea of a vacation is something like Gatlinburg in November.
Works for them and apparently satisfies their needs and desires.
That I may have different ideas on what to buy and drive as well as what constitutes a vacation in no way invalidates their choices.
We all have different priorities in spending and saving our incomes.
Economic theory tells us that we are all utility maximizers and what this constitutes is an individual decision.
It isn't a matter of whether people can or can't afford a new ride, rather it's a matter of where they choose to put their resources.

Well stated. We have about 6% of our take home income going to car payments. Probably another 3 or 4% going to gasoline and maintenance. Mortgage is paid off. We like a lot of disposable income. After many years of money woes, we really enjoy not worrying about money. If something moved me, I could buy it tomorrow but nothing moves me. Until then I'll drive my Camry.

 

[daves87rs]

So why does anybody care? 80% of Americans can’t but new cars, yet somehow new cars get sold, houses get bought and the economy rolls along. And has been longer than any of us has been alive.

This. Learn it, live it , and survive. It’s really that simple.

Times aren’t fair right now with everything high (think fat profit for someone), but that is the way it is. One way or another, you will will to change your habits- I don’t care how much money you make.

I humbly suggest you prepared- as the growing divide in this country will only drive things higher.

 

[daves87rs]

Car payments of 600+ ridiculous

Used cars are there now…..

 

[loneryder]

If they can't afford new cars, how are they going to buy these expensive e vehicles I see advertised on TV?

 

[CKN]

Can't wait for the threads titled-
"I can't find a decent beater under $10,000.00

 

[michaelluscher]

Looks at vehicles in signature
puts wallet back in pocket
Looks at credit score
moves money to savings account

I'll keep what I've got, and roll on until I'm making more money AND I can buy what I want without having to overpay

I've got cash in the bank, 750+ credit, and some income
If I'm gonna sign on the line at these prices and interest rates, it better be exactly what I want and make me happy
Nothing out there can do that at the moment, so I might as well keep my money

Conditions on the field aren't optimal, I'll stay on the sidelines

 

[Dave Hess]

Most people will do just fine with a $20K vehicle.
No need for $80K vehicle just to get from point A to point B.

Once a person obtains financial security and retirement nest egg they can buy something nicer their budget can afford.

 

[andrew_j]

…. delete

 

[andrew_j]

…..

 

[MSCH]

most people are one paycheck way from trouble. It doesn't matter how much they make, they just live up to their means.

don't be most people.

you will also find yourself getting good deals from most people when TSHTF.

 

[grampi]

Civic's locally cost $25-$26K, plus TTT, and dealer fee/prep. $29,300 OTD (local rates)

6.5%, 48 months, and 0 down, that's nearly $700 per month.
Stretch it out to 72 months, 6 years, and it is still $500 per month.

Not including insurance, which here in South Florida is now well into the INSANE range.

I think paying over $20K for any compact, regardless of how it's equipped, is absolutely ridiculous. And if the UAW gets auto workers what they want, prices will go even higher...

 

[grampi]

Car payments of 600+ ridiculous

Or loan terms longer than 5 years...

 

[supton]

I think paying over $20K for any compact, regardless of how it's equipped, is absolutely ridiculous.

I agree.

but…

What is the alternative? end of day, someone has to buy new cars in order for there to be cheap used cars.

 

[MSCH]

Or loan terms longer than 5 years...

I dont know where you have been but most auto loans are at least 5 years..

 

[supton]

I dont know where you have been but most auto loans are at least 5 years..

I hadn't bought in a couple of years but it felt really weird to be asked if I wanted more than 5 on my last purchase. Like it just felt wrong.

Now had it be 0% APR I'd be fine with that! I had 0% on one loan, and that was probably the only loan I've ever had that went full term. I had zero interest in paying off early...

 

[CourierDriver]

Memory, my 67 Beetle was 1900 total price,,,lol,,payment was 55 a month...mercy