AZjeff
$50 Site Donor 2023
On the news this evening: average price of a new vehicle is now $47k. Last month 82% of new cars sold over MSRP. Both are higher than I would have guessed.
New car price & MSRP
- Thread starter AZjeff
- Start date
- Joined
- Oct 30, 2021
- Messages
- 506
People are taking more 84 month loans for there vehicle purchase than ever before. There’s gonna be alot of folks upside down when these loans are paid . Credit card debt is also on the rise
Nick1994
$100 site donor 2024
I really am enjoying not owing a penny to anyone for anything.
Until my next itch to buy a car. But nothing interests me and I’ll be ****ed if I’m paying these prices anyways.
Until my next itch to buy a car. But nothing interests me and I’ll be ****ed if I’m paying these prices anyways.
Yes, this. But you know, with my luck, someone's gonna kill my vehicle and I'll be stuck trying to haggle away the Higher-Than-MSRP Sticker price.
I just helped my daughter buy a new 2022 Trax. They wanted $4k more for a certified used one with 22k miles (other choices available in Trax and Encore, same price points). Dealer started at $3500 over msrp. I felt lucky to get him down to MSRP, the only 2 new Trax in So Cal.
recently i've witnessed a woman bought '22 4Runner, probably fully loaded for $60K OTD; with the interest charges of ~5% and her loan time frame about 72 to 84 months she will be ending up paying $80K over the life of the loan on the vehicle that is roughly 10 years in the production; nuts!
- Joined
- Oct 30, 2021
- Messages
- 506
4Runners are selling for whatever the seller ask
With true inflation likely double than what the Govts CPI index says I am tempting as never before to buy a car with a loan.
Since the interest rates are less than the true inflation its almost free money.
I dont do more than 36 month loans though
Since the interest rates are less than the true inflation its almost free money.
I dont do more than 36 month loans though
NADA retail on my 2016 Ram 1500 is now $42k with 50k miles on it... Paid $33k in Dec 2018. MSRP in 2016 was $54k and MSRP on a comparable 2022 is $65k (20% increase) prices new/used are nuts.
Except that cars/trucks are depreciating assets, so it's not really free money at all... It might not seem that way given how used/new car prices have gone up, but the value of a car will almost always go down the longer you own it, and sooner or later this bubble will pop.
It's short term though and this bubble will probably pop just like other bubbles. Ford and GM are already warning dealers not to go over MSRP as that can damage future business. They're also cutting car allocations to dealers that go over MSRP. This market probably has about another year to go or more though. They say chip shortages are starting to ease but might take a year to clear. Once that happens, MSRP will go down and car prices will come down.
Not according to this guy-
Rants - Autoextremist.com ~ the bare-knuckled, unvarnished, high-electron truth...
Autoextremist.com - an Internet magazine devoted to news, commentary and analysis of the auto industry - a weekly
You can always find someone on the opposite side of a position. That's why there's always stories of how the market is going to collapse. Remember those threads from two years ago from people who were going to sit out of the market and jump in when the market crash? Meanwhile the market ended up over 28% last year. I think there's good competition in the auto business so they're not all going to just cut back on production. If they can increase production, they will. I think some manufacturers chip problems are easing faster than others. You can look at the oil boom and bust. Overproduction lead to a collapse in pricing. Hasn't happened this time because all the bankers who lost their shirt last time aren't lending again and the ones who overproduced aren't willing to do so again. But in their case, they had a very large percentage increase in production, like triple digits, but if automakers do 10-20% more than before, that's still a lot of cars and not overproduction to bring the market back into balance.
It is crazy right now in the car sales area. Prices are getting inflated and a lot of dealers are charging mark ups. I know GM and others have issued letters to their dealers to be careful with that, but at the end of the day, they are a manufacturing company. They franchise out to dealers to sell. Dealerships will sell for what they can get. Their independent owners will gladly mark up cars in times when there is a shortage and people don't have much of a choice but to pay.
It would be interesting to know how many guys who put in Ford Lightning reservations and going to turn around and flip that truck. So it works both ways...doesn't it?
Legacy car manufacturers are handcuffed by the dealer franchise model. They appear to be pushing back on price gouging, but they are really fighting the market.
Direct sales via the Internet will continue to impact the status quo. Right now, the direct sales model has an advantage over the dealership model, even if it is only in the customer's impression. Direct sales prices rise just like dealer prices. There is no free lunch.
MSRP is just a number. Price gouging depends on which side of the deal you are on.
Direct sales via the Internet will continue to impact the status quo. Right now, the direct sales model has an advantage over the dealership model, even if it is only in the customer's impression. Direct sales prices rise just like dealer prices. There is no free lunch.
MSRP is just a number. Price gouging depends on which side of the deal you are on.
Similar threads
