This is kind of depressing

[Geeto67]

http://jalopnik.com/new-cars-are-too-expensive-for-most-americans-1783121058

http://www.fool.com/investing/general/2014/03/16/why-the-average-american-can-no-longer-afford-a-ne.aspx

 

New Cars Are Too Expensive For Most Americans

 

Well, this is a nice, depressing way to start your week: according to a study from Interest.com (part of Bankrate.com), the average American can no longer afford to buy an average-priced new car....

 

The average price for a new car in these United States is now $32,086. The study looked at the median household income in the 25 largest metropolitan areas, and used a formula that assumed a 20 percent down payment, a loan of four years or less, and the overall cost, including insurance, coming out to no more than 10 percent of the gross income of the household.

 

Using these metrics, only median-income people from the Washington, D.C. area can buy a new car (with a monthly payment of $641), and you just know they’re probably going to buy something boring.

 

I get that the criteria is probably not the average new car buyer (since 5 year financing seems to be the norm) but it just seems like if you follow "sound" financial advice, there is no value in a new car for most people anymore.

[Alex L.]

The only tangible benefit to buying new anymore is a factory warranty.

[RedRocket1647545505]

I refuse to buy a new car anymore due to these ridiculous prices. It's gotten outrageous. I'll keep driving what Ive got until the wheels fall off and then worry about it.

[Coaster]

The study looked at the median household income in the 25 largest metropolitan areas

 

Why limit the numbers like this when the data is available to calculate a median income for the entire US. Seems like a study looking for a conclusion.

[oh8sti]

Im only leasing cars (certain ones) or buying a car thats 5 years or older in cash.

[zeitgeist57]

Been saying this for years. Granted, most of CR would agree. I'm glad there's some press around this.

 

I won't begrudge the following:

- Cars are very feature-packed and are - in fact - very expensive to develop and manufacture.

- Automobile manufacturers are corporations that need to turn a profit.

...buuuuuuuuuuut I'll never forget reading that 8 out of every 10 Mercedes-Benzes that left a dealer lot were leased. Prices are too damn high.

[Not Brian]

Buying a new car is retarded, unless it's a drop in the bucket.

[Geeto67]

Why limit the numbers like this when the data is available to calculate a median income for the entire US. Seems like a study looking for a conclusion.

 

I think they were looking for places with the highest potential income, and to not skew lower with a national average. As it doesn't seem to take into account cost of living, maybe it was cheating but it was cheating in favor of the opposite conclusion.

 

Been saying this for years. Granted, most of CR would agree. I'm glad there's some press around this.

 

I won't begrudge the following:

- Cars are very feature-packed and are - in fact - very expensive to develop and manufacture.

- Automobile manufacturers are corporations that need to turn a profit.

...buuuuuuuuuuut I'll never forget reading that 8 out of every 10 Mercedes-Benzes that left a dealer lot were leased. Prices are too damn high.

 

I don't think anybody doubt's the used car is the more reasonable way to go financially. However, as a car enthusiast, I can't help but worry about who is buying new cars because we need new cars to become used cars. A lot of my...ahem...taste in cars tends to skew really weird or obscure: strange colors or color combos (what do you mean blue with a red interior is not sexy?) , option delete (can I get it with crank windows? no? ok, how about without just the nav?), and of course manual transmission (no clutch pedal means it is an automatic DCT fanboy salesman!) and I am not finding a heck of a lot that meets that criteria in the used market anymore. As enthusiasts find less and less value in the new car market there are going to be fewer enthusiast cars in the used market and the price is going to adjust up. As it stands to get a manual bmw anything seems like a "special" order and Audi has already thrown in the towel and went DCT on their american offerings because the take rate on some of this stuff is dwindling. I mean you can't even get a stick accord with the "big" engine anymore, WTF?

[SRTurbo04]

Its crazy what they want for a loaded up mid size sedan and im not talking bmw, benz ect.

[TTQ B4U]

it just seems like if you follow "sound" financial advice, there is no value in a new car for most people.

 

been that way since the beginning.

[coltboostin]

My first car was a Toyota tercel. New, it was like $6600- No AC. 4 speed, radio and heat with Vynal. I bought it used for $1200 when it was 5 years old. You cant buy a car like that new even though this market NEEDS a car like that.

[gillbot]

My first car was a Toyota tercel. New, it was like $6600- No AC. 4 speed, radio and heat with Vynal. I bought it used for $1200 when it was 5 years old. You cant buy a car like that new even though this market NEEDS a car like that.

 

Kia is the closest you can get to those kinds of prices. I think they sell the Rio for around $8900 when they run their "super" sales, if they even do that anymore.

[Dammit Charlie]

I personally blame the EPA and federally mandated safety requirements for the increase.

 

While I agree the safety requirements are necessary, the EPA can suck it. It's created so much grief in the transportation industry over the past ten years it's killed a lot of small business owners (owner operators and small trucking companies).

 

The average cost of a tractor with a sleeper is north of $130k with FET tax, and that's a CHEAP truck to boot!

[Flybye]

Kia is the closest you can get to those kinds of prices. I think they sell the Rio for around $8900 when they run their "super" sales, if they even do that anymore.

 

Maybe almost a decade ago lol. They haven't sold for less than $12-13k for the past 4-5 years at least and that's bottom dollar on a base. That's also if you can even find a base with zero or very minimal port installed options. . Manufacturers seem to produce fewer of them these days. It's surprisingly easy to get the majority to buy the next model up or something more equipped.

[coltboostin]

Maybe almost a decade ago lol. They haven't sold for less than $12-13k for the past 4-5 years at least and that's bottom dollar on a base. That's also if you can even find a base with zero or very minimal port installed options. . Manufacturers seem to produce fewer of them these days. It's surprisingly easy to get the majority to buy the next model up or something more equipped.

 

Boom.

 

And the Toyota was a 300% better car. Its still running today (I dont own it) with 240k on it. Burns 2 quarts an oil change...but she still runs!!!

[gillbot]

Maybe almost a decade ago lol. They haven't sold for less than $12-13k for the past 4-5 years at least and that's bottom dollar on a base. That's also if you can even find a base with zero or very minimal port installed options. . Manufacturers seem to produce fewer of them these days. It's surprisingly easy to get the majority to buy the next model up or something more equipped.

 

They still advertise all kinds of stupid sales around here, maybe it's a market thing?

 

Edit: hopped on their website, maybe 9k is a bit of a stretch but I don't think 10k is impossible. After incentives and if you go previous new model year, it's doable.

[iwashmycar]

Been saying this for years. Granted, most of CR would agree. I'm glad there's some press around this.

 

I won't begrudge the following:

- Cars are very feature-packed and are - in fact - very expensive to develop and manufacture.

- Automobile manufacturers are corporations that need to turn a profit.

...buuuuuuuuuuut I'll never forget reading that 8 out of every 10 Mercedes-Benzes that left a dealer lot were leased. Prices are too damn high.

 

^^^ THIS.

 

There are cheap cars you can buy new....they all still come with more options than you could get back in the 90s. Im talking those new KIAs, ect. Base models typically. Still cant overcome the shear difference in new technology in the engines alone.

 

Everyone just wants all of the options. Would I kill for mist wipers...yeah, but some simplicity is nice.

[Not Brian]

If you really want a "new" car, get them 1-2 years old and save 10-15k.

[gillbot]

If you really want a "new" car, get them 1-2 years old and save 10-15k.

 

I think this is the biggest part of the problem. There's so much excess and markup that the sheeple gladly pay more than a car is worth to have a new one, then bam after a year it's worth 10k less but who cares? In two to three years they'll trade it in anyway and do it all over again.

[Robochan]

If you really want a "new" car, get them 1-2 years old and save 10-15k.

 

You havent priced 1-2 year old trucks.

[kirks5oh]

Thanks a lot Obama.

 

 

 

 

I only buy new. Can't stand the smell of previous owners' farts on my leather.

[Forrest Gump 9]

USED CAR 4 LYFE....

[Not Brian]

You havent priced 1-2 year old trucks.

 

Do they hold their value during that time?

[HotCarl]

You havent priced 1-2 year old trucks.

 

exactly!

 

When I was truck shopping I routinely fan into lease turn-in's that were north of 35-40k$ The only fullsize truck I could find even remotely in my price range had well over 100k miles on them.

 

EDIT: the particular one I remember was an f150, I think brand new sticker was $45k? and it was on the lot used for $38k with 35,000+ miles on it. this was before i bought my tacoma so probably 2-3 years ago.

[Robochan]

Do they hold their value during that time?

 

Yes trucks that are a couple years old and about out of warranty are not much cheaper expecially because you can get new American trucks 15-20% under msrp. The tundra seems to just never drop in value.