Car Market Crash?

[pwd72s]

20 minutes video...and hate this guy's fast speech pattern. However, the message rings true. Considering our ages, and mileage on our cars, Cindy & I are probably done buying cars. Good luck. guys.

[onewhippedpuppy]

The video annoyed me so I didn’t watch it, but it’s just common sense at this point. We have had four years of record breaking inflation, wage growth hasn’t kept pace with cost of living, the average American has more credit card debt and less cash saved than ever before, interest rates are 6%+, and insurance has doubled over the last two years. Meanwhile automakers are focused on higher priced (and higher margin) SUVs, EVs, and luxury vehicles, totally forgetting how to build a decent affordable car. Not to mention prematurely pivoting towards EVs that consumers don’t yet want. So it’s no shock that new car inventories are ticking upwards, month after month. I have several family members that have recently bought new F150s for way under MSRP, and the incentives being offered on many EVs are insane. Automakers have to do something to drive volume, right now they are in a world of hurt.

Personally with the average new car price now $50k, I’ll keep buying used. I don’t do car loans, so I’m happy to buy cars that are a few years old for half the price of new.

[Sooner or later]

Originally Posted by onewhippedpuppy

we have had four years of record breaking inflation

1978-1981?

[zakthor]

Here on the coasts the economy seems ok. I’m really surprised by all the awful looking new cars and swanky giant chrome grilled pickups on the road and how expensive they are.

I always look at the opportunity cost of anything I buy. New car depreciates like crazy but I also miss out on 5-7% per year of lost opportunity on that money. Why am I in such a hurry to buy a new car? Just wait a few years and get it for 2/3 of the price.

[red 928]

Originally Posted by pwd72s

Considering our ages, and mileage on our cars, Cindy & I are probably done buying cars. Good luck. guys.

Same with me,
There was a time when driving 20k miles a year
was no big deal but I'm down to 1/10th that today and
my current car will likely last longer than I do.
I just don't put enough miles on it to wear it out.

[afterburn 549]

At some point the dumb people are going to have to stop rolling yesterday's upside-down loan onto the new car?
At some point, the current dealer system is going to disappear with all the glass and chiselers upselling the crap?
The prices might take a drop to accommodate the new market.
That's what I postulate coming in the mail.
A better cheaper car delivered with no middlemen.

[Billiam 911 2.8]

The auto dealership lobby has been strong, but I think their days of gouging are coming to an end. Demand for new cars seems more variable especially with younger buyers who sometimes do short term rentals or take ride sharing. The car culture seems to be changing and shrinking.