"Why are new cars so expensive?" [video]

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It's got that millennial spin to it, but inflation adjusted dollars don't lie and we've seen the prevalence of 72+ month loans.

(I'd settle for slightly less mandatory safety features if it made cars about $10K cheaper than they currently are now though)
 
This is why I can't get rid of the old GMC in my sig-every 1 ton SRW pickup or van I've looked at for roughly $5-6K is in mechanically WORSE shape than it is! Which is a direct result of the overinflated prices of new ones.
 
My guess is the devil is in the details. You can easily fudge the numbers to make your point, and I don't know which numbers are correct. For example, here is another set of numbers, this one claiming that in real dollars, the cost of a car hasn't changed much since the 60s:
https://wgntv.com/2016/04/25/the-av...w-much-was-a-car-the-year-you-were-born/


All this mandatory safety equipment and all the creature comforts aren't free, that's for sure.
 
More dual incomes. First it was Gen X women working more than Boomer women, now it is Millennial DINKs.

Inflation, safety, technology, etc are all smokescreens. Old cars were the safest and most advanced when they were new, too. Cost of living has far outstripped simple inflation, and housing prices and new car prices illustrate this more than anything.
 
As I understand it, there are three factors that increase content and drive up the price of cars.

1. Government mandated safety and emissions.
2. Consumer demand for more content.
3. Manufacturers adding more features to a car, regardless of consumer desires.
 
Originally Posted by Kestas
As I understand it, there are three factors that increase content and drive up the price of cars.

1. Government mandated safety and emissions.
2. Consumer demand for more content.
3. Manufacturers adding more features to a car, regardless of consumer desires.


4. Unnecessary optional $8000 ‘glitter and glam' package that buyers absolutely must have...
 
It comes back to consumer accepting it and also accepting loan term loans to acquire a vehicle.

I prefer a modern base model vehicle over past years even luxury ones. The features that add to enjoyment are there like great easy car entertainment(Apple play), really low interior noise levels and incredible efficiency/power.
 
Excluding full size trucks
get rid of "chicken tax" and make emissions and crash tests reciprocal between 1st world nations like the Euro zone, US and Japan and small car/truck prices would drop overnight.

Big stuff I'm afraid you would still pay $80 large
 
longer loan terms allows car companies to raise prices,

and crazy packages, such on the Nissan Frontier, a old, obsolete design, still offering the decal package for $500. I would pay more for LED headlights and fogs.
 
Car prices have kept pace with inflation. Everytime a topic like this comes up here I am reminded how the average member here does not pay attention to the modern world.


Someone want to post Clint Black is country and nothing after him happened?
 
Originally Posted by dave1251
Car prices have kept pace with inflation.

Totally agree.
In comparison to Canadian housing prices, the price for new vehicles (regular or exotic) have remained mostly unchanged over the last 15 years or so.

As further proof, take a look at 1:30 sec of the vid posted above.
There you'll see the average price of a Mercedes has DROPPED from the 90's, contrary to what the video is trying to illustrate.
 
Cars are cheap AF. Adjusted for inflation, they are cheaper than their same models 20 years ago (mustang, camaro, etc.) Also they are faster, safer, etc. Same for other classes of vehicle.
 
With regards to these types of comparisons it is important to compare size of vehicle rather than a specific model.

Per the CPI from the BLS

$43k in 2003 equates to $60k in 2019 dollars.

In 2003 this is the approximate cost of my 330i ZHP. The M340i today retails between $60k-$65k. Now the M340i is almost the the exact same size as the 2003 E39 540i. The MSRP for the 540 in 2003 was $55k, it's down 100 hp vs the M340i, and has a lot less tech. Now the current 330i has a MSRP of around $45k, has more tech than the E39 540 but is down approx 45 hp. The current 330i is a steal.

Real income (Purchasing power after inflation) has barely moved.
 
Originally Posted by dave1251
Car prices have kept pace with inflation. Everytime a topic like this comes up here I am reminded how the average member here does not pay attention to the modern world.


Someone want to post Clint Black is country and nothing after him happened?


I will...
 
I think they picked the wrong title for this video. Yes, they explained why car prices have increased, but the point of the video was to highlight why today's cars feel so expensive to the average consumer today. After they explained the changes to cars that justify the increased price, they compare the change in car prices to the change in average income during the same time period and that's where the crux of the video was.
 
Originally Posted by dave1251
Car prices have kept pace with inflation. Everytime a topic like this comes up here I am reminded how the average member here does not pay attention to the modern world.

Someone want to post Clint Black is country and nothing after him happened?

I agree but who is Clint Black?
 
Originally Posted by Ws6
Cars are cheap AF. Adjusted for inflation, they are cheaper than their same models 20 years ago (mustang, camaro, etc.) Also they are faster, safer, etc. Same for other classes of vehicle.


Disagree there has been a few thousand dollar creep in similar models 2000 => 2019. Yes some more feature but the presumption the cost drops on features them as time progresses.
 
Originally Posted by dave1251
Car prices have kept pace with inflation. Everytime a topic like this comes up here I am reminded how the average member here does not pay attention to the modern world.


Someone want to post Clint Black is country and nothing after him happened?



I read this on a comment page about a Conway Twitty video...

" Luke Bryan I haven't heard of her" - Conway Twitty

lol.gif
 
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