It’s crazy how quickly cars and many other things are escalating.
At the same time, incentive spending is at record lows
JEREMY KORZENIEWSKI
Oct 13th 2021
autoblog.com

The average transaction price for a new vehicle in America hit a record of $45,031 in September. It's the sixth consecutive month of record vehicle prices, according to Kelley Blue Book. That price represents a 12.1% increase (or $4,872 in cold, hard cash) over the same month a year ago and a 3.7% increase over the prior month.

(The federal government, meanwhile, calculates new-car prices are up 8.7% year over year.)

The reasons for the rapidly increasing prices of new vehicles are well documented, with inventory shortages caused by a lack of microchip availability cited as the latest problem. Last month, however, consumer buying preferences were also to blame; KBB reports that "the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market."

So inflation indeed impacts everything. Let’s go Brandon!

LETS GO BRANDON!!!…all this shit trickles, excuse me, floods down to “Brandon”…sorry for the interjection of Politics…but it is what it is

Yes, this is inflation.

Where were the articles when the average fast-food combo shot north of $10?

We can't explain what's happening! OMG!

Stupid assholes.

Was at the grocery store yesterday and the snack size bag of chips at the check out were “on sale” for $2.39!

When gas goes up, EVERYTHING goes up.

It’s not just inflation. The herd buyer wants everything now. They want ADAS (Automated driving assistance systems) on it because “Oh it’s safe”, yeah, safe(r) for your dumbass to surf your phone while you drive. They want a giant screen in the vehicle. See current Dodge Ram, Tesla, Subaru, actually too many to list. They want every mod con there is. Oooooh heated and cooled seats! I want LED’s that shine below the doors cuz I can’t see! And it needs to have WiFi! So now mfr’s are putting 4G LTE or 5G hot spots in the car. Add all this up and it means more chips, more computers, more weight, more bullshit, and most importantly, more cost! It’s like 50k or more to get a mid level equipped full size truck now. I had to go to a compact truck as I’m not paying that unless it’s race car like fast and even then it’d be a one time bucket list buy and would be my Gran Torino, for life.

Your basic truck, car, etc, bare bones, is getting rarer. Even what would be considered entry entry level vehicles, like a Civic, are 30k now. Smaller vehicles like the Fit, are extinct.

And wages or salaries in my sector are still based on 2001. Say you can stay at a company for 10 or 20 years. Get your annual 2-3% raise. After enough time, or higher income, or age, they come up with a reason to push people out. Oh you’re over 50 make X amount or been here X years, mandatory retirement. Seen it happen. Meanwhile the kids at the local burger joint are being paid $15 an hour.

It’s not just cars being ridiculous in price. Phones are a grand. Hell my desktop is less expensive. Give it more time. The younger generations aren’t going to buy it unless it’s techno-wizardry and drives itself so they can surf on their phones while the car drives itself. More and more automation coming so if you want something, and can find a model or trim without Hal9000, buy it soon. The vehicle you drive yourself, especially ones that are holy (manuals) where you have to shift gears yourself, are going extinct.

The chip shortage is a lot to blame for this (electronic, not potato haha). Used cars are also going for astounding prices. My dad recently gave me his immaculate 2003 Tundra; with the low miles and extras (cap, brush guard, trim) the Kelly Blue Book TRADE value at a dealership was @15k Many dealers are woefully short in new stock and are getting more than the sticker price because people are willing to offer it to lock in a purchase. Crazy.

I think all of that is exactly right. Chip shortages translate to the recorded purchase prices now often full MSRP or even marked-up higher. New cars have more proc and ram and software than the space shuttles had, and materials costs are rising due to the great disruptions of 2020/2021.

I'll add my opinion of what is also deep at the root of long-term escalating vehicle prices. And that is easy access to credit, and the public's gleeful willingness to borrow a years salary to obtain an item Para once succinctly described as: "Something that will ultimately be guardrails and lawn furniture within your lifetime".

Read a deal not too long ago that the average new car price has gone up almost 10k in the last 5 years or so.

My 2016 F150 stickered for 48k, built a 2022 similarly speced & it was about 57k

Crazy. I’ll just say no to new… but even used is really jacked up right now.

Used cars are making me scratch my head at what they are bringing, it's insane. Literally going for more than new with 30-50k miles and two or three years old

There are some deals on new if you know where to look. I just bought my wife a Buick and took advantage of the inflated trade value of her Caddy. We got what we paid for it two years ago and the new one had 0% for 72 months





But overall hot vehicles are still bringing over MSRP if a dealer is so inclined, some are sticking to MSRP or below, some are demanding more and getting it.

Not to mention all of the now government required safety and emissions features.
None of which I want.

quote:

Originally posted by chellim1:
Crazy. I’ll just say no to new… but even used is really jacked up right now.

Have you seen the sales prices on Copart lately! For god sake, damaged vehicles with salvage titles are going for the same price as undamaged, unbranded title, used cars! It's insane.

I really wonder if a manufacturer started offering a bare bones model if they wouldn't make a killing in the market. I'm talking like what used to be the standard for a pickup; standard cab, short bed, 6 cylinder, manual transmission, vinyl bench seat with rubber floor mats.

But then again, they can't keep up with the demand for fully loaded luxury pickups so there is probably no incentive to look for additional niches in the market.

quote:

Originally posted by 2000Z-71:
I really wonder if a manufacturer started offering a bare bones model if they wouldn't make a killing in the market. I'm talking like what used to be the standard for a pickup; standard cab, short bed, 6 cylinder, manual transmission, vinyl bench seat with rubber floor mats.

But then again, they can't keep up with the demand for fully loaded luxury pickups so there is probably no incentive to look for additional niches in the market.

It's a bigger nightmare than that given the chip and supply chain issues have make it impossible for manufacturers to keep up with the demand for any of their vehicles.

Consider this. I know a gentleman who owns a local plumbing company. When I spoke with him last week, we discussed a number of issues, one of which being the shortage of new vehicles. He told me he recently had a meeting with all his staff and told them that they needed to drive with extreme care because should they be involved in an accident that totaled their vehicle, that person would be out of a job given he cannot get any new work vans right now. This at a time when they can hardly keep up with the service call volume they're fielding. It's all just insane.

quote:

Originally posted by 2000Z-71:
I really wonder if a manufacturer started offering a bare bones model if they wouldn't make a killing in the market. I'm talking like what used to be the standard for a pickup; standard cab, short bed, 6 cylinder, manual transmission, vinyl bench seat with rubber floor mats.

But then again, they can't keep up with the demand for fully loaded luxury pickups so there is probably no incentive to look for additional niches in the market.

Sadly I believe that ship has sailed.
The idea of fully configuring a vehicle is long gone.

They have realized what a cash cow the options package is.

Ohh, I only need one option but I have to get the special package of 5 other options I have zero use for to have the one I actually want.

Options are huge profit margin.

Most people wouldn't spend $1200 on new stereo every 5 years, but get suckered into premium audio all the time.

Tow hitches aren't $900. $2000 for navigation? Please.