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Started By
Message
re: WSJ: Car Prices Might Be Unsustainable for Buyers
Posted on 8/21/23 at 2:25 pm to Sterling Archer
Posted on 8/21/23 at 2:25 pm to Sterling Archer
There’s a lot of people making a lot of money currently in this country and a lot of people making 50-60k a year. It’s why so many of us are out there saying “who’s buying these $80k trucks and buying these $500k homes at 7% interest”. But yet the new $150k Cadillacs have a wait list.
The big problem is the pandemic taught companies, including automakers, that they can make less product and sell it for more and make as much or more money. Simultaneously shutting down plants and decreasing payroll. It was a huge shift from the status quo of attack all markets with quantity and reach as many consumers as you can for so many decades.
The low income, lower middle class is being dumped. Companies don’t need you anymore. There’s enough people out there making $300k as a household that increased grocery prices and car prices may bother but don’t actually cause them real trouble.
Now automakers are ditching the cars for your average person and just cranking out $50k+ models.
The big problem is the pandemic taught companies, including automakers, that they can make less product and sell it for more and make as much or more money. Simultaneously shutting down plants and decreasing payroll. It was a huge shift from the status quo of attack all markets with quantity and reach as many consumers as you can for so many decades.
The low income, lower middle class is being dumped. Companies don’t need you anymore. There’s enough people out there making $300k as a household that increased grocery prices and car prices may bother but don’t actually cause them real trouble.
Now automakers are ditching the cars for your average person and just cranking out $50k+ models.
3
Posted on 8/21/23 at 2:27 pm to BROpaneTANK
quote:
Simultaneously shutting down plants and decreasing payroll.
Payroll isn't decreasing anywhere.
Maybe plants are shutting down. But I have not heard a lot about recent shutdowns myself.
Posted on 8/21/23 at 2:27 pm to Sterling Archer
Fun fact: It isn’t just cars. The purchasing power of our dollars has been severely degraded the last two and a half years.
Posted on 8/21/23 at 2:28 pm to BoogaBear
quote:
Bought my 2020 ram 1500 Laramie for 42k in 2020. Same truck MSRP is 72k now.
Ain't no way you're comparing apples to apples. I have a 2015 F150 Platinum. Sticker on it was $61k. Optioning one out today as close to mine as possible is $71.4k.
quote:
There are used suburbans going for more than we paid for my wife's 22.
You're ignoring that you likely bought a discount relative to MSRP where as that has gone away in some segments, much lie you're telling me your truck was $42k when the sticker was likely $10k-$15k higher. Again, there is no need to exaggerate. Reality is bad enough.
Posted on 8/21/23 at 2:29 pm to dlambe5
quote:
F150 Lariat
28 of them above $69k
the lack of reading comprehension here is something
Posted on 8/21/23 at 2:29 pm to NIH
quote:
You’d swear the OT was some Dave Ramsey offshoot.
Has nothing to do with Ramsey. Has everything to do with simple economics of supply and demand.
Posted on 8/21/23 at 2:30 pm to LSUtiger89
I wish the prices would drop quickly. It makes you sick when you see the price of a used vehicle being sold for more than the original price it was bought for. We are looking for a vehicle for our 16 year old and the used cars with lower mileage are all $16k-$24k and then you have some of the new cars (Nissan Versa, Chevy Trax) you can buy for that same price. We never thought we would be spending this much for her first vehicle.
Posted on 8/21/23 at 2:30 pm to dukke v
quote:
You don’t think so??? Why do the oil companies have to make so so so much money???? Like I said they can cut the consumers a break and keep it at a flat rate
And still make a killing.
They are trying to keep a profit margin of roughly 3% above their cost of business.
That's how much it costs to get them to wake up and go to work each morning.
No one is gouging anyone. Gas companies have risk of losing money as they target the 3% return.
Your property tax collector probably keeps 2% and has zero risk of losing money. That's the government for you.
Posted on 8/21/23 at 2:30 pm to GetCocky11
quote:
I'd be ecstatic if my 2016 Rav4 lasts until 2036.
I'm rolling my 2012 Tundra with 210k on it for as long as possible.
This post was edited on 8/21/23 at 2:38 pm
Posted on 8/21/23 at 2:30 pm to Sterling Archer
We're such a spoiled rotten country today. We've crossed the Rubicon.
Posted on 8/21/23 at 2:30 pm to St Augustine
quote:
I got an xlt in 2016 as well for the exact same price. Then I got 10k for my Tacoma that had 125k miles on it from a private buyer. We didn’t know how good we had it
I agree, but I traded it in 2021 when the prices were skyhigh, and got $37K for it, so it works both ways when the timing is right.
Posted on 8/21/23 at 2:32 pm to BROpaneTANK
quote:
There’s a lot of people making a lot of money currently in this country and a lot of people making 50-60k a year.
And this wasn’t the case 5 years ago?
Posted on 8/21/23 at 2:32 pm to TDTOM
quote:
This, Merceded GLE and the volvo are what we are looking at. I did not know about the wireless carplay. That is dumb.
It was a few months ago when we test drove it and the sales guy said they "might" be coming out with a software update for it.
But car salesmen are full of shite
Posted on 8/21/23 at 2:35 pm to LNCHBOX
quote:
You're ignoring that you likely bought a discount relative to MSRP where as that has gone away in some segments, much lie you're telling me your truck was $42k when the sticker was likely $10k-$15k higher. Again, there is no need to exaggerate. Reality is bad enough.
Sticker for my ram was 52k when I bought it. That's not what I paid, my assumption is that people are still not purchasing vehicles well below MSRP like pre COVID. Wasn't trying to exaggerate, and either way the MSRP is 20k higher just 3 years later.
And no, my wife's suburban we purchased in 2022 and we paid exactly MSRP of 68k. There are used ones with the same options going for over 70k now.
Posted on 8/21/23 at 2:36 pm to Sterling Archer
It’s not cheap to keep up with the Baw Life.
Posted on 8/21/23 at 2:38 pm to BoogaBear
quote:
and either way the MSRP is 20k higher just 3 years later.
Again, no way you're comparing apples to apples.
quote:
And no, my wife's suburban we purchased in 2022 and we paid exactly MSRP of 68k. There are used ones with the same options going for over 70k now.
So used ones are selling over new sticker? Seems unlikely. Who would buy that?
This post was edited on 8/21/23 at 2:40 pm
Posted on 8/21/23 at 2:40 pm to Sterling Archer
Do y’all think a 2022 Toyota Highlander for $30k is a good deal? Have 28k miles on it. Record on it is clean from vin lookup. Would be buying from a dealership
This post was edited on 8/21/23 at 2:42 pm
Posted on 8/21/23 at 2:44 pm to LSUtiger89
I understand supply and demand. I am just amused at the sanctimonious crowd here knowing that the majority of these folks are likely buying new cars.
Posted on 8/21/23 at 2:49 pm to Sterling Archer
OP excluded the best part of the article
quote:
The squeeze faced by borrowers might soon ratchet tighter, with a payment holiday for student loans set to expire at the end of the month. According to credit-reporting agency TransUnion, more than a third of consumers with student loans took on new auto loans during the pandemic.
Posted on 8/21/23 at 2:50 pm to Sterling Archer
As part of my compensation, I receive a monthly vehicle allowance. It stipulates my vehicle has to be less than 5 years old and under 200,000 miles. I wish I could lease but mileage would kill me. So, I’m stuck having to buy a new full size crew cab truck or full size SUV (they have a list we can choose from), and even though the vehicle allowance is over $700, by the time you factor in insurance, I’m still having to come out of pocket some.
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