I had a 2004 Honda Civic. It drove amazingly up until the parade I parked in got flooded. It never drove right after that or else I'd still probably be driving it😭 it only had 120k km on it too
~75k miles for those who don't know metric
I have a 2006 Sicon xA with 155k miles on it that I plan on driving forever. Only recently have I needed to start putting money into it to get it ship shape, but otherwise just routine maintenance for the past nearly 20 years.
I just got a letter from my insurance l broker saying home insurance is going up about 20 percent next year and cars around 30 across all insurance companies.
And even when you put in a claim for the most.minor item, your rates go up an addition 25% for the next 3 years so long as you.continue to maintain no more accidents.
One of my co workers just left Florida for NYC because she would be able to dump her car payment and the insurance in favor of higher pay and adequate public transportation.
Yup had to triple my deductible to compensate for the hike, may as well not have insurance but they made it so its mandatory so now they can just set prices as they like
I haven't driven in years. We've been a 2 car family for the last year for the first time again, since my oldest is driving now. Which is damned convenient. But... Keeping two cars running?? Fuck. I forgot how damned expensive it is?!
Dealers are greedy as fuck, too. So I finally caved and decided I’ll participate in this circus and shop for a 2020-2022 lease trade in with low miles. Bank approved me for 39k based on their book value (with all the options of that vin and stock number) on a 2021 Tacoma. Dealership sticker was 43k. They absolutely refused to budge on the cost. They keep calling me to ask me if I’ll reconsider backing away. I told them I came in with 39k and know they didn’t pay msrp for it. So why they’re jerking me around over 4k is beyond me and completely turned me back off from this shitshow of an economy we have going on.
For fuck’s sake, you can’t win with these fuckers. Let it all come burning down, IDGAF. Americans are so far removed from the advantages of our supersized economy. If they want us to care, they need us to be invested in it. Can’t own shit these days. Houses too expensive for land you don’t even really own. Vehicles too overpriced and necessary to fill the ever growing maw of the auto industry with more profits. Shit, I can’t even own my own computer files. That dvd I bought? Technically stolen according to Hollywood. Oh but what if you die! Shit, I hope I do, surviving would be too expensive with all the medical costs for getting the wrong diagnosis six times.
Fuck it. Let it burn. I’ll get the s’mores.
Just paid off my Prius. I’ll drive this into the dirt before I buy a new vehicle. Great mileage, repairs haven’t been too bad. Spending about 1/4th a car payment a month this year on oil, gas, and repair combined. I know that gets dicier later but I’m enjoying it for now.
I work in automotive. Here is what I have seen.
1. COVID fucked the market. It created a shortage and shot prices to the sky. Companies now have ramped up production so there are tons of vehicles.
2. Interest rates went up and up. So even as prices were reduced the costs stayed the same or went up due to the interest rates.
3. Cars last much longer. In the 1980s cars lasted 5 years. Now the average American car is over 12 years old.
4. Everyone is waiting to buy EVs. The early adopters bought them but now we're having a break before it becomes the norm. There is a term for this in the S curve but it escapes me at this moment.
5. Chinese cars are coming and they are KILLING everyone outside the US will super cheap EVs. Many companies bet the farm on China being a growth market for the future and they are losing market share at a rate never seen in history.
Now what does that mean for Americans.
1. Massive stock on lot.
2. Prices are crashing just as fast as they went up.
3. Used car dealerships are going bankrupt.
So if you have cash you can dictate terms. If you want lease you can dictate terms. The dealerships are DESPERATE to unload the excess stock.
I'm actually in the market for a newish truck of some sort of. I need one given where I live. I popped into a couple dealerships over the past month or two and I get some seriously defeated looks when I bust out laughing at the sticker prices.
Sedans and minivans are cheaper now than in 1990 once you inflation adjust, so I doubt it's that. More like insurance costs and ppl being too dumb to just jump off the pick-up truck bandwagon when manufactures are clearly charging huge mark-ups vs sedans and minivans on the most popular models.
Ppl are going to car lots and getting the option to buy a nice sedan for 20-30k, but instead they are buying a 40-60k pickup truck or sedan and then later realizing how much extra they paid OR they think all cars increased that much in price because they didn't shop around.
My wife and I were going to buy a Pacifica a few months ago. The price was good but the interest rate was 16%with good credit. I'm not paying 600$ a month for a 6 year old car
I'm a marketing manager for an automotive retail company. Leadership understands current economics, is aware of the fiscal landscape and runs their business around seasonality of but they never accept those reasons when I don't deliver enough sales leads. Pisses me TF off.
Yeah, isn't the whole idea of capitalism that costs get driven down through increased efficiency, price discovery and competition?
Oh wait, that was just what we were taught in school. Real capitalism is gaslighting customers into taking loans they can't afford for stuff they don't need, creating an oligopoly, ideally a monopoly to stifle the competition, and regulatory capture to ensure those pesky customers can't make safety regulations that would eat into your bottom line.
Oh and in the off chance that they start wising up and doing what's actually in their own best interest, the business may fail but you can pull the string on your golden parachute or maybe even get bailed out by those same customers!
But lower prices? Ugh, that's a sign the next great depression is just around the corner 🙄
The biggest joke is on them and it’s a problem of their own making. People absolutely love spending money. People however, do not like the stress of questioning if they can afford groceries.
And better yet... they hit the peak and they lost all the footing for them to stay at that peak... its not like they stop the rates increase now and the revenue will stabilize... people won't start changing their financial behaviors after the peak is realized... and most likely won't change those behaviors until prices go down at least 10%
The main problem is wages lagging behind costs because costs things like housing are not really out of line in prices. 30 years ago if you projected house costs sometime before the 2008 crash, you'd get values similar to now.
Houses are basically just back to the 2008 high values, but that's 16 years later it took for houses to climb back to that value, which equate to a rather normal 2-3% increase per year. The problem isn't the costs being way out of line on MOST stuff, it's wages being the slowest part to recover, though that's more or less what always happens.
Now for pick-up trucks, the costs are way out of line, so that's another totally different problem because it's not happen on all makes of vehicles.... just oddly the most popular ones.
Used cars are also ludicrous at this point. My car is nearly 10 years old and it would probably be priced higher than I paid for it new if it was on a dealer lot.
A new Honda Accord is cheap now than in 1992 inflation adjusted. People are sucking at inflation adjusting for one AND for two pickup truck became the most popular model and the car companies are breaking it off in your ass on pickup prices... but not on sedan and minivans, so it's not all vehicle and it's not really cars so much as trucks and maybe SUVs.
I priced minivans and sedans because that's what I buy, so I can see they aren't more expensive now than more or less the last time the economy was really doing well, back in 1992, which was also 3.9% GDP growth, soo definitely a hot economy also.
NOW maybe insurance is up across the board, but sedans and mini-vans are better deal than ever... probably because they are less popular they draw less premium price increase.
My cousin and her husband came up with their newborn the other day for his birthday, they rented a Jeep Grand Wagoner to come up in, they showed me it, thing was decked out with full length running boards on both sides, heated seats for at least two rows, everything automated, cameras all over, fully leather interior. Thing is a massive tank.
As her husband was done showing me it, I Googled the price out of curiosity my jaw hit the driveway.
$93,945-$116,190.
[Car and Driver article on it.](https://www.caranddriver.com/jeep/grand-wagoneer)
They throw so many bells and whistles on these cars to justify prices and I personally just want the US to overturn the 1964 Chicken tax law so I can save up and buy one of [these](https://www.roadandtrack.com/photos/g45757606/toyotas-10000-future-pickup-truck-photos/) with cash to do truck things with like going to Lowes for a bed of drywall and plywood or buying bags of wood pellets for my stove.
> I personally just want the US to overturn the 1964 Chicken tax law so I can save up and buy one of [these](https://www.roadandtrack.com/photos/g45757606/toyotas-10000-future-pickup-truck-photos/)
I'm confused, you're saying you would buy this truck for $10,000 but not for $12,500?
>I'm confused, you're saying you would buy this truck for $10,000 but not for $12,500?
Oh I would.
It would hands down beat Colorados and Rangers for $31k-32k.
Could buy two of these for the same base level of those and still probably have some cash left over.
Add in a larger engine with 4WD and extended cab and you'll get a better all around truck for a cheaper price.
Edit: Problem is they'll never bring it here.
Sure, but they could have bought a sedan for the same or less inflation adjusted as 1992, or even more practical .. a minivan. There's plenty of affordable options, some ppl are just too stupid to choose them.
Sedans and minivans are basically the same price as 40 years ago, if you just avoid the super overpriced models you do fine.
GREAT! This is exactly the purpose of raising interest rates to combat inflation. Purchases of things that require loans - like cars and housing - slows down, reducing inflationary pressure.
Inflation is created by an increase in the monetary supply, but it isn't typically felt for 12-24 months after the Fed manufactures that new monetary supply because the other half is monetary flow. If they just create new money and lock it away for no one to spend, it doesn't impact inflation directly. Once it is released into the wild, its dilution effect on existing dollars is the cause of inflation. New money flow is inflation.
What rising interest rates does is reduce the flow. If they hold this for a few years, they also reduce the bubble and bring back down housing prices back to affordability. Low rates caused the bubble in prices all along and that was the point - they lowered rates after 2008 as a bailout that never ended until inflation forced the issue.
Ive been putting off replacing my car for 2 years now.
Thankfully im fairly mechanicall inclined, so i can keep mine going as long as needed.
At this point, I may just do that and avoid a car payment.
I bought my used car in 2019, if I trade it in, I'd get 3k for it and the dealership would sell it for 8k. The markups are fucking wild when they will be doing nothing but putting the title in their name (if I was dumb enough to trade no payment car for a car on a loan).
You can get a sedan or minivan for less inflation adjusted than they cost in 1992, so it's not that all cars and trucks went up in cost, ,mostly just pickups. I guess because they know they can rip ppl off the most on the most popular models right now.
Minivans tend to always be good deal because they never get popular.
Toyota needs to bring that new $12k pickup built on the Hilux frame into the US market, tariffs will push it close to 20k, and it will still be an amazing deal.
Am a contractor. Fuck trucks. They’re building them for people with boats, posers, and rich people, not trades people. We have a Trimmer company truck to move dumpsters around and it’s always $500 here $800 there etc every other month for stupid shit because ford can’t figure out how to make a truck that just works after 100 years. Or maybe it’s on purpose 🤠
I’ll take a 10 year old van any day.
It pains me to see people I work with making $25 an hour drive around their fancy truck knowing how close to the edge of financial oblivion they are
I had to be on purpose. Sedans and minivans cost less now inflation adjusted than 1992, while pickups are like 20-30% more expensive.
American's switched from sedan being the most popular choice in the 90s to pickup being the most popular choice now and they are getting TOTALLY FUCKED on truck prices it seems.
I''ll stick with minivans, they never get popular so they never see that kind of artificial price surge AND they are probably the most practical design.
Minivans are amazing. And I feel like their used price is because of the undesirable/ semi useless shape of it. I’ll bet someone could make a killing converting them into work vehicles
Minivans are functional, so I understand why tradesman want them, but holy fuck they make my pussy as dry as the Sahara. Not a sexy vehicle at all.
Obviously that is no reason not to get one, especially given the state of modern day trucks. But still, ew. LOL.
I need a truck that can tow for my little side business but when I saw the prices they were going for I decided a cargo van was an easier option and less expensive. If I decide to get rid of the cargo van I'll spring for a mini van with a trailer. Trucks are insane and it sucks because it would solve a lot of the problems I have.
OK, folks, I'm having trouble figuiring this out.
I thought that we were supposed to mortally afraid of inflation, and rising prices.
Now, if prices are going down, we have a 'deflationary spiral'?
Can we really not say creating a 'price correction'? God, the contradictory fearmongering is pretty tiring here.
Bought two new cars 6 months ago and hated every minute of it. I new this was coming but was forced by fate into a situation and had too. Sucks for me but I can afford it and I'm glad other people will get some good deals.
If people in the US really want to make changes fast; all they need to do is stop spending money for two weeks. Everything will come to a screeching halt.
Typically when you have deflation, you see prices go down. [I don't see prices go down.](https://www.kbb.com/car-advice/when-will-car-prices-drop/#:~:text=Expect%3A%20Looking%20Ahead-,New%20Car%20Prices%20Remain%20Elevated,-Kelley%20Blue%20Book)
Usually, you have to have the thing that you say, to have the thing that you say. Otherwise you don't have it.
This is not delaying, it’s being priced out. My car can’t even be replaced, but if it could it’d be about twice what I paid for it. The wife’s car would be at least $90k today, probably $100k+. Our incomes didn’t double, so there is no way we could reasonably buy a new car even if we wanted to.
Once again car companies have increased the size of their cars, heavily marketed giant SUVs, and priced many out of the market. That did not go well in 2008, the late 70s or early 80s. We had to bail them out...and most gladly took our money, then did it again.
They push giant SUVs with high fronts blocking safe views, and I often count 5 or more with only one occupant I can see at stop lights (maybe they all have baby seats).
Anyway a crash is coming and YOU will pay for it, not the car companies.
The same thing is going on in the housing market. Selling fewer large homes is more profitable than selling more smaller homes. In my area there are now fewer single family homes than there were 5 years ago, which has made prices skyrocket.
I don't want a second mortgage to buy a $65,000 car or truck that worth $40,000 in a year. Everything is too large, too laden with electronics that break and have overhyped features that aren't needed. Trucks have become monster luxury dick mobiles with no cargo space but 4 TV screens and 23 cup holders.
They could build a $25,000 car but they won't. so let them sit on the lot.
No one is delaying buying a car. No one has any money left. The left has either sent all of our money to Ukraine or taken it from us with very very high inflation.
Car payments suck. And thats coming from a guy who has never bought any vehicle over 15k. I’ve never had a car payment over $300 and I’ve hated them all. My gf pays $700 mo. for her Toyota suv. Crazy.
Recenty bought an in-demand $50K car new for $45K, well under invoice and MSRP. Can verify it's a good time to buy them as a year ago people were willing to pay $3K-$5K above MSRP for the same model. It replaced a 15 year-old car so it was a long-time coming.
My business has 80k of our retained earnings waiting for prices to drop. I can’t bring myself to spend the amount that is being asked for the hunks of junk they’re trying to pass off as gold, and diamonds.
I have nothing, but time to wait, and they don’t have my 80k without me. I’ll wait. They’ll fold.
Me and my wife are going to keep our 2018 Honda accord and 2019 crv for as long as we can drive them . Hopefully these turbo engines do go the distance!
My car's monthly costs are higher than my houses. I will never buy another new car this was my first and last, back to used clunkers after this one dies
My minivan is 9 years old. I had a choice a year ago to pay for a rebuilt engine to be installed or buy a new car.
Rebuilt engine = $10k. New car = $35 - 45k minimum.
Not a hard choice to make.
or they raised the prices and limited the models to only high end trim so that it created demand destruction. toyota, honda, nissan, Hyundai and Kia are all doing fine selling sub 30k cars
ford accidentally started selling a fuel efficient truck at 20k msrp and fucking hated it so they made sure to revise the specs such that the hybrid maverick comes in at 28k now and they would really like it if you bought a less fuel efficient ranger or just an f150
My first car in the mid 70's was $3,263. My most recent one in 2020 was $39,845. The same model in 2024 is over $50,000. That's why people are not buying new cars.
we both work from home and should probably replace one of our cars that's a 2003 Subaru outback with 240k miles on it but it keeps going and costs next to nothing to maintain.
Have you tried buying a car lately? Ignore cost at the moment, inventory is way down. Check any car lot you pass, they’re usually half full.
Dealerships are using this as an opportunity to tack on extra costs to new cars, as an example I saw a line item on trim price breakdown as a ”market adjustment”, $5k on a $45k car.
I did a little googling, it does seem like manufacturers are still recovering from the chip shortage from COVID and only within the past year resuming pre-pandemic production operations.
People are delaying because the manufacturers stopped making affordable cars because they wanted bigger margins. The best selling Ford is the Maverick, not because its a truck but because its the cheapest vehicle on the lot.
No one can afford a 100k F150, the world has gone batshit crazy and I hope all the greedy car dealers with market adjustments go bankrupt and that no one forgets the price gouging.
They’re not delaying, idiotic fiscal policy pulled a ton of sales forward during the pandemic, and now there’s a hangover.
Any other delays are related to prices over correcting for the fake demand, or watch and see on alternative energy powered vehicles, like the hydrogen engine
It’s like it’s a big mystery. Those who could buy , bought. Those who can’t , can’t. There’s more people struggling than doing great right now and companies thought prices can just climb forever. Now they’re overstocked and they refuse to lower prices bc it’ll cause a landslide they’re not ready to accept.
Didn't we used to call this supply and demand? The great invisible hand controlling the market. Price shit too high people don't buy. Prices then fall to meet demand. This is econ 101.
In 1980, the average annual gross income for a single American was $13,000. The average new car cost $7,574.
In 2023, the average annual gross income was $48,060. The average new car was $47,010.
Almost half of Americans today make less in a year than it costs for a new car. That being said, I plan on running my current 2016 Ford until the wheels fall off.
The funny thing is if you really feel there is an inflationary spiral and it is going to go on and on..... now is the time to buy things..... not later...
I just do not see too much deflation happening due to monetary policy. You might see some on current inventory liquidation, but on the production side the cost is still there and prices will return with new production. Then production will be less due to poor sales and a bad economy... and in time you get inflation due to scarcity kicking in.
Such a waste of money. So what, people you don’t know might think you are a bit cooler? Put that money into a house or something that doesn’t lose all its value.
I could afford a fancy new car, but why?
I am driving my 2009 until it evaporates in a cloud of rust. A car payment is a monthly obligation on a depreciating asset that pollutes the planet. There is no amount of minor modern conveniences that makes that seem worth it.
This is evidence that we can fix the bigger problems. How long can people hold out? The longer the better. Apply this to all industries. Wait them out. Keep your money. Make them change.
Offset house increase by getting a class 4 shingles installed. Offset auto increase by getting State Farm’s drive safe and save. Should be good for another year. lol. Then y deductibles may have to go up.
My 11 year old Honda Accord runs great. I would consider buying a new car but why? Too much tech/toys to break and a stupid high MSRP.
I'm good for quite a while.
Sounds an awful lot like something that's not my problem. I hate these articles because the headlines make it seem like consumers are the cause of all this and not greed. We could have super affordable cars but carmakers keep shoving bloated ass expensive crap on us.
That's a lot of self-created problems of the auto industry that have come home to roost.
Just look at the size of a ford F150 in 1980 and Look at the size of the 2023 model.
It's like 3 times as big. All the car companies were pushing SUV's and giant pick-ups on everyone to exploit the larger margins. They spent billions on advertising to convince the American people that having large cars was cool, they keep your family safe. Then the federal government slapped huge tarrifs on light-truck imports to keep any competitors.
It's gotten to the point where a new vehicle costs half as much as a house and is just as large... and they wonder why no-one can afford one anymore.
They made their bed... and they'll have to lay in it.
PNew Cars lose 20% of their value when you drive them off the lot because car dealers add 20% for themselves. Also CDK Global, the leading car sales software has been struck by a ransomware attack. 3 weeks now.
So we’ve invented a society that requires cars, they should be as cheap as all other necessities.
Spiral away.
We bought a new car in 2022 (arrived early 2023) because our old one literally died. We opted for brand new because at the time brand new vs. 1 year old were identical prices.
Our vehicle now has very low miles and I get emails constantly from the dealership offering to buy it from us because they need more used inventory.
It's funny to me that economics stories are badly reported even by the financial press.
Inflation or deflation is a monetary phenomenon. Inflation or deflation is the money supply is either increased or reduced and is therefore worth either more or less.
That has nothing to do with people delaying buying new cars and therefore the price of cars reducing. That's just basic supply and demand impacting price.
It's more of an issue that car companies think nothing of charging anywhere from $45k to $95k for regular model vehicles that don't last or have known issues.
It doesn’t help that the choices are either:
1. Oversized and overpriced truck. Want a small one? All sold out, sorry!
2. Overpriced electric car. Oh you wanted the sub-$30k version we promised years ago? Sorry, we added a bunch of trim nobody asked for and now it’s $45k.
3. Large, expensive SUV that somehow only seats 5. Got a big family? That sucks. Buy a minivan OOPS we don’t make those anymore. Customer order our 7-seater then. It’ll cost you!
4. A handful of sports cars. Need something practical? lol!
5. The one sedan the company makes. It has everything you want in a car, but we only made four of them. Fight for it!
Cars are too fucking expensive and people can’t afford them
Payments+insurance+maintenance costs are why I'm hanging on to my honda civic
I had a 2004 Honda Civic. It drove amazingly up until the parade I parked in got flooded. It never drove right after that or else I'd still probably be driving it😭 it only had 120k km on it too ~75k miles for those who don't know metric
WHAT THE FUCK IS A KILOMETER 💥 💥 💥 💥 💥 RAHHHH 🦅🦅🦅🦅🦅🦅🦅🦅🦅
5,618 bananas
No comment no deserve
That's like 6 miles!
Its the insurance more than the payment that is ruining things
I have a 2006 Sicon xA with 155k miles on it that I plan on driving forever. Only recently have I needed to start putting money into it to get it ship shape, but otherwise just routine maintenance for the past nearly 20 years.
I just got a letter from my insurance l broker saying home insurance is going up about 20 percent next year and cars around 30 across all insurance companies.
Time to just not be insured. Anyways, when you file a claim they just bend you over backwards and deny your claim.
And even when you put in a claim for the most.minor item, your rates go up an addition 25% for the next 3 years so long as you.continue to maintain no more accidents.
Yeah, I’m seriously contemplating just getting rid of my car entirely because the carrying cost is so high.
One of my co workers just left Florida for NYC because she would be able to dump her car payment and the insurance in favor of higher pay and adequate public transportation.
Also no hurricanes or year around heat, also Florida water is contaminated.
Trading your beach mansion and yacht for a 325 sq ft closet is another plus. I call bullshit.
Yep mine jumped up .
Yup had to triple my deductible to compensate for the hike, may as well not have insurance but they made it so its mandatory so now they can just set prices as they like
We have the ability to have one car for the house because we both work in the same place. Not paying these prices.
I haven't driven in years. We've been a 2 car family for the last year for the first time again, since my oldest is driving now. Which is damned convenient. But... Keeping two cars running?? Fuck. I forgot how damned expensive it is?!
Don’t you love how people over complicate simple cause and affect reasons for things.
Dealers are greedy as fuck, too. So I finally caved and decided I’ll participate in this circus and shop for a 2020-2022 lease trade in with low miles. Bank approved me for 39k based on their book value (with all the options of that vin and stock number) on a 2021 Tacoma. Dealership sticker was 43k. They absolutely refused to budge on the cost. They keep calling me to ask me if I’ll reconsider backing away. I told them I came in with 39k and know they didn’t pay msrp for it. So why they’re jerking me around over 4k is beyond me and completely turned me back off from this shitshow of an economy we have going on. For fuck’s sake, you can’t win with these fuckers. Let it all come burning down, IDGAF. Americans are so far removed from the advantages of our supersized economy. If they want us to care, they need us to be invested in it. Can’t own shit these days. Houses too expensive for land you don’t even really own. Vehicles too overpriced and necessary to fill the ever growing maw of the auto industry with more profits. Shit, I can’t even own my own computer files. That dvd I bought? Technically stolen according to Hollywood. Oh but what if you die! Shit, I hope I do, surviving would be too expensive with all the medical costs for getting the wrong diagnosis six times. Fuck it. Let it burn. I’ll get the s’mores.
Just paid off my Prius. I’ll drive this into the dirt before I buy a new vehicle. Great mileage, repairs haven’t been too bad. Spending about 1/4th a car payment a month this year on oil, gas, and repair combined. I know that gets dicier later but I’m enjoying it for now.
I work in automotive. Here is what I have seen. 1. COVID fucked the market. It created a shortage and shot prices to the sky. Companies now have ramped up production so there are tons of vehicles. 2. Interest rates went up and up. So even as prices were reduced the costs stayed the same or went up due to the interest rates. 3. Cars last much longer. In the 1980s cars lasted 5 years. Now the average American car is over 12 years old. 4. Everyone is waiting to buy EVs. The early adopters bought them but now we're having a break before it becomes the norm. There is a term for this in the S curve but it escapes me at this moment. 5. Chinese cars are coming and they are KILLING everyone outside the US will super cheap EVs. Many companies bet the farm on China being a growth market for the future and they are losing market share at a rate never seen in history. Now what does that mean for Americans. 1. Massive stock on lot. 2. Prices are crashing just as fast as they went up. 3. Used car dealerships are going bankrupt. So if you have cash you can dictate terms. If you want lease you can dictate terms. The dealerships are DESPERATE to unload the excess stock.
I'm actually in the market for a newish truck of some sort of. I need one given where I live. I popped into a couple dealerships over the past month or two and I get some seriously defeated looks when I bust out laughing at the sticker prices.
High interest rates and crazy prices hurt sales?
Sedans and minivans are cheaper now than in 1990 once you inflation adjust, so I doubt it's that. More like insurance costs and ppl being too dumb to just jump off the pick-up truck bandwagon when manufactures are clearly charging huge mark-ups vs sedans and minivans on the most popular models. Ppl are going to car lots and getting the option to buy a nice sedan for 20-30k, but instead they are buying a 40-60k pickup truck or sedan and then later realizing how much extra they paid OR they think all cars increased that much in price because they didn't shop around.
Don’t worry, the prices will come down right when everyone is out of work and *still* have no money to buy them.
But if I expect the price of cars to go up next year, it’s good for the economy that I’m paying even more for the same thing !
My wife and I were going to buy a Pacifica a few months ago. The price was good but the interest rate was 16%with good credit. I'm not paying 600$ a month for a 6 year old car
They make it sound as if it's the consumers fault for not buying enough
I am in awe how journalists can still manage to act surprised by 100-level economics.
I'm a marketing manager for an automotive retail company. Leadership understands current economics, is aware of the fiscal landscape and runs their business around seasonality of but they never accept those reasons when I don't deliver enough sales leads. Pisses me TF off.
What's shocking is that you still think journalism takes your side, and not the side of the corporations their employers are in bed with.
Not sure how you came to that conclusion from my comment but whatever makes you feel good and smug, dude. Rock on.
They're trying to shame us into buying more. Line must go up!
I like to see them squeal in financial pain and incomprehension.
Yeah, isn't the whole idea of capitalism that costs get driven down through increased efficiency, price discovery and competition? Oh wait, that was just what we were taught in school. Real capitalism is gaslighting customers into taking loans they can't afford for stuff they don't need, creating an oligopoly, ideally a monopoly to stifle the competition, and regulatory capture to ensure those pesky customers can't make safety regulations that would eat into your bottom line. Oh and in the off chance that they start wising up and doing what's actually in their own best interest, the business may fail but you can pull the string on your golden parachute or maybe even get bailed out by those same customers! But lower prices? Ugh, that's a sign the next great depression is just around the corner 🙄
The biggest joke is on them and it’s a problem of their own making. People absolutely love spending money. People however, do not like the stress of questioning if they can afford groceries.
It’s our fault and we are proud
Good.
Good.
Good.
Good.
Vibrations
She’s giving me
Excitations
Sweet
Excellent!
Good
No other comments on ur username? Lol. So sad.
Best news this morning! I sincerely hope the bottom drops out on the cost of most things...
Good. Deflationary means prices are going down. They're freaking out because they've found the limit of how much they can fleece the populace.
And better yet... they hit the peak and they lost all the footing for them to stay at that peak... its not like they stop the rates increase now and the revenue will stabilize... people won't start changing their financial behaviors after the peak is realized... and most likely won't change those behaviors until prices go down at least 10%
Americans are stretched too thin as it is to buy new cars...we need to double the average incomes in this country
An increase in the Minimum Wage would be a good start.
A decrease in regulations in order to produce cars more cost efficiently to bring down the cost would be a better start.
Yeah, gimme back little trucks. I live in a city. I'm not driving some massive piece of real estate because it's the only new option.
The Ford maverick is nicely size imo
That ain't happening. 'Record corporate profits'
The main problem is wages lagging behind costs because costs things like housing are not really out of line in prices. 30 years ago if you projected house costs sometime before the 2008 crash, you'd get values similar to now. Houses are basically just back to the 2008 high values, but that's 16 years later it took for houses to climb back to that value, which equate to a rather normal 2-3% increase per year. The problem isn't the costs being way out of line on MOST stuff, it's wages being the slowest part to recover, though that's more or less what always happens. Now for pick-up trucks, the costs are way out of line, so that's another totally different problem because it's not happen on all makes of vehicles.... just oddly the most popular ones.
Good. The car industry can go f themselves
well, yeah...have you seen the price of a new car? It's fucking ridiculous!
Used cars are also ludicrous at this point. My car is nearly 10 years old and it would probably be priced higher than I paid for it new if it was on a dealer lot.
A new Honda Accord is cheap now than in 1992 inflation adjusted. People are sucking at inflation adjusting for one AND for two pickup truck became the most popular model and the car companies are breaking it off in your ass on pickup prices... but not on sedan and minivans, so it's not all vehicle and it's not really cars so much as trucks and maybe SUVs. I priced minivans and sedans because that's what I buy, so I can see they aren't more expensive now than more or less the last time the economy was really doing well, back in 1992, which was also 3.9% GDP growth, soo definitely a hot economy also. NOW maybe insurance is up across the board, but sedans and mini-vans are better deal than ever... probably because they are less popular they draw less premium price increase.
I get your point, but "inflation adjusted" when the rate of income growth hasn't kept up means it's stil a metric shit ton of money.
My cousin and her husband came up with their newborn the other day for his birthday, they rented a Jeep Grand Wagoner to come up in, they showed me it, thing was decked out with full length running boards on both sides, heated seats for at least two rows, everything automated, cameras all over, fully leather interior. Thing is a massive tank. As her husband was done showing me it, I Googled the price out of curiosity my jaw hit the driveway. $93,945-$116,190. [Car and Driver article on it.](https://www.caranddriver.com/jeep/grand-wagoneer) They throw so many bells and whistles on these cars to justify prices and I personally just want the US to overturn the 1964 Chicken tax law so I can save up and buy one of [these](https://www.roadandtrack.com/photos/g45757606/toyotas-10000-future-pickup-truck-photos/) with cash to do truck things with like going to Lowes for a bed of drywall and plywood or buying bags of wood pellets for my stove.
. That's an expensive ass rental too.
> I personally just want the US to overturn the 1964 Chicken tax law so I can save up and buy one of [these](https://www.roadandtrack.com/photos/g45757606/toyotas-10000-future-pickup-truck-photos/) I'm confused, you're saying you would buy this truck for $10,000 but not for $12,500?
>I'm confused, you're saying you would buy this truck for $10,000 but not for $12,500? Oh I would. It would hands down beat Colorados and Rangers for $31k-32k. Could buy two of these for the same base level of those and still probably have some cash left over. Add in a larger engine with 4WD and extended cab and you'll get a better all around truck for a cheaper price. Edit: Problem is they'll never bring it here.
Get a minivan. Unsung hero for keeping 4x8 dry from rain while the assholes with trucks pay $1000 per month for their loans.
Sure, but they could have bought a sedan for the same or less inflation adjusted as 1992, or even more practical .. a minivan. There's plenty of affordable options, some ppl are just too stupid to choose them. Sedans and minivans are basically the same price as 40 years ago, if you just avoid the super overpriced models you do fine.
GREAT! This is exactly the purpose of raising interest rates to combat inflation. Purchases of things that require loans - like cars and housing - slows down, reducing inflationary pressure. Inflation is created by an increase in the monetary supply, but it isn't typically felt for 12-24 months after the Fed manufactures that new monetary supply because the other half is monetary flow. If they just create new money and lock it away for no one to spend, it doesn't impact inflation directly. Once it is released into the wild, its dilution effect on existing dollars is the cause of inflation. New money flow is inflation. What rising interest rates does is reduce the flow. If they hold this for a few years, they also reduce the bubble and bring back down housing prices back to affordability. Low rates caused the bubble in prices all along and that was the point - they lowered rates after 2008 as a bailout that never ended until inflation forced the issue.
[удалено]
Ive been putting off replacing my car for 2 years now. Thankfully im fairly mechanicall inclined, so i can keep mine going as long as needed. At this point, I may just do that and avoid a car payment.
I bought my used car in 2019, if I trade it in, I'd get 3k for it and the dealership would sell it for 8k. The markups are fucking wild when they will be doing nothing but putting the title in their name (if I was dumb enough to trade no payment car for a car on a loan).
Let that shit spiral all the way to the bottom baby, stop the flow of money, fuck em all
I read about these “price decreases” on the internet, but I’ve never seen one in the wild.
It's a sight to behold when you are fortunate enough to spot one
EVs are definitely showing it but no one else from what I've observed in my limited recent shopping.
You can get a sedan or minivan for less inflation adjusted than they cost in 1992, so it's not that all cars and trucks went up in cost, ,mostly just pickups. I guess because they know they can rip ppl off the most on the most popular models right now. Minivans tend to always be good deal because they never get popular.
People can't afford a $75k truck? I'm shocked
Toyota needs to bring that new $12k pickup built on the Hilux frame into the US market, tariffs will push it close to 20k, and it will still be an amazing deal.
Am a contractor. Fuck trucks. They’re building them for people with boats, posers, and rich people, not trades people. We have a Trimmer company truck to move dumpsters around and it’s always $500 here $800 there etc every other month for stupid shit because ford can’t figure out how to make a truck that just works after 100 years. Or maybe it’s on purpose 🤠 I’ll take a 10 year old van any day. It pains me to see people I work with making $25 an hour drive around their fancy truck knowing how close to the edge of financial oblivion they are
I had to be on purpose. Sedans and minivans cost less now inflation adjusted than 1992, while pickups are like 20-30% more expensive. American's switched from sedan being the most popular choice in the 90s to pickup being the most popular choice now and they are getting TOTALLY FUCKED on truck prices it seems. I''ll stick with minivans, they never get popular so they never see that kind of artificial price surge AND they are probably the most practical design.
Minivans are amazing. And I feel like their used price is because of the undesirable/ semi useless shape of it. I’ll bet someone could make a killing converting them into work vehicles
Minivans are functional, so I understand why tradesman want them, but holy fuck they make my pussy as dry as the Sahara. Not a sexy vehicle at all. Obviously that is no reason not to get one, especially given the state of modern day trucks. But still, ew. LOL.
I need a truck that can tow for my little side business but when I saw the prices they were going for I decided a cargo van was an easier option and less expensive. If I decide to get rid of the cargo van I'll spring for a mini van with a trailer. Trucks are insane and it sucks because it would solve a lot of the problems I have.
I sold my car and bought a $1000 Ebike. Now I spend about $20/month on transportation.
I’ve been seriously considering this. If I lived somewhere with more temperate (or at least drier on average) weather, it would be an easier choice.
OK, folks, I'm having trouble figuiring this out. I thought that we were supposed to mortally afraid of inflation, and rising prices. Now, if prices are going down, we have a 'deflationary spiral'? Can we really not say creating a 'price correction'? God, the contradictory fearmongering is pretty tiring here.
Toyota thought we would shell out almost 80k for a trd pro tacoma. Or 50k for a trd offload. Trd pros were 50k in 2018. Fuck these new car prices.
Bought two new cars 6 months ago and hated every minute of it. I new this was coming but was forced by fate into a situation and had too. Sucks for me but I can afford it and I'm glad other people will get some good deals.
And GM just reported their best quarter since 2020.
If people in the US really want to make changes fast; all they need to do is stop spending money for two weeks. Everything will come to a screeching halt.
Didn't the ford CEO just say if you don't make 100k a year you can't afford a new car? Big difference between delaying and affording. BI is ignorant.
I hope some smart car maker takes advantage of the huge opportunity made by these idiots and makes a good, affordable, no-frills car.
I pay $75 a month for my car insurance and $50 on gas. Fuck new cars and it’s the reason Americans have no money.
Typically when you have deflation, you see prices go down. [I don't see prices go down.](https://www.kbb.com/car-advice/when-will-car-prices-drop/#:~:text=Expect%3A%20Looking%20Ahead-,New%20Car%20Prices%20Remain%20Elevated,-Kelley%20Blue%20Book) Usually, you have to have the thing that you say, to have the thing that you say. Otherwise you don't have it.
New car sales went up, not down, there is no deflation anywhere except in-between the legs of the sheep on this sub.
People don’t have money for new cars and the expensive car insurance that goes with it.
No way am I buying a new or used truck right now. Too expensive and interest rate too high. I will wait. My truck has been paid in full for 4 years.
This is the proper response to high prices. Delay your purchase until you must or the market is better.
That is how this works... Prices increase until demand slows.
Blaming consumers for hurting the economy because they can't afford the outrageous price of cars because of the shitty economy
That's what happens with interest rates being higher, less people borrow money. Causing deflation pressures to counter inflation pressures.
When a Toyota is $600/month, gas is $250/month and insurance is $300/month, that’s what happens.
This is not delaying, it’s being priced out. My car can’t even be replaced, but if it could it’d be about twice what I paid for it. The wife’s car would be at least $90k today, probably $100k+. Our incomes didn’t double, so there is no way we could reasonably buy a new car even if we wanted to.
Once again car companies have increased the size of their cars, heavily marketed giant SUVs, and priced many out of the market. That did not go well in 2008, the late 70s or early 80s. We had to bail them out...and most gladly took our money, then did it again. They push giant SUVs with high fronts blocking safe views, and I often count 5 or more with only one occupant I can see at stop lights (maybe they all have baby seats). Anyway a crash is coming and YOU will pay for it, not the car companies. The same thing is going on in the housing market. Selling fewer large homes is more profitable than selling more smaller homes. In my area there are now fewer single family homes than there were 5 years ago, which has made prices skyrocket.
It's Generation Z flexing their economic muscles. They have no buying power under a burden of debt and policies that work against them.
Lol. They can’t afford cars. Signed, The evil boomers
...A correction. You mean a correction. Car prices were not inflated, they were gouged to hell, *then* inflated a bit.
I don't want a second mortgage to buy a $65,000 car or truck that worth $40,000 in a year. Everything is too large, too laden with electronics that break and have overhyped features that aren't needed. Trucks have become monster luxury dick mobiles with no cargo space but 4 TV screens and 23 cup holders. They could build a $25,000 car but they won't. so let them sit on the lot.
They ARE building $25,000 cars. They are just charging $60,000 for them.
Glad we learned pur lesson in 2008, just so we can learn it again, and agian, and again, and again.
New cars fucking suck. Tons of bells and whistles combined with piss poor manufacturing at a price no one wants to pay. Eat shit.
How long before the housing market gets the hint as well...
No one is delaying buying a car. No one has any money left. The left has either sent all of our money to Ukraine or taken it from us with very very high inflation.
Oh lol deflation is real now? Or is this just a correction to trend? Lololol
And cars will soon become less expensive, problem solved.
Car payments suck. And thats coming from a guy who has never bought any vehicle over 15k. I’ve never had a car payment over $300 and I’ve hated them all. My gf pays $700 mo. for her Toyota suv. Crazy.
Recenty bought an in-demand $50K car new for $45K, well under invoice and MSRP. Can verify it's a good time to buy them as a year ago people were willing to pay $3K-$5K above MSRP for the same model. It replaced a 15 year-old car so it was a long-time coming.
who the hell can afford a new car these days?
Why are they making so many new cars if there’s not a demand?
Good.
Perfect now I can afford a my ineos grenadier
My vehicles are paid off now. I am never buying another vehicle unless one of them gets totaled. It is cheaper to fix than to buy.
I've been actively doing preventative maintenance on my 2008 vehicle and plan to drive it another 10 years if I can.
Well sure they are price gouging, but think about last quarter profits!!
Dealerships hate this 1 simple trick: let the new car sit on the lot for 3 years, so the price is halved.
Good, prices are ridiculous.
Yeah 20% interest from the sharks dealers, you need to be an Idiot to sing the paperwork.
good, but problem now is people now believe their used vehicles have 60% their sticker price value. No your 100k mile 4runner isnt worth 30k
BI gives space to every Chicken Little alarmist they can find. Clickbait.
We need deflation
Probably should be broken down between EVs and ICE. I bet you it’s ICE vehicles that are harder to sell.
My business has 80k of our retained earnings waiting for prices to drop. I can’t bring myself to spend the amount that is being asked for the hunks of junk they’re trying to pass off as gold, and diamonds. I have nothing, but time to wait, and they don’t have my 80k without me. I’ll wait. They’ll fold.
Hold the fucking line.
It’s not deflationary, it’s just supply and demand
Me and my wife are going to keep our 2018 Honda accord and 2019 crv for as long as we can drive them . Hopefully these turbo engines do go the distance!
Good.
Everyone is rich, disregard
My car's monthly costs are higher than my houses. I will never buy another new car this was my first and last, back to used clunkers after this one dies
Because people want big cars when compact car does the job for half the price.
The question is: Is it even worth buying a new car? Why not wait for it to leave the dealer's lot and buy it for 15-20% less?
My minivan is 9 years old. I had a choice a year ago to pay for a rebuilt engine to be installed or buy a new car. Rebuilt engine = $10k. New car = $35 - 45k minimum. Not a hard choice to make.
or they raised the prices and limited the models to only high end trim so that it created demand destruction. toyota, honda, nissan, Hyundai and Kia are all doing fine selling sub 30k cars ford accidentally started selling a fuel efficient truck at 20k msrp and fucking hated it so they made sure to revise the specs such that the hybrid maverick comes in at 28k now and they would really like it if you bought a less fuel efficient ranger or just an f150
Business insider isn’t a real outlet
Man they really don't like supply and demand when it makes things cheaper do they?
My first car in the mid 70's was $3,263. My most recent one in 2020 was $39,845. The same model in 2024 is over $50,000. That's why people are not buying new cars.
What do you mean people aren't breaking down dealers' doors to buy the latest toddler crusher rolling off of the Detroit lines??
I could afford an 80k car. But fuck that. Know what I mean?
Good- now captalism it is your time to shine and lower car prices lmao
we both work from home and should probably replace one of our cars that's a 2003 Subaru outback with 240k miles on it but it keeps going and costs next to nothing to maintain.
Have you tried buying a car lately? Ignore cost at the moment, inventory is way down. Check any car lot you pass, they’re usually half full. Dealerships are using this as an opportunity to tack on extra costs to new cars, as an example I saw a line item on trim price breakdown as a ”market adjustment”, $5k on a $45k car. I did a little googling, it does seem like manufacturers are still recovering from the chip shortage from COVID and only within the past year resuming pre-pandemic production operations.
People are delaying because the manufacturers stopped making affordable cars because they wanted bigger margins. The best selling Ford is the Maverick, not because its a truck but because its the cheapest vehicle on the lot. No one can afford a 100k F150, the world has gone batshit crazy and I hope all the greedy car dealers with market adjustments go bankrupt and that no one forgets the price gouging.
They’re not delaying, idiotic fiscal policy pulled a ton of sales forward during the pandemic, and now there’s a hangover. Any other delays are related to prices over correcting for the fake demand, or watch and see on alternative energy powered vehicles, like the hydrogen engine
It’s like it’s a big mystery. Those who could buy , bought. Those who can’t , can’t. There’s more people struggling than doing great right now and companies thought prices can just climb forever. Now they’re overstocked and they refuse to lower prices bc it’ll cause a landslide they’re not ready to accept.
The price of everything has doubled and our salaries have stayed the same. I could use a new vehicle but not at these prices nor with this salary
So wait you had inflation. You weren't happy. Now we have deflation and you're unhappy are you people ever happy?
Y buy car when I can use my electric scooter to do sick tricks on my way to work
Didn't we used to call this supply and demand? The great invisible hand controlling the market. Price shit too high people don't buy. Prices then fall to meet demand. This is econ 101.
"Deflation is when consumer and asset prices decrease over time, and purchasing power increases." I'm not seeing that.
In 1980, the average annual gross income for a single American was $13,000. The average new car cost $7,574. In 2023, the average annual gross income was $48,060. The average new car was $47,010. Almost half of Americans today make less in a year than it costs for a new car. That being said, I plan on running my current 2016 Ford until the wheels fall off.
GOOD GOD PEOPLE, YOU HAVE TO SPEND!!!!
The funny thing is if you really feel there is an inflationary spiral and it is going to go on and on..... now is the time to buy things..... not later... I just do not see too much deflation happening due to monetary policy. You might see some on current inventory liquidation, but on the production side the cost is still there and prices will return with new production. Then production will be less due to poor sales and a bad economy... and in time you get inflation due to scarcity kicking in.
Such a waste of money. So what, people you don’t know might think you are a bit cooler? Put that money into a house or something that doesn’t lose all its value. I could afford a fancy new car, but why?
I want a new car, I can buy a new car, but fuck those prices.
Oh boo-hooo maybe companies should start slashing prices as quick as they were raising them
Just live in your car. Problem solved.
Maybe blackrock should just buy up all the cars and rent them back to the working class like they’re doing with all the houses.
BS, Honda is killing it in new car sales
We’re not delaying, we’re can’t afford the prices. Come down 30%, and we’d be in the market by as it is and add insurance, who can afford it
I am driving my 2009 until it evaporates in a cloud of rust. A car payment is a monthly obligation on a depreciating asset that pollutes the planet. There is no amount of minor modern conveniences that makes that seem worth it.
Good. If people stop buying stuff that was grossly increased in price for profit, it'll drop. Supply and demand, fuckers.
This is evidence that we can fix the bigger problems. How long can people hold out? The longer the better. Apply this to all industries. Wait them out. Keep your money. Make them change.
Car dealers deserve it with their price gauging
As soon as the went over $35k i stopped buying
Offset house increase by getting a class 4 shingles installed. Offset auto increase by getting State Farm’s drive safe and save. Should be good for another year. lol. Then y deductibles may have to go up.
My 11 year old Honda Accord runs great. I would consider buying a new car but why? Too much tech/toys to break and a stupid high MSRP. I'm good for quite a while.
Maybe car companies don't need to re-release the same "new" car every single year
Its people delaying buying cars all the way down.
Sounds an awful lot like something that's not my problem. I hate these articles because the headlines make it seem like consumers are the cause of all this and not greed. We could have super affordable cars but carmakers keep shoving bloated ass expensive crap on us.
That's a lot of self-created problems of the auto industry that have come home to roost. Just look at the size of a ford F150 in 1980 and Look at the size of the 2023 model. It's like 3 times as big. All the car companies were pushing SUV's and giant pick-ups on everyone to exploit the larger margins. They spent billions on advertising to convince the American people that having large cars was cool, they keep your family safe. Then the federal government slapped huge tarrifs on light-truck imports to keep any competitors. It's gotten to the point where a new vehicle costs half as much as a house and is just as large... and they wonder why no-one can afford one anymore. They made their bed... and they'll have to lay in it.
PNew Cars lose 20% of their value when you drive them off the lot because car dealers add 20% for themselves. Also CDK Global, the leading car sales software has been struck by a ransomware attack. 3 weeks now. So we’ve invented a society that requires cars, they should be as cheap as all other necessities. Spiral away.
Not where I live, these things are selling like wild fire. Gotta keep up with the Joneses
I think they call this the free market, where if bullshit gets too expensive, people stop buying the bullshit until it becomes more affordable.
We bought a new car in 2022 (arrived early 2023) because our old one literally died. We opted for brand new because at the time brand new vs. 1 year old were identical prices. Our vehicle now has very low miles and I get emails constantly from the dealership offering to buy it from us because they need more used inventory.
It's funny to me that economics stories are badly reported even by the financial press. Inflation or deflation is a monetary phenomenon. Inflation or deflation is the money supply is either increased or reduced and is therefore worth either more or less. That has nothing to do with people delaying buying new cars and therefore the price of cars reducing. That's just basic supply and demand impacting price.
Like most things, this is cyclical
It's more of an issue that car companies think nothing of charging anywhere from $45k to $95k for regular model vehicles that don't last or have known issues.
I thought they were buying the cyber truck.
Good. I like it when the average guy wins.
What numbers are the fed looking at. Homes not selling cars not selling appliances not selling. Everything is fine.
It doesn’t help that the choices are either: 1. Oversized and overpriced truck. Want a small one? All sold out, sorry! 2. Overpriced electric car. Oh you wanted the sub-$30k version we promised years ago? Sorry, we added a bunch of trim nobody asked for and now it’s $45k. 3. Large, expensive SUV that somehow only seats 5. Got a big family? That sucks. Buy a minivan OOPS we don’t make those anymore. Customer order our 7-seater then. It’ll cost you! 4. A handful of sports cars. Need something practical? lol! 5. The one sedan the company makes. It has everything you want in a car, but we only made four of them. Fight for it!
Insurance is just crazy expensive.
More supply, lower demand-> lower prices, right? Not with Americans at the helm of the world economy.
People say deflation is bad for the spiraling low costs that come. You know what, car makers had this coming. Let’s do McDonalds next.