Why are new cars so expensive?

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andyofcolumbusmerkur
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Re: Why are new cars so expensive?

Post by andyofcolumbusmerkur » Tue Dec 03, 2019 6:23 pm

I learned not to get one of the other cars mentioned because young ladies think they are dorky looking. And that if I wanted my very own tesla I need to start uploading videos asap.
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eaton53
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Re: Why are new cars so expensive?

Post by eaton53 » Tue Dec 03, 2019 7:48 pm

andyofcolumbusmerkur wrote:
Tue Dec 03, 2019 6:06 pm
eaton53 wrote:
Tue Dec 03, 2019 11:26 am
Thanks to Tesla, the screens are about to get completely out of hand.
I will never own a car that has a mega screen or that requires a phone to do anything.
I navigate with my phone (the Cruze doesn't have nav), but I don't even have the phone paired to the car.
This young lady seems to really like hers.
https://www.youtube.com/watch?v=aXkqkOFmb_E
I have no interest in them.
Parts and service (if you can even get it) are a monopoly. Once it's out of warranty, there is one source for everything.
Your alternative to paying whatever they want is a driveway ornament. Will any still be working when they're Merkurs age?
The nearest service center is over 200 miles from me. Who knows how long it would take for them to come around?

I'm also not into their austere esthetic, especially at the prices they're charging. A giant screen is not luxury.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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Re: Why are new cars so expensive?

Post by brokencase » Tue Dec 03, 2019 11:13 pm

New cars are so expensive because vehicles are lasting longer and people are holding onto them longer.

The result is a stratification of the entire market.

Many dealers are making more money on the sale of refurbished second hand vehicles than on the sale of new vehicles.
Nowhere is this more evident than with trucks. Used F-150's with 50k-100k miles still demand big money.

But the manufacturers don't make money on the used vehicles. With hungry unions to feed they need to sell new vehicles, but the whole system can only take so many, So the prices have to go up.

Expect things to get worse in this regard. The new electric vehicles require less maintenance and will last even longer.
You will see a lot of outfits re-furbing and flipping them going forward.

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eaton53
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Re: Why are new cars so expensive?

Post by eaton53 » Wed Dec 04, 2019 7:21 am

brokencase wrote:
Tue Dec 03, 2019 11:13 pm
But the manufacturers don't make money on the used vehicles.
They do very well on leases and CPOs sell the returns at a higher price (increasing the residual), so they do profit indirectly from them.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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Re: Why are new cars so expensive?

Post by R Code » Wed Dec 04, 2019 12:19 pm

brokencase wrote:
Tue Dec 03, 2019 11:13 pm
New cars are so expensive because vehicles are lasting longer and people are holding onto them longer.

The result is a stratification of the entire market.

Many dealers are making more money on the sale of refurbished second hand vehicles than on the sale of new vehicles.
Nowhere is this more evident than with trucks. Used F-150's with 50k-100k miles still demand big money.

But the manufacturers don't make money on the used vehicles. With hungry unions to feed they need to sell new vehicles, but the whole system can only take so many, So the prices have to go up.

Expect things to get worse in this regard. The new electric vehicles require less maintenance and will last even longer.
You will see a lot of outfits re-furbing and flipping them going forward.
"the whole system can only take so many, So the prices have to go up."

I'm no economist, BUT you describe an oversupply of new vehicles, along with a dearth of ready consumers, which would make prices go down, not up.
- Chris

'89 XR4Ti (5 speed)
'86 Chevrolet C20
'67 Cougar Std (289/4 speed)
'66 Mustang Coupe (289/Auto) - my wife's 1st car
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andyofcolumbusmerkur
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Re: Why are new cars so expensive?

Post by andyofcolumbusmerkur » Wed Dec 04, 2019 12:37 pm

As long as we pay up they are just going to keep increasing in price.
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brokencase
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Re: Why are new cars so expensive?

Post by brokencase » Thu Dec 05, 2019 12:58 am

That's just it, the overall supply of new/used vehicles is larger. But it is mostly made up of used vehicles (because they are lasting longer).

The new vehicles are a different case. There is less market share for the manufacturers to fight over.

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Re: Why are new cars so expensive?

Post by eaton53 » Fri Dec 06, 2019 8:04 am

Also, everything's a CUV and they command a price premium.
The wife wanted one. She likes the Infiniti QX30, which is the compact CUV that they made in a joint venture with Mercedes.

We found one that was just the way she wanted it, then I said "Now, here's what you can get if you forget about this CUV stuff."
When I showed her the Cadillac we eventually bought, well... there was no comparison.

It's women that are driving sales (and higher prices) of this stuff.
That a sedan at the same price point is going to be 2 or 3 trim levels higher doesn't matter. Gotta be a CUV.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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Re: Why are new cars so expensive?

Post by milehighXR » Sat Dec 07, 2019 3:52 pm

To Op I'd like to know where incomes are going up. Yes interest rates are low, and that is one reason why the cost of a modest house(if you can find one) are insane(at least here in the cow town that used to be Longmont CO).

I see the biggest reason for car prices skyrocketing the way they have been is all this nanny nazi mandated crap, like, TPMS, ABS, SRS, back up cameras, 400 airbags,( and soon to be breathalyzers http://content.time.com/time/business/a ... 93,00.html) not to mention all the wiz bang crap that most(such as myself) don't need, nav, touchscreen, dual zone climate control, voice assistants, self driving features 360° cameras, self braking, etc...

I bought my Fiesta SE back in 2013 as a 2014. Not a bad car, except the trans(I got the auto cuz at the time I didn't want the manual, big mistake if Ida gotten the FiST I wouldn't be gung ho to get rid of it). I got 80k + on it in 6yrs(on 12/28) and it has nothing, but the minimum. No power seats, N/A engine, 2nd lowest entertainment(no touchscreen) analog gauges. It was still $17k. Worth every penny, as it has served it's purpose, get me to and from work everyday without spending all weekend working on one of the specialty cars(of which only one remains) just so I have a car to drive to work.

Having said all that, as soon as I get Naomi back on the road, and pretty(or buy another XR that has a perfect body), I will be selling the Fiesta, and begin the process of buying the wife a used Crosstrek(manual, she's gonna be pissed) or similar. I am not looking forward to paying $$$ for someone to fix that Fiestas trans when it goes out...
Johnny


1 86 XR aka Naomi- my first love, now project car
1 14 black Fiesta SE aka Fiona- my new DD

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andyofcolumbusmerkur
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Re: Why are new cars so expensive?

Post by andyofcolumbusmerkur » Sun Dec 08, 2019 11:42 am

milehighXR wrote:
Sat Dec 07, 2019 3:52 pm
To Op I'd like to know where incomes are going up......
They went up .01% So I guess that was what the news show was talking about.
https://www.cnbc.com/2019/11/01/jobs-re ... -2019.html
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milehighXR
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Re: Why are new cars so expensive?

Post by milehighXR » Sun Dec 08, 2019 2:12 pm

Minus the costs of everything I mentioned above skyrocketing, and that means we're down 99.99% :roll: :lol: :roll:
Johnny


1 86 XR aka Naomi- my first love, now project car
1 14 black Fiesta SE aka Fiona- my new DD

DCLXVI

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