Are cars overpriced?

[mizzou]

I was looking back at my purchases of cars in 2002, 2004 and 2006. I noticed the same vehicles nowadays are priced 5-10k more then their predecessors.

I remember the old saying that when it cost more to keep your old car running then buying new, it's time to sell. Is it even possible to have that as a saying anymore?

 

[cabri]

Prices have gone up 20%.

So has most every other consumable.

Has your salary increased by 20% over past 10 years?

When repairs are costing as much as a car payment, then replace

 

[MixMasterTang]

On top of what Cabri said cars are more efficient, faster and have much better technology now as well. Cars generally have a small markup, but everyone gets their hand in the pie a little bit!

 

[ultimatebob]

Has your salary increased by 20% over past 10 years?

Yes, but that's only because I changed jobs. Over the past five years, it wasn't really budged. I'll bet that many other people are in the same boat.

 

[squirrel dog]

built into US cars are the retirement and benefits packages for the UAW workers .

 

[senseamp]

Cars are a great deal compared to many other things, because the market is very competitive. Look at how much prescription drugs went up since 2005.

 

[NutBucket]

Or housing for that matter. Honestly car prices haven't moved that much IMHO. In 2005 I got a nicely equipped Legacy for about $25k. Seems to me similar money gets you a well equipped midsize sedan these days too.

 

[shabby]

In my area houses go up 50-100k every year, cars stay the same.

 

[angminas]

I remember the old saying that when it cost more to keep your old car running then buying new, it's time to sell. Is it even possible to have that as a saying anymore?

That's probably a no at least 95% of the time, but people are stupid. Oh, I can't afford to spend $1k on a head gasket...I'd better drop $25k on a new car. After all, it has Bluetooth.

 

[Denly]

Cars are expensive, my last 3 cars are used around 5k mark with "low" mileage and features that I wanted. I sell or scape them when repair cost more than the car.

 

[ultimatebob]

Cars are a great deal compared to many other things, because the market is very competitive. Look at how much prescription drugs went up since 2005.

It's not a great deal if you compare them to say... TV's or computers. Those suckers have dropped in price by more than half since 2005.

 

[RLGL]

Back in the 1960's Campbell's Tomato soup was 10 cents a can. It's a least a buck now. Tp was also at 10 cents a roll.

 

[Jumpem]

Inflation. At just 3% a $30k car becomes a $40k car ten years later.

 

[ultimatebob]

It would be kinda cool if the Chinese could pull off some of their low cost manufacturing magic and made a reliable new car available in the US for under $12,000.

I'd imagine that the tough part would be passing the US safety and emissions laws.

 

[Subyman]

When you look at everything that goes into a car, I think the prices are great. The amount of engineering and metalwork that goes into just the transmission is staggering. How we can walk into a dealership with our slobbering faces, sign a paper, and ignorantly mash two pedals to work our way out of the lot in a highly technical, precise piece of machinery is a grand accomplishment of modern society.

Getting from A to B is still very cheap. Mid-teens cheap. Anything more than that and its your expectations that are driving the price up.

 

[NutBucket]

It would be kinda cool if the Chinese could pull off some of their low cost manufacturing magic and made a reliable new car available in the US for under $12,000.

I'd imagine that the tough part would be passing the US safety and emissions laws.

Would you buy a Chinese car? How long did it take the Koreans to realize they need to produce a product that doesn't compete solely on price? And only then did their sales actually improve.

 

[mizzou]

That's probably a no at least 95% of the time, but people are stupid. Oh, I can't afford to spend $1k on a head gasket...I'd better drop $25k on a new car. After all, it has Bluetooth.

lol so true

 

[nakedfrog]

It would be kinda cool if the Chinese could pull off some of their low cost manufacturing magic and made a reliable new car available in the US for under $12,000.

I'd imagine that the tough part would be passing the US safety and emissions laws.

The Nissan Versa sedan comes in at just over $12k, not too shabby.

 

[ultimatebob]

Would you buy a Chinese car? How long did it take the Koreans to realize they need to produce a product that doesn't compete solely on price? And only then did their sales actually improve.

See, that's the problem. Nobody is really trying to build a car for the cheapskates anymore.

I personally wouldn't want one (especially the first model year!), but there are people who would.

If anything, it would help to keep competing cars like the Nissan Versa cheap.

 

[NutBucket]

See above. The Versa is a decent car and its cheap. We had a Mitsu Mirage rental recently on a business trip. Yes it was dirt slow but I'll take it over any Chinese branded car (note, the Mirage is made in Thailand I believe).

 

[YBS1]

I'd personally be interested in a cheapskate truck. No frills, 4WD, long bed, cheap. I have limited need for a truck, but far less need for fur lined cup holders, nav, heated butt vibrators, etc., in one. I would certainly consider one like above though for 3rd vehicle, occasional use.

 

[ElFenix]

I'd personally be interested in a cheapskate truck. No frills, 4WD, long bed, cheap. I have limited need for a truck, but far less need for fur lined cup holders, nav, heated butt vibrators, etc., in one. I would certainly consider one like above though for 3rd vehicle, occasional use.

long bed 4x4 V8 chevy WT package is $34,000

(granted, trucks seem to have steeper discounts than cars do, so you won't pay that, but still)

 

[Subyman]

You could probably get that truck for ~$26k. However, most stripped trucks do not come with the V8.

 

[maddogchen]

i feel the same model has gone up in size moving it to another class and that is why the price has gone up.

Use to have a Maxima from 96 that was 22k out the door. The Altima is now the same size as the old maxima and so you buy the Altima for 22k out the door. While the Maxima has gotten really big.

 

[ElFenix]

i feel the same model has gone up in size moving it to another class and that is why the price has gone up.

Use to have a Maxima from 96 that was 22k out the door. The Altima is now the same size as the old maxima and so you buy the Altima for 22k out the door. While the Maxima has gotten really big.

the current altima traces its design to what was to be the 2002 maxima. carlos ghosn came in and (correctly) decided that nissan's strategy of a small 4 cylinder only altima and a larger v6 only maxima in the midsize market was stupid. so they put a 4 banger in what was going to be the new maxima and sold it as the altima. that left what to do with the maxima nameplate up in the air, and i don't think nissan has ever really solved that.