Wouldn't rust be an issue there?
Do people in other countries have high milage cars?
- Thread starter Chris142
- Start date
They haven't realized that USD hegemony allows the rest of the world to subsidize American consumption. This make products comparatively cheaper but because domestic labor rates do not benefit as much from this subsidy. Consequently it's cheaper to dump a car and buy new. For example my BMW is worth about $11k. A new transmission would run about ~$5k (labor included).
The other issue is taxes. Vehicles in the US/Canada are not heavily taxed because theres's no extensive national scale public transportation system to subsidize.
If the transmission in your car took a dump, you would trade the car in rather than replace the transmission?
So I just looked at prices. A reman unit would run ~$7k so $8k-9k with labor. I'd have to seriously consider my options because I would take a big hit in the sales price if it were repaired and sold. In fact I'd probably lose money whereas a shop may give my $2k-$3k just to take it off my hands and they'd probably make $4k on it.
So the next question would be is it worth paying $9k for a low mileage 10 yr old BMW in very good condition to sit in my garage vs putting $10k down on a new car which will also sit in my garage.
There is no “subsidy”, EU is simply taxed heavily.
Is that how people in EU cope? Just blame the US?
I admit, $9k for transmission replacement is a bit different than $5k. But, $10k down on a $50k new car still leaves a good bit of balance and likely higher insurance prices, vs just paying $9k to have the existing car good again.
Its an interesting discussion; not sure there are any wrong answers.
You're sort of correct. The USD is the global reserve currency. This global status is why the US has comparatively lower income taxes. Consumption can forever be financed as USD are forever in demand. The benefits of this global status have been in place since Post WW2 Bretton Woods. Big economy, Big military, rule of law = lots of benefits for its citizens.
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Ya. I definitely don't want to be in the position of having to make that decision. ATF fluid change every 50k miles for the win!!! lol.
WW2 did put US as the global economy giant because it was the only country without a destroyed infrastructure. US supplied the money and goods to help rebuild the west and certain parts of Asia. Naturally the standard of living for the US citizens, as well as the US economy skyrocketed as a result.
As far as US dollar being in constant demand, that has nothing with WW2 and everything with the US making a deal with the saudis to trade the oil only in USD in the 70s. Since then every oil producing country that wanted to sell in other currencies was invaded, thus securing the constant supply of USD demand.
Europe is fully on board with this deal, they even help with military operations as coalition forces. So as much as US benefits from this deal, so does the EU.
I would say it started with the Bretton Woods agreement. The petrodollar came into existence because of the "Guns-and-Butter" deficit spending under the Johnson Administration (Vietnam, Medicare). At the time the US was still loosely tied to gold and the Saudis threatened to demand payment in gold due to USD inflation. Nixon closed the gold window and put in place a security guarantee for the Saudis. Petrodollar was born.
It is an issue, however due to mandatory inspection the worst rust buckets are kinda being banned from the road. And there are plenty of people who treat their cars with anti rust treatment to keep rust in check.
Yet they say we will be better off buying an ev that can got 0-60 mph in x seconds (a huge owning point on this forum anyway). Cripe you would have points just driving out of you street. The lunacy has no boundaries whatsoever when it come to the agenda.
