Big Boys Hobbies

The Price of New cars

I was at a cross roads in 2009. I had passed my 2000 Camry to my daughter and was out looking for an economical ride for my daily commute to the bus stop. That's when I saw her and fell in love. :laughing: I called my wife and told her what I was looking at and her response was" just remember that you will have to drive it everyday". I did for 3 years and then picked up a 98 Ranger as my daily driver.
My thought at the time was I could buy a car that would depreciate to $0 or something collectable that would retain it's value ....provided I don't pull a James Dean.:laughing::laughing::laughing:
 

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ohiochris said:
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.
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That argument doesn't fly anymore. The average wage of an automotive assembly line worker today is $15 an hour.

Why is it that non-union US plants like Toyota don't produce cars at half the cost of domestic US union plants?
 
amc rulz said:
That argument doesn't fly anymore. The average wage of an automotive assembly line worker today is $15 an hour.

Why is it that non-union US plants like Toyota don't produce cars at half the cost of domestic US union plants?
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Only $15/hr, are sure? I work in a distribution warehouse, unskilled labor. Starting wage for most entry level positions is $12.60. Most are doing $15 or better within 2 years. Factory work has got to pay better than that. And we aren't union either, right-to-work state. $15/hr, and union dues would really suck.

I thought everyone in the automotive industry got a monstrous raise, when the passed out all that Bail-Out/Bonus money back in 2008. Or was that just for salary/executive employees?
 
amc rulz said:
That argument doesn't fly anymore. The average wage of an automotive assembly line worker today is $15 an hour.

Why is it that non-union US plants like Toyota don't produce cars at half the cost of domestic US union plants?
Click to expand...



Because the big three set the standard. Toyota and honda can produce comparable cars for a lot less but since they are comparable to the rest they can sell just as high as they do , and they would be crazy not to as long as people are paying it.

When my mother in law retired she was making 90,000 a year , thats a lot more than $15 an hour , maybe a little more than twice as much ?? Among other things , the price of new automobiles reflect that.
 
ohiochris said:
Because the big three set the standard. Toyota and honda can produce comparable cars for a lot less but since they are comparable to the rest they can sell just as high as they do , and they would be crazy not to as long as people are paying it.

When my mother in law retired she was making 90,000 a year , thats a lot more than $15 an hour , maybe a little more than twice as much ?? Among other things , the price of new automobiles reflect that.
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I believe it - that's almost three times as much as the pay average today. When did she retire?
 
HarveyH48 said:
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.
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Harvey....I wanna be like you when I grow up....:laughing::laughing:
 
Ohio , I feel bad for your mother inlaw , she probably had to work all her life and overtime too. If Ohio is anything like N.Y. She paid high tax's to feed someone else's kid , she missed out on food stamps ,free school lunches , daycare, phones and free college. ( nothing is free , someone else paid for it ) . If she or anyone like ( Detector ) can afford to enjoy life my best wish's are for them . You should not have to apologize for working and having some success . We can't blame high cost of cars or anything else in the U.S. On the factory workers punching a clock every day. I respect those that can keep your cars running , amazed to see how some guy's can restore the oldies . When I was growing up if you quit school , you pumped gas and learned to be a mechanic at the local station , soon you will have to be a college grad . All the high tech , car crash safety equiptment , GPS, you name it is available to us today because of people that worked and made something of themselves. My dream ride would be a brand new Conversion Van , looking at $70,000 , way out of my price range . To me they seem perfect to travel around see the country and do some MDing too.
HH
 
KT has not purchased a new vehicle for Himself....car, truck or motorcycle ...since He graduated from College over 40 years ago...still had to take a 36 month note to pay it off!

Today KT drives a previously owned 2006 Toyota Tacoma...His Royal Chariot...paid off with The Retirement Bonus Check at retirement. Also the Royal Steed..a 2008 Honda Goldwing..purchased used on time...then borrowed the money from The Queen's savings to pay off the high interest note. A year later had paid back the Queen with a $500 bonus for using her money! Still cheaper than a 3 year note from Honda!

Queen still works and has over half the money saved up in cash to purchase a new Honda...She presently drives a 6 year old Civic. Prince John had a car purchased for him upon high school graduation and still drives it..plans on wearing it out.

Like one of the previous commenters...no payment on the Castle, no loans, no debt other than the Royal Visa card, which gets paid off each month. Living on retirement and social security...got more cash flow now than when KT worked for a living! Its a dream! But KT faces reality...never will own another new car for Himself, and even then will not purchase a high dollar car used....even 4 to 5 year old good used cars are awfully expensive..in KT's Royal Estimation!

Perhaps its a generational thing. KT never earned a 6 figure income when He worked, built His own Castle, and on vacation after Prince John was born, always drove whereever We wanted to visit...from Washington state to Washington, DC...KT has seen it but often car camped...lots cheaper than moteling it. Nowadays, the Royal Family does motel whereever we go because less hassle on this 66 year old! HA HA But has done some solo motorcycle camping in the past year locally and still enjoys that..so much simpler when The Queen does not come along...she requires air conditioning whereas KT can get by with a fan for sleeping...!
 
Ricki7 said:
..... I respect those that can keep your cars running , amazed to see how some guy's can restore the oldies . .....
HH
Click to expand...

It's a hell of a lot easier to restore an old car than to work on a new one! I loved my old Jeep. I could repair anything that went bad. I could sit on the fender, in the engine compartment and work on the motor. Modern vehicles are so complicated and crammed into a tiny space that you have to remove the top half of the entire motor assembly to replace spark plugs. Plus you have to have special tools and computer interfaces for everything. I simply can't do more than basic maintenance anymore, I have to pay a mechanic for any repairs.
 
With all these 0% multi-year loans on new cars, has anyone considered that car companies are "baking" the cost of financing into the price of the vehicle, therefore driving up the price.
 
I wouldn't be shock or surprised to find out that the actual cost of producing the vehicle, is actually paid for in the first year or two after the sale. The largest portion of the sale price, is pure profit. Well, maybe not exactly free money, since there a lot of people grabbing at it. It's really not good business, to show a huge profit, you have to pay taxes on that, the fed isn't going to loan you money super cheap, and of course strong, healthy companies don't get bailout money, or do as well in bankruptcy. You keep your money hidden, the shareholders don't expect a higher return either. Assets, aren't the same as profits.

I just like owning my stuff, free to choose what I do with it. Most people who buy new, take exhausting care to keep it in the same state, as purchased. A small scratch or dent gets many of them seriously upset. These are fancy cars, that one would expect to have a high resale value at the end of the loan either. It's just transportation to me, just don't get that attached to it. Lot's of other things I'd rather spend my paycheck on.
 
Most people who buy new, take exhausting care to keep it in the same state, as purchased. A small scratch or dent gets many of them seriously upset. These are fancy cars, that one would expect to have a high resale value at the end of the loan either. It's just transportation to me, just don't get that attached to it. Lot's of other things I'd rather spend my paycheck on.
Click to expand...

I have my DD (Daily Driver) which is a paid for. Cars are a hobby for me and I do take great care they stay in a good as shape as possible. That is the only way to ensure when you do sell it is for a profit. Well, that and buying the right vehicle in the first place. Although I still try and take good care of my Yukon DD) it is basically just transportation.

I guess for the same reason I choose to buy a Deus. Well optioned and great resale value.
 
amc rulz said:
With all these 0% multi-year loans on new cars, has anyone considered that car companies are "baking" the cost of financing into the price of the vehicle, therefore driving up the price.
Click to expand...

You can look at the Dealer Invoice for the car you are interested in and then further subtract out the line items that are not truly part of the real cost, like Dealer holdbacks, advertising allowance, etc.
 
Ricki7 said:
Ohio , I feel bad for your mother inlaw , she probably had to work all her life and overtime too. If Ohio is anything like N.Y. She paid high tax's to feed someone else's kid , she missed out on food stamps ,free school lunches , daycare, phones and free college. ( nothing is free , someone else paid for it ) . If she or anyone like ( Detector ) can afford to enjoy life my best wish's are for them . You should not have to apologize for working and having some success . We can't blame high cost of cars or anything else in the U.S. On the factory workers punching a clock every day. I respect those that can keep your cars running , amazed to see how some guy's can restore the oldies . When I was growing up if you quit school , you pumped gas and learned to be a mechanic at the local station , soon you will have to be a college grad . All the high tech , car crash safety equiptment , GPS, you name it is available to us today because of people that worked and made something of themselves. My dream ride would be a brand new Conversion Van , looking at $70,000 , way out of my price range . To me they seem perfect to travel around see the country and do some MDing too.
HH
Click to expand...



She lived in a detroit suburb , Im glad she did pretty well. But when I heard the description of her job I could not believe they actually get paid so much for that :shock: Factory work is frustrating and monotanous , its only a certain type of person that can handle it for many years , but $90,000 a year in a large labor force , for tending a machine is going to have an effect on the cost of the final product. Not that I have anything against it , congratulations to anybody landing a job like that and more power to ya.....but its part of a culture that sees nothing wrong with automobiles costing as much or more than some peoples homes. And the cost keeps going up while the quality seems to be coming down. Fancy electronic gadgets really dont justify the price when you need a vehicle not a sound studo or wifi computer terminal. We are getting ripped off and persuaded to think it is good for us.
 
A decently configured F150 runs about 85% of what I paid for my house 6yrs ago. We have a 3 story craftsman with a 2 stall garage with the original 3panel carriage doors. No way would I ever spend that much. Let alone lease a vehicle
 
Nothing wrong with buying a new car if you keep it. Problem is when you trade it in every 3 years and have the endless payments on just depreciation and little to no principle. . Don't recall the exact formulas, but I believe 10 years is the number where you get your moneys worth. After 10 years, maintenance costs put you in a hole. Less than 10 years then you pay for depreciation and have zero ownership.


I do all my own repairs so I've only owned 4 new vehicles in my life and I still own 2 of them. I literally wore out a 1993 Toyota 4 Runner and had to sell it for parts. I would still own my 1987 Ford T-Bird but it was T-Boned and destroyed in 1993. If you cant do your own repairs, then vehicles get very expensive after 8 - 10 years.
 
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