New Vehicle Prices: I don't get it?!?

[daves87rs]

Originally Posted By: Mr Nice
Just accept that you are middle class and budget your salary accordingly.

Lots of cash poor Americans that are a few paychecks away from financial disaster if they got layed off, hours cut at work, long term illness, house needing new roof, ....etc....
I've seen cash poor people driving fancy vehicles and they have zero worries about their financial futures. Pride and ego destroys lots of people's financial security.




With the way things are going now, it's getting hard to take any kind of financial security seriously. Between the economy and all the crazy, money could be gone at a moment's notice!

Watched a co worker best bud do everything right with money...but someone forced him to rear end another car (a set up with a family car in the front)-and grabbed a crooked lawyer-taking him for everything he owns....it's been super scary to watch....


As far as prices, buy used (3-5 at least), or just buy the base model....especially in trucks!

I was considering a colorado, but 22 grand is much better than 40....

 

[daves87rs]

Originally Posted By: mrsilv04
Originally Posted By: doitmyself
Mr. silv04 has just shown that you can buy a very well equipped Explorer in the mid $20 K range. I know that Sorentos are available at that price also.

A person just needs to lower their "wants" and address their "needs". Those bells and whistles add up really quick.


Yep. It's a "base" model.

But it has:

3.5 liter V6
Power driver's seat
Back up camera
Satellite radio
18" wheels
Tilt and tele steering wheel
LCD tail lights
Cruise Control
Power windows
Auto headlamps
Chrome exhaust tips
Power mirrors
Tinted glass
A/C
CD/MP3
Sync
All of the airbags

Reminder... that's a "Base" model.

People need a reality slap every now and then.




+1

 

[SwedishRider]

Originally Posted By: mrsilv04
Reminder... that's a "Base" model.

People need a reality slap every now and then.


That's a pretty loaded statement. I absolutely realize that there are base models going for much less that what was on the dealer's lots that I looked at. But take a guess as to how many "base models" they floor planned on any of the lots I walked? Zero. A base model would be a special order vehicle (if a dealer would order one, and then I'd probably have to pay full MSRP for a stripped model), unless I shopped online and scoured dealer lots in a radius from where I live. And even then, I have no idea if a base model would turn up anywhere.

Even still... that's ~$26K for what is now considered a "base model". Something is very wrong when entry level models go for that kind of money.. at lease IMHO.

 

[Cujet]

Originally Posted By: SwedishRider
I just don't get what the heck is going on with modern car sales...

2013 Ford Explorer with about 20K miles on it. $41,000!!!

So next to it was a brand new 2015 model... MSRP'd for about $49,000!!!


I write about this all the time, and people discount what I say. Sometimes refusing to believe the facts.

Purchased correctly (on sale, leftover, Costco, etc) a new car is often no more than a few cents per mile more expensive (over it's lifetime) than a used car. There are certainly times where new can cost less per mile. Honda/Toyota are "high value" used cars. Yet, can often be found discounted new.

Often used car insurance is higher.
Repairs and required maintenance on used is always higher, sometimes significantly.
Often used car financing costs are higher.
Often used cars have worse fuel economy, even among similar models.
Used cars often have problems.
Used cars have less life, regardless of how they look. They will also look "old" x years earlier. With cloudy headlights and so on.

When accurately calculated, cost per mile on a new car purchased correctly is generally 3 cents per mile more than a well purchased used car of similar class.

A used car with 30,000 miles will likely need $700 worth of tires in 10,000 miles. Some will need brakes within a year or two, often $400-$600. And on and on... Add that to your payments...

If you find that "unicorn" of a used car. You know the one everyone talks about, the $2000, garage kept, 6 year old car with 9,600 miles on it, purchase it. But don't fool others into thinking they actually exist in the real world.

 

[MolaKule]

Not too long ago I was looking for a replacement SUV.

I looked at new Ford and GM/Chevy truck Crew Cab 4X4s:

Prices ranged from $47k to $54k+.

For a semi-retired guy, that's nuts.

I bought a 2012 Nissan Frontier with 35k on it for $21.5k.

 

[Chris142]

Have you seen the price of polaris rzr's and artic cats? Start@$25k and you cant drive them on the street

 

[mrsilv04]

Originally Posted By: SwedishRider
Originally Posted By: mrsilv04
Reminder... that's a "Base" model.

People need a reality slap every now and then.


That's a pretty loaded statement. I absolutely realize that there are base models going for much less that what was on the dealer's lots that I looked at. But take a guess as to how many "base models" they floor planned on any of the lots I walked? Zero. A base model would be a special order vehicle (if a dealer would order one, and then I'd probably have to pay full MSRP for a stripped model), unless I shopped online and scoured dealer lots in a radius from where I live. And even then, I have no idea if a base model would turn up anywhere.

Even still... that's ~$26K for what is now considered a "base model". Something is very wrong when entry level models go for that kind of money.. at lease IMHO.


OK, so you don't want help. It is quite obvious now. You've been given an example, and you're still whining and making lame excuses.

This was nothing more than a gripe, whine and moan thread.

 

[SwedishRider]

Originally Posted By: mrsilv04
OK, so you don't want help. It is quite obvious now. You've been given proof, and you're still whining and making excuses.

This was nothing more than a gripe, whine and moan post.

*slap*


I thought everyone realized this is a gripe, whine, and moan post (or thread). Car prices are ridiculous. I was just curious if anyone here knows how dealers are moving cars with obscene prices to average families. I never asked for anyone to find me a "base model". I'd already decided I'm buying nothing before I made the first post.

Bottom line for me: These new car prices are too high (ridiculously so)... even for "base models".

I'll detail my cars and correct their paint and just keep running them. Because at the end of the day, the only good car payment is no car payment.

 

[gregk24]

Originally Posted By: Mr Nice
Originally Posted By: CT8
Yep 72 month financing allows people to purchase what they can't afford.


Average car payment is almost $500 a month.



WHAT!!! Thats a mortgage!

 

[CKN]

Leasing is at an all time high.......

BTW-That base model Ford Explorer is a nice ride for $26,000.00.

 

[UNC164]

72 or 84 months of payments for a new car = financial suicide

Leasing new cars for personal use = financial suicide


The good news is that folks that lease personal cars and those that pay on 6-7 year car loans will work and pay into the SSN system forever because they themselves will never be able to afford to retire. That is great for the rest of us that actually are smart enough to live below our means and can retire early.

 

[SEMI_287]

Whew, I'm glad I walked out the door $17k for my Avenger last year!

 

[CKN]

Originally Posted By: cashmoney
72 or 84 months of payments for a new car = financial suicide

Leasing new cars for personal use = financial suicide


The good news is that folks that lease personal cars and those that pay on 6-7 year car loans will work and pay into the SSN system forever because they themselves will never be able to afford to retire. That is great for the rest of us that actually are smart enough to live below our means and can retire early.



Leasing is financial suicide in your opinion. BTW-the buying vs. leasing argument has been beaten to death here on BITOG.

BTW-I retired early at 56 years old due to real estate investments and have always driven a car no older than 5 years old. So---your not the only "smart one" around this board.

 

[GiveMeAVowel]

Want versus need....

You want a nice big SUV, but you NEED a low priced Minivan.
If you believe you NEED AWD buy a base Subaru Outback for
24k.

 

[Lyman]

Buy a new car? Ha Not this guy. I take what my payment would be and take care of the old ones I have owned. What's left I can put into my 401k.

 

[RedOakRanch]

I think for what cars come with these days they are a bargain. Nice cars for 20k was gone about 15 years ago.

 

[oilmaven]

I will send in my final car payment on the Suzuki next month...after 48 months it's all mine. I don't care that Suzuki isn't here anymore...the car has 70k miles, runs great and has only had 2 problems since I owned it (less than $500 out-of-pocket for the repairs). All in all, it's a great ride and I plan to keep it for several more years (drivetrain warranty is good until 6/17...won't hit the 100k mileage limit by then at the rate I'm driving it). This will be my last "new" car (it was a dealer demo with 8k miles when I bought it). At my age, long-term auto financing doesn't make any sense. If I ever plan to retire I'm going to get used to driving used cars that I can buy for cash. I'm good with that...don't plan to ever finance another car.

 

[Dave Hess]

The scary thing about some people, they equate crazy financial debt to success and living the 'American Dream'.

They have a big mortgage (plus taxes and insurance) , 2 car payments, high credit card debts, school loans, etc...

Like I said, many are a few paychecks away from disaster and they are cashing out their 401K to keep their heads above water. I'll keep putting 30% of my pay towards retirement and drive old cars.

 

[sciphi]

Buying new on a short-term loan worked for me. We bought into fuel-sippers when gas was starting its rise when we were driving a lot more than we are now. The fuel savings over older cars helped pay a decent chunk of the loan. Now that gas is cheaper again, filling up each car for under $30 is gravy.

 

[Hokiefyd]

Originally Posted By: SwedishRider
So, anyone have any insight into what is going on? I am genuinely stunned at how crazy car prices are right now. Or am I doing something wrong (or thinking wrongly)? Something just seems out of whack when a Kia SUV tops the $40K mark... are people really paying that?!?!?


You're looking at a top-line Explorer model that stickers for $49,000. Yeah, a top-line model is expensive. $49,000 is $29,611 in 1993 dollars. Guess what a brand new 1993 Jeep Grand Cherokee Wagoneer (top-line) stickered for in 1993? $29,471...almost bang-on to what a top-line Explorer stickers for today.

Not much has changed when you account for inflation.

Originally Posted By: SwedishRider
Even still... that's ~$26K for what is now considered a "base model". Something is very wrong when entry level models go for that kind of money.. at lease IMHO.


Again, I guess I ask what your baseline is. $26,000 today is $15,712 in 1993's money. The very cheapest 1993 Jeep Grand Cherokee (the base 4x2) stickered for $18,990. Compared to that, the new Explorer is a bonefied BARGAIN.

Even moreso when you consider all of the safety advancements that come with new vehicles, like anti-lock brakes, stability control systems, multiple airbags, etc. These were extremely expensive options at one time, or simply not available unless you were buying an exotic or a luxury car.

Originally Posted By: SwedishRider
I was just curious if anyone here knows how dealers are moving cars with obscene prices to average families.


The same way they always have. Families budget money for a vehicle and they buy what they want or need. New vehicle prices, at least in this case, aren't any more expensive than they historically have been.