Why Car Ownership Is Getting So Expensive | CNBC Marathon
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- Опубликовано: 5 июл 2024
- CNBC Marathon examines a variety of factors that lead to car ownership in the U.S. being so expensive, from auto loans to repairing your vehicle.
A car loses about 10% of its value as soon as it's driven off the lot. And within the first three years, that number goes up to 50%. Depreciation - the rate at which that happens - is one of those numbers everyone in the automotive world thinks about including consumers, automakers and the massive used car market, which made up somewhere around 35.2 million in 2022 - compared with 13.8 million new cars.
More than 100 million Americans have an auto loan and auto loan debt in the U.S. is at a record high of $1.56 trillion. Between the Covid-19 pandemic, supply chain issues, alleged predatory lending practices, inflation, and the Federal Reserve's interest rate hikes, getting an auto loan is getting increasingly difficult and costly.
Auto repair costs have been rising for years, but recently they've spiked. Experts say it's likely a mix of factors including heavier, faster and more complex vehicles, riskier driving behavior, new technology, and labor and supply shortages. Repair shop owners say they can’t find enough technicians despite paying six-figure salaries. As technology marches forward, and fancy cutting-edge EVs fill the roads, consumers hear horror stories about huge repair bills. But insiders say there are reasons to be optimistic.
Chapters:
00:00 Introduction
00:32 Why Cars Lose Their Value So Fast (Published December 2023)
13:18 Why Americans Are Falling Behind On Car Loans (Published August 2023)
30:30 Why Car Repairs Are Getting So Expensive (Published February 2024)
Produced by: Robert Ferris, Emily Lorsch
Edited by: Darren Geeter
Animation by: Christina Locopo, Jason Reginato, Alex Wood
Additional Camera by: Ryan Baker
Senior Managing Producer: Tala Hadavi
Additional Editing by: Jack Hillyer
Additional Footage: Getty Images, Rivian, Kia, Tesla, Insurance Institute for Highway Safety
Additional Sources: Experian, Bankrate, Federal Reserve Bank of New York
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Why Car Ownership Is Getting So Expensive | CNBC Marathon
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Good thing we built our whole society around requiring a car to get anywhere
Literally makes me want to leave the country it’s so bad
@@ryanc4955please do, we don’t all want to live in cities so go. Bet you hate the constitution too
You could drive a 1999 Corolla 500k miles for a few thousand dollars. There is no real barrier to having a car. People just like having better, newer cars.
@@RUclipsistreason if you’re going to post a comment to show how uneducated you are about car dependency, at least have some facts instead of making moronic and baseless assumptions
@@tylersanders2388It's well known insurance, maintenance and gasoline is free
Stop buying new cars and keep the one you're driving forever.
That's right. Treat any car like it's a Lexus and it'll last you longer than a Lexus.
You tell that to you my wife and kids!
People’s needs change. For example, I have to upgrade size when more family member are on the way. We cannot all roll in a Versa or Corolla with three kids and a dog.
@@user-sk1eh3pg6j I agree, also when the first little thing breaks go ahead and fix it. It's all the little things that add up that will push someone into the dealership to replace a car.
@@Alopen-xb1rb Nothing wrong with buying a larger vehicle to accommodate a larger family but it doesn't have to be a brand new vehicle. Find a used Ford Taurus/Mercury Sable station wagon. They seat 7-8 people. Yes they have a 3rd row. Cheap to buy cheap to insure and cheap to operate. Just make sure it has a fresh transmission or be ready to pay $1000 to get it rebuilt.
I just paid off my car early and my credit dropped 32 points and I’m now considered a “more risky borrower to lenders.” LMAOOOO
😂😢😊😊
Yes lol - You didn’t pay ALL of their interest 🤣
It’ll go back up soon
You are too smart to be profitable for them
it's always been a rigged system, pay early and they punish you, pay more and they punish you, so ridiculous
We deserve walkable and bikable neighborhoods with fast frequent transit instead of relying on expensive car dependency
I have done some bad things in my younger life but I don’t deserve to be punished that severely for it.
Not seeing the size of cars being spoken about, vast majority of people don't need their SUVs and Trucks
Cars take up space but bikes save room, it is like the environment and the economy can be saved with bikes. Bikes and cars cost the same amount to build and sell for the same amount. The new trikes like Can Am Siders are excellent.
Yeah, my 2016 Colorado is the same size as my dads 2002 Silverado. My colorado is a midsize truck with a towing capacity of 7000 pounds. I hual a 14-foot boat and a smaller trailer with a lawn mower on it. I didn't need a full-size truck as they have gotten way too big.
These large vehicles thought to be safer must not be. Why else did a person name their car a smart car, the mini cooper also sells a lot. Hard to hit and can swerve quickly these expensive compact cars are a bit nicer to look at.
They did mention vehicle weight rising which is attributable to the proliferation of SUVs and pickups.
But that’s what is being bought.
Small cars with no added electronics aren’t being sold
It is getting nuts. Car payments are high, insurance is high, property taxes are WAY up, renewal fees have quadrupled in the last few years where I live, gas is high, even the smallest repairs are jaw droppingly expensive. I don't blame young kids for saying F-it.
It's like you're on a gerbil wheel going round and round.
This is what democrats voted for. Inflation isnt cool
@@Chicago48😂 your born onto the spinning wheel
The system is designed to keep you poor to keep you working
Gas is high? Laughs in European gas prices...
People think they’re high & mighty with their cars. 1k car payment on a depreciating asset to impress people is INSANE but it’s normal now.
Well they aren’t a depreciating asset forever. Key word forever. No vehicle in the century of the car has depreciated to zero. The cycle is depreciation for 12-15 years since new then a bottoming out in prices, and then appreciation around the 20-25 year mark as it hits classic car age. This has been the cycle since the ford model t became a classic car.
It’s not only sports cars and exotics. Maybe watch a classic car auction and compare MSRP prices with the auction hammer price. Because even economy cars appreciate. I can think of a few boomer econo/normal vehicles that come to mind the steel VW beetle, a ford galaxie, chevy impala, old F100’s among many others.
The issue is your average person doesn’t keep a vehicle for life to see the appreciation at the end. You got a self made problem is social ques making people get newer cars to proverbially keep up with the jones and not appear poor for driving a shitbox car that has paint peeling.
The psychology on car age is hilarious. A 12-20 year old car is seen as eww old and unwanted, but 30,40,50+ year old car and it flips to cool and desireable.
Valid points. But basically for the most part people’s view on trying to look rich is just baffling
Imagine a 1k car payment not including gas maintenance & rising insurance rates. Man idk how these people can keep up it’s insane
@@Bonanzaking a corolla won't become a classic no matter how long you wait. my c63s 8cyclinder might become a classic, but that are years down the line.
@@headpower999 i guess you haven’t seen the going rate for a 90’s camry with an immaculate interior and paint taken care of. A few have sold for msrp, ditto for 90’s civics. Give it another decade.
This 44 minute video could be 2 minutes. Just say "Everything is computerized now, and even repair shops can't fix some problems. You can't fix a car for under $1,500 due to inflation and computer systems being so complicated."
Sure but thats bs.
Thanks for saving me 40mins!
In other words, you didn’t actually watch the video.
Saved me 44 minutes
The video is about car ownership but they spent the first 10 minutes on how fast the value of a car falls, which has nothing to do with the cost of ownership.
Just remember a car is an expense not an asset
You can sell it for cash it's literally an asset
I just bought a billion new buggati tourbillons so I disagree with this statment
@@thanosianthemadtitanic sure and I'm the king of England
In 10 years many people will wear ski boots all the time because once every couple years they might go skiing. CNBC will have a video titled "when did shoes get so expensive and big and hot?"
Pickups and SUVs used to be niche vehicles with extra capability for those who used them for real work. Now these juggernauts trundle around neighborhoods, their tow-ratings unused and beds empty, "rugged individualist" cosplay for the office drone set and a hazard for anyone capable of doing the math on owning a truck versus renting one the handful of times you need one.
As someone who has moved a full sized dishwasher in a Mazda 3 hatchback and plenty of furniture in a minivan, let me tell you that you don't need these gargantuans as much as the marketing says you do.
On average, SUVs and pickups generate 2-3 times the profit of a passenger car, so they are more expensive, and they are worse at their primary mission of moving people on roads then a sedan.
Then there's the external costs borne by the rest of society. "Big truck socialism" manifests in higher rates of fatality and injury, to carbon and particulate emissions, to road damage from heavier vehicles, to increased upward pressure on raw material prices for larger vehicle production, fueling, and maintenance.
The proliferation of SUVs and pickups is just another reminder that American marketing is the best in the world.
I love my Mazda 3 Hatchback. Small and fun to drive but put the seats down and you have a pretty decent sized trunk for large items.
Even used cars are expensive
Make TOYOTA 🗾 Great Again 😎 Scotty Kilmer
Learn to do your own maintenance and you'll be fine
Not true. He's talking about someone who wants to buy a used car. Doing maintenance yourself only saves money if you already have a car.
@@Booz2020 You think Toyota will get their reputation back? Or do you think faking the crash test's didn't hurt their reputation?
Well the money got cheaper, people don’t consider that.
Someone crashed into my paid off vehicle, a hybrid that never required a single repair and was cheap to own and operate. I planned on keeping it forever but it was totaled. I was in for the shock of my life when I realized how expensive used cars are nowadays.
Duct tape is getting expensive. Gotta hold my 1999 Corolla with 220k together somehow!
😂😢😅😊
The dealership model of selling cars is a complete racket. We need cars to go direct from manufacturer to consumer. The manufactures can also run service centers. There is no need for middle men to jack the prices up without adding any value.
chinese companies have tried, it has to do with cost of manufacturing.
Be careful what you wish for. Mercedes and Honda have tried direct to consumer in Australia. What that has meant for consumers is no more negotiating on price. You either pay MSRP or you walk home. And have a guess what? MSRP hasn't fallen. There should be no surprises there. Honda and Mercedes are keeping the dealer's share to themself, they're not sharing it with customers. And have a guess what? Both Honda and Mercedes's sales have fallen like a stone as a consequence and Honda's have flat lined. And this has happened in a market that has seen record growth.
If you think getting ripped off by a multinational car manufacturer with millions of shareholders and a CEO on $30m is better than being ripped off by your local dealer is better, then go for it.
No matter what car you buy, it's a money pit.
I agree, I'm a mechanic and I'm baffled by some prices of car parts
No matter what MODERN car you buy is a money pit**
Bought a mazda mx3 for 500
Sold for 2k after 10 yesrs
7l of LPG per 100km =almost free drving
Insurance 100 per year
Cheap if you buy smart
@@faustinpippin9208 Did it have the little 1.8 V6?
Absolutely wrong. Nearly every car I have bought has been less than 1k. If you know how to work on them, you can keep it running and sell it for just as much if not more. Right now, I've had my 1990 Ford Ranger for 5 years that I paid $600 for and have put in about $1k in repairs and about 100k miles on it.
"Why car ownership is getting so expensive". The thumbnail is the majority of the answer. Most people used to drive ordinary economical sedans and hatchbacks. The picture is of what's now typical: a midsize SUV or larger, or a truck. These vehicles are luxuries; they are more expensive to buy, run, maintain, insure, and fix. Choosing one is choosing higher vehicle costs. All these people crying "I'm struggling to afford a basic midsize SUV I don't need" could go buy a fuel-sipping $22,000 well-equipped 2024 Corolla and live within their means, but instead of living within their means, they want to complain about a self-imposed problem of driving large, expensive vehicles.
A new 2024 Corolla is not $22,000. That's a lie. Corollas are in very low supply and high demand, which means most Corolla buyers pay well over MSRP. My friend recently paid 30k for a new 2024 Corolla LE
This so much this!
@@sachinnair91 your friend got absolutely screwed, sucks for them. My local dealer has three 2024 Corolla LE's for $22,700, offering a $750 dealer discount on all three. They exist. The point remains. There's even more available up to $25k. People complaining about $40k vehicles should try looking at $25-30k vehicles, but they seem to demand SUV everything.
@@thatoneotherotherguy I agree with your point. More people should abandon 40-50k vehicles and focus on vehicles under 30k
@@sachinnair91 I'm amazed how many buyers are willing to risk chosen bankruptcy instead of just shopping within their means. But they just are.
Everything is going way up except our wages..
Nah wages have gone up. Compared to 2010 when I started working, it’s doubled. Sounds like someone doesn’t fight for a raise.
@@Bonanzaking 50% increase since 2021 for me! I LOVE inflation!
@@stevegolacks8731 me too, but only because I spent the better part of 8 years investing into inflation hedges before covid, those bets paid off.
I think part of the problem is the bottom end of the income totem pole tends to notice the wage increase far more than white collar jobs. Say you earn 20$ at McDonald’s now here in Cali. A 2$ or 10% raise will be noticed more than say the corporate office worker that has a higher salary but only got a 2% raise.
So half of Americans around me owe on average $15,000 for their vehicle driving? This is insanity 😂
I owe 26k and I'm told my car is only worth 16k
I'm actually surprised it is that low. I would have guessed much higher.
@@JAlexanderCurtisit’s because many are leased. These are the people you see driving brand new cars every 3 years. My mom does this, only she buys the EXACT model and color as previous ones, so other than the license plate, everything’s the same because the manufacture hasn’t changed anything. She leases because back when she bought, she would get something obviously different every time, so back then, it did not make sense to buy. But the very first lease has been the exact same vehicle, that would’ve been paid off a decade ago. That said, she’s a woman in her 70s, so I think she just likes the idea of not having to worry about maintenance. After a decade, odds are good that something on her lease would have failed by now and be out of warranty.
There cellphones too 😂
@@OutdoorsmanMattI honestly wouldn’t consider cell phones. I got a brand new iphone 15 256GB on launch day (last September), but it wasn’t $900. It’s $35.32 for the next 24 months. It was purchased on an installment plan, so there is no interest. $35 a month to have the latest and greatest. Now then, you may be wondering about the actual service plan. Well, I’m on mint mobile, so it’s not crazy. Even if it were though, I would consider it a subscription service. I am subscribed monthly for their service. You wouldn’t consider Netflix to be part of that debt issue, would you? Sure, if you’ve got several subscriptions, then it could be a problem, but no one is looking at subscription services as a major debt issue, except for maybe consolidation companies.
With everyone talking about environmental sustainability, why are auto makers allowed to manufacture disposable cars ? Most manufacturers now are so profit driven, their cars only last till warranty. This is by far more eco harming and wasteful than any gasoline engine pollution. Regulations should be put in place to mandate a 10 year warranty minimum or fine auto makers for making junk disposable cars while also charging triple profits (Stellantis, Ford).
This is the great gaslighting of our time. It makes no sense.
Yeah they love trolling us lol.
Consumer electronics as a whole has this problem.
@@Andre_The_Millennial yes, it started decades ago predominantly with pre-built desktop PCs
Environmental sustainability is just a marketing ploy.
“Car prices being overpriced is unlikely to change”
Bullcrap. If Americans learn to be disciplined for a year or so and not run to the dealerships to buy the latest car then those prices would come back down as the cumulative effect is so great. This is just propaganda on behalf of dealerships and manufacturers disguised as objective reporting to claim car prices being unjustifiably high is here to remain.
EXACTLY
Yes but nobody is taught finances and they just focus on what they can barely afford monthly payment wise. So they max out loans. Cars are priced at more than what people can afford so they get loans. Wild.
So you literally just explained to yourself what's unlikely to happen 🤦♂️
Americans will never do that lol
@@leok7193you caught that to?😮
New cars prices are astronomical, combined with high interest rates, and lower longevity due to increased technology and turbochargers. This mix causes high payments and low resale value, leading to more customers under water on their loans.
I don't feel sorry for them neither. That's what they get for buying JUNK.
Tesla rules them all now
@@FlyWithTyy Tesla is the biggest piece of junk of them all $100,000 for a car that has worse build quality than a 1995 Ford Aspire that was built by Kia? 🤣
@@user-sk1eh3pg6jI’ve spent under $80 in maintenance on my model y in 20k miles (two tire rotations, third one next week). What was that about build quality?
@@qwerty112311 You never had to buy washer fluid? Never had to buy wiper blades? Never had to buy a cabin air con filter? $80 my ass. And for the record build quality and scheduled maintenance don't have any relation to each other whatsoever. Take a look at the uneven paint and huge panel gaps that aren't even lined up properly on your car then get back to me.
Something people overlook is how the government is the one making it more expensive.
Not enough cars to go around...?! Take another look at car lots. Plenty of cars, but no one is buying a car for 1/4 the price of their house with loans stretching out 7-10 years.
Cash for Clunkers killed the used car market and left nothing but electronic plastic.
Dealerships can eat the cars in their lots...
@jackbelk8527 yeah that was I safely stupid of obama
For real. I built my house with my own 2 hands and spent 200k doing it. I'll buy a car that cost 200k new but pay 40k cash for a low mile used one. The problem with america is people financing everything. If you use loans for your house and cars you will spend 10's of thousands of dollars every year that you could have put in your savings account to buy even nicer cars and other fancy things.
Right now, some of the Stallantis products have 3+ years of inventory.
Stop manufacturing cars with BS gadgets and give me simplicity. I don’t want my car to be a freaking computer!!
Government won’t allow that.
@@flyfishac11 Unfortunately you are the very minority. People want these gadgets and then government wants all the fancy emissions gear (which can be complex and pricey) and safety gear because people are too inept to drive correctly! So blame your fellow car purchasers!
We are missing the big picture. It's not just cars. Everything is getting more expensive (cars, houses, education, healthcare, childcare....). The problem is wages haven't been keeping up for decades and now we are at a breaking point. In the past, people were able to mitigate a lot of these rising prices. Women entering the workforce in the 70's and 80's added another income. Globalization starting in the 90's tamed consumer prices. And delayed onset of adulthood with young adults living in mom's basement and not having kids helped people get by. But what now??? We are now in a situation where it takes two working adults just to pay rent and buy two cars even without kids.
Don't buy new cars! Only by a car if you must, buy the "newest" used car you can AFFORD not that you want. Drive it, take care of it for as long as you can and only replace it when forced to.
Conventionally, I personally would only buy a car new if, and only if, I intended on keeping it until the wheels fall off (10+ years easy). However, at the moment many "used" car prices are so close to new there is no purpose in buying used at all.
It's funny you and others say this yet it's blatantly false, because even if a new and used car are the same price as you say, the new car loses 3-4k in value when you drive it off the lot, and 15% per year after that. Oh, and you can't buy a new car for $5k like you can a used car.
@@nathangallagher5112 Sorry to say, you are wrong - At least In the car market I was in there is no way to get the specific car that I wanted for a decent deal used barring one that was beaten to within an inch of its life.
Though my car market was a tad more specific then your average commuter vehicle. Picked up a Toyota Gr 86 for MSRP in 2023. There are *used models today* selling for 15k miles that are selling for within 2k of *brand new prices*. It was quite astonishing to me, but it is a high-demand car.
So if you are looking for a *specific* vehicle I can assure you what I am saying is correct with a degree of certainty because I myself went through it when seeking to purchase. If you are looking at "general commuter cars from Point A to B" that *could* be correct - provided you don't want anything other then that specific thing.
@@nathangallagher5112 I wrote you a detailed response, RUclips decided to censor it.
Long story short - I know for a fact its true within specific car markets. I am an enthusiast and bought a GR 86 in 2023 - used models were almost to the penny the same cost as a new model. The same is said of many other specific models of car that aren't just "Commute a-to-b" vehicles.
The dealership laws that require the purchase of a vehicle through a dealer are a large contributor to the cost of a new vehicle. Some manufactures would choose to sell direct to consumer, but aren't legally able in most states. SCAM
Awesome video, Gracias,! I think the market is over-heated. And I am concerned that people are focusing less on fundamentals and just chanting the mantra of dollar cost averaging and driving the market higher without considering fundamentals. It is a catch-22 for me. I mean I like crypto prices going higher but I also hate buying over-priced market and ETFs. Personally, I have stopped buying growth ETFs- they are ridiculously over-valued. Dividend crypto and ETFs are a little better but they are still over-valued. There is some hope with small and mid caps. I am not sure they are undervalued but at least they are less over-valued..This pattern offers a valuable insight for strategic planning. Despite these trends, i have delve deeply into active trading and managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Haley Eleanor , whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
YES!!! That's exactly her name (Haley Eleanor) so many people have recommended highly about her and am just starting with her from South Savo 🇫🇮
She is my family' personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.
How can I get in touch with Haley Eleanor? What are her offerings?
Oh yeah sure, she's active on What's ApK
🇺🇸+191
Buy a car that’s 5 year old at least with cash otherwise it’s of no use to get a used car with high interest
what
By historical standards interest rates are still low. They’re only high compared to the last 15 years.
With even a money market rate earning 5%, unless the interest rate is more than about 8.5% on the auto loan it's a poor decision to pay cash.
Good thing we built our whole society around requiring a car to get anywhere.
When that happened you got what you paid for. Now when buy a new car, you get a piece of junk that costs just as much as your parent's house.
The US is such a messed up country. Here in Europe, we have reliable public transport so it's possible to get around relatively easy without a car.
@@KeithApp you also don't have as much space inbetween point a and point b like we do. We have public transit in the areas that need it, most of us require a private vehicle.
@@KeithApp the US can definitely improve but to be fair... Europe is a bunch tiny countries grouped up together. The United States is a super massive country.
Since 1996 I have owned 3 Subaru’s, 2 95 sedans and a 96 wagon. I put over 900k miles on those 3 cars, other than 1 engine and 1 transmission it was all routine maintenance. Very reliable and inexpensive to maintain, 24 to 26 avg mpg on regular. All 3 are AWD, never failed to get me where I was going. I always used quality fluids, tires, and OEM parts. Those 3 cars helped me retire and I still have all of them. I owned a lot of nice vehicle when I was young and had planned on purchasing a nice vehicle after I retired 2 years ago. But the more I look at the pricing, taxes, insurance, cost of ownership and the level of service that some dealerships offer, the better those old Subaru’s look.
If you can't pay cash, you can't afford it!
I've always said this, I've never had a car payment and never will.
BYD EV car MSRP is $9000 without tariff
Elon Musk didn't like that info.
Still drive a Lexus LS 430. 160k on the OD.
I also own a 2005 Ls430 Ultra Luxury Black on Black .
Purchased from original owner 10 years ago .
Just reached 100k
One of the best cars ever made .
As someone who went car-free 7 years ago, it's wild how anyone wants to go through this just to live their life. I'm a part of my city's car sharing, Communauto, for the couple handfuls of times a year that a car is the right tool for the job. Public transit, cycling, and walking are all my default mobility methods now. Maybe you too can break free from the chains of car ownership, and reap the several thousands of dollars extra a year that you're not dumping into a machine!
A car is a liability however, a necessity for most. That’s the paradox.
Here are my thoughts about car buying.
1) Choose a good used car. You do not need some fancy vehicle with all the bells and whistles. Just need a car that is safe, easy to drive, comfortable to drive, reliable, and within budget. We have people today wanting their cars decked out with all of the fancy electronics and gadgets due to all of the marketing. This drives up the cost of a car. All of this extra stuff is expensive. We have people wanting to "keep up appearances". They gotta have the newest fancy car like they have their fancy new iPhone.
2) People are enticed to buy a car with a heck of a lot more features then what they really need because of the "easy money" traps that are heavily marketed to them. All of these financial products are expensive...more so the consumer. The car companies, and the financial companies, are playing you. The "cheap and easy" money they are promising to you in the form of a loan and financing costs more then actually paying for the car in cash. They are doing this because they can make more money off those financial products then selling you the actual car. Go to the dealer or seller with a budgetary number in mind. Carry the cash. If they don't want to play ball with a cash offer, walk out. Go find somewhere else to buy. Remember, if they do not sell that car, they are having to cover the carrying costs on the inventory as a dealer (or seller has to make their payments until they can unload it on someone else). I have played hardball like this, and I have gotten them to see things my way. You only need to purchase what YOU need, not what anyone else says YOU need. Don't be influenced by others.
3) Remember that the minute you drive that new car off the dealer's lot it rapidly depreciates in value. Look at Quality, Cost, and Delivery...and the cost of total ownership for the vehicle on an annual basis. If it is not something you can afford, then you do not buy that car. I understand there is a feeling of FOMO and related. Just gotta take someone with a cool head with you who can help you reason it out. Sometimes that extra effort of weighing the pros and cons for everything will lead to a better conclusion then just going on your feelings and FOMO.
4) Remember, when negotiating a price, you can always walkaway from a potential deal. Just be ready to lose the deal. Go into any negotiation as though you are ready to potentially lose. Play hardball, and perhaps you get a better offer.
5) Buy only the amount you need. Don't buy anything more because of a perceived "better deal". There is no FOMO here. Your bank account will thank you for this. Only buy what YOU need.
6) Do your research and determine what product/car best suits you. Look at the facts. Look at the figures. Do some math. Arrive armed and ready to negotiate. Understand your Needs, and your Wants. What can you live without? What can you compromise on?
7) Shop around. Do you need that Tesla? Why not a Toyota? Why not a Nissan? All are good. What are your needs vs what are you wants? What can you live with?
8) Set a goal for savings and/or big purchase. Only purchase something when you actually have the money. If you don't have the money, then don't purchase. Don't consume. Avoid falling into that debt trap. Remember the banks and car dealers may sound friendly, but they are NOT your friends. They want to make more money from you then what you intend to spend on it. Grow the backbone, and tell them 'No Thanks'.
Stop buying cars that are 20% car and 80% gimmick. Noone needs keyless entry and start, electrically heated steering wheels or self-opening trunks. That stuff might look good at the dealer but horrible at the repair shop.
I just want better public transportation
This is why used Toyotas are holding their value relatively well.
Insurance is insanity, Camry 2016 with 136k with the most basic insurance, no collision, I pay $100/mo. $1200/yr with expection of rates going up
A prius C 2015 with 118k, same, minimal insurance no collision, $120/mo.
We use to pay those prices for cars a few years ago 😢
Mine has gone up twice over the last 2 years, up to 180/month with no claims, no tickets, nothing. So awesome
I bought a car in 2022 and was paying $650 a month, including an extended warranty for peace of mind. In 2023, the car broke down, and the warranty provider claimed it had sludge in the motor, refusing to cover the repairs despite my proof of regular maintenance. As a result, I had to return the car to the lender because I wasn’t going to continue paying $650 a month for an inoperable vehicle.
What was “regular maintenance” and what car was it?
@@blueoval250 Regular maintenance, meaning the recommended maintenance that is required per the mileage and also regular oil changes. It was a Nissan Pathfinder.
@@mchl1985 unfortunately what is recommended can be nonsense. 10k mile oil changes are going to create problems even with high quality oil. Depending on the vehicle and what kind of driving you do 3k-6k mile oil changes with quality oil.
70k miles of use so far out of my $1000 car. I do all my own maintenance and repairs. Everything works perfect. Just did a 3200 mile trip. Don’t need full coverage either.
That's a dream right I might just learn how to work on my own cars to avoid the large repair fees
@@cyyber1 People just want to keep up with the Jones!
That is greaf! If I had a garage I would do my own maintenance.
@@Kyumilli you do not need a garage to do your own maintenance. I did a lot of mine when I was young right in the parking lot of the apartment complex!
@@AgonxOC i park in underground parkade but my strata doesn't allow car work unfortunately 😢
1- never buy new car
2-buy what can you afford
3- learn how to fix simple things
Best car is what you have now
1- never buy car*********
Always buy a new car , just keep it for 20 plus years. Used cars are just money pits.
3 years ago bought the wife a new car. The price for a 5yo vehicle with 50K miles was the same as a new car. Why buy used when you can buy new at the same price ? Makes no sense to me. A 5yo vehicle with 50K should be priced half of new at the most.
Last month bought a new truck. Same problem, price for a 5yo vehicle with 50K miles was the same as a new. So I bought new.
I do not understand how this can be. Something major problem with the car industry.
Older vehicles don't have the trouble or expense of new. My '99 diesel with a quarter million miles is worth the same as what I paid for it in 2003 with 50K miles. Less plastic, more life.
I buy used cars with 100k+ miles for 6k or less. Never been left stranded. Never even had a major repair. Buying new is flushing money down the toilet.
Um, stop buying new cars then? Buy what will work for your needs? This will lower the cost of new cars eventually… if everyone begins doing this. Supply and demand..
Because manufacturers are keeping prices high for record profits.
Also to fund the EV movement someone has to pay for it
@@FATmenDRIVEtrucks china is funding it for their country, why in the world cant the government do the same ?
It takes two to tango. The prices are high because people pay them. Just because you don’t see value in a new car doesn’t mean nobody does.
Make TOYOTA Tacoma Great Again 😎 Scotty Kilmer
'80s and '90s Hondas and Toyotas last forever. They are the reliability champs. Invest the money in restoring them. They are well worth it.
So the problem is predatory lending and not financially irresponsible Americans ? Record debt levels but it is always someone else's fault !!! STOP IT !!!
Blame car insurance companies for this bs. Ridiculous
Yes but not all the blame falls on them, manufacturers are increasingly adding complex computing features into cars which drives up materials and building costs. Not to mention things like costs of replacement parts going up across the market because it benefits the manufacturer.
Some of those changes are governement mandated which drived up the cost of all vehicles in the market as well@@codegeassfan4life28
Exactly. Insurance companies should cap what they will cover to the first $20K. After that, it's out of pocket. Car manufacturers will then be forced to make sub-$20K cars if they want to sell anything. Problem solved.
Huh? insurance I would only blame maybe 10%, dealerships 30% and manufacturers 60%. The more a car cost, the more it is going to cost to insure it. That is just simple math. When prices of stuff go up, it is going to cost more to repair/replace. It sucks but insurance is the last people I am going to 100% blame even though they should be blamed also for cashing in on people making stupid 80k car purchases.
Government regulations.
I’ve been driving junk cars forever. It’s more fun that way and a lot cheaper.
I'm glad I bought my Tacoma new in 2014. Got only 140k km on it, all maintenance kept up on, no accidents except a minor bumper collision in a parking lot at 5km/hr. 10 years later Toyota has been trying to buy it back from me for 55% of what i paid for it. Told them it Works like a dream and they couldn't afford the price Id be willing to part with it and will probably drive it till i die cause it'll probably outlive me.
2012 Tacoma here. 98k so far. Love Toyota’s for that reason. And they keep there value better than most.
Same here, brother. I have over 200k miles on my 2014 Taco. Best vehicle I've ever owned. I plan on putting a half million miles on my baby!
Out of curiosity, why would a car company want to buy back an old car from a user?
@shmookins to make money and sell you a new one. I was getting the same offer with my truck. I'll never get rid of my taco unless it get totaled
One critique of looking solely at average monthly payment - this does not account for term lengths. I would assume that in addition to monthly payments going up, average term lengths is also going up. This exacerbates unaffordabililty since longer terms are typically associated with higher interest rates.
Car ownership does not have to be expensive. I bought a pre-owned, manual Corolla nine years ago. It had >100K miles on the clock when I bought it, and I've almost tripled that total. The car still runs like new and looks great. Original cash price: $5,000.
Looking at prices for new cars, I can't believe anyone actually pays that much.
Toyota and Honda are great cars. They'll last forever as long as you take care of them.
Keywords: 9 years ago….
@@Sisa_LimpsonExactly 🤦🏻♂️.
I've never owned a car in my life. Don't feel like I'm missing out and I am saving tons of money by using public transport instead.
Can't miss what you never had. You've got the right idea.
Unfortunately safety is more cause of a concern now. As mental illness and crime is in the rise.
I've never lived where there was 'public transportation'. I'd have to drive 160 miles to the closest bus stop.
You Just Pay it in taxes and wasted time
😂@@jackbelk8527
Come on, as a patriot, I am happy to pay high price and tax to protect "our" automakers, so that these CEOs can be paid by millions.
Let me guess. Vehicle manufacturers put in technology nobody wants which drives the price up. The dealerships then add more onto the MSRP. The insurance company sees every vehicle on the road is more expensive and decide to increase everyone rates. Mechanics require more training to try and fix these new technology features and charge more for it.
Sell one of your unnecessary cars and buy an e-bike.
Still drive my mercedes 300D ive bought in 1984. Same engine too, no plans to purchase anything new.
I can repair everything myself and bodywork gets welded when needed. No electronics or emission garbage. Sure its not very good on diesel mileage but thats the last thing to worry abut. A car is a tool not a show off how rich you are.
Beautiful car.
Corporate greed and government regulations.
Simple as that
High prices and interest rates are supposed to dissuade you from spending. Prices stay high when those prices sell cars. So maybe stop spending above your means?
A Toyota Camry is now expensive to maintain 😢
My 2007 toyota solara works perfectly fine and my 2001 honda s2000 works perfectly fine i think I'll just stick with my cars that i already own and are paid off
America is still one of the cheapest countries where you can buy and run a car. It only really becomes expensive when you take out loans/finance beyond your means.
Isn't this already published?
Everything is expensive
Might as well make a video named "why staying alive is expensive"
In America you have three choices:
1. pay a bunch of money for a car
2. pay a bunch of money for rent because you lived in a place with decent public transit (very rare)
3. spend like three hours going to and from work (your bus decided not to show up today)
Can't forget the 1 hour bus frequencies too!
Or you could do none of those. You do not need to buy a new car and you certainly don’t need to finance one.
@@louiszhang3050 America has some of the cheapest car prices in the world!
One can buy a very inexpensive used car. Issue is people want to keep up with the jones! So yeah people need to live within their means!
@@AgonxOC Not everyone wants a 300k 1990-something with a questionable maintenance record. Questionable maintenance and the previous owner's negligence can cost you just as much as a new car.
50k miles in on our used Nissan and we almost had to drop $4500 on a new transmission if it wasn't for a warranty we had.
@@fartpluswetone8077 The problem is YOU bought the WRONG car. Nissan has been KNOWN for nearly two decades to have issues with their CVTs which they started using in the mid 00s.
You could buy a nicely used car built in the 00s with less than 100K for not too much money. You can also shop around and find great deals on used cars and they do not have to be 20 years old with 300K.
I have been around the automotive industry to know a few things!
Crazy yeah - and insurance being so high (varies per state) is insane
A car is a necessity of life unless you live in NYC
This is mostly true, but for me during hard times, I relied on my bike. Just be sure you get one small enough to fit on the public bus’ bike rack.
Learning alot from you. Thanks for explaining it very simple. Hope you will do better
I've never had a car loan. Still driving around my $4000 used Corolla.
My $16,800 Honda Fit has 235k miles and still runs like a charm 😅
Luxury cars = Money pits
My Lexus IS250 is 13 years old.. & all I done was tires & brakes .. so I’m not sure that all our money pitts
@@larkt6693 correction....I meant the BMWs, Audis, Benz, Maseratis, Land Rovers, Aston Martins, and Porsche. 😆
It also really helps that your government put 100 % import tax..😅
@@baihuiye what nonsense misinformation without evidence is this?
@@AgonxOC the information is literally there 😂. Recent news
@@baihuiye Go ahead and post a link!
@@AgonxOC The Biden administration is raising tariffs on Chinese EVs to 100% from the current 25%. At that level, the U.S. tariffs block virtually all Chinese EV imports.
Source: Abcnews
Get a car loan from a credit union. Don't ever finance directly with the car lot.
So We will have tariff to block cheap Chinese cars costing 20k and USA makers can sell expensive 50k cars. What a racket.
Simply, its because of government and its regulations. Toyota makes cheap/simple vehicles for foreign countries that are illegal to import into the US.
When the government got into the car business, it became anti-free market. What you HAVE to buy cost more than the car.
Cash for Clunkers should have caused impeachment!
Cash for clunkers barely lasted 2 months. It has very little effect on cars today
Government meddling is the root cause of all our woes and always has been.
@@EnufAlrdy909That's demonstrably false
@@caleboutlar8260 tell me why college tuition is through the roof since the government backed federal student loans then.
@@HH-le1vi Roughly 400k pre-computer cars were purposefully destroyed before being worn out. It should be criminal to use tax money to destroy a business.
It just sucks to think what could be. Without tariffs, easy car loans, gov bailouts and regulations, we could have new cars for $5K-$10K. We expect price drops and increased quality with other areas of technology, yet we just expect car prices to continue going up and we passively accept it.
Also...think about what it would be if people just lived within their means. The results would be MASSIVE!
Car enthusiast know the best cars have already been made. New cars just have touch screens everywhere and nice interior. The driving experience is boring af
US People: We need affordable cars!!!
Chinese Manufacturers: We are going to build affordable cars.
US Government: Lets put a 100% tariffs on Chinese cars. 😂😂😂
Make TOYOTA 🗾 Great Again 😎 Scotty Kilmer
US Libertarians and Ancaps: We don't have affordable cars thanks to the govt.
Also US Libertarians and Ancaps: Musk is right! Ban Chinese cars!!!
Chinese cars aren't known for quality. They have a lot of problems even the Chinese are complaining about them. "Cheap" isn't everything when your life is on the line.
BYD will go after that affordable market. Chinese EVs are going to put other automakers in the dirt at this rate.
Chinese cars will never be sold in the usa. Nobody wants tofu cars and trump is going to impose tariffs that will make it impossible to under cut american manufacturers.
Make TOYOTA 🗾 Great Again 😎 Scotty Kilmer
I remember back in 2011 I was looking to lease a new vehicle. Just a modest Ford. They quoted me $800/month. I laughed in their face and just bought a used Escalade for half the price. I didn't even finance it. I can't even imagine how expensive new cars are now. To this day I've never bought a new car. They've always been way too expensive. I just keep my 15 year old Cadillac running with no plans to replace it anytime soon. I just put $4,000 into it (all new suspension and transmission) but that's peanuts compared to the ridiculous payment I'd have if I bought a new car. I've been car payment free for 13 years now so I can afford to do major work on my car when it needs it.
Land Cruisers hold their value better than any other comparable SUV.
Why watching a 44 min RUclips video is so difficult?
I work from home. I only use my car for quick errands on weekends. My paid for 1994 Toyota Celica will last forever. I like to bike as well...
Oh, gas is my town is only $2.69/gallon right now as well.
You got lucky. That car will probably live longer than you. Those cars are extremely reliable and well built. And they have glass headlamps that don't turn yellow as an added plus lol.
Scotty is that you?
We need to stop giving incentives to passenger car manufacturers. And instead give incentives to build out the infrastructure for public transit, and public transit agencies to increase routes and capacity, and public transit vehicle manufacturers to make efficient public transit vehicles and trolleys and trains. Many people don't know this, but there was a trolley that would run from Market St Philadelphia all the way up to Monroe County. It would run on electric where there were lines then it would switch to gas on the dirt roads. Car lobby killed it
Americans just need the biggest cars to compensate for something. They even take out loans 😂
If only someone would sell a electric car for $10K.
Exactly! We need and EV under $20K
china
And old cars don’t spy on you. . Stop buying new cars
It’s not spying if you’re told they’re watching.
I think 2000's GM OnStar can do that.
If people stop financing their cars and actually what they can actually afford with cash.. car prices will crash as manufacturers will have to make cheaper cars
Shh I’ve owned 15 cars 5 trucks in the 80s and 90s when cars cost 800 dollars on every street corner
Find a job close to your home. Walk, bike or commute by bus and save yourself thousands of dollars per year. That’s how i roll.
Hello. Good afternoon. My name is Brian López. Thanks for the video. My mom does not own a car. In fact, nobody in my family owns a car. Well, as for my aunt, she owns a car, and it's a Toyota Camry from the 1990's.
If I cannot fix the car myself then I do not buy it. Every man should have these skills. Build your own home. Fix your own car. Use a chainsaw safely. Use tools and operate heavy equipment. How to catch a fish, keep a garden.
Well let's be fair. If the modern day average "Joe Jr" built his own home and repaired his own vehicle, it would pose a public safety risk. Joe Jr isn't as bright as Joe Sr. 😂
Lol
@@Dan16673 Found Danny-Boy the male feminist who has none of these skills.
Everything is getting expensive, jobs don't pay lol
Americans also need to change their car types. The same sedans (Honda Accord, Toytoa Camry) are actually more affordable than in 2000 (their prices only went up 60% since then while wages have increased 80% during the same period). The problem is most people today buy far more expensive SUVs than sedans because of taste, when most of them don't need off road capabilities. This is another prime example of how bad American spending habita is getting worse over time.
Debt slaves. ❤
Chinese EV tariffs are the stupidest things Americans have done
China bot. Americans disagree with you, we want cars that work and are safe so that disqualifies all chinese manufacturers.
more exactly, The US government, to protect its industry (excl Tesla). According to polls there are plenty of American citizens willing to buy a Chinese car. Anyhow, BYD is already building a factory in Mexico so they will come soon. Same for Europe. In fact both in Europe and USA the car industry is not asking for those tarrifs, it is more the unions I believe that ask them.
@@chuckd9007 hahaha myths and misinformation that Chinese cars are unsafe. Look at crash test scores.. Ford and Toyota ranks at bottom while NIO and Xpeng on top with Tesla and Volvo
So based on your reporting it would seem that Elon Musk's vision of nobody owning a vehicle and instead requesting a Robotaxi for use would eliminate finance costs, insurance costs, registration costs, maintenance costs, depreciation, theft loss and fuel/electricity costs!
people are willing to pay 100k for a larger android tablet as a dashboard lol lets be honest