WaPo -- New cars out of reach for many

[Anonymous]

My stepmother has a net worth north of 20m and she drives a 1997 Subaru. Has rebuilt pretty much everything in it. My dad drives a 2010 Mercedes. On the I th er hand they own 4 homes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:At some point, older cars are just not worth the inconvenience and hassle. You have to constantly make repairs, which means time off, and multiple hits to your bank account you cannot predict. Is it worth dumping $10k and all they time into say a $20-25k car?

That's true, but many cars will last 15 years before they get to that point. And when they do, you can replace with a 1-2 year old car and drive that one for 15 years (or even a new car, since apparently used car prices are comparable to new these days). There's absolutely no need to upgrade your car every few years.

This. It’s not the buying a new car per se, it’s the fact that people then swap out a 4 year old car for another new one. Unless you are buying garbage, you should get 10 years easy with no issues. I’ve done nothing to my 10 year old van but standard wear items - battery, tires, brakes, timing belt. All expected and on schedule, no surprises, never been stranded.

[Anonymous]

Yeah I do t really get this. We have a 2012 Subaru that we will replace once we get the dreaded repair that’s so expensive it seems better to buy a new car.. hoping we can eke out another 3 years at least though. Subaru should def last 15 years. We also have a 2019’camry—-our 2014 Prius was rear ended and totaled and I needed to get a new car. Bought in Jan 2020 for about 22k. I would have liked another hybrid but we only got 9k from
Insurance for the Prius…funnily enough my mom sold her used Prius in late 2021 for a really great price because by then the used car market had started to explode../.

We casually started looking at electric cars recently for when the Subaru goes kaput and oh my, many that my friends have are very expensive. Not sure I can justify taking out a loan at current rates for a 50k car.

[Anonymous]

Fix Or Repair Daily

[Anonymous]

How are so many people just working on their cars by themselves? So much of cars today is electronic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But it’s stupid. A new car is just a status symbol. I’m holding on to my 2017 Subaru like it’s a 3% mortgage bc it basically is.

And you think a 2017 is an 'old' car..

Yup. My newest car is from 2008!

I just got rid of my 1997 Honda Civic, and only because I needed a bigger car. The Civic still ran like a dream....

[Anonymous]

I let my friend drive my car the other day. It doesn't have any camera so she had no idea how to parallel park. It was hilarious to watch!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People who buy new cars are either rich or bad with money. Sometimes both.

This used to be true, but cars last a lot longer now and these days buying used is not always a better deal.

+1

I've never purchased a new car, but right now my choice is:

(a) New 3 row SUV in mid-range trim for ~45K.

(b) Same car 2 years used for ~$36K.

I typically keep cars for approximately 8 years, would extend to 10 with a new car.

Looks like pretty much a wash to me:

Used: $36K/8 years = $4,500 per year ownership cost
New: $45K/10 years = $4,500 per year ownership cost

I assume residual value after ownership would be roughly a wash.

And with a new car, you know what you are getting. I always question why someone would be selling an originally $45K car after 2 years? Whats wrong with it? IMO much better to buy new and have the full warranty.

You know what you're getting all right...ripped off. There is nothing wrong with buying a new car, but anyone somewhat knowledgable about cars can get a much better deal on a used car purchased from a private party. I've bought 3-5 year old Corollas and Camrys at a cost of approx 50% of retail. Most bit the dust around 300-350k miles. This was several years ago, so maybe things have changed since the pandemic and all of the supply chain issues.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This article depressed me. The big takeaway for me is that car manufacturers are doing away with entry level models. DD is graduating college and will need to purchase a car. She’s been saving for a down payment but she will never be able to afford something new at these prices and interest rates. DH has spent months looking for a safe and reliable used car for her but those prices are insane and forget about financing it.

They're not doing away with entry level models. However, while supply chains remain constrained, and they can only manufacture a certain number, they need to focus on the most profitable ones for now.

Maybe you haven’t paid attention in the last couple of years. They are actually doing away with entry level models.
Ford and GM used to sell small and cheap entry level cars like the Ford Focus or Chevy Cruze. They have been discontinued.
The entry level Ford is now the Ford Escape, an SUV.
Japanese brands will soon follow. The Honda Civic and Toyota Corolla will be discontinued in the US and replaced with their SUV-like versions.
Manufacturers figure that they can take a car, make it slightly bigger and raise the ground clearance, and sell if for $10k more.

Volkswagen Jetta $20k
Hyundai Elantra $20k
Nissan Kicks $20k
Nissan Sentra $19k
Kia Soul $19k
Subaru Impreza $19k
Kia Forte $19k
Hyundai Venue $19k
Kia Rio $16k
Mitsubishi Mirage $16k
Hyundai Accent $16k
Nissan Versa $15k

https://cars.usnews.com/cars-trucks/advice/cheapest-cars-on-the-market?slide=3

Well these prices don’t seem very accurate, at all.

There is a used Jetta for sale near me with 60k miles on it selling for $19,980

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People who buy new cars are either rich or bad with money. Sometimes both.

This used to be true, but cars last a lot longer now and these days buying used is not always a better deal.

+1

I've never purchased a new car, but right now my choice is:

(a) New 3 row SUV in mid-range trim for ~45K.

(b) Same car 2 years used for ~$36K.

I typically keep cars for approximately 8 years, would extend to 10 with a new car.

Looks like pretty much a wash to me:

Used: $36K/8 years = $4,500 per year ownership cost
New: $45K/10 years = $4,500 per year ownership cost

I assume residual value after ownership would be roughly a wash.

.

That is not the right calculation. You need to subtract the residual value. If the residual value is 16k. Your annual cost is 2500 for used and 2900 for new

[Anonymous]

Anonymous wrote:Some car don’t depreciate that quickly or it’s hard to find good quality use ones. Unless I know the previous owner/car history I am hesitant to buy anything more than two years old used now.

For example People that buy Subarus tend to hang on to them for a long time. In the past their have typically been few good used options.

There is no need to limit yourself to 2 year old cars for that reason. Many manufacturers offer an extended for warranty for their used cars.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm a little aggravated by this article (or at least the headline). Yes, a new car was part of the American "dream" -- but by definition that meant it was always out of reach for many. I remember the first time my parents bought a new car (in the 1970s) and how thrilled they were -- they were almost 50 and had decent jobs. People in the 1960s, and 70s bought used cars and fixed them up or made do. Then everything got exported to cheaper countries, and financing became ridiculously cheap, and all of a sudden you had new cars become the norm for teenagers and 20-somethings. Unfortunately, during that time period, people became really snotty about cars, so now it's considered failing not to have a nice new car. I recall in the 70s, it was not uncommon for someone to have a car up on blocks in their driveway, even in a middle class neighborhood. Now that's the kind of thing that would have you on the HOA list.
I'm 50, so I guess that's old to some people, but I have a recurring pet peeve that people seem to not realize that the consumer opulence of the past several decades was an anomaly and probably due for a course correction.

(And none of this takes away from the fact that the depression of American wages for the working and middle class over the past several decades is an awful thing for our country. But the two are rather connected -- we exported good manufacturing jobs to cheaper countries in order to get cheap consumer goods, but in the process hollowed out our working/middle class.)

You're ignoring regional influence. One of my siblings lived in the rust belt for decades and when spouse and I moved to this area my sibling was stunned by the number of new shiny expensive cars here. It looks very different if you drive around different areas of the country. Where my mom lives, you still see mostly American modest cars.

It always amazes me the sheer ignorance of the typical affluent urban poster on this site. We have a house in the mountains and NOBDODY and I mean NOBODY buys new cars. This “travesty” of shiny new cars that is unaffordable is a symptom of affluenza. My in-laws live in South Carolina in a fixed income and my FIL still drives the same car he bought the year DH and I got married in 2004. He simply works on it himself. He’s kept that running for minimal amounts of money.

The average DCUM poster is a caricature you’d expect read for fun about in the Onion.

Of course they don’t buy new cars in the mountains. They just buy new trucks

[Anonymous]

I am not a fan of gimmicks but it can be argued that newer cars are much safer than older cars with all the new technology. I wouldn’t put my wife in something that isn’t safe. There are just too many bad and/or uninsured drivers out there in the cities/suburbs and highways.

My current beater car is 14 years old. My wife’s car which we use for all family driving on weekends is 4 years old with more modern safety features.

I think it is important to have a good balance when dealing with cars. Nostalgia and penny pinching can get in the way sometimes.

[Anonymous]

Anonymous wrote:I am not a fan of gimmicks but it can be argued that newer cars are much safer than older cars with all the new technology. I wouldn’t put my wife in something that isn’t safe. There are just too many bad and/or uninsured drivers out there in the cities/suburbs and highways.

My current beater car is 14 years old. My wife’s car which we use for all family driving on weekends is 4 years old with more modern safety features.

I think it is important to have a good balance when dealing with cars. Nostalgia and penny pinching can get in the way sometimes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People who buy new cars are either rich or bad with money. Sometimes both.

This used to be true, but cars last a lot longer now and these days buying used is not always a better deal.

+1

I've never purchased a new car, but right now my choice is:

(a) New 3 row SUV in mid-range trim for ~45K.

(b) Same car 2 years used for ~$36K.

I typically keep cars for approximately 8 years, would extend to 10 with a new car.

Looks like pretty much a wash to me:

Used: $36K/8 years = $4,500 per year ownership cost
New: $45K/10 years = $4,500 per year ownership cost

I assume residual value after ownership would be roughly a wash.

And with a new car, you know what you are getting. I always question why someone would be selling an originally $45K car after 2 years? Whats wrong with it? IMO much better to buy new and have the full warranty.

You know what you're getting all right...ripped off. There is nothing wrong with buying a new car, but anyone somewhat knowledgable about cars can get a much better deal on a used car purchased from a private party. I've bought 3-5 year old Corollas and Camrys at a cost of approx 50% of retail. Most bit the dust around 300-350k miles. This was several years ago, so maybe things have changed since the pandemic and all of the supply chain issues.

The used car market has been much tighter during the pandemic- we just couldn't make it make sense last summer. It was not worth dumping more $$ for repairs into our 2001 car, but 3-5yo cars just weren't that discounted enough to be worthwhile, especially if the warranty was done. People were even selling 1-2yo Subarus for the exact price we ended up purchasing new from the dealership.