Wait, minivans are now $45,000 cars?

[Anonymous]

Anonymous wrote:Vans are pretty nice. This one costs $400k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I guess I don’t think it’s that crazy, compared to the cost of other cars? They’re all fairly expensive these days.

Salaries are definitely not keeping up. $45k cars used to mean you had very large salaries. Yet your middle class family is now supposed to be paying $45k? For a minivan. No wonder Americans have to stupidly finance cars for 6-7 years of payments these days.

Most middle class families don’t need a minivan. No one with fewer than 4 kids does. Sure, they may WANT a minivan, but it’s not necessary.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Car prices have gone up a lot. We paid almost 29,000 for an Odyssey in 2008.

That’s 14 years ago!

Seriously!! PP is driving around in an antique.

[Anonymous]

3 years ago I paid $26,000 for a new Dodge Grand Caravan

[Anonymous]

This is why I am leasing a sports car. Cars are way too expensive to buy right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I guess I don’t think it’s that crazy, compared to the cost of other cars? They’re all fairly expensive these days.

Salaries are definitely not keeping up. $45k cars used to mean you had very large salaries. Yet your middle class family is now supposed to be paying $45k? For a minivan. No wonder Americans have to stupidly finance cars for 6-7 years of payments these days.

It's actually not stupid at all to finance a car at what interest rates have been. I was just able to qualify for a 2.2% 5 year loan when inflation is 6%. I paid cash anyway (97k) because the loan preapproval didn't come through in time, but it probably would have been a better financial decision to keep my money invested and use the loan.

It isn’t the financing itself but now people are borrowing for like six or seven years which is nuts.

[Anonymous]

Look at a 1-2 year old Chrysler Pacifica. I bought mine, with tons of whistles and bells when it was a year old and paid $21,000. Much more affordable than new.

[Anonymous]

It's insane.

I am over cars. We kept our older one for years and went to one car for awhile. Finally had to get a second vehicle and have a car payment and I hate it. I will drive something old and dependable before I do the car payment thing again.

[Anonymous]

The Odyssey is a nice car, I can't justify the cost for my small family but I'd like one. They come in electric too.

My basic Subaru was $30k, 9 years ago. Cars are expensive.

[Anonymous]

I agree, OP. It’s insane.

It’s crazy we accept it like it’s normal, and no one asks how much it costs to MAKE a car. It could cost $1000 or $15000. We have no idea of the markup.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I guess I don’t think it’s that crazy, compared to the cost of other cars? They’re all fairly expensive these days.

Salaries are definitely not keeping up. $45k cars used to mean you had very large salaries. Yet your middle class family is now supposed to be paying $45k? For a minivan. No wonder Americans have to stupidly finance cars for 6-7 years of payments these days.

It's actually not stupid at all to finance a car at what interest rates have been. I was just able to qualify for a 2.2% 5 year loan when inflation is 6%. I paid cash anyway (97k) because the loan preapproval didn't come through in time, but it probably would have been a better financial decision to keep my money invested and use the loan.

No, you are missing the forest for the trees. Financing a car for 6-7 years IS stupid, because in the end it is just another monthly bill. You are dumping 7 years of payments into a depreciating money hole. If you had 3-4 years of payments only then obviously you'd have 3-4 more years of being loan free to build savings or invest. Focusing on the interest rate only ignores the opportunity cost of tying your money up for so long into stupid car payments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I guess I don’t think it’s that crazy, compared to the cost of other cars? They’re all fairly expensive these days.

Salaries are definitely not keeping up. $45k cars used to mean you had very large salaries. Yet your middle class family is now supposed to be paying $45k? For a minivan. No wonder Americans have to stupidly finance cars for 6-7 years of payments these days.

It's actually not stupid at all to finance a car at what interest rates have been. I was just able to qualify for a 2.2% 5 year loan when inflation is 6%. I paid cash anyway (97k) because the loan preapproval didn't come through in time, but it probably would have been a better financial decision to keep my money invested and use the loan.

No, you are missing the forest for the trees. Financing a car for 6-7 years IS stupid, because in the end it is just another monthly bill. You are dumping 7 years of payments into a depreciating money hole. If you had 3-4 years of payments only then obviously you'd have 3-4 more years of being loan free to build savings or invest. Focusing on the interest rate only ignores the opportunity cost of tying your money up for so long into stupid car payments.

Disagree. I'm not missing anything. If you can invest 45k in a diversified portfolio earning 6% per year for 7 years, while paying the 45k car loan at 2.2% for 7 years, you have now made even MORE money (3.8% per year cumulatively). Technically you should take a 100 year car loan in this circumstance

[Anonymous]

They are in high demand these days! An acquaintance just bought one that is in transport after calling 20 dealers in their area and none having any in stock. The dealer tried to up charge them and add a new fee. They negotiated down to MSRP and felt good about their "deal!"

[Anonymous]

You don't need a minivan, OP. You can fit two carseats in a Honda Civic.

[Anonymous]

Anonymous wrote:Look at a 1-2 year old Chrysler Pacifica. I bought mine, with tons of whistles and bells when it was a year old and paid $21,000. Much more affordable than new.

No one is getting a good deal on used cars right now.