Seriously go to the library and check out Dave Ramsey The Total Money Makeover.
Talk me into buying this Tacoma
- Thread starter Chris142
- Start date
In Georgia I provide a 45 day temporary tag for my customers.
Is it? I suspect the OP (and myself) are content to shop ten year old or older vehicles, not 2 year old vehicles. IMO, if your budget is $5k, maybe $10k, then the fact that new or 2-5 year old cars will drop 10 or 20% is of no consequence. There was a lack of cars being made during the recession, I suspect that will keep the low end of the market constrained for a few more years.
Yes and no.
Cheaper cars? A littlle.
Unlike the old days, they no longer have to build for a loss. They’ll just get rid of more models to give folks even less choices…….
IMO prices are high, interest rates are high, somethings got to give. It can’t stay like this forever. $24k for a 2012 with 130k no thanks. I do agree the 5k-10k market won’t move much.
Nearly 20 years ago. I ended my employment with Capital One. Since then? I have continued my work with Capital One as a contractor and a consultant.
Approximately 2 years ago, I ended up in a very in-depth discussion with several of the executives at the company. I told them that we will probably see the average price of a vehicle go down to $45,000 before it ever hits. At the time, I believe the average price had been peaking at a little bit over $48,500.
They thought I was nuts to say the least! Actually, they didn't think I was nuts, but maybe a bit too anchored to the used car market. However, I believe I'm going to be right with this prediction for many, many reasons.
1) The chip shortage created an artificial demand for all cars that spiked at nearly 30%. If you account for the late model marketplace.
2) that demand coupled with low interest rates was not only unsustainable, but as Biden announced that they would end quantitative easing and supply would be aligned with the man more than likely within 12 months. To the availability of chips, there would be a huge ricksaw effect on the actual price of new vehicles.
3) demands would also change with it. There would be more interest in lower priced vehicles due to that higher interest rate. For every increase in the percentage rate on any loan, you're buying. Power typically goes down approximately 11%. The rise and interest rates. Slashed the purchasing power of the average new car buyer by about 30% to 40%.
Right now, if you account for the $7,500 subsidy on new EVS, the price on a new vehicle is actually getting really close to $45,000. There are a lot of externalities involved that I won't go into here because I'll end up writing an entire article that should frankly give me some monetary compensation! But the long and the short of it is that even with the recent Chinese tariffs, we will still likely see a real world $45,000 average purchase price on new vehicles before we ever received $50,000.
And with that, we're also going to see a similar correction with the used car market, although it's going to be a bit slower.
Approximately 2 years ago, I ended up in a very in-depth discussion with several of the executives at the company. I told them that we will probably see the average price of a vehicle go down to $45,000 before it ever hits. At the time, I believe the average price had been peaking at a little bit over $48,500.
They thought I was nuts to say the least! Actually, they didn't think I was nuts, but maybe a bit too anchored to the used car market. However, I believe I'm going to be right with this prediction for many, many reasons.
1) The chip shortage created an artificial demand for all cars that spiked at nearly 30%. If you account for the late model marketplace.
2) that demand coupled with low interest rates was not only unsustainable, but as Biden announced that they would end quantitative easing and supply would be aligned with the man more than likely within 12 months. To the availability of chips, there would be a huge ricksaw effect on the actual price of new vehicles.
3) demands would also change with it. There would be more interest in lower priced vehicles due to that higher interest rate. For every increase in the percentage rate on any loan, you're buying. Power typically goes down approximately 11%. The rise and interest rates. Slashed the purchasing power of the average new car buyer by about 30% to 40%.
Right now, if you account for the $7,500 subsidy on new EVS, the price on a new vehicle is actually getting really close to $45,000. There are a lot of externalities involved that I won't go into here because I'll end up writing an entire article that should frankly give me some monetary compensation! But the long and the short of it is that even with the recent Chinese tariffs, we will still likely see a real world $45,000 average purchase price on new vehicles before we ever received $50,000.
And with that, we're also going to see a similar correction with the used car market, although it's going to be a bit slower.
This is sadly true. They seem to have commingled cars and "light trucks" for CAFE, include "shadows" in the calculations, and use hybrid/ electric/ plug-in-hybrids as the emissions loss leaders now.
This is why we don't see Neons, Cavaliers, or, sniff, S10 size trucks anymore.
@Chris142 man I feel ya. I can come up with many reasons why I want something else, and all of them have value. Do this - write them down day after day and then show the collection to someone else … and you may find half of them directly counter the other half. I can get really creative in my mind to justify something else. When I see this, I (with some frustration) realize that I’m trying to solve something else, like boredom, or car lust, or something else - in which case, I do NOTHING.
If you could possibly swing a $600 payment, start socking 450 aside per month into a separate savings account, and wait a year and see what develops. I suggest an automatic monthly transfer that you never see or have to do.
If you could possibly swing a $600 payment, start socking 450 aside per month into a separate savings account, and wait a year and see what develops. I suggest an automatic monthly transfer that you never see or have to do.
I'd love to know the number of miles I've driven in Neons, Cavaliers and S-10s. Easily north of 500k.
Totally agree there. I miss my s10 from back in the day. For day to day stuff, was all the truck I needed……
