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Couldn't have said it better myself. Went car shopping a month ago and told the salesman the same thing you just said almost verbatim when they kept asking what they could do to sell the car. It's amazing how much lower they went from their "lowest price". Needless to say I'm keeping my current car till the wheels fall off.
Buying new has always been a fool's game, but there are a lot of fools around. Pick up a used ex-fleet or ex-rental car when it's 3-5 years old and you can run it for the next decade.
Neighbor is a multi millionaire in his early 50s and drives a small Hyundai with almost 200k miles that he got new in 2011. I guess that's part of why he's a multi millionaire ...
A cheap bast@rd millionaire here. I"m worth about ~$3mil, and I own 4 houses. I drove a Nissan Juke until 150k miles, and recently replaced it with a Kia Forte @ $25k.
Naw he's a millionaire either through pension/real estate, you don't become a millionaire by saving money, you become a millionaire by investments or big payouts, now if you have bad spending habits you won't a millionaire for long, I've been driving my car since 2013 and it has 125k and i always make sure it's in working condition, i don't over spend just buy what i need always have and I'm not a millionaire, at Max you'll save a few thousand dollars by penny pinching not millions
I’m a BMW mechanic and there’s a lot of talk on the ground about technological overload. There’s a sector of the public out there that doesn’t want a car loaded with screens and tech. They’re tired of the electronic “features” that now come as standard. And every year or two it seems some other kind of tech becomes mandatory in the name of safety. The BMW owners I see are definitely holding onto their cars longer, even though most of them have money to buy something new. The leap in complexity between a ten year old car versus something new is huge. They’re just more comfortable with the known, and the cost and all of the electronic wizardry isn’t enough to get them to buy.
Exactly this. I can afford the new AMG, but I don't want it. I have 2018 and 2020 S63 (one coupe, one sedan), but I refuse to buy that electric motor crap. Plus the new UI is garbage. Make German Cars Great Again.
It’s not necessarily the tech for me, rather the clear desire to monetize essential functionality through subscriptions. In the words of Dana Carvey as George Bush. “Not gonna do it.”
Yep, my 2011 Tacoma still hums at 163k miles. We were going to hang on to our 08 Impala. Transmission was going south at 168k . Not worth the $$ to fix. Found our dream car . 18 RX350, awd , Japan built 49k miles , maintained well. My mechanic checked it out. No problems. Yeah, a little fancy, but it will probably be our last car purchase. ( in our 70s.). We have no debt and the stock market lifted my 401k over 2x the price we paid for the Lexus. " Life is good" AMD- The Car Care Nut RUclips channel .
Truth! And the new EU regulations requiring speed warnings and driver monitoring, not to mention remote shut off capabilities, are onerous. Used German cars will be the way to go.
My wife and I live in Norway, with a yearly household gross income of around $110,000. We own two 2010 MK6 Golfs, one 1.4 TSI and the other an R version. We’ve been driving them for about 10 years and have no intention of replacing them, nor are we interested in doing so. I would never spend $1,000+ a month on a car-that’s $12,000+ a year. With that money, we could do something much smarter. I’m already quite familiar with both cars, and if something breaks (which rarely happens), I fix it myself. Yesterday, I replaced the coolant supply seals in the engine-the repair cost me $2 for the seals and $10 for two beers I enjoyed while doing the job.
I've got a 2015 Audi a3 basically the same car. Super easy to work on. Good cheap aftermarket parts available. Comfortable good build quality. Still like new after 10 years and a blast to drive. I'll put a new engine in it before I sell it. Even if I buy another car I will still keep it. 👍 On the R
@@joeswanson733 This is very true. Remember when gas prices jumped and people still were buying giant trucks. Most companies dont even make cars anymore.
Except that the wealth distribution is so skewed that the average person just doesn't have money to spend, that's why everything is skewing towards the wealthy.
Something I hate is when car salesman begin mocking you for being shocked by a $850+ per month payment. They act like it’s affordable, I say this because it’s happened to me 3x, my brother, my aunt, my cousins, a few friends.
What's crazy is without their employee discontinued pricing and job that keeps them there 60-80+hrs/week, they wouldn't be able to afford the car they got suckered into themselves.
They are getting a king's ransom for absolutely thrashed 10 year old 100K japanese cars they are really such a rip off that I didn't go down that road. Any car with 100k is a huge gamble unless you are 100% sure it was well maintained. I've seen those low cost cars bankrupt people as well. They drop 10k on a high mileage car then it breaks down in 3 months and needs thousands in repairs.
@@mattm9619one could find something older that runs well and looks good. Put a few thousand in to freshen it up, and have a car that's good for years. A lot of times it it an accumulation of little things. Shocks struts bushings, tires, brakes, belts, hoses. At 100K many cars need these and these are easy fixes.
if you make $41,000 a year you should not be buying anew car - aubrey me: if you make $41,000 a year... how the heck do you even afford any car these days.
Well, many of them are just lucky otherwise range rover wouldn't exist which depreciate faster than anything I can think of and are super unreliable too.
This is accurate with everyone in my circle of friends and coworkers. I can, but I won't. Whether you bring in $500k or $50K per annum it's just ridiculous to throw away money like this at a depreciating asset.
I live in big truck land and it’s insane how many new 100k trucks are on the road. In a community that is incredibly poor. The rich may not be buying but there are still some gullible fools that are barely keeping them afloat. They all bought gm 8 cylinder trucks and that’s why there stock is up so much as the car market bombs.
I I have been trying to tell my mother this for the longest time. The days of going to a car dealer and getting a car with no money down and paying a decent 5-year note are gone.
I live in Europe, and it's not just that you don't necessarily need a car here unless you live in a small village, but the cars are much smaller. In America, I don't dare drive my little hatchback around in all the pickups and big suvs, but the bigger the car, the more expensive it gets, from tyres to oil changes to insurance, and you have to pay a lot more at the petrol station for a bigger car. And that's not even mentioning the environmental impact and emissions.
But European car makers go the same idiotic route of adding more and more features to cars instead of letting established technology get cheaper. And for some reason that is beyond me they also cannot seem to grasp that size and luxury don't need to go together. You can make big cars that offer a lot of space and not stuff them with gimmicks and expensive leather. Next car I buy will be the simple trades version of a van.
@@Volkbrecht I need all that gadgets... And it will be an EV only........ I am not in favor of German or skoda, merc etc but any day better than crap.. bulky american cars........ That's why Chevrolet was kick.ed out of barath. Ford is making a return but in form of EVs.
The pickups and SUVs here are simply ridiculous. And every pickup is lifted two feet, you need a ladder to check the oil. Raising them that high should be illegal, they are a menace to everyone else and will kill you if they run into a regular car or minivan. Anything under 10,000 pounds should have a max bumper height of maybe two feet.
I bought a 2007 Honda Fit Base manual tranny a couple years ago for under 5k. I wanted a beater to keep my old truck off the road for short trips. I love it! I forgot how nice a basic car was. For me you can take all the electrical crap out. I hate all this expensive yet annoying driving help. Give me a nice stereo and AC and I am cool.
Even if they can afford it many will not buy a new car on principle. It’s ridiculous. These manufacturers have driven up prices and service costs by continually adding unnecessary technology and bundling options forcing consumers to purchase more car than necessary or desired… and then increasing services costs and dealer dependency with computerized everything. I’m not playing this game. Hope people finally wake up, hang on to cars for as long as possible and drive these car makers back to reality. Keep your heated seats and mirrors ….im good with a straight 6 and roll up windows
The best car to have is one that is paid for. Considering negative equity is $6500 and can't trade in because banks now will not roll over negative equity anymore. There is also 25000 vehicles every calendar day is being repossessed. With no easy quick fix answers.
No price can be affixed to peace of mind. And , although it pains my soul to see people suffer in their lives from poor decisions, some lessons are only learned the hard way. Best to be a positive role model to loved ones.
The ridiculous cost of new vehicles, coupled with higher than normal interest rates and the complete lack of standard ones without all the stupid, expensive options is precisely why I am still driving my 2006 SUV.
Its reached the point where if rust hasn’t destroyed a vehicle it is much smarter to just fix the old one. Even $10,000 engines and transmissions are not silly anymore. And wait until the tariffs take hold 😁
Agreed, but an unpleasant reality is that parts are increasingly "obsolete" (unavailable) for older cars. If the part isn't available, the repair can't be performed, and the car is bricked. My Volvo V90 needs a transmission fluid temp sensor for the computer to trigger the converter lock-up needed to run at highway speeds (w/o damaging the transmission). Without it, the car's limited to local use, only.
@ That’s why cars from around 1990 are best. My son has a Volvo 240 and parts will always be available to fix it. The same with my 1990 Miata or say a Jeep XJ.
Good points, however, I would argue that if they were to let in BYD cars like the Seagull ($10k+) it would take care of a market that the legacy car brands have ignored. There’s a reason for those tariffs
4:40 you made an excellent point, whenever I drive to work or the grocery store I can't help but notice all the high end cars on the road and ask the same question how in the fuck are people able to make these $1400, $1500, or $1600 car payment. Add on car insurance $150-$300+ a month, it's just crazy!
One of two things needs to happen; the American automakers need to start making basic affordable cars or we need to let more foreign cars in that fit the demographic in need of affordability.
@@ppiriouYep, I think China is going to slide in and take the Low cost market, much like Japan did back in the 80’s although it may not happen while Trump is in office.
@@lanceneol865China already produces most of the electronics, batteries, and electric motors the US has been buying for decades and manny of these are high quality (Apple products for example). It’s not much of a stretch for them to put these parts together to build a car. I wouldn’t underestimate the Chinese car market over the next 10 years. I’m rooting for the US though.
@mylesgray3470 the difference is companies like apple use their own high quality materials and have a strict quality threshold.China just assemble those products. Whereas China based companies use cheap materials and have a very low bar for quality. It's not the same
Very nice video! I also noted the disappearance of small cars. I believe the reason is that the introduction of EVs means that manufacturers don’t need to make small cars to meet CAFE regulations. Thus, they drop the small car to make a high priced EV and keep selling inefficient high margin SUVs and pickup trucks. Why sell a low and high margin vehicle when you can just sell high margin vehicles? It’s a great idea until you run out of customers.
I make $90K and I bought a used 2017 4Runner. I've spoken to people who make less than me drive cars twice the price of my 4runner. It concerns me lol. But obviously I know people who make more than me that drive a 2006 Camry haha. I like cool cars/suv so I try and buy the coolest vehicle to me that makes financial sense.
CAFE (corporate avg fuel economy) is playing a role too. Automakers don't want to hybridize their small cheaper cars unless they are super high volume sellers like Civic or Corolla. So, they just stop selling them to avoid paying the mpg penalty.
When looking at used cars, look at the MSRP for that make and model for that year. Often times dealerships are listing them for the same price as they were brand new. I saw a base model mazda 3 2021 with 22k miles on it today. Listed for 23k, when the car brand new in 2021 was MSRP of 21,635. This was a chip shortage car so it probably sold for 25k+ back then. It had 17 months left on warranty and a brand new mazda 3 you can get for around 25k msrp comes with the full 60 month warranty and new tech features. They want easily 5-6k more than what the car is worth, it was 43 months old when they got it.
1. New cars now (2024) are not as reliable as new cars in 2014. ---- I drive a reliable 2010 Ford Focus. I prefer simple reliable cars. 2. Manufacturers should start selling cars with a full 100,000 mile warranty, not a 60,0000 mile warranty as is common now. Then they would sell more cars.
Another issue with all new cars having a "luxury focus" is it has more things to break down. More high tech options makes the used car market far more risky when trying to buy one. You never know what your going to get, and if anything breaks it could cost more than your car is worth to try and repair it because it uses propriety hardware or software.
Zoning laws has created a need for a car, which then the power of car lobbying prevents new public transit and so on and so forth. Having traveled to countries with real public transit then coming back to the US is shocking.
I'm not worried about it. If cars to expensive for me I'll just buy a motorcycle and drive it everywhere I go. Those are cheap enough to just pay cash for and it be brand new with no problems.
An old car will not force your car into the meeting lane because it thinks you're driving into the ditch. It has happened in Sweden. The road was of bad quality, and the car thought that that meant they were going down into the ditch, so it forced itself into the lane for meeting traffic. Luckily nobody died, but if that car had met a heavy truck just then, that would have been an absolute disaster. cheers! / CS
What gets me is the effect on used car prices. If you wanted something decent-ish -- like a 7-10-year-old Toyota Camry -- I'm sure you're paying 50% more than you did pre-covid. Maybe more.
I want a basic sedan/compact with manual transmission, manual windows, no touch screen, just real basic tech. I just want it reliable. I'd take a new 1983 Corolla if someone would make one.
I bought a new Toyota 4Runner a year ago. I expect to be driving it for another 10-15 years. I financed it for 60 months and paid it off in 12. Depreciation has been fairly low so far and they historically retain their value. I drove my previous car for 15 years. There is nothing wrong with buying a reliable new car, if you plan to keep it. You get into trouble if you want a new car every couple of years.
She said the average car is $46,000? Here’s the thing… $46k in my bank account makes me a lot happier than the average car. Look at it this way… if you have that kinda money in the bank you can afford just about everything else! Why would you pay that kinda money for a car?
I wanted to give a comparison of prices 2022 to 2024. I’ve been shopping for a Ford F350 regular cab 4x4 in XL trim. I found a new leftover 2022. The base price was $43,760. The base price for the same exact truck, even color, 2024 is $48,815. That almost a 12% price increase in 2 years just on the base truck. Options have gone up. The “extras” that dealers tack on have gone up as well.
We bought a new Subaru Crosstrek in October 2021 for $26,400 out the door, that same vehicle today would be about 20% more expensive just a tad over three years later. Plus we got 1.9% financing, way lower than what you would pay now.
I don't know if there is so much mandatory electronics in America, but here in Europe, new cars are equipped with a lot of privacy-killing, interfering gadgets, not only because of the high price, but also because many people really don't want it, a bit. like the EV story
I was eyeing a new 718 Cayman, but they start at $73K now! 2 years ago the MSRP started at around $59K. No way I'm paying $15K extra for the exact same car only 2 years later. Even used ones have gone up...used to be around $32K for a later model 987 Cayman, and now even the junkiest 987s can't escape $40K...can't have anything nice at an even slightly reasonable price anymore...
What is left out was the 30 year marketing campaigns to convince consumers to abandon cars in favor of trucks. Trucks have had a built in 25 percent markup due the "chicken tax" resulting from a trade war in the 60s. A 25 percent duty in imposed on all foreign imports of light trucks. Its one reason why many of the small trucks seen on Japanese roads and European highways never entered the US market. US automakers had a free hand in marking theirs up (no foreign competition), so the margins on them have always been high when compared with cars. The plan was to wean people off of cars and get them into trucks and SUVs. As an added incentive, light trucks are not covered by CAFE requirements present on cars. And the plan worked. Detroit was right. Cars were discontinued because people stopped buying them. BUT that was in part due to marketing (people being upsold on SUVs and trucks)
The rich can afford new cars. Many choose not to. Delayed gratification contributes to becoming rich. I have 2012 and 2018 Camrys and I'm a cash buyer. But I have a price in mind to replace my 2012 and Toyota hasn't met it yet. There's nothing wrong with my old cars either.
Why do You pay cash for a depreciating asset? I invest and use the earnings to lease expensive cars. G63 AMG for myself and a BMW x7 for wife. Both one pay leases.
You hit the nail right on the head. I like to live within my means, so I've purchased three new Malibu's over the years. Nice cars that were very affordable and trouble free. Now they are gone as of this month. My last one is a 2022 Premier that listed for 34k. Nice car all things considered. I cannot even wrap my mind around something in the 50-70k range.
You might have to make the jump to Japanese or Korean. They seem to be the only carmakers that care about small, efficient cars anymore. I recently bought a Kia Forte and was pleasantly surprised by the quality after driving GM my whole life.
Every year I become increasingly grateful that I bought a 1989 Toyota pickup in 2015 for $1700 cash. Even after another $1500 to rebuild the transmission and replace the clutch it’s still the best investment I’ve ever made. I was briefly considering buying a newer car in 2020 (mostly just a little tired of driving a manual in the city) but after test driving a few disasters on wheels at absurd prices I decided old, reliable, and payment free was the best choice. Now I cannot imagine ever owning any other car.
I've been telling my friends for years based on just looking outside at cars. People have lots and lots and lots of money. Compared to what when I grew up. Right now they got so much money they drove the automakers to change their lineups.
My favorite car that I owned was a 2009 Chevy Cobalt. It had 4 cylinders with a 5 speed manual transmission. It had no power windows, no power locks, or power mirrors. It was so basic. I got it used for 3K. It was simple and I liked it that way. It's too bad they don't make them cheap and simple like that anymore.
Define what you mean by "rich." A rich person, by my definition, can definitely afford any mass-produced vehicle they wish. Also, I understand that a vehicle is transportation and, practically, should not ever be considered an "investment" (much like a house should be viewed in the same manner). A vehicle should depreciate, so why should that be a factor in a purchasing decision for the average person? You're more likely to buy a Hyundai/Kia/Toyota/Honda instead of a limited edition Ferrari that gets trailered to shows. I do not purchase anything with the notion of flipping it or trying to recover my losses in the purchase; it's a used item, enjoy it, and forget about money. Would you flip your used socks or underwear?
Most auto makers have added luxury features to economy cars. Like radar cruise control, heated and cooled seats. Massaged seats, and big displays plus every car now has HID headlights. These are some of the reasons cars cost so much. They can keep them, I’m keeping my old car. It still runs.
well said. I am rich and bought a new car recently. A 30k crosstrek. I just do not give a crap, I like a small car and was fed up with my custom order E class, it felt too big. I am considering buying 15-25 year old exotic car, but only with the prospect it holds it s value or increases in value over a decade or two. My wife wants a Cybertruck but now they are $160k cdn here, and I have no use for such a vehicle, esp since it will depreciate like a rock. We have the cash set aside for it but I'd rather not waste it on that. We did not get rich by throwing money away, nor by having car payments lol to say the least.
@@planesandbikes7353hey Im 20 and looking to get rich/wealthy . Do you have adivine for me to be rich like you (currently college student to become automotive tech
If no one bought high trim, high margin vehicles, manufacturers wouldn't make them. Corporations are catering to the market; they aren't charities working for the greater good. You can absolutely buy a decent reliable appliance-like car for 20k to 25k, like an Accord or Civic or Camry. Price inflation is a direct result of the money supply, and by proxy government spending. Car manufacturers neither control the money supply or government spending. I'm not sure "corporate greed" is a thing and if it is, it applies to all corporations and is simply part of the market economy . For transparency, I don't work for the government, or anything related to cards. Otherwise, I agree with everything you said!
From a supply demand perspective, the current auto industry has been unsustainable for a few years. I'm curious to see where this ends up, and I'll sit on the sidelines until the dust settles.
Nobody buys a car because of the price. It has to fit a budget but the real reason we buy a car is because they are beautiful and they make you feel good. Ex. Do you see Rolex going for a discounted price? Are they going out of business?
My retired in-laws here in Eastern Europe recently bought a new Dacia Sandero for 11'000 Euros, by the time they went after their pre-paid car, price was up to 12'000 for new customers, so they made it in time and saved a whole thousand, now the price is up to 14'190 Euros.
Excellent video. In my view, no one should be buying any new car, ever, until the privacy invasive tactics with regard to data collection are ended. Personal vehicles that "legally" spy on you and then sell off the data collection creates potential large scale problems that I don't think people are fully considering and should absolutely not want to be a part of.
Electric cars will also make owning a used car unaffordable. Even though they depreciate quickly and my be initially cheaper battery replacement in old electric vehicles will make owning one unaffordable for lower income folks. It seems like the US may end up like Cuba where they have kept old, classic cars running forever.
Weirdly enough i just dont care about cars much anymore, this coming from a 48 year old engineer who used to follow every new release on the market with a magnifying-glass
Maybe the rich can't afford a new car but a wealthy person like me just last year purchased a Dawn. Love to lord over the common people when I park at the gym. Don't fret, it's paid for.
Get the unnecessary tech out of cars. All it does is add more failure points and expense, and makes the cars impossible to maintain yourself. We've been driving for decades without lane assist, adaptive cruise control, adaptive headlights. Totally unnecessary.
Tons of brand new Elantras for sale for 23k. 10 year drive train warranty. Cars are definitely expensive, but I think we as a society also aren't willing to compromise on what we want because people want a Mercedes instead of a Hyundai.
Good luck collecting that warranty, they are renown for weaseling themselves out of warranty claims. Will cost you more in lawyer fees than paying to replace the engine yourself.
Hyundai weasels out of their warranty work, resale value is crap, insurance is expensive because of the Kiaboyz bullshit, and most Kia/Hyundai models aren't particularly reliable.
I'm mechanically inclined. I generally buy used trucks with easy to fix problems that cost a lot to fix at a shop. Fix them and usually get about 5 - 6 years out of them for 1/10th the cost of even used trucks. On average learning how to fix vehicles is not that hard. I don't like doing it for the most part but a good skill to learn. Heck even doing your own brakes will save thousands over the life of a car.
i'm down to buying rebuilts. everything is cheaper and as long as the car hasn't had frame damage then i have no problem with that. the main problem is even rebuilts are getting expensive. the other issue with ALL cars is the sheer amount of electrical nonsense that breaks down far more often than mechanical break downs
Any time I ever tried to buy a lightly used car (5 or less years; 50K or less miles), I found that it was barely any different in cost than just buying a new car. "Certified Pre-Owned" is a 5c@m, many of them are former rental cars. And cash for clunkers depleted the used market a lot. So I always end up buying new.
I bought an Amish horse and buggy. 1 horsepower with low maintenance. Pooper scooper, a bag of oats, change horse shoes as needed. No gasoline, no electric. No electronic or chip and sensor issues. Low insurance. To me it's just horse sense.
they tried selling smaller cars in the early 60s (Nova/Fairlane/Dart, etc.) they tried again in the 70s (Pinto/Vega/Colt.) Americans have consistently rejected these types of vehicles for 60 years. we want cars that are either big, luxurious or fast - preferably all 3. and that sweatshirt on you and your hair - oh my god!!! 😍🥰😘
I’d argue that average income and average new car price are two very different stats that can’t be compared to one another. The preferences of new car shoppers continue to trend upmarket, which is a major factor that’s contributed to the higher average price. If you compare one of the most popular cars of 25 years ago (Honda Accord) with a new Civic (they’re the same size), a new Civic, adjusted for inflation, is cheaper, safer, and much better equipped.
IDK if days are 'over' for getting high value used luxury car. I am seeing a 2021 BMW 330e with 22,000 miles outside of Boston for $27,800. And a 2020 Mercedes GLC 300 with 37k for $27,500. Clean title on both. Not under $25k but darn close. You can get a BRAND NEW Toyota Camry (hybrid) for under $30k. Best deal on the market for a new car IMO.
I never buy used cars and switch at below 40k miles on the odo. Last week, I went to Toyota with 60k cash on hand to buy the Tundra TRD Pro. they wanted 78k before tax and I walked out. I'm never buying a Toyota at that price (it was similar at other dealers). I'm looking to buy a used car for the first time and will be keeping my cars for much longer. Our household income is around 300k. I also never make car payments.
Two months ago I bought a 2018 nissan maxima platinum for $13,000 from a seller on facebook marketplace. It only had 40,000 miles on it and was in great mechanical and cosmetic condition. It did have a rebuilt title though which didn't bother me since I checked the vin number.
Let's also note that the interest rates for a used car are double what a new car would be. In some cases, you would be paying the same to by new as you would used.
Yeah, I’ll just keep my daily 20 year old V10TDI that has only needed an alternator and a fuel pump in 7 years. Still breaks less than a new car with 6 less cylinders and a thousand fewer parts.
For the past twenty years, the top-selling cars in America have been mid-size sedans, compact SUVs, and full-size trucks. Simply put, Americans do not buy cheap subcompact cars, so car manufacturers stopped making them for the US market. That is part of the reason why the average new car prices are where they are.
Well done @AubreyJanik !! You hit the nail on the head; manufacturers prioritizing high trim vehicles over affordable models is wrecking the future of cars. Henry Ford priced his cars so the average worker could buy one; how did we get so far from that idea?!? Please keep making these videos; to many of us, the car market is fascinating. Cheers
The small car problem is typical USA. I could find new car (Fiat Panda, Kia Picanto) for less than 20,000 Euro in the Netherlands and more for around 25,000. Keep in mind that the Netherlands is notorious for high tax on new cars. Belgium or Germany might have lower prices.
You missed the real reason for the high prices. Government regulations is a big reason. Get rid of the CAFE law and most the other laws that raise the price
Baloney. It doesn't cost substantially more to meet CAFE requirements now than it did 5 years ago. It's exactly as she said...supply chain issues due to covid, inflation, and price gouging.
@johnstone7697 wrong. cafe standards go up every year. They actually made the small pickup trucks illegal to make if they don't get almost 70mpg. They are the reason trucks cost so much in trying to meet the standard. It's the other regulations also.
You’re not wrong, CAFE standards definitely impact the cost of a vehicle but those have been in place since the 70s and isn’t the primary driver of today’s car prices. If you look at the shareholder reports of Stellantis and GM (which are the only two I’ve read so this might not apply to the rest of the industry) both companies made a concerted shift a few years ago to focus on high-margin vehicles and deprioritize cheaper cars that require larger volumes to achieve profitability. The legacy auto makers made a choice to chase high-income consumers and it seems like that customer pool has now dried up.
@thejsixm2357 you are wrong on cafe. The law has been around but Clinton changed the regulations once and Obama changed it 2 times. Each time is set to take affect years in the future. Like I said the regulations made small trucks illegal and raised the price on all cars to meet news standards that Obama invented. The companies hard to make all cars weigh less and get better mileage. That cost a lot. An F250 it's half the cost of the truck in regulations now. The companies are robbing us also but getting rid of cafe standards would lower costs a lot.
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I can afford a new car, but I refuse to waste that kind of money on a rapidly depreciating item. It’s absurd.
Yip my neighbor try sell n me a ski doo. said. I can afford a few of them but that's y I can cuz I dont
Yep, and I can't ever see, dealing with another dealership. My old Pickup will do me just fine.
Yep - more people are waking up - it’s not in people’s plans.
Couldn't have said it better myself. Went car shopping a month ago and told the salesman the same thing you just said almost verbatim when they kept asking what they could do to sell the car. It's amazing how much lower they went from their "lowest price". Needless to say I'm keeping my current car till the wheels fall off.
Buying new has always been a fool's game, but there are a lot of fools around.
Pick up a used ex-fleet or ex-rental car when it's 3-5 years old and you can run it for the next decade.
Neighbor is a multi millionaire in his early 50s and drives a small Hyundai with almost 200k miles that he got new in 2011. I guess that's part of why he's a multi millionaire ...
Nah, he just doesn't care about cars (and probably houses either).
Sure he is.
A cheap bast@rd millionaire here. I"m worth about ~$3mil, and I own 4 houses.
I drove a Nissan Juke until 150k miles, and recently replaced it with a Kia Forte @ $25k.
Naw he's a millionaire either through pension/real estate, you don't become a millionaire by saving money, you become a millionaire by investments or big payouts, now if you have bad spending habits you won't a millionaire for long, I've been driving my car since 2013 and it has 125k and i always make sure it's in working condition, i don't over spend just buy what i need always have and I'm not a millionaire, at Max you'll save a few thousand dollars by penny pinching not millions
Lol nice 💯
I’m a BMW mechanic and there’s a lot of talk on the ground about technological overload. There’s a sector of the public out there that doesn’t want a car loaded with screens and tech. They’re tired of the electronic “features” that now come as standard. And every year or two it seems some other kind of tech becomes mandatory in the name of safety. The BMW owners I see are definitely holding onto their cars longer, even though most of them have money to buy something new. The leap in complexity between a ten year old car versus something new is huge. They’re just more comfortable with the known, and the cost and all of the electronic wizardry isn’t enough to get them to buy.
Roscoe, exactly! I want a motor, a seat and a steering wheel. Ok, and brakes and doors,, but basic, very basic!
Exactly this. I can afford the new AMG, but I don't want it. I have 2018 and 2020 S63 (one coupe, one sedan), but I refuse to buy that electric motor crap. Plus the new UI is garbage. Make German Cars Great Again.
It’s not necessarily the tech for me, rather the clear desire to monetize essential functionality through subscriptions. In the words of Dana Carvey as George Bush. “Not gonna do it.”
Yep, my 2011 Tacoma still hums at 163k miles. We were going to hang on to our 08 Impala. Transmission was going south at 168k . Not worth the $$ to fix. Found our dream car . 18 RX350, awd , Japan built 49k miles , maintained well. My mechanic checked it out. No problems. Yeah, a little fancy, but it will probably be our last car purchase. ( in our 70s.). We have no debt and the stock market lifted my 401k over 2x the price we paid for the Lexus. " Life is good" AMD- The Car Care Nut RUclips channel .
Truth! And the new EU regulations requiring speed warnings and driver monitoring, not to mention remote shut off capabilities, are onerous. Used German cars will be the way to go.
It's the same thing with houses. A house that was listed for $70k four years ago, is listed at $500k today. It's outrageous.
Money printing has robbed us of purchasing power. That's why literally everything is getting more expensive.
My wife and I live in Norway, with a yearly household gross income of around $110,000.
We own two 2010 MK6 Golfs, one 1.4 TSI and the other an R version.
We’ve been driving them for about 10 years and have no intention of replacing them, nor are we interested in doing so.
I would never spend $1,000+ a month on a car-that’s $12,000+ a year.
With that money, we could do something much smarter.
I’m already quite familiar with both cars, and if something breaks (which rarely happens), I fix it myself.
Yesterday, I replaced the coolant supply seals in the engine-the repair cost me $2 for the seals and $10 for two beers I enjoyed while doing the job.
I've got a 2015 Audi a3 basically the same car. Super easy to work on. Good cheap aftermarket parts available. Comfortable good build quality. Still like new after 10 years and a blast to drive. I'll put a new engine in it before I sell it. Even if I buy another car I will still keep it.
👍 On the R
If people stop buying, prices will come down. If people stop buying for long enough, prices will come down to reasonable.
well the real question is who can last longer the car dealers or the public who seems to fold pretty fast.
Totally agree with both of you on this one. They can take their overpriced shit and stick back where it came from.
@@joeswanson733 This is very true. Remember when gas prices jumped and people still were buying giant trucks. Most companies dont even make cars anymore.
Or they'll just lose money and get gov. Bailouts
Except that the wealth distribution is so skewed that the average person just doesn't have money to spend, that's why everything is skewing towards the wealthy.
Something I hate is when car salesman begin mocking you for being shocked by a $850+ per month payment. They act like it’s affordable, I say this because it’s happened to me 3x, my brother, my aunt, my cousins, a few friends.
Just shows how out of touch they are
What's crazy is without their employee discontinued pricing and job that keeps them there 60-80+hrs/week, they wouldn't be able to afford the car they got suckered into themselves.
Cars today are a wealth destroyer for the middle class. Just buy 10 year old Japanese cars and let these greedy US OEMs go bankrupt.
I brought a 2019 $24000 Suburu Imprezza (52000 kms) ,same mechanics as a 2022 $29000 Suburu imprezza car (51000kms).
have you seen used car prices these days? its no joke. due to obama's cash for clunkers thing he essentially wrecked the used car market.
@FoxRunner- 10 year old used car will have 150-200k miles and priced 9-12k
They are getting a king's ransom for absolutely thrashed 10 year old 100K japanese cars they are really such a rip off that I didn't go down that road. Any car with 100k is a huge gamble unless you are 100% sure it was well maintained. I've seen those low cost cars bankrupt people as well. They drop 10k on a high mileage car then it breaks down in 3 months and needs thousands in repairs.
@@mattm9619one could find something older that runs well and looks good. Put a few thousand in to freshen it up, and have a car that's good for years. A lot of times it it an accumulation of little things. Shocks struts bushings, tires, brakes, belts, hoses. At 100K many cars need these and these are easy fixes.
if you make $41,000 a year you should not be buying anew car - aubrey
me: if you make $41,000 a year... how the heck do you even afford any car these days.
Ridiculous loans
the rich can afford, just not dumb enough to buy lol
Well, many of them are just lucky otherwise range rover wouldn't exist which depreciate faster than anything I can think of and are super unreliable too.
Everybody’s got their level
This is accurate with everyone in my circle of friends and coworkers. I can, but I won't. Whether you bring in $500k or $50K per annum it's just ridiculous to throw away money like this at a depreciating asset.
I live in big truck land and it’s insane how many new 100k trucks are on the road. In a community that is incredibly poor. The rich may not be buying but there are still some gullible fools that are barely keeping them afloat. They all bought gm 8 cylinder trucks and that’s why there stock is up so much as the car market bombs.
@@ninerknight5351 well, those poors won't be able to do it again that's for sure, let them have their fun and get them out of the market.
I I have been trying to tell my mother this for the longest time. The days of going to a car dealer and getting a car with no money down and paying a decent 5-year note are gone.
I live in Europe, and it's not just that you don't necessarily need a car here unless you live in a small village, but the cars are much smaller. In America, I don't dare drive my little hatchback around in all the pickups and big suvs, but the bigger the car, the more expensive it gets, from tyres to oil changes to insurance, and you have to pay a lot more at the petrol station for a bigger car. And that's not even mentioning the environmental impact and emissions.
But European car makers go the same idiotic route of adding more and more features to cars instead of letting established technology get cheaper. And for some reason that is beyond me they also cannot seem to grasp that size and luxury don't need to go together. You can make big cars that offer a lot of space and not stuff them with gimmicks and expensive leather. Next car I buy will be the simple trades version of a van.
@@Volkbrecht I need all that gadgets... And it will be an EV only........ I am not in favor of German or skoda, merc etc but any day better than crap.. bulky american cars........ That's why Chevrolet was kick.ed out of barath. Ford is making a return but in form of EVs.
The pickups and SUVs here are simply ridiculous. And every pickup is lifted two feet, you need a ladder to check the oil. Raising them that high should be illegal, they are a menace to everyone else and will kill you if they run into a regular car or minivan. Anything under 10,000 pounds should have a max bumper height of maybe two feet.
I bought a 2007 Honda Fit Base manual tranny a couple years ago for under 5k. I wanted a beater to keep my old truck off the road for short trips. I love it! I forgot how nice a basic car was. For me you can take all the electrical crap out. I hate all this expensive yet annoying driving help. Give me a nice stereo and AC and I am cool.
Even if they can afford it many will not buy a new car on principle. It’s ridiculous. These manufacturers have driven up prices and service costs by continually adding unnecessary technology and bundling options forcing consumers to purchase more car than necessary or desired… and then increasing services costs and dealer dependency with computerized everything. I’m not playing this game. Hope people finally wake up, hang on to cars for as long as possible and drive these car makers back to reality. Keep your heated seats and mirrors ….im good with a straight 6 and roll up windows
I'll drive my like new and paid for 18 Ford Escape for years to come. It's nice being totally debt free. 😊
The best car to have is one that is paid for. Considering negative equity is $6500 and can't trade in because banks now will not roll over negative equity anymore. There is also 25000 vehicles every calendar day is being repossessed. With no easy quick fix answers.
No price can be affixed to peace of mind. And , although it pains my soul to see people suffer in their lives from poor decisions, some lessons are only learned the hard way. Best to be a positive role model to loved ones.
Sell it and replace it with a Rav4 or something similar, it'll outlast the Escape by alot.
Price gouging is literally the problem with every single industry.
The ridiculous cost of new vehicles, coupled with higher than normal interest rates and the complete lack of standard ones without all the stupid, expensive options is precisely why I am still driving my 2006 SUV.
Its not just the initial cost, but repairs and maintenance cost a fortune too.
And high insurance, yearly registration
Its reached the point where if rust hasn’t destroyed a vehicle it is much smarter to just fix the old one. Even $10,000 engines and transmissions are not silly anymore. And wait until the tariffs take hold 😁
This! You buy when repairs cost more and now they don’t lol
If the parts it could use in the future come from overseas buy them now!
Agreed, but an unpleasant reality is that parts are increasingly "obsolete" (unavailable) for older cars. If the part isn't available, the repair can't be performed, and the car is bricked. My Volvo V90 needs a transmission fluid temp sensor for the computer to trigger the converter lock-up needed to run at highway speeds (w/o damaging the transmission). Without it, the car's limited to local use, only.
@ That’s why cars from around 1990 are best. My son has a Volvo 240 and parts will always be available to fix it. The same with my 1990 Miata or say a Jeep XJ.
@@solracer66 And the there is my 1980 Plymouth…
Allow Chinese electric cars in 🚙 Watch the auto market correct itself really quick
Won’t change anything more than YUGO did in the nineties. If you live in an apartment you have the same charging problem as before
And you still have all the same problems with EVs. None of which is going away any time soon.
Good points, however, I would argue that if they were to let in BYD cars like the Seagull ($10k+) it would take care of a market that the legacy car brands have ignored. There’s a reason for those tariffs
That's the plan.
Not under a Trump presidency
4:40 you made an excellent point, whenever I drive to work or the grocery store I can't help but notice all the high end cars on the road and ask the same question how in the fuck are people able to make these $1400, $1500, or $1600 car payment. Add on car insurance $150-$300+ a month, it's just crazy!
One of two things needs to happen; the American automakers need to start making basic affordable cars or we need to let more foreign cars in that fit the demographic in need of affordability.
Aka Chinese EV at 30K…
@ppiriou chinese cars aren't worth 15k let alone 30 😂
@@ppiriouYep, I think China is going to slide in and take the Low cost market, much like Japan did back in the 80’s although it may not happen while Trump is in office.
@@lanceneol865China already produces most of the electronics, batteries, and electric motors the US has been buying for decades and manny of these are high quality (Apple products for example). It’s not much of a stretch for them to put these parts together to build a car. I wouldn’t underestimate the Chinese car market over the next 10 years. I’m rooting for the US though.
@mylesgray3470 the difference is companies like apple use their own high quality materials and have a strict quality threshold.China just assemble those products. Whereas China based companies use cheap materials and have a very low bar for quality. It's not the same
Very nice video! I also noted the disappearance of small cars. I believe the reason is that the introduction of EVs means that manufacturers don’t need to make small cars to meet CAFE regulations. Thus, they drop the small car to make a high priced EV and keep selling inefficient high margin SUVs and pickup trucks. Why sell a low and high margin vehicle when you can just sell high margin vehicles? It’s a great idea until you run out of customers.
Cant buy used cars unless somebody buys it new first
I had to read your comment twice before I got the sarcastic truth in it 😂 . Well said .
Yup, let them take the depreciation hit first. Lol.
I make $90K and I bought a used 2017 4Runner. I've spoken to people who make less than me drive cars twice the price of my 4runner. It concerns me lol. But obviously I know people who make more than me that drive a 2006 Camry haha. I like cool cars/suv so I try and buy the coolest vehicle to me that makes financial sense.
that 2017 4runner was not cheap even back in 2017 compared to a econobox sedan in 2017. so it's not quite apple to potatoes comparison
CAFE (corporate avg fuel economy) is playing a role too. Automakers don't want to hybridize their small cheaper cars unless they are super high volume sellers like Civic or Corolla. So, they just stop selling them to avoid paying the mpg penalty.
When looking at used cars, look at the MSRP for that make and model for that year. Often times dealerships are listing them for the same price as they were brand new. I saw a base model mazda 3 2021 with 22k miles on it today. Listed for 23k, when the car brand new in 2021 was MSRP of 21,635. This was a chip shortage car so it probably sold for 25k+ back then. It had 17 months left on warranty and a brand new mazda 3 you can get for around 25k msrp comes with the full 60 month warranty and new tech features. They want easily 5-6k more than what the car is worth, it was 43 months old when they got it.
1. New cars now (2024) are not as reliable as new cars in 2014. ---- I drive a reliable 2010 Ford Focus. I prefer simple reliable cars.
2. Manufacturers should start selling cars with a full 100,000 mile warranty, not a 60,0000 mile warranty as is common now. Then they would sell more cars.
Got a 12 focus with the 2.0 and 5spd. Solid power train inspite of some stupid electronic stuff going.
Another issue with all new cars having a "luxury focus" is it has more things to break down. More high tech options makes the used car market far more risky when trying to buy one. You never know what your going to get, and if anything breaks it could cost more than your car is worth to try and repair it because it uses propriety hardware or software.
Zoning laws has created a need for a car, which then the power of car lobbying prevents new public transit and so on and so forth.
Having traveled to countries with real public transit then coming back to the US is shocking.
I'm not worried about it. If cars to expensive for me I'll just buy a motorcycle and drive it everywhere I go. Those are cheap enough to just pay cash for and it be brand new with no problems.
An old car will not force your car into the meeting lane because it thinks you're driving into the ditch.
It has happened in Sweden. The road was of bad quality, and the car thought that that meant they were going down into the ditch, so it forced itself into the lane for meeting traffic. Luckily nobody died, but if that car had met a heavy truck just then, that would have been an absolute disaster. cheers! / CS
What gets me is the effect on used car prices. If you wanted something decent-ish -- like a 7-10-year-old Toyota Camry -- I'm sure you're paying 50% more than you did pre-covid. Maybe more.
Given the way things are going, a price reset is likely.
Big problem is ease of loans
Predatory loans in auto have skyrocketted
I want a basic sedan/compact with manual transmission, manual windows, no touch screen, just real basic tech. I just want it reliable. I'd take a new 1983 Corolla if someone would make one.
I bought a new Toyota 4Runner a year ago. I expect to be driving it for another 10-15 years. I financed it for 60 months and paid it off in 12. Depreciation has been fairly low so far and they historically retain their value. I drove my previous car for 15 years. There is nothing wrong with buying a reliable new car, if you plan to keep it. You get into trouble if you want a new car every couple of years.
I agree. I just bought a 2025 limited f150 and paid it off when purchased. I plan on keeping it for 10 years so I don’t mind the high price.
6:49 Fewer. Not Less. Fewer.
The cars are less good. They are selling fewer of them.
She said the average car is $46,000? Here’s the thing… $46k in my bank account makes me a lot happier than the average car. Look at it this way… if you have that kinda money in the bank you can afford just about everything else! Why would you pay that kinda money for a car?
Great points made here. And in turn, repair parts and service become the new demand.
I wanted to give a comparison of prices 2022 to 2024. I’ve been shopping for a Ford F350 regular cab 4x4 in XL trim. I found a new leftover 2022. The base price was $43,760. The base price for the same exact truck, even color, 2024 is $48,815. That almost a 12% price increase in 2 years just on the base truck. Options have gone up. The “extras” that dealers tack on have gone up as well.
We bought a new Subaru Crosstrek in October 2021 for $26,400 out the door, that same vehicle today would be about 20% more expensive just a tad over three years later. Plus we got 1.9% financing, way lower than what you would pay now.
Gotta get that F350 to dominate those parking lots.
@ nah it’s the regular cab, single rear wheel. Fits easily
I don't know if there is so much mandatory electronics in America, but here in Europe, new cars are equipped with a lot of privacy-killing, interfering gadgets, not only because of the high price, but also because many people really don't want it, a bit. like the EV story
I was eyeing a new 718 Cayman, but they start at $73K now! 2 years ago the MSRP started at around $59K. No way I'm paying $15K extra for the exact same car only 2 years later. Even used ones have gone up...used to be around $32K for a later model 987 Cayman, and now even the junkiest 987s can't escape $40K...can't have anything nice at an even slightly reasonable price anymore...
So glad I put some money into Maintenance on my old Jeep earlier this year. I like not having a car payment.
What is left out was the 30 year marketing campaigns to convince consumers to abandon cars in favor of trucks.
Trucks have had a built in 25 percent markup due the "chicken tax" resulting from a trade war in the 60s. A 25 percent duty in imposed on all foreign imports of light trucks. Its one reason why many of the small trucks seen on Japanese roads and European highways never entered the US market. US automakers had a free hand in marking theirs up (no foreign competition), so the margins on them have always been high when compared with cars. The plan was to wean people off of cars and get them into trucks and SUVs. As an added incentive, light trucks are not covered by CAFE requirements present on cars. And the plan worked.
Detroit was right. Cars were discontinued because people stopped buying them. BUT that was in part due to marketing (people being upsold on SUVs and trucks)
The rich can afford new cars. Many choose not to. Delayed gratification contributes to becoming rich. I have 2012 and 2018 Camrys and I'm a cash buyer. But I have a price in mind to replace my 2012 and Toyota hasn't met it yet. There's nothing wrong with my old cars either.
Why do You pay cash for a depreciating asset? I invest and use the earnings to lease expensive cars. G63 AMG for myself and a BMW x7 for wife. Both one pay leases.
@@satyakammisra Cars are such a minor expense. We have three homes in NH, Boston and Singapore and investments too.
You hit the nail right on the head. I like to live within my means, so I've purchased three new Malibu's over the years. Nice cars that were very affordable and trouble free. Now they are gone as of this month. My last one is a 2022 Premier that listed for 34k. Nice car all things considered. I cannot even wrap my mind around something in the 50-70k range.
You might have to make the jump to Japanese or Korean. They seem to be the only carmakers that care about small, efficient cars anymore. I recently bought a Kia Forte and was pleasantly surprised by the quality after driving GM my whole life.
Why do you need a car? Get a motorcycle, my car battery consistently dies because I never drive it anymore
Motorcycles are dangerous, most people don't want to take the risk. It's also less comfortable and less practical for most.
Rain , weather, safety. Motorcycles are hard to see.
Every year I become increasingly grateful that I bought a 1989 Toyota pickup in 2015 for $1700 cash. Even after another $1500 to rebuild the transmission and replace the clutch it’s still the best investment I’ve ever made. I was briefly considering buying a newer car in 2020 (mostly just a little tired of driving a manual in the city) but after test driving a few disasters on wheels at absurd prices I decided old, reliable, and payment free was the best choice. Now I cannot imagine ever owning any other car.
I've been telling my friends for years based on just looking outside at cars. People have lots and lots and lots of money. Compared to what when I grew up. Right now they got so much money they drove the automakers to change their lineups.
They don't have lots of money. Just lots of debt.
@@kingsamvisuals yes... and the manufacturers don't care where the customer money comes from, as long as it keeps coming.
I bought 3 brand new German cars last year. I bought 2 bmw cars this year. I paid cash so I can unload the cars whenever I want.
My favorite car that I owned was a 2009 Chevy Cobalt. It had 4 cylinders with a 5 speed manual transmission. It had no power windows, no power locks, or power mirrors. It was so basic. I got it used for 3K. It was simple and I liked it that way. It's too bad they don't make them cheap and simple like that anymore.
There's not a new car on the market I'd pay even $5k for. They're all complete garbage.
Define what you mean by "rich." A rich person, by my definition, can definitely afford any mass-produced vehicle they wish.
Also, I understand that a vehicle is transportation and, practically, should not ever be considered an "investment" (much like a house should be viewed in the same manner). A vehicle should depreciate, so why should that be a factor in a purchasing decision for the average person? You're more likely to buy a Hyundai/Kia/Toyota/Honda instead of a limited edition Ferrari that gets trailered to shows. I do not purchase anything with the notion of flipping it or trying to recover my losses in the purchase; it's a used item, enjoy it, and forget about money. Would you flip your used socks or underwear?
Most auto makers have added luxury features to economy cars. Like radar cruise control, heated and cooled seats. Massaged seats, and big displays plus every car now has HID headlights. These are some of the reasons cars cost so much. They can keep them, I’m keeping my old car. It still runs.
My dear,you have spoken true knowledge....going through this as you speak...
Thank goodness the real truth about buying new vehicles is out,, great job.. on explaining the new car and truck market..
The rich can afford new cars. They are rich because they know to put their money where it appreciates, not depreciates.
well said. I am rich and bought a new car recently. A 30k crosstrek. I just do not give a crap, I like a small car and was fed up with my custom order E class, it felt too big. I am considering buying 15-25 year old exotic car, but only with the prospect it holds it s value or increases in value over a decade or two. My wife wants a Cybertruck but now they are $160k cdn here, and I have no use for such a vehicle, esp since it will depreciate like a rock. We have the cash set aside for it but I'd rather not waste it on that. We did not get rich by throwing money away, nor by having car payments lol to say the least.
WEF hard at work!! You’ll own nothing!!!
@@planesandbikes7353hey Im 20 and looking to get rich/wealthy . Do you have adivine for me to be rich like you (currently college student to become automotive tech
Except for cars.
Eh, the rich are rich because they have high incomes and invest.
I bought a small box of mashed potatoes recently and it was $16.
If no one bought high trim, high margin vehicles, manufacturers wouldn't make them. Corporations are catering to the market; they aren't charities working for the greater good. You can absolutely buy a decent reliable appliance-like car for 20k to 25k, like an Accord or Civic or Camry. Price inflation is a direct result of the money supply, and by proxy government spending. Car manufacturers neither control the money supply or government spending. I'm not sure "corporate greed" is a thing and if it is, it applies to all corporations and is simply part of the market economy . For transparency, I don't work for the government, or anything related to cards. Otherwise, I agree with everything you said!
From a supply demand perspective, the current auto industry has been unsustainable for a few years. I'm curious to see where this ends up, and I'll sit on the sidelines until the dust settles.
Nobody buys a car because of the price. It has to fit a budget but the real reason we buy a car is because they are beautiful and they make you feel good. Ex. Do you see Rolex going for a discounted price? Are they going out of business?
My retired in-laws here in Eastern Europe recently bought a new Dacia Sandero for 11'000 Euros, by the time they went after their pre-paid car, price was up to 12'000 for new customers, so they made it in time and saved a whole thousand, now the price is up to 14'190 Euros.
Nice job, Aubrey. Thank you!
Plus, the cars available today are boring and uninspiring. I need a new car, but there's nothing I really want.
Excellent video. In my view, no one should be buying any new car, ever, until the privacy invasive tactics with regard to data collection are ended. Personal vehicles that "legally" spy on you and then sell off the data collection creates potential large scale problems that I don't think people are fully considering and should absolutely not want to be a part of.
Electric cars will also make owning a used car unaffordable. Even though they depreciate quickly and my be initially cheaper battery replacement in old electric vehicles will make owning one unaffordable for lower income folks. It seems like the US may end up like Cuba where they have kept old, classic cars running forever.
Nobody is buying new car until it's absolute nessesary....... Barath south.
Without new cars there are no used cars. Customers will return to new car markets when the used car supply dries up.
Weirdly enough i just dont care about cars much anymore, this coming from a 48 year old engineer who used to follow every new release on the market with a magnifying-glass
Maybe the rich can't afford a new car but a wealthy person like me just last year purchased a Dawn. Love to lord over the common people when I park at the gym. Don't fret, it's paid for.
Get the unnecessary tech out of cars. All it does is add more failure points and expense, and makes the cars impossible to maintain yourself. We've been driving for decades without lane assist, adaptive cruise control, adaptive headlights. Totally unnecessary.
Tons of brand new Elantras for sale for 23k. 10 year drive train warranty. Cars are definitely expensive, but I think we as a society also aren't willing to compromise on what we want because people want a Mercedes instead of a Hyundai.
Good luck collecting that warranty, they are renown for weaseling themselves out of warranty claims. Will cost you more in lawyer fees than paying to replace the engine yourself.
Hyundai weasels out of their warranty work, resale value is crap, insurance is expensive because of the Kiaboyz bullshit, and most Kia/Hyundai models aren't particularly reliable.
I'm mechanically inclined. I generally buy used trucks with easy to fix problems that cost a lot to fix at a shop. Fix them and usually get about 5 - 6 years out of them for 1/10th the cost of even used trucks. On average learning how to fix vehicles is not that hard. I don't like doing it for the most part but a good skill to learn. Heck even doing your own brakes will save thousands over the life of a car.
The only reason I’m buying now is the tax incentive & LOOMING tariffs increasing prices 🤯
The car’s made now are also more complex and have more standard features than cars of the past. Also hikes up the prices
i'm down to buying rebuilts. everything is cheaper and as long as the car hasn't had frame damage then i have no problem with that. the main problem is even rebuilts are getting expensive. the other issue with ALL cars is the sheer amount of electrical nonsense that breaks down far more often than mechanical break downs
New cars are junk, my mechanic says he sees lots of cars that are dead at less than 40,000 miles
Any time I ever tried to buy a lightly used car (5 or less years; 50K or less miles), I found that it was barely any different in cost than just buying a new car. "Certified Pre-Owned" is a 5c@m, many of them are former rental cars. And cash for clunkers depleted the used market a lot.
So I always end up buying new.
The feature I want in a car is RELIABILTY Keep your heated steering wheel
I bought an Amish horse and buggy. 1 horsepower with low maintenance. Pooper scooper, a bag of oats, change horse shoes as needed. No gasoline, no electric. No electronic or chip and sensor issues. Low insurance. To me it's just horse sense.
Fun fact, a horse can produce up to 15hp.
Can heat your house by burning the horse's exhaust too.
they tried selling smaller cars in the early 60s (Nova/Fairlane/Dart, etc.) they tried again in the 70s (Pinto/Vega/Colt.) Americans have consistently rejected these types of vehicles for 60 years. we want cars that are either big, luxurious or fast - preferably all 3. and that sweatshirt on you and your hair - oh my god!!! 😍🥰😘
I’d argue that average income and average new car price are two very different stats that can’t be compared to one another. The preferences of new car shoppers continue to trend upmarket, which is a major factor that’s contributed to the higher average price. If you compare one of the most popular cars of 25 years ago (Honda Accord) with a new Civic (they’re the same size), a new Civic, adjusted for inflation, is cheaper, safer, and much better equipped.
IDK if days are 'over' for getting high value used luxury car. I am seeing a 2021 BMW 330e with 22,000 miles outside of Boston for $27,800. And a 2020 Mercedes GLC 300 with 37k for $27,500. Clean title on both. Not under $25k but darn close. You can get a BRAND NEW Toyota Camry (hybrid) for under $30k. Best deal on the market for a new car IMO.
I never buy used cars and switch at below 40k miles on the odo. Last week, I went to Toyota with 60k cash on hand to buy the Tundra TRD Pro. they wanted 78k before tax and I walked out. I'm never buying a Toyota at that price (it was similar at other dealers). I'm looking to buy a used car for the first time and will be keeping my cars for much longer. Our household income is around 300k. I also never make car payments.
Two months ago I bought a 2018 nissan maxima platinum for $13,000 from a seller on facebook marketplace. It only had 40,000 miles on it and was in great mechanical and cosmetic condition. It did have a rebuilt title though which didn't bother me since I checked the vin number.
Siennas are great vehicles you can get an old one that may need some work - 2000s model private buyer and good mechanic- that’s the recipe!
I love your videos, affording a new car isn't possible I rarely see a new cars on the roads.
Let's also note that the interest rates for a used car are double what a new car would be. In some cases, you would be paying the same to by new as you would used.
Totally nuts! Thanks!
Usually prices go down during the winter. Seems prices have risen this year.
Yeah, I’ll just keep my daily 20 year old V10TDI that has only needed an alternator and a fuel pump in 7 years. Still breaks less than a new car with 6 less cylinders and a thousand fewer parts.
I guess I’ll keep rebuilding the motors and transmissions on my old hoopties 😂
Thank you, Aubrey!
For the past twenty years, the top-selling cars in America have been mid-size sedans, compact SUVs, and full-size trucks. Simply put, Americans do not buy cheap subcompact cars, so car manufacturers stopped making them for the US market. That is part of the reason why the average new car prices are where they are.
Strange that no-one has yet imported Dacias to the USA. Here in the UK you can buy a new one for the equivalent of $18,000.
Well done @AubreyJanik !! You hit the nail on the head; manufacturers prioritizing high trim vehicles over affordable models is wrecking the future of cars. Henry Ford priced his cars so the average worker could buy one; how did we get so far from that idea?!? Please keep making these videos; to many of us, the car market is fascinating. Cheers
The small car problem is typical USA. I could find new car (Fiat Panda, Kia Picanto) for less than 20,000 Euro in the Netherlands and more for around 25,000. Keep in mind that the Netherlands is notorious for high tax on new cars. Belgium or Germany might have lower prices.
You missed the real reason for the high prices. Government regulations is a big reason. Get rid of the CAFE law and most the other laws that raise the price
Yes, the plan was to steer everybody into EV’s if they like it or not.
Baloney. It doesn't cost substantially more to meet CAFE requirements now than it did 5 years ago. It's exactly as she said...supply chain issues due to covid, inflation, and price gouging.
@johnstone7697 wrong. cafe standards go up every year. They actually made the small pickup trucks illegal to make if they don't get almost 70mpg. They are the reason trucks cost so much in trying to meet the standard. It's the other regulations also.
You’re not wrong, CAFE standards definitely impact the cost of a vehicle but those have been in place since the 70s and isn’t the primary driver of today’s car prices. If you look at the shareholder reports of Stellantis and GM (which are the only two I’ve read so this might not apply to the rest of the industry) both companies made a concerted shift a few years ago to focus on high-margin vehicles and deprioritize cheaper cars that require larger volumes to achieve profitability. The legacy auto makers made a choice to chase high-income consumers and it seems like that customer pool has now dried up.
@thejsixm2357 you are wrong on cafe. The law has been around but Clinton changed the regulations once and Obama changed it 2 times. Each time is set to take affect years in the future. Like I said the regulations made small trucks illegal and raised the price on all cars to meet news standards that Obama invented. The companies hard to make all cars weigh less and get better mileage. That cost a lot. An F250 it's half the cost of the truck in regulations now. The companies are robbing us also but getting rid of cafe standards would lower costs a lot.
The ford maverick was going to be a 20k truck but…… you can’t find a used one for anything less than 26k