NYTimes Auto Affordability Article

[alarmguy]

Not sure if it is still true, but Nissan and VW made the most profit per vehicle. Porsche was up there as well.

Not for Nissan that I know. They are almost out of business (figuratively speaking)
Trying to find someone to merge with. Honda was to save them, deal fell though.
IN their worst financial crisis in "decades"
https://www.autoblog.com/news/nissan-reports-fifth-straight-quarter-of-losses-amid-restructuring

 

[JeffKeryk]

Not sure if it is still true, but Nissan and VW made the most profit per vehicle. Porsche was up there as well.

Porsche margins, like most low volume, high cost vehicles, are very high. Now, as of late, Porsche has been struggling with operating margins.

Low priced vehicles are low margin.

 

[PandaBear]

@SC Maintenance

A 10% figure in post #18 was mentioned of household income should be for an automobile which these responses and posts are related too.
I showed that is incorrect. No matter if you use Median or Mean a car (any car) did not cost $1,100 in 1975 and using (in this case) the MEDIAN income in 1975 was $11,000 The MEAN was $15,000

I see the point of the use of the word Median VS Mean (average) but it still does not hold water from post #13 stating a car should cost 10% by the way the word used "average"
Cars are more than affordable for anyone and if not they are doing something wrong both new and used. Homes are affordable too. My feeling is people want every luxury that they cannot afford.
BTW "average household income below is incorrect. Average household income is $144,000

from post #18
"jghall00 said:
I have mixed feelings on affordability. My recollection is that no more than 10% of household income should go towards transportation. So for a 25k car at 5% interest and 60 months, that's ~471. Add $75 for insurance and $100 (40 daily x 4.00 gallon @ 30 mpg) for gas and you're at $600.
Average household income is $84,000 . It seems like many households will exceed that 10%. By this measure a $25,000 car isn't even affordable for the average US household. But, having said that, there are reliable vehicles available under $15,000. So maybe expectations regarding new vehicles should be tempered."

Cars have been more affordable than even in the 90s if you do not use the new found affordability to buy a more expensive car. The problem with income and expense is in the rent / mortgage / healthcare / student loan cost.

Many people do, and with the interest rate these days vs back in the 90s, people just buy what they want, and let them repo if they can't afford them, not a big deal. It is the lenders' fault if they are lending to questionable borrowers in a capitalist world.

I have worked with many low income families driving Corollas Camrys and Tundras from the 90s. They can go around with no problem, just not in style. I don't feel sorry for people who whine about about 84 months of payment and $6/gal gas if they drive a V8 crew cab or SUV. They have choices.

 

[Owen Lucas]

I have worked with many low income families driving Corollas Camrys and Tundras from the 90s. They can go around with no problem, just not in style. I don't feel sorry for people who whine about about 84 months of payment and $6/gal gas if they drive a V8 crew cab or SUV. They have choices.

100% If you're poor and want to look rich, you will become even poorer.

People need to put their ego/delusions aside and just get a 98 Camry.