Why Cheap Cars Are Disappearing
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- Опубликовано: 15 дек 2020
- There are about 40 different car brands in the United States, but one kind of car that appears to be disappearing is the cheap car. Historically, about 20 percent of vehicle sales would have transacted below $20,000; however, they have completely dried up in the last few years. New cars are becoming more expensive, and it is unlikely those cheap cars will ever be back.
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Why Cheap Cars Are Disappearing 
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They still make cheap cars, except you overpay for them.
This right here. Hyundai, Jeep, and Dodge are great examples.
@@snakejunt you can take Hyundai and dodge out they have premium quality’s and more car for the money idiots
Very true
Exactly this.
That’s a good one
Let me save you 11 minutes of your life, short answer: Automakers make less money on cheaper cars.
Thanks 👍
Thanks
You are the true shepherd
Thanks, i was looking for the answer in the comment. I knew someone would comment it :-)
Wow. Who wouldve thought selling things for less means making less money.
I think what this meant to say was, “consumers feel comfortable spending more on SUVs because the government and banking industry is flooding the sector with low interest loans.” When the auto bubble bursts and consumers have to pay cash again, they’ll be demanding cheap cars again.
What’s a reasonable timeframe for this burst?
@@1017KitchenBoy soon
@@therealfragmental If the 2021 stop of the auto industry couldn't topple the market, then when do you think, the car market bubble will burst? Everyone is buying oversized gas guzzlers, for loans, but mass loan defaulting and mass bankrupcy is not a very often occuring thing. Plus, a car development usually takes at least 5 years to complete fully. Something is very off on all markets if most markets are just going upmarket without falling sales.
It's already happened.
@@therealfragmentalcredit is a new normal and will never go away.
“Automakers have to pay workers and executives”
What I think you meant was, automakers have to pay executives first, then workers get what’s leftover.
Thus, we lose the middle class, and the "American Dream." (Greed and "globalism.")
what they want to leave over for the "lowly" workers. yay capitalism (im being sarcastic). thats another why i prefer used cars. at least my money is not directly going to some corporate dipsh*t.
I agree with you 💯 👍 the executives get the big payout first
The percentage of profits going to workers is vast. Executives get a lot individually but little in the big picture. If you paid the C suite zero it would have no impact on worker pay. You’re repeating a tired cliche.
Facts and logic like that simply do not enter the brains of these socialist idiots. Simple math might as well be rocket science to them, as they can’t even comprehend simple equations.. like for example, if a CEO makes $100,000,000 a year, but oversees a company with 500,000 employees, paying the CEO zero and dividing that $100 million equally among employees means they each get a $200 raise per YEAR. That is nothing. But try getting a socialist idiot to understand ANYTHING.
I started selling cars in 2002 and remember people balking at the mere thought of a 60 month loan term... here I am 18 years later and have people asking if we have any options longer than 84. I see people every day buying vehicles that suit their needs 5% of the time. For example, someone looking for a full sized 4wd SUV that doesn't have but 3 people in their household and doesn't need bad weather/off road capability. When I ask them why they're wanting a large, 4x4 SUV.. "well, we take my mother in law on vacation with us once a year and need the extra space." So for the majority of their driving time they are paying for WAY more vehicle than they truly need. More power to them, it's their money, not mine.
To be honest, I have a break instead of a sedan because I like that extra space in the back. If I want, or if I need to, I can even fold the back seats and place a mattress there, to sleep in the car. And I will buy a folding mattress soon-ish™, because sleeping there is a lot more comfortable than sleeping in/on the seats normally. I mean, I'd rather sleep there than drive more to get home or find a place to sleep, if I need to. And not only that, but if hotels are closed due to the rona-plague, I could always go on vacation and sleep in the back of the car, which also makes the trip cheaper. Wet towels for wiping myself, soap and a bottle with a cap with a tap, and I can wash myself, a cutting board, a folding table, and a portable stove or folding grill, and I can cook. A fairly-powerful fridge unit is fairly cheap, and I can always buy frozen foods to help keep it cool if it's hot outside. #carlife #vanlife #bikelife #tentlife #trucklife #tinyhouse #trailerlife and so on.
I live near-ish a town with a long history of VERY high oil company wages. The standard vehicle is a late model, extended cab, one ton, 4WD dually, diesel with all the bells and whistles and a probably several thousand dollar topper that never gets taken off. Friend of mine who works for the oil company and drives a beater said most of his co-worker's pickup trucks cost well over 100K. I used to work for homeowners in this town and have asked a lot of the people with these trucks what they use them for. Most of them live in tight little subdivisions and you can walk from one side of town to the other in under half an hour,(some non-oil workers don't even own cars, just bicycles) the oil company where most work is about a 10 mile drive but, even though they all live minutes from each other and work at the same place and many have the same work schedule, almost no one carpools. So here's the main answer/justification I get: "well, I need the truck to put my boat in the water when I go out fishing." (There's a harbor with a boat ramp on one side of town, about a mile, max, from the subdivisions where most of these people live) "How often do you take your boat out?" "Oh, 5-6 times a year." (Uh, I kind of know you and you'd probably LIKE to take your boat out 5-6 times a year, you actually only usually only take it out 2-4 times a year and some years that number is zero) "Well, I need the truck to make grocery runs to COSTCO and get stuff in town." True, the nearest big city is 300 miles away across the mountains and the roads can be pretty treacherous in the winter if you get in front of the plows during/after a storm but that's only a thing for a couple big storms a year. The rest of the time, lots of people make the trip in minivans and compacts with no problem. And besides, there's almost nothing worse to drive on icy roads than an unloaded dually pickup. So anyways, I'm 100% with you, buy the smallest vehicle that will efficiently do what you need done. I hear guys bragging about pulling a trailer up one of the long, steep passes at 65MPH and "the truck didn't even know the trailer was back there." If you're not dropping a gear or two pulling your biggest load up the biggest hill, you have way too much truck. Some of these guys drive 100 miles one way to cut small quantities of firewood for their suburban houses and use that to justify their stupid trucks. I mention that driving that expensive truck with that fuel mileage for basic transportation for just themselves all year long just so they can haul a few loads (that a minivan with a tow package would do a better job of) of groceries or firewood makes for some REALLY expensive groceries and firewood and they start stammering and "well, I need the truck, I really do" and I drop it. I got my message across. As for launching the boat, there's a guy with a bigger size truck in that town who has a boat launching and hauling business. And If they don't want to pay for that, get an old beater 1 ton truck and use that for boat launches. It's a mile or less on flat ground or go in with some buddies and share a boat launch truck.
If you can get a low enough rate It would be prudent to stretch out loan and invest the difference... of course I doubt most people can
@@mattobermiller5041 t i missed your point--tell us what you really think....
F350 / Toyota Tercel Daily 👍
The gap between a Kia and a BMW has shrunk. That is, BMWs are starting to look cheap, and Kias are starting to look expensive.
I love my Kia 🥰 got it for 10k
@@luciskies i love my bmw got it for 70k
Cause KIA literally bought off BMW designers couple of years ago LOL
@@radoni0 BMW and Audi designers now design the KIAS. They look so clean now.
@@radoni0 Does that mean anything though? It's not like their cars shouldn't be talked about as looking great just because some designer designed them.
Presentation fell apart 30 seconds in when they didn’t adjust the sale of cars under $20,000 for inflation
I was thinking the same thing, a 2013 car at $18k is now over $20k factoring inflation.
I instantly thought, “does the auto industry really set some arbitrary number that looks clean on paper and never change it? Explains a lot.”
That's a huge factor. I had to stop right there.
The increase of pricing year over year helps influence inflation.
Video paid for by the auto industry to justify their price gouging greed. A $20,000 car from 2013 probably costs close to $40,000 now. What a bunch of A Holes the auto makers are.
Young people should always buy used cars and learn to maintain them without the anxiety of the car’s value plummeting after you drive it off a dealership!
Nah dude, young people are doing it right today. What you do, is put yourself down on an 84 month plan for a $50k+ pickup truck (because you need it for groceries) while you’re only making $40k, get the latest $2k smart phone, eat at Starbucks everyday, and then…..
Tell Bernie Sanders that it’s the governments fault that you’re in debt and can’t afford to buy a house.
@@MrShitthead 🗿
@@MrShitthead can’t agree more. People needs to learn to live within their means and start saving money for the rainy days. A Toyota Corolla can easily goes 200K miles properly maintain. That should last them 10-15 years. Instead they go out and buy the $50K BMWs and get in a 84 months payment term.
Or even better, not buy car at all if it isn't needed. Obviously, this only works when in area with good public transit.
I did that and it was a disaster. You end up paying in repairs…. Buy new as possible of your going to buy used
Yes. The expectation is to have that technology. That tech honestly isn't that expensive to make any more. Let's stop pretending like putting in a USB port is SO fancy now. It's basic.
I think the idea was that a touch screen and Bluetooth chip are supposed to be premium even though you can get both for really cheap
@@KRYMauL It's software and not hardware that is expensive...
@@aymanhawari2589 Most software is based off of the open source Linux system which is free.
They stuck an iPad to the dash...so modern!!!
Definitely not worth the 10s of thousands of dollars they try to make us believe....
why buy a cheap new car, when you can buy a depreciated 6 year old car that has everything you need for half the price...
It smells and it has stains.
@@wooferjr169 then spend 2 hours cleaning it.
@@dustojnikhummer also called new car for 10k or less
@@SpaceStrike is not having to clean your car worth 2-8k to you?
@@dustojnikhummer but why can’t car makers make new cars for under 10k?
It was really about overengineering. Cars that was cheaply made could become expensive when added with so much complicated electronics. I really like the idea of Citroen 2CV, soft suspension, spacious, reasonable weight, very fuel efficient and most of all, no unneccessary electronics on it which make it cheaper, just a car you need to travel. Sadly, looks and convenience are always the king in the eyes of majority consumers.
I agree but I dunno if you'd want to share the road with Chevy Tahoes as a Citroen 2CV driver.
When someone spends thousands they do usually want more than just utility out of a long term asset they’ll be spend a lot of time with.
I remember back in 70's & 80's there were a lot of Honda Civics, Toyota Tercels, VW Rabbits, Mazda 323's on the roads and were great, small econo boxes !
It’s a shame that they don’t make cool econoboxes anymore, most of the newer economy cars looks and drives very boring
Rabbit was my 1st car. Was excellent
And I bet they were all deathtraps on the road. It is better to get a newish car that will have safety features like seatbelts, crumple zones, and side airbags, than not getting those features. Chances are nearly every driver will be in an accident. The medical bills accrued from that accident will cost more than buying a newer car from the past ten years. Especially if you are a part of the 28 million Americans who have no insurance according to the 2020 Census
@@colechapman6976 yep Millennials are scared of their own shadow.
@@LassieFarm Real genius take there. All of a sudden not wanting to die in a car accident in a 30-year-old econobox with zero safety tech is seen as being too scared
I didn't think 20 grand for a car was cheap. My bad.
Car industry mind conditioning-Cars below 20k are cheap. So one's cheap if he buys that, so indirectly forcing him to buy more expensive ones.
You do get a lot more for your money than you used too.
20k today for a new car gets everything you NEED in a car.
20 years ago, the equivalent was 13k, for that you got a car that still needed air con, power windows, abs, airbags etc as options if those things were available at all.
For a brand new car with warranty and zero miles, 20k is very reasonable
@@stinger15au That's assuming wages have kept up with inflation - which it has not
@@Argedis right but car prices haven’t risen that much either
@@foxesamu You don't think so? In 2004 the Toyota Tacoma started at $12,460. Today it starts at $26,250. That's more than double. Does power windows and a backup camera justify the difference?
This title is misleading, it should be “Why Affordable Cars are Disappearing”.
I was thinking something similar. Aren't affordable cars cheap cars?
Why affordable new cars are disappearing? this video was a joke from the start.
It’s the same thing.
@@Andrew-zv4fm
Well no.
"Affordable" is very subjective.
People have different meanings and standards when it comes to affordability.
Some may think 20K is "affordable" while others think 40K or even 60K is "affordable".
As for the car industry, when they say "affordable", it would mean something that may be above 20K but not too expensive enough that ALMOST everyone can buy one.
While "cheap" cars mean those that practically *ANYONE* can buy.
@@dickmelsonlupot7697 yes and affordable means cars anyone can buy.
What I miss the most is common affordable 2 doors. Fun for a low price, it’s so sad. Props to the BRZ and 86 though
Miata is always the answer
@@drewlehman2456buy a last gen gt, ss, or other v8s
@@nickscope27 Those are not my types of car. Id rather have amazing handling / fun normal commutes than a high HP engine, high HP is kind of pointless where I live. Plus those cars are way more expensive than the Miata, no way in hell Id buy one of those given other cheaper options.
I love my 2013 Hyundai Sonata Hybrid car. $14,000 with 66,000 miles was really good to me. It's been nice to fill up the tank 2 times a month vs when my bf and I had a 1999 Ford expedition. With the 1999 Ford expedition we would spend $70 to fill up the tank and only last 4-5 day. We don't miss that at all!
Maybe the Ford Expedition wasn't suited for your needs. I know $70.00 USD is a lot compared to a Hybrid Sonata, but that sedan can't fit 7 people comfortably with their luggage, it might be only FWD and will require a very expensive battery cell replacement in 4 or 5 years which would cost pretty much the value of the car at that time.
It is my belief that in the end, including maintenance, the cost of owning a Ford Expedition would end up being equal or less while allowing more people and their luggage to travel more comfortably.
I think it's all about getting the right vehicle for your specific needs.
The Sonata Hybrid is a good car. Just buy what you need. I have never spend more than 25% of my annual salary on a car and I properly maintain my car so it last more than 10 years.
@@jml9550 Exactly! Thanks for taking good care of your car.
@@jml9550 same here. I always buy my cars in full and keep them for 5-6 years. I bought a car in college and I still have it. I properly maintain it and treat it well because I prepared a rainy day fund for it rather than stretching to get a fancier newer model. If more people were financially prudent about cars then they would have savings and we would not be 1.5 trillion dollars in auto loan debt
@@colechapman6976 smart moves. Same here, we always have the habit of saving money for car repair/new car fund. Also as a home owner, we also set aside money for repair/upkeeps. Bottom line is spend less than what we make and never compare ourselves to anyone.
Cheap cars are in abundance, they’re known as Used.
I've seen used cars that are more expensive than new cars despite having 90k-100k miles on them
@@aaroncabello8221 That's where Kelley Blue Book and Edmunds come in play. To keep consumers from paying more than they should.
@@wturner777 Rather to overpay?
Always let someone else pay for the first year's depreciation on your cars.
@@nghtwtchmn129 Exactly, so others don't have to.
I don't think that cheap cars sales have fallen. Instead, cheap cars have become more expensive. I bought my Ford Fiesta in 2012 for 11k and now the new Fiesta 2020 has a starting price of 23k. There you go.
Chevy Sparks at $17k, those type of cars should be $10k cars, you can even get some of those cars used for $10k and it be a 2015 model
Money is worth less due to inflation so price is higher but in inflation adjusted $$ almost same. More safety requirements make up the difference.
This video has bought into (or was paid for by) the auto industry's want to sell cars with a BIGGER PROFIT MARGIN.
Get real. This video is just propaganda backed by the auto industry elites, Once again. For example :
World wide, less expensive car sales are HOT !!!!! The auto big wigs are just trying to get USA people to provide a bigger profit margin. China is selling OODLES of cheap cars. Why? Because that's where their sales are, not in the higher priced auto market.
If a reliable car with hatchback space and 4 passenger seating was offered at $10,000.00 in the USA, it would sell OODLES of cars also, just like China.
my 16 fiesta was a about 15000
@@leslielucci3182 inflation meaning an excuse for price gouging and safety regulation as a political scapegoat. This has been going on well before inflation or magical new safety regulation.
It wasn't mentioned that higher emission and safety standards also mean higher costs. Therefore here in Europe car manufacturers phase out many engine options and sometimes the whole car. One prominent example was the new Suzuki Jimny. Everyone wanted one but sales stopped after just one year as upgrading the engine would have been too expensive for such an affordable vehicle.
Every time I watch there car videos where "most consumers" are mentioned wanting something, the less I feel like belonging to that group. I consider buying a new car a bit insane since you waste so much money due to the devaluation the car goes through during it early part of life. At the same time I'm glad someone DOES buy new cars because without them I might have to waste my money and pay for the "expensive kilometers".
Second thing I always wonder is why people take loans to finance a new car. It's like accepting the stress of horrible devaluation AND extra you have to pay for the interest.
When "most consumers" are mentioned, these usually refer to focus groups or some other kind of statistic generation.
Depending on the result desired by the company, the study will reach a conclusion and no peer review will be done. I have seen such studies where the teams started filtering with 50k+ replies and ended at
most people take loans to finance a new car because saving up 20-30 thousand dollars is not a realistic proposition.
How is everything getting more expensive but the wages are still the same? I dont like that!
so true
Because of lockdown. The economy runs on goods and services, and because of lockdown, people are spending their time doing unproductive things like entertainment, and many people are getting laid off. Simply put, people are getting less work done compared to what they consume. This will lead to an economic crash.
Romanashelburme
@@VS-mn4tv pavement
@@sammyismuff because this trend has only been for 1 year instead of the last 12+
I saved up $7,300 and bought a used 2004 Toyota Rav 4. It was wonderful being able to say I truly owned my car the day I drove it off the lot. That 17 year old car is my baby and has been so reliable aside from maintenance and things needing to be replaced over the years (broken and rusted exhaust line and muffler). I'll be so sad the day she taps out 😔
But yes, it's possible to buy a good reliable "cheap" car. Don't let vanity get the best of you.
the real question tho is are you single? 🤔
The problem is that even used cars are becoming more expensive those days.
Please be smart and do research on what you are going to buy. carscomplaint is a good one
@@gohanssj48 Yup. I bought a Tacoma afew years ago and I was offered the same money I pad for it new... that's why I bought it new instead of used. I needed a mid-size Truck 4x4 with manual transmission and wasn't willing to pay the same price for one with 30 to 40k miles on it when I can pick it up with zero miles no scratches,dents, seat stains or funny smells.
@@inutero10 She said the car is 17 years old. Not that she had it for 17 years smh
The thing is... Why buy a cheap new car, when you can buy a really nice/expensive car, USED for less?
Right I tell myself I can just pretend I’m living in the year of the car and I got it brand new 😂😂
You watch CNBC too??
Well a used luxury car is an endless money pit, that’s why they’re being sold for cheap to begin with. Reliable vehicles tend to keep value better.
3:01 what they meant is pay executives a lot, and give peanuts to the workers.
My thoughts exactly lmao. What it costs them to _overpay_ executives
At least there were explicit is separating out executives and workers. Let's be realistic, executives aren't doing much real work
Because people are getting loans to buy cars they can't afford in a vain attempt to look good.
Loans? So what happens if they die before finishing the payment?
Yep. 2008 housing bubble is going to be 2022's car loan bubble.
They view it as a monthly payment rather than the price tag.
@@liberals_destroy_everythin2497 I more meant that people will eventually be defaulting on their auto loans in masse. COVID and unemployment has ensured this is going to happen sooner than later. I expected it happen in about 4-5 years.
Here’s an example of depreciation. I have been driving a long term rental, a 2020 Maxima SL, for 4 months. New it was around $41k, probably outright around $36k. Looked at a used one just like it with 20k miles for $27,500, was told $26,500 would take it home. Unless you had good equity in your trade or had a sizable down payment you are buried in that car. Almost all new autos are like this, some of the SUV’s and pickups seem to hold their value better than the cars do.
New "cars last longer than they used to"? 90s Japanese cars would like a word with you.
Or any Toyota made in the early 2000s that were bulletproof.
@@eman0828 what about new toyotas
@@randomrazr They burn oil before 60k miles.
Also the vast majority of trucks produced within the past 25 years or so will be pretty reliable and hold value extremely well
I have a 2002 civic that I've driven to hell and back and literally beat the crap out of it. Still fires right up every time and never gives me problems. Ten years I've driven that car everyday. The Japanese make one damn good car.
Here in New Zealand and in Australia, Chinese car brands like Chery and Geely are actively competing with the used car market by selling, cheap, brand new cars for $12,000 or less.
I would have considered buying a Chery car but due to the fact Chinese cars are still fairly new to the Western market, there's not enough spare parts for them to go around just yet.
I would not trust a car made in china 😂
The quality of chinese Auto has greatly improved recently. Both.Chery and Geely are very reliable at this moment.
The price is so low it is not a big gamble.
Some young folks won’t drive a certain kind of car. It was the same way when I was young so that hasn’t changed. My first car was a rusty, blue, Nova with duct tape holding it together. I paid $300.00 cash for it. It was my freedom and I drove it everywhere. I got two jobs and eventually bought a better used car. My sister thought my car was “embarrassing” and she “wouldn’t be caught dead in that car.” Guess what?? She sit her ass at home and I had the time of my life driving around with my friends!!
Lies again? Expensive Car Ezlink Card
"We know, that's why we aren't buying them"-Millennials
Not worth it ,more electrical more problems.
Better for the environment to buy used cars anyway. The real key is old luxury cars at the bottom of their depreciation curve if you can work on them yourself.
@@Stephen-re4oy hehe, you can also call a dealership and just ask what banks are setting the prices of cars at, seriously... i got a 2 yr old car for about 14k usd and just 38k miles, because the bank had determined the car was only worth the blue book value
@@eplanti Sounds like something I need to try. Although, if it's the same bank that works with the dealership to finance you, they will still get you on fees and higher rates.
@@eplanti thanks for the tip! I will try this when I go car shopping.
It’s either buy used cars for 2-5 grand or buy 30k+ cars
You're absolutely right
Even many used cars are being sold for $10k-$15k. They call them "pre-owned" instead of "used" so they can charge an extra $5k.
I bought my car for $1000 on Facebook marketplace cash then put in $3000 in repairs. Now it gets me around
@@RubenTrucks same
For me the sweet spot is 5k for a car you plan on maintaining and driving for years, or a 1-2k car you need just to get to work and home for a while so you can save money.
This doesn’t cover how old cars without the technology are still climbing in price
Bought a used f150 last year with no power windows or anything more complex than a radio with a audio cable port. Love it. So hard to find a vehicle without all the extra electronic accessories
If you have a good reliable vehicle, then you are blessed. Drive it until the wheels fall off.😊👍
I agree! I have a 2008 F150 with 270,000 km on it and I wouldn't trade it for anything. I think a person can get attached to a good vehicle that treats them well.
Yup. I finally had to retire my 1996 Audi A4 Quattro last year after a short fried the power window wiring. I bought it new for $7K and drove it 13 years.
Until the engine blows up *. I'm not giving up on my 1998 Camry because of some faulty wheels.
💯🙌
My primary car since 1990 has been a 1985 Mitsubishi van - still going strong.
So the implication is, if student loans aren’t your problem, they’ll make car loans your problem.
Seriously, 72+ months? That means “you can’t afford it”
few years from now you will probably be paying for their car
@@CarMaintenanceGuy I went to college and graduated with no debt. I studied IT but pay in IT and computer software development is going down but yet to get a degree in this area the price is going up. I took my talents and currently opening a online business. I went to some of these entrepreneur seminars and learned a lot. The reason people do not take this path is because society has told them its too risky. Its designed that way so people can stay indentured to the big corporations for little pay. I think having just one steady income and nothing else is more risky as well taking out ton of loans that is guarantee for nothing. I rather take the entrepreneur route.
72 months? Try 96. 😂 can’t afford it ya say? Well it used to be you bought a car cash, and the only real purchase you financed was a house. Trust me eventually the government/ corporations will have their way, and 72+ month financing will become commonplace.
Try in malaysia. 10% deposit + 108 months
People still sign up for them. Long gone are the conveniences of having a car outweighting the cost. Now cars are a sign of status where people are willing to pay and pollute the planet for.
It breaks my heart that someday people wont be able to buy a pos 1,000 civic.
Some of my favorite cars were under 2k.
My parents would always buy really cheap but reliable, new cars like the Toyota Tercel and drive them until them until it died. These cars had no a/c, no power anything, and no radio. We're talking no power steering. My mother has weighed less than 80 lbs. her whole life except when pregnant. As we got older, she would sometimes have us help her move the steering wheel like when were parallel parking. It was worth the sacrifice though if it allowed them to retire certainly not rich but comfortable.
Every CNBC video : Instead of giving you a short answer, lets first take you back 10 million years to how the universe was created
Ha ha I was thinking the same thing Whats with the Henry Ford story BS get the the stupid point of this story.
@@allergyahead8128 I can answer that question for you dude. Henry Ford revolutionized the car market and changed the country by telling his investors "I'm not interested in building less cars for more money for fewer people. I'm interested in building MORE cars for LESS money for MORE people." See, until Ford, cars were very expensive and only for the wealthy. But with his assembly line production, 8 hour work shift and 24 hour production, cars became cheap and affordable for most people. How it relates to THIS story is that we are actually going backwards in this country now. Less and less people can afford a new car.
@@retroguy9494 Except Ford's competitors figured out after getting that first cheap car, consumers wanted to upgrade to the next shiny thing. GM practically invented planned obsolesence.
Because that's how history works. The vast majority of things are caused by decades, centuries or thousands of years of history. Stop complaining that you don't have the attention span to listen to a 10 minute video about cars.
@@olbradley No one is obliged to listen to a 10 minute video about anything. I click away from any video that takes 10 to 20 minutes to answer something that can be explained in 1 minute. In fact, with this particular video I went straight to the comments section for the baby without the 9 months.
Scotty Kilmer will still be driving his ‘94 Celica in 2041 😂
Facts. He’s already looking for a kit to make it electric 😂
Hey guys! Chrisfix here!
Scotty is awesome 🙌🚗😎
Literally dude. But I mean I do prefer the idea of rebuilding my engine for my 98 4runner than getting an overpriced car.
hmmm interesting keep the oil clean and you shouldn’t need to rebuild it
Thank you for this important Knowledge Share ! Thanks !
Hi. When a noun starts with a vowel sound, the pronunciation of the definite article is the same as every time you say it in this video. That is, it sounds like "thee." However, when the noun starts with a consonant sound, such as in "car" or "concrete," the definite article is pronounced "thuh." If it's confusing, you can use this trick: Just use the indefinite article for the noun, and then remember that if the indefinite article is "an," the definite article is pronounced "thee," but if it's "a," it's pronounced "thuh." It helped me when I started out learning English. Cheers, and thanks for the video 😊
And then they’re going to complain about how no one is buying their cars and why the industry is dying and blame it on us for not having enough money to buy the expensive cars
Yup absolutely correct
If only we'd stop buying so much avocado toast... ='(
But not enough people buy manual transmission/ manual lock/ window cars with basic paint,
you can’t have it both ways
@@Prototyp3m1nd it’s not just that but also getting a car payment when you could drive a clunker
Eating out when you have debt (aside from dollar menu and little caesars)
Generally speaking Americans in general make poor financial decisions
Everyone is buying Teslas.
“Lucking for consumers, cars last longer than they used to” biggest lie I’ve heard. My 20 year old Honda prelude is running better than a 2016 Chevy sonic I used to have. Cars nowadays are made with more plastic than Kim Kardashian ass.
LOL. At least they don't go rusty. After I fixed it in 1996 the front valance of a friends 1984 Honda had more plastic filler than metal. The same car got scrapped at about 15 years old due to rust, despite running perfectly and having only 60000 miles on the clock. As the mechanic said "there is no metal left to weld onto".
True, i owe many cars right now, and the more reliable ones are the old ones, my newer ones my 2008 f 150, my 2011 mustang and my wives 2011toyota corolla are not so reliable, the quality sucks, interior, paint, mechanics, my 1991 5.0 works like a champ with almost 30 years an 200k plus and my wives tercel, 98, with 175k plus miles works great, it even has the original sparkplug coils in it and runs like a champ.
Thats a lot of plastic
Well when you stuff so much tech crap into a car it's more complicated... More complicated breaks more often.
Cars are MUCH better and more reliable than ever before. When I was a kid, our 1949 Studebaker was blowing blue oil smoke at 60,000 miles. When's the last time you've seen a smoking car?
My 2000 Buick Regal GS still gets over 4,000 miles per quart, and most of that is a small leak. It has about 210,000 miles on it.
Young buyer here: it was frustrating buying a car with the limited options, I do not want an SUV, and I do not want any technology in my car besides an aux jack. I will keep fixing my car instead of buying the junk they make now. We're out here.
Why not consider the cheapest new sedan in America that can be had for sub $20k?
I got super lucky, i found someone's grandparents that sold me their 2011 Malibu for $3800 in 2023. It had 164k miles on it and runs great
Just buy a 3 years used car and save like 40%
I think that's a big part of why cars are getting more expensive. People who want to buy a cheap car get a used one.
@@TheTaquitoProject interesting, there should be a comparison for that. Used car sales vs cheap New cars sales correlation
But I dont wanna have car trouble in the middle of nowhere, stuck in a forest with a used car. New cars wont break.
@@fynkozari9271 Wrong. Friend of mine bought a brand new car. I bought a used 10 year old Toyota. Guess who's had more car problems? Not me.
I drive a 14 year old Toyota Camry SE. I don't spend no more than 7k grand on a car. I bought the Camry fe little as $4k. Toyota's and Hondas are the best used cars to buy and keep them for decades as long as you keep them well maintained. Scotty Kilmer still drives his 94 Celica.
I'm shocked they're pointing to electronic features as a cause. A nice stereo can be put in at best buy for under $500. That's not even putting a dent in the 10k+ price increases we're seeing.
I know sometimes car dealerships will add the cheapest options for way more than what it’s worth on their websites it’s absolutely ridiculous
Look at all the HUD madness
I agree. It's a BS explanation. Adding Bluetooth? Give me a break. I have some old Airpods that cost 200 dollars that had the best Bluetooth when sold. The 10k+ price hike is because of a low-res camera on the back and some Bluetooth? =|
Fair enough if people are going for something more fancy, like Apple's CarPlay - features like these probably add about 1k each, so would add up pretty fast.
@@elliott8175 the camera also has sensors to tell you how close you are to something so it’s a bit more advanced than you think
@@slapshotjack9806 Well, it depends on the set-up, but if you're like me then you just want a camera to cover the blind spot. There are "beepers", but they were around before the camera, and don't necessarily come with the package.
My first car was a little bit over $12,000. It was a 1998 Ford Contour. I got it slightly used in mid October of 1999. It was a very good first car. My 2nd was a little bit more in price since it was less than a year old. My 3rd car was a year old but, the brand was dropped from the line in 2012. I got that car since the miles were lowest than all of Ford Fusions and it was a 2011 Mercury Milan. My car right now is a 2015 Ford Escape SE. I’m happy the vehicle that I’m driving. I don’t have Apple Play but, I’m happy with BT in the Escape. Even the Milan had BT, too.
I've never paid more than 2k for any car
As a young person who bought my first car a few months ago, I hate the special features that most vehicles have today. They're a distraction, jack up prices, and overall, it was tough searching for a decently affordable car.
I know you wrote this comment a year ago but I agree. I'm studying for a driver's license and been applying to jobs within my BA degree but got nothing so I've been doing gigs instead. Once I've saved up enough, I just want to pay for a used, reliable car down in cash and just drive away as my first car purchase. I hate the idea of paying monthly with interest rates. Sure I might worry about car repairs, but I'll make sure to get a reliable car that has cheap repairs in case anything happens. The cheap new cars mentioned in the video is way out of my price range, and I bet with inflation in 2023 it's worse, along with gas prices.
How do you even have the money to buy a car? What do you do for a living?
this is why id keep my "cheap" car with over 180k miles rather than buy a newer one because the prices now are ridiculous
Just drive the cheap one till the wheels fall off, repair it when necessary.
@@Jiji-the-cat5425 I have an old golf. Last week I took the entire suspension apart and rebuild it, it drives as new and has 180k miles on it. If I want extra usb ports or leather heated seats I will just build it in. The car is 20years old and does look old, but idc it drives great and I got it for free. It only cost me 200dollar to fix it
Our market is being driven up by morons who are addicted to debt. No one with a functioning brain should be going 84 months on a car, or pay $2k on a phone they plan to only keep for 2 years….
But, thanks to the endless supply of mouth breathers who use credit cards and lax financing to spend 50% more than what they make, the market is happy to oblige and keep driving the prices up because they know there’ll always be these morons around to keep pumping money from.
And then these idiots are the same who cry about how they can’t afford houses and how the government should bail them out of their “unfair” debt.
Yea I’ll keep my 240k mile Toyota Camry till the wheels fall of. I can afford a new car but to cheap to pay $500+ been spending my money on precious metals.
@@iwan-wr7gn nothing matters as long as we feel great in it.. I own a FORD FIGO 2010 indian model
Cheap cars arent gone, they just went up in prices.
You had better be getting raises at work every year because the dollar has lost so much value. Not only cars have gone up in price, just about everything else besides electronics have gone up year over year. When you create money out of thin air and send everyone a Covid-19 check, prices of things are going to go through the roof!
@@Dan0TheMano dollar?? They are getting expensive in my country too
@@Dan0TheMano well yea :(
USD has lost value, covid pandemic made used car prices go up. Almost everything went up in price this year IE. tech.
So basically what you're saying they are gone 🤣
Yes, you gentlemen are spot on ,when it comes to more persons plumping for a Used SUV/MPV today than for new ones which carry a hefty tax amount included in its total sticker amount. And cars last a lot more than they used to.
As an european ive never understand the US car market.
Why they sell Ford Fiestas with electric powered and leathered seats ? That doesnt make the car cheap.
In Europe we have small cars like Volkswagen Up!, Seat Mii, Toyota Aygo and Renault Twingo for under 10K.
Yesterday, I saw an article titled “The Best Cheap EVs” first car’s MSRP was $46,000.
We are waiting to see if Musk comes through with his anticipated $25K EV that he promises with be available by the end of this year or for sure by 2022. If he is able to do it that will be a real game changer especially if it can get the range and battery life that he is also predicting.
Like any new technology they start high to subsidized R&D and technology costs, and slowly come down.
@@Jakey4000 Yes, I agree. I just thought it was funny my $27,000 Ioniq which is cheap by EV standards did not make the list. There are a few that are around 30k or less now.
@@stevencoffeen6684 Yah I can get by on a small range given my commute but many can not. I am really hoping it pulls through.
There are many tax breaks, incentives and discounts on those vehicle so you won’t pay $46,000
To everyone buy expensive new cars, thank you! Please take care of and I will see you in a few years.
Facts lmao. Love a well kept hand-me-down that is only gonna depreciate in value but not quality if it's well taken care of
paid 18K for 2016 for fusion, fully loaded with 45K miles
@@gregoryeverson741 You overpaid big time. 45k miles on a Fusion and it's almost ready for an engine swap.
3-5 years used cars are almost new but way cheaper
Biggo FACTS!! 🤣
People seem to forget that the car companies like Ford, Volkswagen and Fiat got started making cars for the masses. The Model T and A, The Beetle and many models by Fiat. Now the car compaiies have forgot about the middle and lower income transportation needs.
Too much unneeded tech are built into cars today also.
I got the versa 2020 for 20k and only had two owners, as a 23 year old I’m more then enough grateful and happy with my car🙏
I’ve always bought used, and usually paid cash for them. I suppose you could call me cheap, but I just couldn’t bear to part with the amount of money they want for new vehicles. A car has never been a status symbol for me but rather a utility. Guess I’m a dying breed.
I like to call you smart if you don't mind
Utility is what I look for in a work truck. Three years ago purchased a 10 year old Chevy Silverado with 19,000 miles on it. It was a US government vehicle used on a military reservation. Being a government vehicle all the required maintenance was done at the suggested intervals. I change oil and rotate tires and follow all other maintenance as shown in the car’s manual, I expect it to last another 10 years. BTW, I average around 23,000 per year, so in 1 year I drive more than the truck’s first 10 years in service.
Indeed....same here
Ditto, bought a 1 year old 2016 Fusion. It was a rental for 1 year, had 35k miles on it. Got it for half price ($16,750), fully loaded Titanium. 3.5 yrs later its paid off, has 63k miles and should be good for 140k more, debt free miles. Shame Ford has cancelled them.
No you're a smart guy who doesn't live beyond his means... on credit! 👍
My first and only new car was a 1997 Honda Civic that I bought at 20 years old. Now, my '97 Civic approaches 400,000 miles!
Can’t put a price on new safety features though.
My brother's 1986 Honda Accord, at last count, has more than 600,000 miles on it and is owned by my nephew and his wife. I bought a 1997 Lexus LS400 that was developed by Toyota at a cost of $1 billion. One just like it recorded over 1 million miles with no repairs to engine or transmission - aside from periodical things like plugs, filters and timing belts. I paid $1,700 for a two-owner with 183,000 miles on it and it runs better than any new cars, including Hondas, that I have owned in the 80s and 90s. It will be my last, and greatest, car. F.H. Royce said, "The best is cheapest in the end. The quality will remain, long after the price is forgotten."
@entItyVR lol show me crash test ratings from the 70’s I’ll wait. Today’s cars are much safer in that regard, and also with preventive measures like stoping cars much quicker than human reaction.
Nice job on the 400K miles. You deserve a mileage award from Honda!
@@danielt.3152 Thanks
Actually opposite in India . Maruti is Indian division of suzuki . They made cheap cars called alto and 800 in 2005 . They stop production of 800 in 2010 and alto , alto K10 in 2014 . Then they re released alto as alto 800 in 2015 and K10 in 2016 . Alto base model cost 1 lakh more than tata nano . And alto 800 is still the best selling car in the country .
Edit : Original maruti 800 was build during 1960 or 1970 I think .
that was really hard to find good used car for me...ended up paying a lot of money for 2015 acura mdx...
We can all keep driving our 95 camrys forever guys!👍
And then just pay for an engine and trans rebuild in a decade lolol
Pod
Would probably be cheaper than getting a car payment
@@user-xg8yy7yl1d true.
@@user-xg8yy7yl1d Actually pff probably cheaper to have a low mileage engine/trans throw in instead of a rebuild
I love my 2005 Toyoto Echo and it's a stick shift. I bought it cheap in 2017 and the mileage was only 90,000 miles. I am very lucky
Being an engineer, I look at the many, many systems in a new car and wonder how many of them will still be working in ten years time.
"... he said, glancing at the new Land Rover."
as an engineer (i'm a former tech) let's sit down and joke about self-driving vehicles, shall we?
You’d be surprised. If it’s a Lexus you can guarantee 95% of it will still work. A BMW or Mercedes on the other hand, maybe not.
If ford's 10 speed autos and GM's electronics have anything to say, they wont be working in ten years time lmao
Cheap metal and plastic (aluminum recycled beer can on wheels).
If you guys don't know , Tata motors launched Nano car in 2009 just for $2400 in India , it was a good car , but it failed in Indian market
Zaha at an anger management support group : “hi I’m Wilfred Zaha and I’ve got anger issues on the field”
I'm 38, and I haven't owned a brand new car yet. I find it that I get more value when I purchase a few years used with more options for less than half the price than getting a brand new one with the latest options.
Yeah and at the end of the day, the purpose of a car is to get you from point A to point B. They aren't assets that appreciate in value like stocks or real estate.
I purchased a 2019 Jeep Cherokee 4X4 Overland, came off lease saved over 10,000 dollars, had 9,000 miles, lot of technology on jeep,
First SUV I ever bought always drive a car, sold 2003 Chrysler 300m had 125,000 miles. Very reliable car, but more of performance vehicle not good in winter.
My Wife did not want SUV, but car good in winter weather But not large car, so I purchased 2016 Chrysler 200C AWD, I saved well over 20,000 dollars on that car only had 16,000 miles, came off lease 2 years ago, it was disconnected in 2017.
Very good in winter weather.
True.
Yep. I traded up to a top trim Taurus SHO last year, and at 3 years old it’s the newest car I have ever owned in 22 years of car buying. I can’t even remotely afford to buy a new car I’m the class that I want, and it’s becoming a pointless effort, and full sized 4 door cars are apparently a dead breed.
Next car might have to be a Mustang...
does it bother u if someone had sexin the back seat in said used car?
_”If you buy used, you can also have more than one car”_
~ Scotty Kilmer
Thats what I do. 2 used cars. Variety and already has scratches here and there for free.
I’m taking a wild guess that Scotty Kilmer is an American.
@@MaviAntwerp Probably, but it's not as stupid as it sounds. I own 4 cars, ranging in age from 14 to 23 years old. Total purchase cost - about $25K. Total miles on the clock? About 700k. That's my car, my wife's and one each for my youngest kids.
With the exception of the oldest car, I would happily do my annual 3,000 mile road trip in any of them (and have done). The older car did do a 1500 mile road trip this summer, and just had some trouble with a leak in the water reservoir ($50 part and 1 hour at the hotel to fix).
The thing is, unless you live IN a major city, a car of some sort is not a luxury here. Public transport is almost non-existent, and shops, services, doctors, and so on are spread out on the assumption everyone has a car. So having more than one is inevitable. It also means there's always a spare car in the drive if one fails to start.
@@MaviAntwerp yeah, Click bait, RUclipsr with a million subs.
START YOUR ENGINES!!!
Federal regulations make it almost impossible to sell a new car for under $20k. And that’s a good thing. There are plenty of cheap used cars in excellent shape.
Our fleet of extremely well maintained and in exceptional condition "fully loaded" used cars: '97 Jeep Grand Cherokee, '00 Toyota Camry, '01 Honda Accord, '10 Mazda 3. All cars are extremely easy and cheap for most DIY repairs and very reliable. No car payments since '99, and no desire for most of the over engineered hot garbage with too many computers for everything (that fail) being produced today.
Comment section is a better analysis than this video
It always is. CNBC has a habit of making a 10 minute video exploring the question, without attempting to analyze the reasons and come to a conclusion. The "why" is always left unanswered.
@@PristinePerceptions exactly
CNBC spends their budget on the b-roll footage and editing and skimps on the analysis.
How can they not discuss low interest rates and easy credit allowing people to spend more?
That's because the producers live on paper. And they really do think that everyone will believe them in spite of what their own eyes tell them on a day to day basis. This is what a college education does to some people. This also seems to be the problem with our "elected officials". They don't live in the real world with the rest of us either.
@@PristinePerceptions as well as ignoring a basic economic principle called inflation. If you’re going to define a cheep car as under a certain price logically over time there will be fewer cars in that price point
Inflation due to people who shouldn't have access to big loans buying more car than they can afford. Same thing happened with houses.
exactly why i bought a elantra. Already paid off. 15 bucks gets me 300 miles and I put my own system in it.
CNBC comments are always filled with classist conservatives banging the personal responsibility drum.
"When are these proles going to learn to buy something they can't afford?"
@@Sevisstillalive I hate my my Elantra but hey it only took 9 months to pay it off. At least I can add my touched to it. $15 for 300 miles. I guess that is the difference of $3/gal.
@T_ C he used the wrong words he is talking about loan
interest rates being too low , specially because FED and other central bank of issue
Was going to say same thing. Right on. Like you said, same with housing.
In 1967, I bought a brand-new Dodge Dart with the 225 slant-six for about $1,800. In 1972, I bought a brand-new Plymouth Satellite with the 318 V-8 for about $3,500. Neither had air conditioning. I'll leave it as an exercise to calculate the equivalent prices today.
$1800 in 67 is adjusted for inflation $13,000 in 2023
$3500 in 72 is $31,826
As a person from Finland (yes, that fairy tale country), buying the NEW car for 20 000 USD would be dream come true. Our reasonable size cars are starting from 25 000 EUR (30 000 USD). And this is something like middle size KIA ceed. Toyota Camry costs here 46700 USD. Gallon of petrol (gas?) costs about 7,74 USD. Driving is necessary for the folks living outside the capital area or big cities (estimation 50-70% of population). Only if we take into account the transportation aspect, I would love to have US prices for the vehicles and gas.
Buy used. You can always get a warranty with a used car as well. I will never buy a new car ever again especially here in New York.
Or just buy a Toyota and not worry about a warranty and a car breaking down all the time.
@@eman0828 we bought my husband a 2020 Tacoma. Have had nothing but issues and toyota can’t figure out what the issues are. Not all cars are 100%
@@hayleymiller7032 yeah but the Tacoma is made in Mexico. You should have bought a 2021 Corolla made in the USA/Japan.
11:11 Here in Europe manufacturers seem to have finally sorted out rust proofing. Back in the 1980s it was common for cars to be rust buckets once they were over five years old. My 8 year old Ford Escort certainly was a just year after buying it in 1981. Cheap cars are still being sold. People in the USA should look up Dacia to see what is available here.
People just need to lease. Cars depreciate. They start to get more issues after 3-5 years. You get a new car every 3-4 years depending on how long your lease is. All basically still covered under manufacture warranty within that lease timeframe. People just want to say the car is theirs, but not want to deal with the money they’ll have to put into it with repairs.
TL;DR: They make them cheap, we are just stupid enough to pay more.
It's that stupid Apple buyer mentality.
pay more for stuff we dont need... like the indicator light on the sideview mirror
We aren't stupid enough to pay more, they have price gouged us and tricked us into paying more.
Its the cheap credit.
Owning a good multipurpose car is still only a dream for me right now 😔
That was a good informative video.
The wealthiest companies are always saying margins are razor thin, then pay executives and shareholders millions.
They never say its razor thin. If you listen to earnings calls, they are always trying to increase the margins.
Exactly Uber says the same about the drivers. Somehow they still manage to bring in millions to their CEOs and executives and then claim they have losses due to driver pay.
@@rs72098 their margins are thin after taking account of expenses which includes salaries
@@rs72098 Executives are just employees. Uber's CEO gets a few million a year. Uber loses 3 billion a year.
Executives get good pay because they're important and good executives are very rare.
It all just corp greed or am i wrong ? lol.
I was raised to believe "If you cant pay cash for the car you want, you cant afford it".
True, that's why i haven't and probably will never have 0km cars. My car is a 2002 VW Polo and I don't even feel the need to exchange it, I've been in 6 month old 250km rental Peugeots that felt worse than it. Sure, the interior has seen better days and the paint is faded, but that's fixable. Got my AC, got a 100€ head unit from Sony that has bluetooth and usb, got my power steering, central locking, abs and ebd, power windows, and that's what i really need.
@@miaugato93 have exactly the same car with the small 40kw 3 cylinder engine and I have 248.000 km on it. Won't drive anything else until I have kids and need more space!
@@AggroJordan86 Nice! Mine is the 48kw one with 185.000km on it. Plan to restore it back to glory as it does look a bit like a shed right now. But by god does it drive nice, quiet and comfortable inside, and has almost everything i want in a car, and that's because it doesn't have the L/100km readout.
Well that’s stupid because you can finance a car
Wow lucky you.
1. Crash standards keep rising = more expensive
2. Adding safety features (lane keeping, auto breaking, auto crusie control) = more expensive
3. Rising fuel efficiency standards = more expensive
4. More tech - more expensive
5. Computer chip prices have skyrocketed in recent years due to COVID = all the above driven by chips got much more expensive
Plus the car companies have realised you just have to work too hard selling cars with low profit margins that it just makes more sense to sell less vehciles that have higher profit margins. This also let’s you cut down on workers and factroies int he long run whoch saves even more money. The less cars you produce but with higher per unit pargins leads to a much more successful company.
Automakers are wrong. The younger demograph has no loyalty and follow trends and price. They will drop ship in a second for something new and in the same price range if it appeals to them. Automakers also forget not every "older" consumer wants to spend a lot of money and rack up mileage on an expensive car. I arguable have more expendable income than most younger people (I've been working for the same company since getting my degree 26 years ago) and travel a fairly far distance to work, I would rather have a cheap car to do that than to have to drive my newer, more expensive car. Manufactures are losing this sale to the used market.
The car manufacturers have somehow convinced you that taking on seven or eight-year loans to buy a rapidly depreciating asset is a good idea.
If you have to stretch a car loan past four years to make it work, you can't afford that car.
Calling a car an "asset" should be illegal, I consider it to be a liability.
Exactly! I would even say three years should be max for most people.
Post major car manufacturers have their own financial department and are putting the loans out themselves now. Of course I think it's a good idea!
i have a 7 year note on a “cheap car” i like the flexibility of having such a cheap note that i have been paying way over the monthly and it will get paid off earlier.. and during times when i need to focus on other bills like xmas i will be months ahead so i don’t have to pay anything..i know i’m not the norm but i like it...and my car is under warranty so i don’t have to worry about nothing for a couple of years...just a different perspective
@@dallasgurl1989 right, but you could've made the monthly payment on a 4-year loan - you just chose not to. I was referring to people who are stretching the loan because they can't afford the monthly on a shorter term loan for the same car. And the dealers are telling them that's a great thing to do.
Used cars are good alternative for cheap cars. What we need is good long term parts availability mandated by law.
Where do you find good cheap used cars?....
....if we don’t trust dealers and
....don’t have rich relatives and
...can’t do basic car repairs (live in apartment)
@@oskarngo9138 Look on Craigslist. Also stick to Toyota and Honda, even if they are higher mileage they will definitely last a while
Learn how to inspect a car and get a code reader.
@@TheAmigoUser The Craigslist used car scene has moved to Facebook Marketplace ever since they started charging for car ads. Not sure if they still do it now though.
WalMart.com sells car parts. I bought Denso ignition coils for my acura recent for $40 each
The more of these videos i watch the more car ads I get on RUclips lol
5:41 that's my baby right there, 15-17 Toyota Camry SE. I always have the itch to sell it and buy something more exciting, but when I take a step back and realize how much money I can put away and invest each month as a result of owning a paid off reliable car, it feels reassuring having things in order and not making payments anymore.
Smart move. Don’t let a car define you. If you are able to buy that dream car in cash without make a dent in your wallet? Then go for it. If not the Camry will serve you well for a long time, plus having cash for those rainy days. I have always live conservatively and have 2 paid off houses in the SF Bay Area. I Never spent more than 25% of my annual salary on a car and always pay cash for it.
Getting a radio was an option back in the day
And often just an AM radio.
Not that long ago either, the radio was an option on my 2003 Kia Rio. So was power steering.
And electric windows were restricted to expensive cars
I just love my Mercedes w126 from 1989. It's so simple, it's not like cars today with electronic stuff overload.
Now the newer 🚗 cars don't have the c.d player
When they said cheap cars I thought of 7 thousand dollars car , 11 thousand , not 17 or 20 thousand
Lada's cars range from 7 to 14 thousands. Quite capable to outrun GM SUVs first 10 secs
Actually in Asia you can get new car for 11 thousand dollars
@@muhammadwazienaqwayusuf3335 that’s my point ! There’s cars that are around 9, 11 thousand dollars, but they are talking about prices that aren’t really cheap
Cheap NEW cars
My rent is 25% of my income. Insurance is 5%. Food is another 20%. 25% is saved for a house downpayment. 25% is for discretionary stuff, cell phone, clothing, amazon, gardening.
If I bought a new car, it would eat at least 25% of my disposable income, leaving nothing for savings.
Market forces did this to my wage. I'm a machine operator at a production facility, something that in the past paid a wage high enough to afford those things, but wage growth never caught up to the cost of durable goods.
Those SUV-s just flooded the market. You almost can`t buy a decent sedan/limousine in Europe. I just hate the high truck sitting position.
Lol @ referring to a 20k car as “cheap”.
A new car at that price is cheap lol
I'm confused.
For a car with zero miles it’s a good deal. Tbh I’ve been considering in getting a cheap daily like a Honda Civic.
@Jonathan McCully I’m on the market for a good reliable daily driver to keep for several years. I’ll probably be going with a 2013-2018 Mazda 3 Hatchback. Examples with less than 100k miles are plentiful and easily under 15k!
I agree 20 K is still alot it used to be less
That scared me about 6-7 year loans making up 60% of the market.
@Diana Prince Who can resist a lamborghini for $25/month for 50 years lol
@@aliadeeb6859 A lambo would be 25/month for 500 years ;)
Ya think? On inherently depreciating assets?
@@aliadeeb6859 $15,000 Lambo is it a "Salvage" ???
@@aquarius9491 haha guess I didn't do the math
what car interior is at 9:42 ?
I believe the term you're looking for is "inflation". There was a time when $20,000 bought an expensive car.
So basically the auto industry is pulling an Apple right now
iPhone SE is apples version of the Jetta
Exactly. They are just trying to make commodities as luxuries. Even 50$ phones have all the features as these "Bluetooth" and "infotainment" that the idiot talks about at 10:28 .
I love the way you put it. Nice.
There is no auto industry, those are for the rich. It's self-businesses, used dealerships, and also people getting dumb and not knowing anything about cars, leading to being sold lemons or scammed; guessing this whole comment section. Hence blaming others
No they’re not pulling an apple, they’re pulling the prices of the vehicles that they sell higher
Short Answer: $20k in the 90's is different from $20k in 2020's
Shorter Answer: inflation
The graph in the video showed big drops in 2018 and 2019. They were probably not caused by inflation.
a car or place to stay? either way expensive
Haha the myth unless you add hyper infront of that... I bought furniture 5 monoth ago from three different companies, they were only just delivered last week. However, we recently checked their websites, nothing we bought was on sale, except our couch which came from a place where it's "permanently on sale" anyway, looking back with the new year all these companies just raised their prices by around 30% (inc. the new sale price)... 30% is not inflation, that's called gouging... and it's become the mainstay of our modern society.
Thank you! They never mentioned inflation once in the video from what I heard.
They didn't specify, but I'm betting the benchmark for the "cheap car" segment is more or less indexed to inflation...otherwise the stats would show that 80% (or more) of cars in the 90's were in the "cheap car" segment. In fact, when I was a kid in the 90s I remember 10k being the price point for "economy" cars.
10:00 incorrect. Back in the day, base model cars didn’t have airbags and seatbelts - now they do due to demand (and regulations).
Same with electronic amenities. This is a poor argument
for real. I can't count how many people my age have said that they would drive a literal go-kart with a roll cage if it meant they could save money and be able to afford their 4 figure rent. I know what I just said was anecdotal but so was this mf's wild assessment. I guess this is more proof of why "generations" are a stupid ass concept
And air conditioning too!
Keeping my TDI till it dies 👍🏽 New car prices are just blatant theft
Cheap cars are disappearing..(but only in the US)
Good, so I won't buy american.
Exactly, I thought this was a bit too much US centric. Like US is the whole world.
100% true.
@@ddelimar >=75% of US college graduates arent functionally literate when it comes to a short non technical document and yet anybody in the world thinks they have any ability to have basic object permanence or awareness of anything else in the world. Its flat btw as stated by god per the bible or something. Anyways humans gonna human.
@entItyVR So it's a North American problem then
Cheap cars still exist, they're called USED CARS.
The average consumer doesn’t have 15 thousand sitting around...which today buys about a 3-5 year old car. Due to the cost of borrowing being higher the older the vehicle is it can often “cost” less to borrow on the newer vehicle, which is how salespeople earn their living. Understanding money and loans should be taught but most people don’t save or understand money.
@@neutrino09 The average consumer should never finance a car in the first place.
@@neutrino09 a $5,000 car will serve you just as well as a $15,000 one.
@@SaintNyx many people have nothing saved and buy on credit. I didn’t say it wise or that I did it. I was pointing out how the problem happens. Thanks for implying I’m ignorant though..... enjoy your day
@@SevenRiderAirForce agreed 100%. I save for everything I buy. Credit is the demise of many and increases the cost of everything. Shame we don’t teach money, debt and credit in school.
98 Ford Taurus 215k and 2006 Ford Escape 132k wont be getting rid of them anytime soon, Taurus I bought brand new when I was 18 and still have it.
Automakers have been making cars more & more complicated, due in part to the government mandating features that cost more. Now with semiconductor prices, this has raised car prices.