Most Americans Can’t Afford a New Car: Report

[Wingnut]

  I mean really.  What do you want from life. A meaningless love affair with a girl that you met tonight. How can you tell when you're doin' alright. Does your bank account swell while you're dreaming at night?  Well, you can't have that, but if you're an American citizen you are entitled to"
A  brand new car and an Obama phone.....
a heated kidney shaped pool,
a microwave oven--don't watch the food cook,
a Dyna-Gym--I'll personally demonstrate it in the privacy of your own home,
a king-size Titanic unsinkable Molly Brown waterbed with polybendum,
a foolproof plan and an airtight alibi,
real simulated Indian jewelry,
a Gucci shoetree,
a year's supply of antibiotics,
a personally autographed picture of Randy Mantooth
and Bob Dylan's new unlisted phone number,
a beautifully restored 3rd Reich swizzle stick,
Rosemary's baby,
a dream date in kneepads with Paul Williams,
a new Matador, a new mastodon,
a Maverick, a Mustang, a Montego,
a Merc Montclair, a Mark IV, a meteor,
a Mercedes, an MG, or a Malibu,
a Mort Moriarty, a Maserati, a Mac truck,
a Mazda, a new Monza, or a moped,
a Winnebago--Hell, a herd of Winnebago's we're giving 'em away,
or how about a McCulloch chainsaw,
a Las Vegas wedding,
a Mexican divorce,
a solid gold Kama Sutra coffee pot,

[RoosGirl]

The price has become irrelevant because people base their decision on the payment amount. That Ford Escape SE I want is $328 a month. You can buy it for cash for $25k or pay $28.6k to finance it. If you only care about the $328 a month, the price is not a concern. But you can get a nice Escape Titanium for $361 a month. Don't you think you are worth that $33 a month? You can skip going to one movie and pay for that.

LOL.  I don't buy *anything* that way.  But on the rare occasion that we've been in a car dealership I sure have fun with the salesmen that try to push that line.  If it's ONLY $33 more per month then it won't be a big deal for you to take that off the price of the car.  My husband doesn't like dealing with that kind of thing, but he wanted a new Pontiac Solstice when they came out.  The salesman/manager hated me, and hubby thought he was going to lose out on the car he wanted. 

[GrouchoTex]

This is a bit odd to hear.
I listen to a show on Saturdays  in the Houston area called the car pro show, with a guy named Jerry Reynolds, who been in the car business for years.
What they say is that the average new car sells at a $200.00 dollar loss to the dealer, and most of the money is made on used cars and service.
The reason they say that is the case is that most people shop around on the internet before actually going into a dealership, thereby making it more competitive to sell new cars.

[Smokin Joe]

LOL.  I don't buy *anything* that way.  But on the rare occasion that we've been in a car dealership I sure have fun with the salesmen that try to push that line.  If it's ONLY $33 more per month then it won't be a big deal for you to take that off the price of the car.  My husband doesn't like dealing with that kind of thing, but he wanted a new Pontiac Solstice when they came out.  The salesman/manager hated me, and hubby thought he was going to lose out on the car he wanted.

I don't do badly in the average horsetrade, but Mrs. Joe is something to watch (I have learned to just stand there and watch). 

[Cripplecreek]

LOL.  I don't buy *anything* that way.  But on the rare occasion that we've been in a car dealership I sure have fun with the salesmen that try to push that line.  If it's ONLY $33 more per month then it won't be a big deal for you to take that off the price of the car.  My husband doesn't like dealing with that kind of thing, but he wanted a new Pontiac Solstice when they came out.  The salesman/manager hated me, and hubby thought he was going to lose out on the car he wanted.

I'm just never going to pay more than 4 figures for a car.

[Smokin Joe]

I'm just never going to pay more than 4 figures for a car.

LOL! I'm cheap, too...

[Weird Tolkienish Figure]

I'm just never going to pay more than 4 figures for a car.

I find that as soon as a car hits 200K miles though, no matter how well kept for the car is, you will start shelling out major money, unless you do it all yourself. Which may be hard without a lift.

[Cripplecreek]

LOL! I'm cheap, too...

I got a good deal on the Corolla simply because the guy selling it just needed to get it out of his way. His parents bought it for him when he was in college and now he's a resident doctor making Escalade money.

[RoosGirl]

I'm just never going to pay more than 4 figures for a car.

I hear ya.  We bought that in 2007 and still have it.  My other brand new car was a 1999 Chevy Blazer, we still have it.  Hubby switches off driving the two to work.  And I drive the 2008 Expedition, which is the one we bought used.  Hubby is great at maintaining and fixing them, so we have gotten a lot of mileage out of all of them so far.  Actually, I'll be 43 this year and those are the only 3 cars I have owned.  Ooops, I take that back, when I was in college my dad gave me an 1989 Chevy Blazer that I sold when I bought the '99.

[Smokin Joe]

I got a good deal on the Corolla simply because the guy selling it just needed to get it out of his way. His parents bought it for him when he was in college and now he's a resident doctor making Escalade money.

I watch two places: rental vehicle and State auctions (both have vehicles normally well maintained, but often driven a little hard). Still they have miles left on them and are aged out of the fleet based on model year.

And I watch Estate sales. The kids usually have vehicles that are newer, the folks often maintained their vehicles well (you can tell by the rest of the stuff), the vehicles were often garaged, and have relatively low mileage for their model year. For me the question is (for a vehicle that is suitable for my use) how many miles can I get out of this for how much buy in. Sometimes you can get a really good deal.

[Restored]

In 2012, we bought a car for our daughter from a 90 year-old man we knew. 2000 Ford ZX2 with 28k miles on it. He couldn't get out of the car.

[thackney]

In 2012, we bought a car for our daughter from a 90 year-old man we knew. 2000 Ford ZX2 with 28k miles on it. He couldn't get out of the car.

Wow, I would hope you got that at a great price given you had to drive around with a 90 year old man all the time...

[truth_seeker]

Audi A6, Quattro

[Elderberry]

I find that as soon as a car hits 200K miles though, no matter how well kept for the car is, you will start shelling out major money, unless you do it all yourself. Which may be hard without a lift.

Three of my daily drivers have over 200k miles. I do all of my car repairs. No lift. Just a floor jack and jack stands. I had to replace the auto trans in my 98 Z71. That was fun.

[EC]

Three of my daily drivers have over 200k miles. I do all of my car repairs. No lift. Just a floor jack and jack stands. I had to replace the auto trans in my 98 Z71. That was fun.

I used to do all my own repairs. Depends on the repair needed now - I'm too old to be laying in the street.

[GrouchoTex]

Wow, I would hope you got that at a great price given you had to drive around with a 90 year old man all the time...

Yesterday, I shot an elephant in my pajamas.
How he go into my pajamas, I'll never know......

[Smokin Joe]

Audi A6, Quattro

Neighbor has the A4. It blows oil out of the tailpipe...

[Smokin Joe]

I used to do all my own repairs. Depends on the repair needed now - I'm too old to be laying in the street.

I don't think one ever gets too old to be laying in the street. It is just done less on a voluntary basis.

[Elderberry]

I used to do all my own repairs. Depends on the repair needed now - I'm too old to be laying in the street.

I'm just not ready to go the lease route as I have a problem trusting anyone to work on my machines.

[Wingnut]

I don't think one ever gets too old to be laying in the street. It is just done less on a voluntary basis.

You don't have to give it away turning tricks on the street for free.  You still have some value.  If they don't want to pay you, hit'em upside their head with your purse full of quarters!

 

[Weird Tolkienish Figure]

I don't think one ever gets too old to be laying in the street. It is just done less on a voluntary basis.

Ok that was funny. 

[Smokin Joe]

You don't have to give it away turning tricks on the street for free.  You still have some value.  If they don't want to pay you, hit'em upside their head with your purse full of quarters!

 

You got the wrong guy. We were talking about auto mechanics, but thanks for playing. That's wRench, with an 'R'.

[Wingnut]

That's wRench, with an 'R'.

Oh...my bad.   Cheers

[Smokin Joe]

Oh...my bad.   Cheers

MUCH better!

[GrouchoTex]

Oh...my bad.   Cheers

Thanks, I needed that!

[Wingnut]

Thanks, I needed that!

They are sisters.  fyi!

[InHeavenThereIsNoBeer]

Yesterday, I shot an elephant in my pajamas.
How he go into my pajamas, I'll never know......

I came home the other day and my wife met me at the door.

"Take off my dress," she said.  So I did.
"Take off my bra," she said.  So I did.
"Take off my panties," she said.  So I did.

"Now don't ever let me catch you wearing my clothes again!"

[The_Reader_David]

AutoGuide
Jason Siu
June 28, 2017

A new study shows a median-income household can only afford the average-priced new car in one of the 25 largest U.S. metropolitan areas.

The study, conducted by Bankrate, reviews incomes and vehicle costs in the 25 largest metro areas in the U.S. while following the “20/4/10” rule. For those not familiar with the 20/4/10 rule, it says a car buyer should aim to put down at least 20 percent of a vehicle’s purchase price, take out a car loan no longer than four years, and devote no more than 10 percent of annual income to car payments, interest, and insurance.

More... http://www.autoguide.com/auto-news/2017/06/most-americans-can-t-afford-a-new-car-report.html

Well, there's the problem:  seeing that new vehicles sold under Japanese and Korean brands easily last 10 years so the 20/4/10 rule should probably be replaced with a 20/6/10 rule, and they're only looking at the largest metro areas where people don't need average priced cars, since smaller, cheaper models are better in urban environments, the whole study is flawed.

[goodwithagun]

Rant on. And can we talk about phones? All of my coworkers have payment plans for them, and then get a new one when the old one is paid off in two years. Two year phone financing! To top it off, they make fun of my 4S and 10 year old Nissan Titan. I tell them I add another year to my next car purchase date every time somebody asks when I'm getting a new car. My husband and I do well, but that doesn't mean we spend everything we make fer cryin' out loud! Rant off.

[Smokin Joe]

Well, there's the problem:  seeing that new vehicles sold under Japanese and Korean brands easily last 10 years so the 20/4/10 rule should probably be replaced with a 20/6/10 rule, and they're only looking at the largest metro areas where people don't need average priced cars, since smaller, cheaper models are better in urban environments, the whole study is flawed.

Not to mention that 10% disposable income in major metro areas is more money than 10% disposable income out in the boonies, where there is no alternative to driving.

[Frank Cannon]

Audi A6, Quattro

Audi's are only good until the lease ends. Then you throw them away.

[Smokin Joe]

Audi's are only good until the lease ends. Then you throw them away.

LOL! THe neighbor's is a pretty blue. If it had a sunroof it's make a neat planter...

[Restored]

Audi's are only good until the lease ends. Then you throw them away.

It's a Volkswagen that is more expensive to fix.

[Fishrrman]

I bought my first car for cash after I got out of the Army in 1972 -- a '66 VW Campmobile, cost $1,600.

But when I got hired by the railroad in '79, I was down to about $40 cash in the bank, and the 13-year-old VW, which wasn't gonna make it with the amount of driving that would be required.

So I borrowed a few hundred $$$ from my mom, and put the down payment on a new 1979 Honda Accord.

Within 6 months, I had saved enough to pay off the loan.

Since then, I pay cash for all my vehicles (cars and motorcycles while I had them).

Then again, even though I generally "bought new", I've never bought overly-expensive cars, and I kept them as long as I could. For example, I bought a 1993 Acura Integra and kept it for 12 years, and sold it for $400 with 300,000 miles on it.

But when it came time to buy again in 2015, I decided to stop buying "new".
This time around, it was a Toyota Certified Used RAV4, saved about 5,000 from new. It had only 7,400 miles and was literally like new. The drivetrain warranty is longer on their certified used cars, too: 7 years or 100,000 miles, whichever comes first.

No more new cars for me.
Heh. I'm wondering if there are going to be any "more" cars, even so!

[Fishrrman]

Weird wrote:
"Good point but do you pay cash for your house?"

If I buy another one, I'll be paying cash, yeah.
But it won't be anyplace too expensive!

[Weird Tolkienish Figure]

I bought my first car for cash after I got out of the Army in 1972 -- a '66 VW Campmobile, cost $1,600.

But when I got hired by the railroad in '79, I was down to about $40 cash in the bank, and the 13-year-old VW, which wasn't gonna make it with the amount of driving that would be required.

So I borrowed a few hundred $$$ from my mom, and put the down payment on a new 1979 Honda Accord.

Within 6 months, I had saved enough to pay off the loan.

Since then, I pay cash for all my vehicles (cars and motorcycles while I had them).

Then again, even though I generally "bought new", I've never bought overly-expensive cars, and I kept them as long as I could. For example, I bought a 1993 Acura Integra and kept it for 12 years, and sold it for $400 with 300,000 miles on it.

But when it came time to buy again in 2015, I decided to stop buying "new".
This time around, it was a Toyota Certified Used RAV4, saved about 5,000 from new. It had only 7,400 miles and was literally like new. The drivetrain warranty is longer on their certified used cars, too: 7 years or 100,000 miles, whichever comes first.

No more new cars for me.
Heh. I'm wondering if there are going to be any "more" cars, even so!

That's the best time to buy. Right after leaving the lot. Supposedly they lose 10-20% after driving off the lot.