The Price of New cars

[grinsebring]

inflation

A couple years ago, everyone was mulling around the price of gas. Wanted to blame the oil companies for gouging, the governments for raising gas taxes,
and whomever else was responsible for the price creep. Truth is, gas has gone up no more than anything else including new vehicles.
A rough idea about prices say for instance gasoline and a bag of potato chips.
35 cents to 3.50. 10Xs. Most every unregulated product has risen at roughly that same rate. Wages from a professionals job view has increased roughly the same.

The insane multi-trillion dollar debt won't look so bad 20 years from now when
the minimum wage is 60 dollars an hour. Every increase in the average wage
just raises the cost of anything else. Remember too, non-union employers are
paying premiums for skilled workers, and union contracts (before negotiations)
will demand triple the minimum wage increases. Always has and always will.

New autos with high tech electronics, anti collision software and all the other goodies packed into that steel and aluminum sandwich is driving the prices.

I have over the years owned 4 new ford rangers. All of them cost less then 1/2 of a 2016 model will fetch. Last I looked, next years reintroduction will run about 27k BASE. Want to upgrade? You can expect to top out in the high 40s. Thanks, but no thanks I will run this one into the ground.

Here in Florida we don't have the rust factor going. No hills, so no hard pulls.
Our biggest problem is crash, bash, and run. People without insurance.

The f150s will top out around 55 grand. Pretty soon, a pickup truck will a daily rental item for those that need to pick up 20 bags of mulch or to move a refrigerator. $40.00 dollars an hour beats a 600 dollar a month payment assuming the owner didn't win the lottery.

Everything will keep going up except fixed incomes like mine.

 

[banshee89]

The biggest reason cars are so expensive is because of government regulations. Since the 1970s, the government has been requiring more and more from manufacturers. Cars have to be ever more fuel efficient so they have to keep making them lighter and redesigning every aspect. They also have to produce these cars with ever more stringent EPA regulations. All those costs are passed directly to the buyer.

My 1993 ford F150 got better gas mileage than the 2015 F150 we have at work.

I work for a municipality and drive a lot of trucks... large and small. I can honestly say the fleet of small trucks (f150-f550) dont get any better mileage than they did 10 years ago. Yeah you always get the weekenders with the 3/4 or 1 ton Diesel pickup who say "my diesel gets 28 MPG and I'm saving money" well your 3/4 or 1 ton is getting 10 to 18 MPG. I find people need to justify why they need such a big vehicle and if you want the real info talk to fleet owners. Fact is I would respect them a lot more if they would be honest and just say I like to drive a big truck and like the sound and macho factor of the diesel engine. Hey I'm a guy... I get it. Here in my Town we have actually stopped buying diesel pickups because they don't make any financial sense anymore.

In fact I have a brand new F350 super duty sitting right out side.And I mean under 5000 miles... let me go take a picture of the MPG meter... because I know some people are going to chime in and say "my f350 gets 25MPG".

 

[GabbityGabby]

I would never pay that much money for a car, that is just nuts... if i lived in the us i would buy a nice used toyota or a diesel mercedes. The last car i owned in the us was a mercedes turbo diesel wagon, i bought it one owner used for less than four thousand dollars ( cost over 45,000 new ) and it was the best car i ever owned, never gave me any problems at all.

That's what my parents did. After somebody ran a stop sign and totaled our car, they bought a used Toyota Corolla.

 

[amc rulz]

I shopped for a new aluminum body F150 4x4. Can't justify the price ($40k) so I looked for a two to three year-old truck. Prices are still insane for used trucks. I just finally settled on an '08 Silverado Z71, 120k for $15k. Between my wife and I, we drive five vehicles (two are classics, and two new cars) and here in Michigan auto insurance is outrageous.

Just sold my F150 supercab w/175K miles for $1k. Great running truck, with some lower body rust. The first guy to look bought it, he was estatic! He's been looking at older used cars and says the prices are crazy on vehicles with 125,000+ miles, which are considered "low miles" anymore.

 

[Cherry Picker]

Well I can't speak for others but I can lay it out for myself.

I'm about to hit 60 years old and I'm single with most everything paid off. I'm not one of those who sits back and waits to grow old hording his money. All my kids are doing well and I've decided to go out enjoying life. My idea of enjoying life is not a 5 year old Kia. They say you can't take it with you, but you can enjoy it while you can.

I just bought a 2015 Mustang GT Premium with the works. Yes it is a 40,000+ car. And I'm loving the !!!! out of it. My tags are outrageous as is my insurance. I'm still loving the !!!! out of it. I've bought every detector I've ever wanted to own, every gun, every guitar so why not my car?

You could also look at it this way. From the outside people are probably saying the same about us and our metal detectors. Why would someone pay $2,500 for a metal detector when you can get one for $80 that's just crazy. Is it? Not from the inside.

 

[beerdoodle]

Well I can't speak for others but I can lay it out for myself.

I'm about to hit 60 years old and I'm single with most everything paid off. I'm not one of those who sits back and waits to grow old hording his money. All my kids are doing well and I've decided to go out enjoying life. My idea of enjoying life is not a 5 year old Kia. They say you can't take it with you, but you can enjoy it while you can.

I just bought a 2015 Mustang GT Premium with the works. Yes it is a 40,000+ car. And I'm loving the !!!! out of it. My tags are outrageous as is my insurance. I'm still loving the !!!! out of it. I've bought every detector I've ever wanted to own, every gun, every guitar so why not my car?

You could also look at it this way. From the outside people are probably saying the same about us and our metal detectors. Why would someone pay $2,500 for a metal detector when you can get one for $80 that's just crazy. Is it? Not from the inside.

excellent point. I have 20 rod and reels. 5 fly rods. And 7 tackle boxes full of !!!! I will never use. But by gawwwd, I am having fun.

 

[T-Man]

Well I can't speak for others but I can lay it out for myself.

I'm about to hit 60 years old and I'm single with most everything paid off. I'm not one of those who sits back and waits to grow old hording his money. All my kids are doing well and I've decided to go out enjoying life. My idea of enjoying life is not a 5 year old Kia. They say you can't take it with you, but you can enjoy it while you can.

I just bought a 2015 Mustang GT Premium with the works. Yes it is a 40,000+ car. And I'm loving the !!!! out of it. My tags are outrageous as is my insurance. I'm still loving the !!!! out of it. I've bought every detector I've ever wanted to own, every gun, every guitar so why not my car?

You could also look at it this way. From the outside people are probably saying the same about us and our metal detectors. Why would someone pay $2,500 for a metal detector when you can get one for $80 that's just crazy. Is it? Not from the inside.

If you got the money for it and you want it then by all means buy whatever you like. Back when I was in the military I'd see all the new guys coming it and the first thing they would do is go out an d buy a new car and house on the meager paychecks they get. Banks were happy to give them the loan since a quick call to the 1st Shirt would make sure they get paid if they missed a payment. So now they have thier brand new sports car and 2,500 sq foot house and can't afford to put gas in the car and are sleeping on a mat on the floor since they can't furnish it. Usually up for sale in under a year for a loss. If you got it, flaunt it, just make sure you can afford it and don't ruin your life cause you have to keep up with the Jone's.

 

[Ricki7]

When I was first married , we drove anything we could get cheap from friends or family. I had the time and energy to make repairs then , along came the advancements in tech., so now it was more economical to buy something newer . I found that there came a time when it was cheaper to make payments on new car then to pay the high end repairs . After keeping a car 3-4 years , it seemed to me that Iwas again getting hit with the electronic , exhaust and other break downs that had pushed me into a new car. I was not getting the all the goodies they put on new cars and the better gas mileage . So a few years ago I leased my first car , I got over the fear of what if something happens to it and how else are they trying to screw me on a lease. I learned the ins and outs and I'm very happy leasing . Some lease's are better than others and it is not better to always lease a stripped down car. I leased a CRV loaded they gave us 45000 mi which is mostly unheard of ,just because we found it at the right time and dealed for it. I'm not crazy about Honda as they try to screw you on maint. My best lease is a 2015 GMC crew, 4/4 , 36000 mi. 3 yr I paid 12 bucks for INS covers tires and 5000 damage. I'm retired now , at times we had two lease's going , my wife was working and I had two jobs going for the most part of 25 years . I found that the two lease's came close to the payment of buying a good car. Just as a note they have never given me a hassle about car door dings or light scratches and wear . That was one of my worries at the beginning. Like Detector I'm old , paid my dues . IMO lease it and give it back about the time the repairs start.
HH

 

[Steve77]

I havent owned a vehicle since 2011. Nor do. I miss driving ans subsequent expense to do so. If I need a ride anywhere I mooch one. But now the lady whom I love very much has a sebring ragtop. Paid off. House paid off. She loves to fish as well. So now I drive the ragtop. Fish often. Retired and debt free. Someone pinch me.

Thought you were asleep again, eh...didn't you sleep enough this year?

 

[beerdoodle]

Heck. Now I sleep do and what I want when I wake up. You gotta beleive in something. Beleive I will crack open a brew. Btw, very good opines in this thread. I think leasing is the way to go as well. But to each his own. Every situation is unique.

 

[hawgdawg]

1 year ago I bought a '06 F 250 , very clean truck , seat covers always on it , sprayed in bed liner , looked almost brand new , 194,000 miles , 3000 bucks . Did I get a good deal , HECK YEAH . Just got it inspected today , about 223,000 miles on it now . Still runs, drives smooth , engine runs smooth and quiet . So for me , leasing isn't an option , with the miles I put on one , I'd have to have a 3 year 100,000 mile plan . I dont think they do that . I will not buy a new one , the truck would be wore out before it was paid off , then I'd have to get another one as soon as it was . If you can do it , have at it . Heck , if I could afford it , I'd have a 100 foot yacht , even if I couldnt go out but twice a year . Do what makes you happy , life is short .

 

[Swinglow]

My first truck while in high school in the late 80's was was a 64 Chevy stepside Pickup, 283, 4 on the floor. Think it had about 230,000 on it. Original owner had died and it was his wood truck. It spent the prior 5 years sitting untouched in a field and shelled out an entire $10 for it from his daughter. Flat black, painted with a brush and channel iron for bumpers. Aired up the tires, put fresh gas in the tank, a new battery and it fired right up. Sure it burnt more oil then gas, Honestly it looked like Hiroshima whenever I started it and not much quieter. Alignment was so bad I was at the junkyard for tires every week. Even mounted a eight point rack from a whitetail to the hood. drive that around for 4 years before the block finaly cracked. I loved the truck more then any other vehicle I've ever owned.

That's pretty funny but you know what, it was YOURS and that made it awesome. I drove a 69 C10 in college...loved that truck.

There will be no bailout for the peasants we are being taxed and fee'd into poverty because that is the plan. It's what the leaders want.

Banks and insurance companies that cause the problems are bailed out and we the peasant get stuck with the bill, because the banks OWN all 3 branches of the US government.

How's this for BS bank fees? I was assessed a $2 fee for writing a check "out of sequence" I HATE banks!

 

[Swinglow]

I've never owned a new car, no real interest in buying one either. I drive used cars until they die, then buy another, pay cash. Never know what I'll end up driving. I've had some fairly nice, sporty cars. I've had some really torn up beaters. Most of the nice ones have gotten in accidents (not my fault), and it really sucked seeing the go to the scrap yard, but usually not worth using the insurance check to get them fixed, not to mention I needed transportation before that check ever came. I buy the minimal insurance, only needed it twice in my whole life. It's just transportation to me, I'm not living in it.

My clutch went out on my '94 Ranger, couple weeks ago. Think I'm going to have someone else do that for me, not that much fun. Paid $2140.00 for a '99 Grand Prix, 117k miles on it. Seems to be running good, haven't had it over 70 MPH, yet...

It just seemed insane to me, what some people's month car payments are at work. Heard about a few, that were more than my mortgage payment, when I still had one. Never had full coverage insurance, but not real sure they are going to pay for a brand new car, if it's stolen, or completely destroyed, least not within a few days. My experience has been that the drag their heels, and very reluctant to cut that check, for a well used car, pretty sure they aren't going to be any quicker on a much bigger check.

They did do a bailout for cars, sort of, back in 2008, called Cash-4-Clunkers. The government paid quite a bit, to get people into new cars. The downside, was those clunkers had to be scrapped, and couldn't be re-sold. A lot of good cars and trucks destroyed, so people could have that new car experience, for a little while, until they got repossessed. Great for the auto industry, scrapyards, but not so good for guys like me. It took some looking to find something decent running, cheap.

Spot on! That wasn't a bailout for the little people. It was a bailout of GM and a gift to the Chinese in the form of lots of scrap metal on the cheap. What it did was pull demand forward to prevent the appearance that the automakers were hurting. To keep the illusion alive, manufacturers like GM have been "channel stuffing" (ie overloading dealers with inventory, then having to offer HUGE incentives to move them off the lot) The only reason GM hasn't completely cratered is b/c the government has been buying TONS of GM cars to keep them afloat. Indirect bailouts, non stop for years.
I have a good friend who has worked for GM for years, both before and after the bailout. Said friend assures me "nothing has changed..it's still the same old jerks at the top, dictating horrible ideas/policies and collecting tons of money" I always find it funny how this friend gets GM corporate seats for sporting events. (I'm talking $5000+ skyboxes with air condition rooms, lobster, sushi bar...ya know....how all average joes enjoy a ball game

Cash for clunkers was a huge scam that hurt the consumer. TONS of perfectly good, inexpensive cars were destroyed so that people who could least afford it, would finance a new car. It drove used cars prices so high that there wasn't much incentive to buy used. I remember that time well. I was looking at Toyota Tacomas and the new ones were only a few thousand more than the used ones were. I said screw it and walked. I used to spend a lot of money on cars, thinking it was important. Now I realize what a stupid waste of money they were.

Well... Its good to know I'm not the only one. I was beginning to think I was the one wrong when talking to other people.

I do all my own maintenance and repairs even when new. Even my wife (who is not known for being thrifty) said we should keep the old Kia as long as possible. I put new struts, tires, and breaks all the way around it. I changed the Timing belt and water pump (what a pain in the ass that was), and I had to put a new crossover exhaust pipe on it. Doing all the work myself it cost me about $1200 with over half that being the tires.

I figure its good for a least another year or 2 now........ my wife has a long commute to work so driving something that shakes down the highway like some have said, is not an option.

The problem is going to be rust. I cant fix that and the uni body is rusting. Here in Connecticut we drive through salt all winter and even 5 years out of a car without rust is considered excellent. At some point its going to become unsafe to drive.... then I am going to be forced to do something. I was thinking of getting a good used car from down south or something.... guess I will cross that bridge when I have to.

Man you said it. Whatever Malloy had them putting on the uhh umm uhhh roads last winter, wreaked HAVOC on our cars. Had to do the brakes on both this spring. Cars down south rust too. You need to look out west for the gems. I shipped a 69 Chevy back from AZ years back. Not a speck of rust on that truck.

The old Diesel Rabbits and Gas Dodge Onmi's got 40 to 45 MPG back in the late 70's and early 80's.

I used to know a guy who turbocharged a dodge Omni. It was the biggest POS EVER but it ran 11's on DR's. I remember it was so small that he basically had to cut off half of the bumper support to fit the FMIC and piping.


This thread rocks, btw. I love talking about cars and economics.

If you got the money for it and you want it then by all means buy whatever you like. Back when I was in the military I'd see all the new guys coming it and the first thing they would do is go out an d buy a new car and house on the meager paychecks they get. Banks were happy to give them the loan since a quick call to the 1st Shirt would make sure they get paid if they missed a payment. So now they have thier brand new sports car and 2,500 sq foot house and can't afford to put gas in the car and are sleeping on a mat on the floor since they can't furnish it. Usually up for sale in under a year for a loss. If you got it, flaunt it, just make sure you can afford it and don't ruin your life cause you have to keep up with the Jone's.

Sounds like all my buddies. They came back from Iraq/Afghanistan with combat pay and all boat land rovers. Then they all went broke within a year and most re-enlisted.

 

[Cherry Picker]

I don't mean to make it sound like I'm some rich guy that just buys what he wants. I do make fair money for the region I live in but I've been pretty poor most my life and now I'm able to deal with it differently.

I was poor most my life and had little assets to call my own. I spent the last 31 years being married with every cent going to raising my 3 kids and a wife who loved to spend money. I could never figure out how I made enough every year to pay every debt I had but managed to go deeper in debt every year. I divorced that problem.

Now I'm making up for all the time I lost. Call it late-life crisis but I'm done living second class. When I want to try a new detector I find a way to buy one. When I'm done I sell it and buy something else. When I get in my car I want comfort and I want power. When I go detecting I want a truck that will take me anywhere in comfort.

I feel I've paid my dues and I'm going out in style

 

[NectarDetector]

As you should, Detector! Super nice car you have too!

 

[Cherry Picker]

Thanks! Had her in the Dodge City Days car show last weekend. Had lots of people looking it over. In a small town like ours I'm the only one driving one besides the dealer LOL. a 2006 California Special on my left and a 2007 Shelby GT on my right.

 

[ParkHunter]

Just like some can spend a fortune on a vacation while others couldn't imagine why. It all depends on the type of person you are. OP, I can tell you are not a car person, simple as that. I love cars and spend a lot on cars, in fact, all I drive is a manual, I can't even stand an automatic! So, just depends on the type of person you are.

Edit: I'm also very close to purchasing a Subaru WRX.

 

[zeemang]

If you're driving something that puts a smile on your face you're driving the right thing for you...

 

[ohiochris]

The reason cars cost so much is because people keep paying so much. I would love to see a correction in the auto industry caused by people not buying new anymore. My mother in law retired from GM , she was making $90,000 a year plus great benefits for just standing there watching a machine....unions driving the price up so high that people cant afford the products.

 

[Cherry Picker]

I think a lot has to do with expectations and what people want. You can still buy a brand new car for under $13,000. Technology has also came a long ways. For less than $13,000 we're talking electric windows, variable transmission and other features not available for less than $20,000 just a few years ago.

Todays full featured cars, hum just like my detectors, can practically drive themselves. For my $40,000 I'm getting voice activated navigation, heated and air conditioned leather seats, 435 HP and a whole lot of others goodies. For some people the ACE 250 is just fine, for others the CTX has the features that are worth the price.

Personally I've always looked at buying a car as an investment. Sort of like buying a house. The value of that $13,000 car will only go down.