People’s needs change. For example, I have to upgrade size when more family member are on the way. We cannot all roll in a Versa or Corolla with three kids and a dog.
@@user-sk1eh3pg6j I agree, also when the first little thing breaks go ahead and fix it. It's all the little things that add up that will push someone into the dealership to replace a car.
@@Alopen-xb1rb Nothing wrong with buying a larger vehicle to accommodate a larger family but it doesn't have to be a brand new vehicle. Find a used Ford Taurus/Mercury Sable station wagon. They seat 7-8 people. Yes they have a 3rd row. Cheap to buy cheap to insure and cheap to operate. Just make sure it has a fresh transmission or be ready to pay $1000 to get it rebuilt.
Someone crashed into my paid off vehicle, a hybrid that never required a single repair and was cheap to own and operate. I planned on keeping it forever but it was totaled. I was in for the shock of my life when I realized how expensive used cars are nowadays.
It’s now that cars got expensive but reckless government spending and sending money to other countries means your dollar is much less valuable than prior to 2020. Because of this “high car prices “ are here to stay. That $65-70k ford f150 isn’t going back to $50k like it was pre 2020. Larry bird isn’t walking through that door.
My story too. I'd juuust paid $3800 to replace the transmission when a (admittedly polite and contrite) young idiot rear ended and totaled my Acura TL with 230K miles on it. Repair was estimated at 11K. Insurance wrote it off for $6000. That's it, I had NO choice in the matter, because the law allows them to simply decide for me. I'd been better off just putting the money into a new car, because insurance would then have been forced to pony up the 11K to repair it.
Same here. Rolling write-off from a truck. Sideswiped my parked '08 Civic while I was asleep in the house. The truck was gone by the time I got outside. The car had 480K KMs. It was a great, reliable car.
You could drive a 1999 Corolla 500k miles for a few thousand dollars. There is no real barrier to having a car. People just like having better, newer cars.
@@The_Dweazel if you’re going to post a comment to show how uneducated you are about car dependency, at least have some facts instead of making moronic and baseless assumptions
@@stevegolacks8731 me too, but only because I spent the better part of 8 years investing into inflation hedges before covid, those bets paid off. I think part of the problem is the bottom end of the income totem pole tends to notice the wage increase far more than white collar jobs. Say you earn 20$ at McDonald’s now here in Cali. A 2$ or 10% raise will be noticed more than say the corporate office worker that has a higher salary but only got a 2% raise.
"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.
It is getting nuts. Car payments are high, insurance is high, property taxes are WAY up, renewal fees have quadrupled in the last few years where I live, gas is high, even the smallest repairs are jaw droppingly expensive. I don't blame young kids for saying F-it.
Well they aren’t a depreciating asset forever. Key word forever. No vehicle in the century of the car has depreciated to zero. The cycle is depreciation for 12-15 years since new then a bottoming out in prices, and then appreciation around the 20-25 year mark as it hits classic car age. This has been the cycle since the ford model t became a classic car. It’s not only sports cars and exotics. Maybe watch a classic car auction and compare MSRP prices with the auction hammer price. Because even economy cars appreciate. I can think of a few boomer econo/normal vehicles that come to mind the steel VW beetle, a ford galaxie, chevy impala, old F100’s among many others. The issue is your average person doesn’t keep a vehicle for life to see the appreciation at the end. You got a self made problem is social ques making people get newer cars to proverbially keep up with the jones and not appear poor for driving a shitbox car that has paint peeling. The psychology on car age is hilarious. A 12-20 year old car is seen as eww old and unwanted, but 30,40,50+ year old car and it flips to cool and desirable as people chase nostalgia or the the dream car of their childhood when they finally have money.
@@Bonanzaking a corolla won't become a classic no matter how long you wait. my c63s 8cyclinder might become a classic, but that are years down the line.
@@headpower999 i guess you haven’t seen the going rate for a 90’s camry with an immaculate interior and paint taken care of. A few have sold for msrp, ditto for 90’s civics. Give it another decade.
@@Hproawesome That's actually why I got out of my super clean 1997 Civic HX years ago. I got ran off of the highway once and although the car was completely fine, I decided to buy a newer Honda since vehicles are SO large these days, if one slammed into me I'd probably die. I bought a 2009 Honda Accord (which then got totaled by someone on their phone rear ending me pretty damn hard). Now I have a 2013 Honda Accord. Still over 10 years old.
The dealership model of selling cars is a complete racket. We need cars to go direct from manufacturer to consumer. The manufactures can also run service centers. There is no need for middle men to jack the prices up without adding any value.
Be careful what you wish for. Mercedes and Honda have tried direct to consumer in Australia. What that has meant for consumers is no more negotiating on price. You either pay MSRP or you walk home. And have a guess what? MSRP hasn't fallen. There should be no surprises there. Honda and Mercedes are keeping the dealer's share to themself, they're not sharing it with customers. And have a guess what? Both Honda and Mercedes's sales have fallen like a stone as a consequence and Honda's have flat lined. And this has happened in a market that has seen record growth. If you think getting ripped off by a multinational car manufacturer with millions of shareholders and a CEO on $30m is better than being ripped off by your local dealer is better, then go for it.
@@davidbrayshaw3529I’d rather know exactly what the price is rather than have to shop around for a dealer that’s willing to negotiate msrp. Give me a strait forward MSRP over navigating markups, docs fees and unwanted add ons any day of the week
Yeah, my 2016 Colorado is the same size as my dads 2002 Silverado. My colorado is a midsize truck with a towing capacity of 7000 pounds. I hual a 14-foot boat and a smaller trailer with a lawn mower on it. I didn't need a full-size truck as they have gotten way too big.
Car manufacturers barely make sedans anymore and peddle SUVs because they’re virtually unregulated and have higher profit margins. It’s like driving a really big expensive 2-stroke engine that they’ve gotten all of us hooked on.
If you are physically able, become a UA-cam mechanic and do MOST repairs yourself. I've saved thousands of dollars doing this. This applies to house repairs, too.
One reason I love my jeep wrangler more and more is the wealth of videos the community posts up to diagnose, how to and fix videos that saved me thousands in mechanic fees.
"Why car ownership is getting so expensive". The thumbnail is the majority of the answer. Most people used to drive ordinary economical sedans and hatchbacks. The picture is of what's now typical: a midsize SUV or larger, or a truck. These vehicles are luxuries; they are more expensive to buy, run, maintain, insure, and fix. Choosing one is choosing higher vehicle costs. All these people crying "I'm struggling to afford a basic midsize SUV I don't need" could go buy a fuel-sipping $22,000 well-equipped 2024 Corolla and live within their means, but instead of living within their means, they want to complain about a self-imposed problem of driving large, expensive vehicles.
A new 2024 Corolla is not $22,000. That's a lie. Corollas are in very low supply and high demand, which means most Corolla buyers pay well over MSRP. My friend recently paid 30k for a new 2024 Corolla LE
@@johnkonde1975 your friend got absolutely screwed, sucks for them. My local dealer has three 2024 Corolla LE's for $22,700, offering a $750 dealer discount on all three. They exist. The point remains. There's even more available up to $25k. People complaining about $40k vehicles should try looking at $25-30k vehicles, but they seem to demand SUV everything.
Absolutely wrong. Nearly every car I have bought has been less than 1k. If you know how to work on them, you can keep it running and sell it for just as much if not more. Right now, I've had my 1990 Ford Ranger for 5 years that I paid $600 for and have put in about $1k in repairs and about 100k miles on it.
Not enough cars to go around...?! Take another look at car lots. Plenty of cars, but no one is buying a car for 1/4 the price of their house with loans stretching out 7-10 years.
For real. I built my house with my own 2 hands and spent 200k doing it. I'll buy a car that cost 200k new but pay 40k cash for a low mile used one. The problem with america is people financing everything. If you use loans for your house and cars you will spend 10's of thousands of dollars every year that you could have put in your savings account to buy even nicer cars and other fancy things.
Car companies are not in the mood to increase production...they found out after 2020 they can make more profit by less production and keeping the demands high.
Not entirely true. There are enough cars in the market. It is the fact that dealership increase the price to make more profit. There are many cars on the lot, but they rather count them as losses then sale them as lower price.
The dealership laws that require the purchase of a vehicle through a dealer are a large contributor to the cost of a new vehicle. Some manufactures would choose to sell direct to consumer, but aren't legally able in most states. SCAM
Not to mention import export fees. Donut bought a changli electric truck for like $1800 but for them to deal with freight fees, import fees, transfer fees it ended up being $8000
I heard a yr ago that Hyundai and Kia was considering selling direct through Amazon. Not sure what happened on it never heard anything else since on it.
@@flyfishac11 Unfortunately you are the very minority. People want these gadgets and then government wants all the fancy emissions gear (which can be complex and pricey) and safety gear because people are too inept to drive correctly! So blame your fellow car purchasers!
A lot of used 90s era JDMs like Nissan Laurel or Cedric have a lot of features you'll find in current models (adaptive cruise, side airbags, auto-lights and braking, etc.) and are typically under 10K. Any of these import cars can run fine beyond 1 million miles.
@@AgonxOC Who wants these gadgets? Nobody ever polled me, my friends, or my neighbors, about what they wanted. They add stupid things nowadays like having all your controls on some silly screen. Give me back my analog gauges!
My cars 20 years old it’s not perfect if you look closely you’ll find it’s imperfections but the engine and transmission are healthy and I know it’s a used car that will have some rough areas but I don’t stress over it as much as I would with a new expensive car. I fix the little things when I get to it. Cars 20 years old with over 200,000 on it still rolls down the road where I see new cars on the back of flat beds all the time.
@@ryans413 Exactly, it’s all about how you take care of it. Also with time, now we have a better idea of what used cars were truly built well. I’m looking for a used Lexus next. Happy motoring!
Car ownership isnt expensive. Everything is too expensive. Food, healthcare, homes, education. When everything becomes too expensive cost isnt the problem. The problem is wages are too low.
The problem isn't wages or the price of anything. The problem is overconsumption. Most people consume more than they can afford. When speaking about cars, the most sold vehicles in North America aren't small sedans or hatchbacks like the Mazda 3 or the Kia Forte. They are large 4x4 SUVs which cost 20k more than a small car, consume twice more fuel and are more expensive to insure. Remember that the money you have left in your bank account is revenues - costs. Not just revenues.
@@PatG-xd8qn but you need that 4x4 Tacoma Off-road Super Platinum Mega-Cab Ultra Black Edition to drive to the office. Otherwise people may think you are not masculine enough
@@PatG-xd8qn I don't consume enough to even consider myself part of the age of consumerism but I am still breaking even with what should be a decent wage
“Car prices being overpriced is unlikely to change” Bullcrap. If Americans learn to be disciplined for a year or so and not run to the dealerships to buy the latest car then those prices would come back down as the cumulative effect is so great. This is just propaganda on behalf of dealerships and manufacturers disguised as objective reporting to claim car prices being unjustifiably high is here to remain.
Yes but nobody is taught finances and they just focus on what they can barely afford monthly payment wise. So they max out loans. Cars are priced at more than what people can afford so they get loans. Wild.
Don't buy new cars! Only by a car if you must, buy the "newest" used car you can AFFORD not that you want. Drive it, take care of it for as long as you can and only replace it when forced to.
No, everyone must buy new cars, no matter the msrp, no matter the interest rate. Keep buying like your life depended on it! Keep up with the Joneses people, you are only worth what kind of rolling status symbol you own! (then that leaves more used cars for me to buy cheap)
It is wrong to think a newer used car is better, it depends on how well the previous owner maintained it. A 20 year old car could last longer than a 6 yr old car
Answer: The government regulated it so. I know how to drive and check my side mirrors, so I don’t need side radar warnings. I don’t need a backup camera because I look behind me when I am in reverse. I don’t need stop start on my engine to prematurely wear out the starter motor and leave me stranded. I drive safely so I would rather have a body on frame vehicle that will last longer. Now add in high interest rates with already high prices from all this extra equipment and vehicles have largely become unaffordable.
Cars aren't more expensive than they used to when taking inflation into account. The difference now is that people buy larger cars, which are by definition more expensive to buy and to drive (because of increased fuel consumption). People also buy all sort of useless options which are way too expensive for what they truly are.
My biggest complaint of buying a car is at the same time your car is dropping 20% your loan is front loaded with interest. If you buy a car and have a 5 year loan, you’ll pay 70% of its interest in the first 3 years. Instead of being equal so each month of the loan you’re paying the same amount of interest in your payment
@@mike325ci No chit Mike - except - here is the part you have forgotten about: The Sociopathic LOSERS that run corporate "america" won't let most people work from home - all while - they push for the whole "climate change DUDE BRO" narrative so they can accumulate even more wealth via the green "economy" investment scam with carbon credit trading. In the end - we're all being hosed - I wish women/team women - would DIVORCE the losers that work for corporate "america" - AND Mike - REFUSE to sleep with them EVEN IF THEY SHOW UP IN A NEW BMW and show off a gated community home/lifestyle/etc.... The worst human beings in this world right now: Are the losers that roll out of bed every single day - and hide behind: "I'm jus doin muh jawb bro" - We should all ask ourselves: The company I work for - does it work in the capacity to hurt families and people? If so - time to look in the mirror and find something else to do for a living. Mike - You CAN be unemployed/zero money/no car and STILL get plenty of women - it's EASY - you just don't have to be a weak loser sellout. It's truly that simple.
With everyone talking about environmental sustainability, why are auto makers allowed to manufacture disposable cars ? Most manufacturers now are so profit driven, their cars only last till warranty. This is by far more eco harming and wasteful than any gasoline engine pollution. Regulations should be put in place to mandate a 10 year warranty minimum or fine auto makers for making junk disposable cars while also charging triple profits (Stellantis, Ford).
This 44 minute video could be 2 minutes. Just say "Everything is computerized now, and even repair shops can't fix some problems. You can't fix a car for under $1,500 due to inflation and computer systems being so complicated."
The video is about car ownership but they spent the first 10 minutes on how fast the value of a car falls, which has nothing to do with the cost of ownership.
In 10 years many people will wear ski boots all the time because once every couple years they might go skiing. CNBC will have a video titled "when did shoes get so expensive and big and hot?" Pickups and SUVs used to be niche vehicles with extra capability for those who used them for real work. Now these juggernauts trundle around neighborhoods, their tow-ratings unused and beds empty, "rugged individualist" cosplay for the office drone set and a hazard for anyone capable of doing the math on owning a truck versus renting one the handful of times you need one. As someone who has moved a full sized dishwasher in a Mazda 3 hatchback and plenty of furniture in a minivan, let me tell you that you don't need these gargantuans as much as the marketing says you do. On average, SUVs and pickups generate 2-3 times the profit of a passenger car, so they are more expensive, and they are worse at their primary mission of moving people on roads than a sedan. Then there's the external costs borne by the rest of society. "Big truck socialism" manifests in higher rates of fatality and injury, to carbon and particulate emissions, to road damage from heavier vehicles, to increased upward pressure on raw material prices for larger vehicle production, fueling, and maintenance. The proliferation of SUVs and pickups is just another reminder that American marketing is the best in the world.
This is really a crisis of masculinity. Men do not understand how to be men, but they see a TV commercial saying tough men drive pickups, so they go buy one. 90 percent of pickup owners do not need a pickup. Remember coal rolling? Yeah can't do that with a small gasoline car. Many people need to grow self-esteem, but instead they grow their vehicle. It is also very cheap to make a pickup truck, they cost around the same to make as a full size sedan, but since everyone is willing to spend 100k they know they can charge so much more playing on in-se-curities.
@@00_UUFragile masculinity really is out of control, it's causing homophobia, misogyny, wasteful spending, violence and self harm. I'm trying to figure out why though? Perhaps harder economic times are causing some men to feel inadequate and so they compensate with irration behaviors?
We are missing the big picture. It's not just cars. Everything is getting more expensive (cars, houses, education, healthcare, childcare....). The problem is wages haven't been keeping up for decades and now we are at a breaking point. In the past, people were able to mitigate a lot of these rising prices. Women entering the workforce in the 70's and 80's added another income. Globalization starting in the 90's tamed consumer prices. And delayed onset of adulthood with young adults living in mom's basement and not having kids helped people get by. But what now??? We are now in a situation where it takes two working adults just to pay rent and buy two cars even without kids.
And that is why I am proposing a new law that mandates threesome marriages. Two guys and a lady or vice versa. Your choice. Will keep the economy chugging along!
Actually the next shakeout will be people with kids, while childfree people thrive and uphold the economy. Parents will be shuttled into the economic underclass to become overworked wage peasants. This engine is going to keep running and you will not get a revolutionary change to magically make things affordable again because new groups will always rise to keep it going--childfree, people with foreign money, people with side hustles, etc. It will get worse.
In the past, homes were smaller, cars were smaller, families had just one car, people barely ever traveled by airplane and so on. The problem is that we now consume more. Look at the list of the most sold vehicles in North America and Tell me how many of them are small sedans and hatchbacks
@@PatG-xd8qn another problem is that they made small and full size sedans extremely uncomfortable. If you drive 2006 Toyota Avalon and 2019 Toyota Avalon, you will immediately notice how low newer Avalon is. Roof slope is low, seating position is low, interior space is much smaller up front. After so many years of poor sales Avalon was cancelled and now replaced with much higher riding Crown, which also happens to cost much more - here is the profit. Hyundai did the same thing with their sedans, they are extremely hard to get in and get out being so low to the ground. People with back pain (senior people that happen to buy most new cars) just don't feel comfortable using one. In the same time they cancelled all economy spacious cars - no more Scion, no more Kia Soul (getting axed next year), no more Honda Element/Honda Fit, no more Chevrolet Cruze/Chevrolet Sonic, no more Prius V in the US.
@@00_UU Personally my 2022 Mazda 3 hatchback has lots of interior space and I can use it for everything, going from skiing to mountain biking to kayaking! In fact, most crossovers have less cargo that hatchbacksm. People buy such SUVs because it's trendy and because people feel like they are safer, even though it's not really true
220k? Just getting broke in! My buddy paid $1800 for his Corolla with 200k miles and has had it for 9 years and has just shy of 400K miles and hasn't done any major repairs!
Audi, Nissan, Honda, and Toyotas built in the 90s can hold up for over a million miles easy. Just take good care of it and get regular maintenance or do the maintenance yourself and you're fine.
Conventionally, I personally would only buy a car new if, and only if, I intended on keeping it until the wheels fall off (10+ years easy). However, at the moment many "used" car prices are so close to new there is no purpose in buying used at all.
It's funny you and others say this yet it's blatantly false, because even if a new and used car are the same price as you say, the new car loses 3-4k in value when you drive it off the lot, and 15% per year after that. Oh, and you can't buy a new car for $5k like you can a used car.
@@nathangallagher5112 Sorry to say, you are wrong - At least In the car market I was in there is no way to get the specific car that I wanted for a decent deal used barring one that was beaten to within an inch of its life. Though my car market was a tad more specific then your average commuter vehicle. Picked up a Toyota Gr 86 for MSRP in 2023. There are *used models today* selling for 15k miles that are selling for within 2k of *brand new prices*. It was quite astonishing to me, but it is a high-demand car. So if you are looking for a *specific* vehicle I can assure you what I am saying is correct with a degree of certainty because I myself went through it when seeking to purchase. If you are looking at "general commuter cars from Point A to B" that *could* be correct - provided you don't want anything other then that specific thing.
@@nathangallagher5112 I wrote you a detailed response, UA-cam decided to censor it. Long story short - I know for a fact its true within specific car markets. I am an enthusiast and bought a GR 86 in 2023 - used models were almost to the penny the same cost as a new model. The same is said of many other specific models of car that aren't just "Commute a-to-b" vehicles.
Here are my thoughts about car buying. 1) Choose a good used car. You do not need some fancy vehicle with all the bells and whistles. Just need a car that is safe, easy to drive, comfortable to drive, reliable, and within budget. We have people today wanting their cars decked out with all of the fancy electronics and gadgets due to all of the marketing. This drives up the cost of a car. All of this extra stuff is expensive. We have people wanting to "keep up appearances". They gotta have the newest fancy car like they have their fancy new iPhone. 2) People are enticed to buy a car with a heck of a lot more features then what they really need because of the "easy money" traps that are heavily marketed to them. All of these financial products are expensive...more so the consumer. The car companies, and the financial companies, are playing you. The "cheap and easy" money they are promising to you in the form of a loan and financing costs more then actually paying for the car in cash. They are doing this because they can make more money off those financial products then selling you the actual car. Go to the dealer or seller with a budgetary number in mind. Carry the cash. If they don't want to play ball with a cash offer, walk out. Go find somewhere else to buy. Remember, if they do not sell that car, they are having to cover the carrying costs on the inventory as a dealer (or seller has to make their payments until they can unload it on someone else). I have played hardball like this, and I have gotten them to see things my way. You only need to purchase what YOU need, not what anyone else says YOU need. Don't be influenced by others. 3) Remember that the minute you drive that new car off the dealer's lot it rapidly depreciates in value. Look at Quality, Cost, and Delivery...and the cost of total ownership for the vehicle on an annual basis. If it is not something you can afford, then you do not buy that car. I understand there is a feeling of FOMO and related. Just gotta take someone with a cool head with you who can help you reason it out. Sometimes that extra effort of weighing the pros and cons for everything will lead to a better conclusion then just going on your feelings and FOMO. 4) Remember, when negotiating a price, you can always walkaway from a potential deal. Just be ready to lose the deal. Go into any negotiation as though you are ready to potentially lose. Play hardball, and perhaps you get a better offer. 5) Buy only the amount you need. Don't buy anything more because of a perceived "better deal". There is no FOMO here. Your bank account will thank you for this. Only buy what YOU need. 6) Do your research and determine what product/car best suits you. Look at the facts. Look at the figures. Do some math. Arrive armed and ready to negotiate. Understand your Needs, and your Wants. What can you live without? What can you compromise on? 7) Shop around. Do you need that Tesla? Why not a Toyota? Why not a Nissan? All are good. What are your needs vs what are you wants? What can you live with? 8) Set a goal for savings and/or big purchase. Only purchase something when you actually have the money. If you don't have the money, then don't purchase. Don't consume. Avoid falling into that debt trap. Remember the banks and car dealers may sound friendly, but they are NOT your friends. They want to make more money from you then what you intend to spend on it. Grow the backbone, and tell them 'No Thanks'.
New cars prices are astronomical, combined with high interest rates, and lower longevity due to increased technology and turbochargers. This mix causes high payments and low resale value, leading to more customers under water on their loans.
@@FlyWithTyy Tesla is the biggest piece of junk of them all $100,000 for a car that has worse build quality than a 1995 Ford Aspire that was built by Kia? 🤣
@@user-sk1eh3pg6jI’ve spent under $80 in maintenance on my model y in 20k miles (two tire rotations, third one next week). What was that about build quality?
@@qwerty112311 You never had to buy washer fluid? Never had to buy wiper blades? Never had to buy a cabin air con filter? $80 my ass. And for the record build quality and scheduled maintenance don't have any relation to each other whatsoever. Take a look at the uneven paint and huge panel gaps that aren't even lined up properly on your car then get back to me.
Still drive my mercedes 300D ive bought in 1984. Same engine too, no plans to purchase anything new. I can repair everything myself and bodywork gets welded when needed. No electronics or emission garbage. Sure its not very good on diesel mileage but thats the last thing to worry abut. A car is a tool not a show off how rich you are.
got a nissan versa stick shift in 2018. even though i could have paid all the cash. put just enough down to maximize the 0% apr for 5 years. used the car for 5 years prior to paying the full amount with no interest. car runs great, gas saver commuter. was my 1st new car. did some road trips. feels like made at least one correct decision.
San Francisco and maybe Seattle. I do not own a vehicle Living in Texas public transportation is poor. So I have huge calves from cycling. The heat, the druggies on the bus, and just the stigma associated without owning a vehicle sucks. I earn a decent income but I can't give in. I would feel defeated walking into a dealership at their mercy.
My coworkers are buying teslas and take up $65k loans. Thats $65k with interest not included. I have a paid off 2014 kia sorento and i am totally okay with not owing $65k😊
3 years ago bought the wife a new car. The price for a 5yo vehicle with 50K miles was the same as a new car. Why buy used when you can buy new at the same price ? Makes no sense to me. A 5yo vehicle with 50K should be priced half of new at the most. Last month bought a new truck. Same problem, price for a 5yo vehicle with 50K miles was the same as a new. So I bought new. I do not understand how this can be. Something major problem with the car industry.
Older vehicles don't have the trouble or expense of new. My '99 diesel with a quarter million miles is worth the same as what I paid for it in 2003 with 50K miles. Less plastic, more life.
I buy used cars with 100k+ miles for 6k or less. Never been left stranded. Never even had a major repair. Buying new is flushing money down the toilet.
Um, stop buying new cars then? Buy what will work for your needs? This will lower the cost of new cars eventually… if everyone begins doing this. Supply and demand..
70k miles of use so far out of my $1000 car. I do all my own maintenance and repairs. Everything works perfect. Just did a 3200 mile trip. Don’t need full coverage either.
@@Kyumilli you do not need a garage to do your own maintenance. I did a lot of mine when I was young right in the parking lot of the apartment complex!
@@SigFigNewton Paying cash to avoid interest on a car loan can be a mistake. The growth, leaving the cash invested even at a very safe 5%, outpaces the cost of interest on an 8% auto loan. (You pay simple, but earn compound.)
Hold to my 12 year prius c with 200k km mileage.......recently brake failures cause around $1800 to repair. Will continue using the car for 2 year more.
I do my own maintenance, a full brake job will run $200-$500 max depending on what needs replaced. If it's just pads & rotors it can be less than $200.
Buy used cars in cash and learn to work on it with UA-cam videos. Build wealth. I’m now a pro mechanic on my wife and I’s 3 paid off cars (buy one extra so when one breaks down no big deal). I love UA-cam !
Saved close to 500 dollars doing my own brake job. I did all 4 wheels fronts have discs back have drums. I replaced the rotors and pads and rebuilt the entire drum brake system in the back new shoes new drum new brake cylinders. Bled the brakes added new fluid and I only paid 150 bucks for everything.
@@JAlexanderCurtisit’s because many are leased. These are the people you see driving brand new cars every 3 years. My mom does this, only she buys the EXACT model and color as previous ones, so other than the license plate, everything’s the same because the manufacture hasn’t changed anything. She leases because back when she bought, she would get something obviously different every time, so back then, it did not make sense to buy. But the very first lease has been the exact same vehicle, that would’ve been paid off a decade ago. That said, she’s a woman in her 70s, so I think she just likes the idea of not having to worry about maintenance. After a decade, odds are good that something on her lease would have failed by now and be out of warranty.
@@OutdoorsmanPackI honestly wouldn’t consider cell phones. I got a brand new iphone 15 256GB on launch day (last September), but it wasn’t $900. It’s $35.32 for the next 24 months. It was purchased on an installment plan, so there is no interest. $35 a month to have the latest and greatest. Now then, you may be wondering about the actual service plan. Well, I’m on mint mobile, so it’s not crazy. Even if it were though, I would consider it a subscription service. I am subscribed monthly for their service. You wouldn’t consider Netflix to be part of that debt issue, would you? Sure, if you’ve got several subscriptions, then it could be a problem, but no one is looking at subscription services as a major debt issue, except for maybe consolidation companies.
Car ownership does not have to be expensive. I bought a pre-owned, manual Corolla nine years ago. It had >100K miles on the clock when I bought it, and I've almost tripled that total. The car still runs like new and looks great. Original cash price: $5,000. Looking at prices for new cars, I can't believe anyone actually pays that much.
The reason why used cars are expensive now is because of the "Cash for clunkers" program that was ran about 16 years ago. That removed thousands of vehicles from the market. In return, that drove up prices when you take the supply and demand that's on hand into consideration. Less cars equals to less parts and those that need the parts have less to go around therefore driving up the cost for used cars.
This documentary comes at the right time. I'm relocating to the US in January and my employer has given me a dealership to purchase a car from. The prices are ridiculous and when I check online for used cars I get even more shocked. I don't know how I'm going to manage to get an affordable used car to commute to work.
I'm glad I bought my Tacoma new in 2014. Got only 140k km on it, all maintenance kept up on, no accidents except a minor bumper collision in a parking lot at 5km/hr. 10 years later Toyota has been trying to buy it back from me for 55% of what i paid for it. Told them it Works like a dream and they couldn't afford the price Id be willing to part with it and will probably drive it till i die cause it'll probably outlive me.
So the problem is predatory lending and not financially irresponsible Americans ? Record debt levels but it is always someone else's fault !!! STOP IT !!!
I live in Japan, and here buildings depreciate just like cars do. My newly built house is worse less today than when I moved in 6 months ago (the land retains value). Combined with decent public housing, this keeps housing costs low. Just something to think about.
Porsche is usually as highly rated or more than Toyota and Lexus for dependability by consumer Reports and JD Power. However they cost a lot more for repairs and maintenance for some reason.
💯 Underrated comment Gov is trying to force use of EVs when we don't want them and it's forcing manufacturers to subsidize them by raising the price of fuel vehicles.
One critique of looking solely at average monthly payment - this does not account for term lengths. I would assume that in addition to monthly payments going up, average term lengths is also going up. This exacerbates unaffordabililty since longer terms are typically associated with higher interest rates.
Let me guess. Vehicle manufacturers put in technology nobody wants which drives the price up. The dealerships then add more onto the MSRP. The insurance company sees every vehicle on the road is more expensive and decide to increase everyone rates. Mechanics require more training to try and fix these new technology features and charge more for it.
Also some claim insurance is going up for everyone because so many buy SUV's and trucks now which according to the national highway 🛣️ safety cause more fatalities and damage when they hit something. However I'm not sure if they would go up for those with the small sedans. If people actually did the speed limits would greatly reduce fatalities.
Since 1996 I have owned 3 Subaru’s, 2 95 sedans and a 96 wagon. I put over 900k miles on those 3 cars, other than 1 engine and 1 transmission it was all routine maintenance. Very reliable and inexpensive to maintain, 24 to 26 avg mpg on regular. All 3 are AWD, never failed to get me where I was going. I always used quality fluids, tires, and OEM parts. Those 3 cars helped me retire and I still have all of them. I owned a lot of nice vehicle when I was young and had planned on purchasing a nice vehicle after I retired 2 years ago. But the more I look at the pricing, taxes, insurance, cost of ownership and the level of service that some dealerships offer, the better those old Subaru’s look.
As someone who went car-free 7 years ago, it's wild how anyone wants to go through this just to live their life. I'm a part of my city's car sharing, Communauto, for the couple handfuls of times a year that a car is the right tool for the job. Public transit, cycling, and walking are all my default mobility methods now. Maybe you too can break free from the chains of car ownership, and reap the several thousands of dollars extra a year that you're not dumping into a machine!
Ummm walking to like bad because it’s hard and stuff and uhh cars are freedumb okay! Everyone knows that in the past no one walked anywhere because America is big or something.
Stop buying cars that are 20% car and 80% gimmick. Noone needs keyless entry and start, electrically heated steering wheels or self-opening trunks. That stuff might look good at the dealer but horrible at the repair shop.
Then why work? To be able to afford a boring car just to have some wheels? Why not lease, not give a damn about repair costs because the car is under warranty and actually enjoy life? IF you can't afford a new car, then a 20 year old car will still need a lot of maintenance over the years. And new parts for even 20 year old cars are insanse. For instance IF I wanted to change my gearbox on my Honda 8th gen Civic, the used one is about 300 bucks. New one, 3000 bucks. For a 20 eyar old car.
Cannot avoid it. Most cars now have this electronic junk standard. I do not need Lane Keep Assist, but it is almost always there. They stuff this junk into cars to justify higher prices and *safety*, but who asked? Also plenty of people *think* they need AWD when they need winter tires and driving skills instead, but you will never see car manufacturer advertise winter tires instead of AWD, people may just get smart.
@@HyperVegitoDBZBecause leasing is the most expensive way to operate a car...you put a few thousand down every few years + lease payments and then do it all over again continuously. You could buy two used cars and customize them yourself and still be way better off than leasing and you'll have one to spare.
@@Tigersfan829 You could, but they would be equally expensive to repair new, as the leased one, with the warranty. Unless you want to repair the same as 20 year Olds, with used cars, from junk yards etc. With quality of modern cars and cases that some don't even make 100k km before the engine dies, is it really so expensive?
Lose 10% driving off the lot. Lose another 20% in 5 years. Lose 80% at trade in 5 years later. 5 yr old car Magically regains 90% of msrp once dealer puts it on the used car lot.
America is still one of the cheapest countries where you can buy and run a car. It only really becomes expensive when you take out loans/finance beyond your means.
Conclusion: too much gimmicky computerized junk added to cars makes them expensive to buy and even more expensive to repair. There's definitely a potential market for a manufacturer that makes affordable, simplistic and reliable cars without all the gadgets.
Sooo, no one’s talking about how many brand new cars are literally sitting on lots across the country? Every single dealer in my area doesn’t have a single space for another vehicle.
You have to make roughly 60k annually and have good credit to buy a new car unless you’re getting the smallest car on the lot. That cuts out 68% of Americans
In America you have three choices: 1. pay a bunch of money for a car 2. pay a bunch of money for rent because you lived in a place with decent public transit (very rare) 3. spend like three hours going to and from work (your bus decided not to show up today)
@@louiszhang3050 America has some of the cheapest car prices in the world! One can buy a very inexpensive used car. Issue is people want to keep up with the jones! So yeah people need to live within their means!
@@AgonxOC Not everyone wants a 300k 1990-something with a questionable maintenance record. Questionable maintenance and the previous owner's negligence can cost you just as much as a new car. 50k miles in on our used Nissan and we almost had to drop $4500 on a new transmission if it wasn't for a warranty we had.
@@fartpluswetone8077 The problem is YOU bought the WRONG car. Nissan has been KNOWN for nearly two decades to have issues with their CVTs which they started using in the mid 00s. You could buy a nicely used car built in the 00s with less than 100K for not too much money. You can also shop around and find great deals on used cars and they do not have to be 20 years old with 300K. I have been around the automotive industry to know a few things!
I am so glad I am not car obsessed like many Americans. I am fine with using transit and my bicycle. I have monthly passes from 2 transit agencies and monies I set aside every month for ride-hailing, and even with that, it's still cheaper than a monthly car payment.
If people stop financing their cars and actually what they can actually afford with cash.. car prices will crash as manufacturers will have to make cheaper cars
Young people, here's some advice for you: A buddy of mine bought a Jeep YJ in '91. He still has it. He never bought another vehicle. He invested all those car payments he didn't have to make. He's doing extremely well financially.
My cars 20 years old I bought it for 2k and have no car payments and insurance is cheap. I do the basic maintenance and it’s held up well. I look across the street and every home has a new car big trucks big SUVs and I know some of these vehicles are worth 50k and up.
@@ryans413This is great for you but again life is to be enjoyed. What is the purpose of working extremely hard making it to your dream career and not rewarding yourself with quality of life? You work hard to reward yourself with convenience
The reason new cars lose so much value so quickly is because we are paying for a lot of non value added things. Most of these are government mandated things.
As a professional mechanic myself, I'm annoyed they didn't dive deeper into the monopolies and proprietary lockouts plaguing the industry. When an auto manufacturer owns an entire supply chain, they can name the price. When the mechanic needs proprietary tooling, which requires a subscription to maintain, we have to pass that cost down to the consumer. So much greed plaguing the industry, and they buy skimmed the surface. 🙄
Simply, its because of government and its regulations. Toyota makes cheap/simple vehicles for foreign countries that are illegal to import into the US.
Yes and also very important not to tell the dealer you're paying cash up front. They will charge you more if they know they can't sell you finance with interest on it. Because the interest is part of their business model and an essential part of their profits.
People do this all the time buy things they can’t afford. Buy houses they can’t afford buy cars they can’t afford. If you have to finance something then you can’t afford it plain and simple.
It's sad how the Car dealerships are OK w/having a "sketchy/shady" reputation and do nothing about it. It's pathetic. More car makers need to cut the middlemen out and sell directly to the customers like Tesla.
It's not Getting that Expensive. The $20-$25K Car is the Same car as the $50K-$75K Car with the Leather seats, Millions of Cameras and Sensors, Programmable LED Light Displays, 16 Speakers, Tv's, WIFI for the Back Seats, Spotify/Pandora Subscriptions, etc... Just buy the one without all that Crap. Because they're worth the same as soon as you get them home in your driveway. They have the same engines, Transmissions, Drive Trains, Water Pumps, A/C Units. They're literally the same cars.
I bought a car in 2022 and was paying $650 a month, including an extended warranty for peace of mind. In 2023, the car broke down, and the warranty provider claimed it had sludge in the motor, refusing to cover the repairs despite my proof of regular maintenance. As a result, I had to return the car to the lender because I wasn’t going to continue paying $650 a month for an inoperable vehicle.
@@blueoval250 Regular maintenance, meaning the recommended maintenance that is required per the mileage and also regular oil changes. It was a Nissan Pathfinder.
@@mchl1985 unfortunately what is recommended can be nonsense. 10k mile oil changes are going to create problems even with high quality oil. Depending on the vehicle and what kind of driving you do 3k-6k mile oil changes with quality oil.
Why？Because 99% of US politicians work for the large corporations, helping them monopolize the market! In sharp contrast, there are more than 130 car brands in China, because their government encourage entrepreneurship and despise monopoly. The end result of such fierce competition is better products and lower prices for the consumers!
You can’t be in a hurry buying a car. Take your time, read everything, & google it. Go ahead, beat the snot (by asking lots of questions) out of the sales person.
I just paid off my car early and my credit dropped 32 points and I’m now considered a “more risky borrower to lenders.” LMAOOOO
😂😢😊😊
Yes lol - You didn’t pay ALL of their interest 🤣
It’ll go back up soon
You are too smart to be profitable for them
it's always been a rigged system, pay early and they punish you, pay more and they punish you, so ridiculous
Stop buying new cars and keep the one you're driving forever.
That's right. Treat any car like it's a Lexus and it'll last you longer than a Lexus.
You tell that to you my wife and kids!
People’s needs change. For example, I have to upgrade size when more family member are on the way. We cannot all roll in a Versa or Corolla with three kids and a dog.
@@user-sk1eh3pg6j I agree, also when the first little thing breaks go ahead and fix it. It's all the little things that add up that will push someone into the dealership to replace a car.
@@Alopen-xb1rb Nothing wrong with buying a larger vehicle to accommodate a larger family but it doesn't have to be a brand new vehicle. Find a used Ford Taurus/Mercury Sable station wagon. They seat 7-8 people. Yes they have a 3rd row. Cheap to buy cheap to insure and cheap to operate. Just make sure it has a fresh transmission or be ready to pay $1000 to get it rebuilt.
I've never had a car loan. Still driving around my $4000 used Corolla.
Gone are the days of affordable, light weight, easy to maintain, sports cars 😢
@@Yggdrasill8yes but the used car market is full of them.. so go ahead and get you one
Lol me too.
@@Yggdrasill8 Buy a used Miata or Vette
I’d drive a Corolla if I fit in one
Someone crashed into my paid off vehicle, a hybrid that never required a single repair and was cheap to own and operate. I planned on keeping it forever but it was totaled. I was in for the shock of my life when I realized how expensive used cars are nowadays.
It’s now that cars got expensive but reckless government spending and sending money to other countries means your dollar is much less valuable than prior to 2020. Because of this “high car prices “ are here to stay. That $65-70k ford f150 isn’t going back to $50k like it was pre 2020. Larry bird isn’t walking through that door.
My story too.
I'd juuust paid $3800 to replace the transmission when a (admittedly polite and contrite) young idiot rear ended and totaled my Acura TL with 230K miles on it.
Repair was estimated at 11K. Insurance wrote it off for $6000. That's it, I had NO choice in the matter, because the law allows them to simply decide for me.
I'd been better off just putting the money into a new car, because insurance would then have been forced to pony up the 11K to repair it.
They decide whether to total or repair it, but you decide on the value you will accept for the car. @@ArmageddonIsHere
Same here. Rolling write-off from a truck. Sideswiped my parked '08 Civic while I was asleep in the house. The truck was gone by the time I got outside. The car had 480K KMs. It was a great, reliable car.
Exactly. JDMs from the mid-90s to 1999 are under 10K and run perfectly. They were better built than most cars now.
Good thing we built our whole society around requiring a car to get anywhere
Literally makes me want to leave the country it’s so bad
You could drive a 1999 Corolla 500k miles for a few thousand dollars. There is no real barrier to having a car. People just like having better, newer cars.
@@The_Dweazel if you’re going to post a comment to show how uneducated you are about car dependency, at least have some facts instead of making moronic and baseless assumptions
@@tylersanders2388It's well known insurance, maintenance and gasoline is free
@@ryanc4955 The USA is one of the scammy countries on earth !!!! Not changing anytime soon !!!!!
Everything is going way up except our wages..
Nah wages have gone up. Compared to 2010 when I started working, it’s doubled. Sounds like someone doesn’t fight for a raise.
@@Bonanzaking 50% increase since 2021 for me! I LOVE inflation!
@@stevegolacks8731 me too, but only because I spent the better part of 8 years investing into inflation hedges before covid, those bets paid off.
I think part of the problem is the bottom end of the income totem pole tends to notice the wage increase far more than white collar jobs. Say you earn 20$ at McDonald’s now here in Cali. A 2$ or 10% raise will be noticed more than say the corporate office worker that has a higher salary but only got a 2% raise.
"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.
Inflation hits lower earners far harder
It is getting nuts. Car payments are high, insurance is high, property taxes are WAY up, renewal fees have quadrupled in the last few years where I live, gas is high, even the smallest repairs are jaw droppingly expensive. I don't blame young kids for saying F-it.
It's like you're on a gerbil wheel going round and round.
This is what democrats voted for. Inflation isnt cool
@@Chicago48😂 your born onto the spinning wheel
The system is designed to keep you poor to keep you working
Gas is high? Laughs in European gas prices...
People think they’re high & mighty with their cars. 1k car payment on a depreciating asset to impress people is INSANE but it’s normal now.
Well they aren’t a depreciating asset forever. Key word forever. No vehicle in the century of the car has depreciated to zero. The cycle is depreciation for 12-15 years since new then a bottoming out in prices, and then appreciation around the 20-25 year mark as it hits classic car age. This has been the cycle since the ford model t became a classic car.
It’s not only sports cars and exotics. Maybe watch a classic car auction and compare MSRP prices with the auction hammer price. Because even economy cars appreciate. I can think of a few boomer econo/normal vehicles that come to mind the steel VW beetle, a ford galaxie, chevy impala, old F100’s among many others.
The issue is your average person doesn’t keep a vehicle for life to see the appreciation at the end. You got a self made problem is social ques making people get newer cars to proverbially keep up with the jones and not appear poor for driving a shitbox car that has paint peeling.
The psychology on car age is hilarious. A 12-20 year old car is seen as eww old and unwanted, but 30,40,50+ year old car and it flips to cool and desirable as people chase nostalgia or the the dream car of their childhood when they finally have money.
Valid points. But basically for the most part people’s view on trying to look rich is just baffling
Imagine a 1k car payment not including gas maintenance & rising insurance rates. Man idk how these people can keep up it’s insane
@@Bonanzaking a corolla won't become a classic no matter how long you wait. my c63s 8cyclinder might become a classic, but that are years down the line.
@@headpower999 i guess you haven’t seen the going rate for a 90’s camry with an immaculate interior and paint taken care of. A few have sold for msrp, ditto for 90’s civics. Give it another decade.
'80s and '90s Hondas and Toyotas last forever. They are the reliability champs. Invest the money in restoring them. They are well worth it.
safety problem is the only issue
@@Hproawesome That's actually why I got out of my super clean 1997 Civic HX years ago. I got ran off of the highway once and although the car was completely fine, I decided to buy a newer Honda since vehicles are SO large these days, if one slammed into me I'd probably die. I bought a 2009 Honda Accord (which then got totaled by someone on their phone rear ending me pretty damn hard). Now I have a 2013 Honda Accord. Still over 10 years old.
in the 80s 90s we teens bought $500 to $1,000 crap boxes drove them till they died soled them to junk yards and paid cash for another one
Anyone can work on a 90’s Honda or Toyota. So simple and easily accessible
Scotty Kilmer: I’ll keep my ‘94 Celica that i paid $300 bucks for 😂😂😂.
Not a bad idea really
That dude always saying bs😂
He did put work on it. He bought it from a teenage girl who crashed it
@@MegaBenjamin Big time! Guy's a total fraud with a loud mouth.
@@XBKLYN why
Just remember a car is an expense not an asset
You can sell it for cash it's literally an asset
I just bought a billion new buggati tourbillons so I disagree with this statment
@@thanosianthemadtitanic sure and I'm the king of England
A liability that depreciates in value as soon as it rolls off the dealer lot.
🫠
The dealership model of selling cars is a complete racket. We need cars to go direct from manufacturer to consumer. The manufactures can also run service centers. There is no need for middle men to jack the prices up without adding any value.
chinese companies have tried, it has to do with cost of manufacturing.
Be careful what you wish for. Mercedes and Honda have tried direct to consumer in Australia. What that has meant for consumers is no more negotiating on price. You either pay MSRP or you walk home. And have a guess what? MSRP hasn't fallen. There should be no surprises there. Honda and Mercedes are keeping the dealer's share to themself, they're not sharing it with customers. And have a guess what? Both Honda and Mercedes's sales have fallen like a stone as a consequence and Honda's have flat lined. And this has happened in a market that has seen record growth.
If you think getting ripped off by a multinational car manufacturer with millions of shareholders and a CEO on $30m is better than being ripped off by your local dealer is better, then go for it.
This is something that Tesla does well.
@@belovedChristian funny, tesla got loads of dealers in china. the reason it do direct sale in US is because it sell not that many quatity in US
@@davidbrayshaw3529I’d rather know exactly what the price is rather than have to shop around for a dealer that’s willing to negotiate msrp. Give me a strait forward MSRP over navigating markups, docs fees and unwanted add ons any day of the week
Not seeing the size of cars being spoken about, vast majority of people don't need their SUVs and Trucks
Yeah, my 2016 Colorado is the same size as my dads 2002 Silverado. My colorado is a midsize truck with a towing capacity of 7000 pounds. I hual a 14-foot boat and a smaller trailer with a lawn mower on it. I didn't need a full-size truck as they have gotten way too big.
They did mention vehicle weight rising which is attributable to the proliferation of SUVs and pickups.
But that’s what is being bought.
Small cars with no added electronics aren’t being sold
@@kevinwright4088Large vehicles are like grabbing the bigger stick.
Sure YOU are more likely to survive, but not the person you crash into.
Car manufacturers barely make sedans anymore and peddle SUVs because they’re virtually unregulated and have higher profit margins. It’s like driving a really big expensive 2-stroke engine that they’ve gotten all of us hooked on.
I’ve been driving my $2000 Oldsmobile for 6 years now, All you need is a beater with a heater.
If you are physically able, become a UA-cam mechanic and do MOST repairs yourself. I've saved thousands of dollars doing this. This applies to house repairs, too.
You are absolutely right. I havent been to a mechanic in over 5 years. Maintenance and repairs arent that hard to do especially with older cars
One reason I love my jeep wrangler more and more is the wealth of videos the community posts up to diagnose, how to and fix videos that saved me thousands in mechanic fees.
I save three time more by not owning a car
For people buying a new car, the biggest issue is finding something cheap and reliable.
@@williamlee7782 Speaks to Jeep quality
"Why car ownership is getting so expensive". The thumbnail is the majority of the answer. Most people used to drive ordinary economical sedans and hatchbacks. The picture is of what's now typical: a midsize SUV or larger, or a truck. These vehicles are luxuries; they are more expensive to buy, run, maintain, insure, and fix. Choosing one is choosing higher vehicle costs. All these people crying "I'm struggling to afford a basic midsize SUV I don't need" could go buy a fuel-sipping $22,000 well-equipped 2024 Corolla and live within their means, but instead of living within their means, they want to complain about a self-imposed problem of driving large, expensive vehicles.
A new 2024 Corolla is not $22,000. That's a lie. Corollas are in very low supply and high demand, which means most Corolla buyers pay well over MSRP. My friend recently paid 30k for a new 2024 Corolla LE
This so much this!
@@johnkonde1975 your friend got absolutely screwed, sucks for them. My local dealer has three 2024 Corolla LE's for $22,700, offering a $750 dealer discount on all three. They exist. The point remains. There's even more available up to $25k. People complaining about $40k vehicles should try looking at $25-30k vehicles, but they seem to demand SUV everything.
@@thatoneotherotherguy I agree with your point. More people should abandon 40-50k vehicles and focus on vehicles under 30k
@@johnkonde1975 I'm amazed how many buyers are willing to risk chosen bankruptcy instead of just shopping within their means. But they just are.
No matter what car you buy, it's a money pit.
I agree, I'm a mechanic and I'm baffled by some prices of car parts
No matter what MODERN car you buy is a money pit**
Bought a mazda mx3 for 500
Sold for 2k after 10 yesrs
7l of LPG per 100km =almost free drving
Insurance 100 per year
Cheap if you buy smart
@@faustinpippin9208 Did it have the little 1.8 V6?
Absolutely wrong. Nearly every car I have bought has been less than 1k. If you know how to work on them, you can keep it running and sell it for just as much if not more. Right now, I've had my 1990 Ford Ranger for 5 years that I paid $600 for and have put in about $1k in repairs and about 100k miles on it.
Not enough cars to go around...?! Take another look at car lots. Plenty of cars, but no one is buying a car for 1/4 the price of their house with loans stretching out 7-10 years.
Cash for Clunkers killed the used car market and left nothing but electronic plastic.
Dealerships can eat the cars in their lots...
@jackbelk8527 yeah that was I safely stupid of obama
For real. I built my house with my own 2 hands and spent 200k doing it. I'll buy a car that cost 200k new but pay 40k cash for a low mile used one. The problem with america is people financing everything. If you use loans for your house and cars you will spend 10's of thousands of dollars every year that you could have put in your savings account to buy even nicer cars and other fancy things.
Right now, some of the Stallantis products have 3+ years of inventory.
My 1998 Corolla is doing just fine. Taking family road trips, getting to work on time and all without a payment for over 20 years.
Car companies are not in the mood to increase production...they found out after 2020 they can make more profit by less production and keeping the demands high.
Until women start divorcing the sociopath sellouts in corporations = nothing will change
“I’m jus doin muh jawb dude bro”
Not entirely true. There are enough cars in the market. It is the fact that dealership increase the price to make more profit. There are many cars on the lot, but they rather count them as losses then sale them as lower price.
The dealership laws that require the purchase of a vehicle through a dealer are a large contributor to the cost of a new vehicle. Some manufactures would choose to sell direct to consumer, but aren't legally able in most states. SCAM
Not to mention import export fees. Donut bought a changli electric truck for like $1800 but for them to deal with freight fees, import fees, transfer fees it ended up being $8000
Indeed. That's why we call them "stealerships".
I heard a yr ago that Hyundai and Kia was considering selling direct through Amazon. Not sure what happened on it never heard anything else since on it.
Stop manufacturing cars with BS gadgets and give me simplicity. I don’t want my car to be a freaking computer!!
Government won’t allow that.
@@flyfishac11 Unfortunately you are the very minority. People want these gadgets and then government wants all the fancy emissions gear (which can be complex and pricey) and safety gear because people are too inept to drive correctly! So blame your fellow car purchasers!
I agree with this. The amount of gadgets and sensors are out of hand. I am sure it inflates the price of a car by a lot.
A lot of used 90s era JDMs like Nissan Laurel or Cedric have a lot of features you'll find in current models (adaptive cruise, side airbags, auto-lights and braking, etc.) and are typically under 10K. Any of these import cars can run fine beyond 1 million miles.
@@AgonxOC Who wants these gadgets? Nobody ever polled me, my friends, or my neighbors, about what they wanted. They add stupid things nowadays like having all your controls on some silly screen. Give me back my analog gauges!
Even used cars are expensive
Learn to do your own maintenance and you'll be fine
Not true. He's talking about someone who wants to buy a used car. Doing maintenance yourself only saves money if you already have a car.
@Booz2020 You think Toyota will get their reputation back? Or do you think faking the crash test's didn't hurt their reputation?
Well the money got cheaper, people don’t consider that.
Buy a car for 5k then.
I’ve been driving junk cars forever. It’s more fun that way and a lot cheaper.
My cars 20 years old it’s not perfect if you look closely you’ll find it’s imperfections but the engine and transmission are healthy and I know it’s a used car that will have some rough areas but I don’t stress over it as much as I would with a new expensive car. I fix the little things when I get to it. Cars 20 years old with over 200,000 on it still rolls down the road where I see new cars on the back of flat beds all the time.
@@ryans413 Exactly, it’s all about how you take care of it. Also with time, now we have a better idea of what used cars were truly built well. I’m looking for a used Lexus next. Happy motoring!
@@HonJazzz the old ones are better then the new Lexus the new ones are garbage.
@@ryans413 LS430 😎
to bad teens can't buy $500 crap boxes like in the 80s and 90s
Car ownership isnt expensive. Everything is too expensive. Food, healthcare, homes, education. When everything becomes too expensive cost isnt the problem. The problem is wages are too low.
You're wrong. Car ownership is expensive. Along with everything else.
The problem isn't wages or the price of anything. The problem is overconsumption.
Most people consume more than they can afford.
When speaking about cars, the most sold vehicles in North America aren't small sedans or hatchbacks like the Mazda 3 or the Kia Forte. They are large 4x4 SUVs which cost 20k more than a small car, consume twice more fuel and are more expensive to insure.
Remember that the money you have left in your bank account is revenues - costs. Not just revenues.
@@PatG-xd8qn but you need that 4x4 Tacoma Off-road Super Platinum Mega-Cab Ultra Black Edition to drive to the office. Otherwise people may think you are not masculine enough
I live like a king not owning a car
@@PatG-xd8qn I don't consume enough to even consider myself part of the age of consumerism but I am still breaking even with what should be a decent wage
“Car prices being overpriced is unlikely to change”
Bullcrap. If Americans learn to be disciplined for a year or so and not run to the dealerships to buy the latest car then those prices would come back down as the cumulative effect is so great. This is just propaganda on behalf of dealerships and manufacturers disguised as objective reporting to claim car prices being unjustifiably high is here to remain.
EXACTLY
Yes but nobody is taught finances and they just focus on what they can barely afford monthly payment wise. So they max out loans. Cars are priced at more than what people can afford so they get loans. Wild.
So you literally just explained to yourself what's unlikely to happen 🤦♂️
Americans will never do that lol
@@leok7193you caught that to?😮
We deserve walkable and bikable neighborhoods with fast frequent transit instead of relying on expensive car dependency
I have done some bad things in my younger life but I don’t deserve to be punished that severely for it.
Ew.
@@blueoval250you hate freedom THAT much?
@@SifuPumasome of us prefer the freedom to not own a car that properly built cities provide
@@SigFigNewton there’s nothing free about public transportation. You will go where it goes, when it goes and if it goes.
Don't buy new cars! Only by a car if you must, buy the "newest" used car you can AFFORD not that you want. Drive it, take care of it for as long as you can and only replace it when forced to.
No, everyone must buy new cars, no matter the msrp, no matter the interest rate. Keep buying like your life depended on it! Keep up with the Joneses people, you are only worth what kind of rolling status symbol you own! (then that leaves more used cars for me to buy cheap)
It is wrong to think a newer used car is better, it depends on how well the previous owner maintained it. A 20 year old car could last longer than a 6 yr old car
cars today cost more than I paid for my home witch was 60k in the mid 90s
How much is insurance?
@@381delirius no insurance no tag really don't need a DL no lone no lone repayment
Answer: The government regulated it so. I know how to drive and check my side mirrors, so I don’t need side radar warnings. I don’t need a backup camera because I look behind me when I am in reverse. I don’t need stop start on my engine to prematurely wear out the starter motor and leave me stranded. I drive safely so I would rather have a body on frame vehicle that will last longer. Now add in high interest rates with already high prices from all this extra equipment and vehicles have largely become unaffordable.
Cars aren't more expensive than they used to when taking inflation into account.
The difference now is that people buy larger cars, which are by definition more expensive to buy and to drive (because of increased fuel consumption).
People also buy all sort of useless options which are way too expensive for what they truly are.
My biggest complaint of buying a car is at the same time your car is dropping 20% your loan is front loaded with interest. If you buy a car and have a 5 year loan, you’ll pay 70% of its interest in the first 3 years. Instead of being equal so each month of the loan you’re paying the same amount of interest in your payment
That’s every amortization schedule - go look at what you repay on a 30 year mortgage 😀
@@07wrxtr1 Except your home is (in general) appreciating, while your vehicle depreciates the day you buy it.
@@mike325ci No chit Mike - except - here is the part you have forgotten about: The Sociopathic LOSERS that run corporate "america" won't let most people work from home - all while - they push for the whole "climate change DUDE BRO" narrative so they can accumulate even more wealth via the green "economy" investment scam with carbon credit trading.
In the end - we're all being hosed - I wish women/team women - would DIVORCE the losers that work for corporate "america" - AND Mike - REFUSE to sleep with them EVEN IF THEY SHOW UP IN A NEW BMW and show off a gated community home/lifestyle/etc....
The worst human beings in this world right now: Are the losers that roll out of bed every single day - and hide behind: "I'm jus doin muh jawb bro" - We should all ask ourselves: The company I work for - does it work in the capacity to hurt families and people? If so - time to look in the mirror and find something else to do for a living.
Mike - You CAN be unemployed/zero money/no car and STILL get plenty of women - it's EASY - you just don't have to be a weak loser sellout. It's truly that simple.
With everyone talking about environmental sustainability, why are auto makers allowed to manufacture disposable cars ? Most manufacturers now are so profit driven, their cars only last till warranty. This is by far more eco harming and wasteful than any gasoline engine pollution. Regulations should be put in place to mandate a 10 year warranty minimum or fine auto makers for making junk disposable cars while also charging triple profits (Stellantis, Ford).
This is the great gaslighting of our time. It makes no sense.
Yeah they love trolling us lol.
Consumer electronics as a whole has this problem.
@@Andre_The_Millennial yes, it started decades ago predominantly with pre-built desktop PCs
Environmental sustainability is just a marketing ploy.
This 44 minute video could be 2 minutes. Just say "Everything is computerized now, and even repair shops can't fix some problems. You can't fix a car for under $1,500 due to inflation and computer systems being so complicated."
Sure but thats bs.
Thanks for saving me 40mins!
In other words, you didn’t actually watch the video.
Saved me 44 minutes
The video is about car ownership but they spent the first 10 minutes on how fast the value of a car falls, which has nothing to do with the cost of ownership.
In 10 years many people will wear ski boots all the time because once every couple years they might go skiing. CNBC will have a video titled "when did shoes get so expensive and big and hot?"
Pickups and SUVs used to be niche vehicles with extra capability for those who used them for real work. Now these juggernauts trundle around neighborhoods, their tow-ratings unused and beds empty, "rugged individualist" cosplay for the office drone set and a hazard for anyone capable of doing the math on owning a truck versus renting one the handful of times you need one.
As someone who has moved a full sized dishwasher in a Mazda 3 hatchback and plenty of furniture in a minivan, let me tell you that you don't need these gargantuans as much as the marketing says you do.
On average, SUVs and pickups generate 2-3 times the profit of a passenger car, so they are more expensive, and they are worse at their primary mission of moving people on roads than a sedan.
Then there's the external costs borne by the rest of society. "Big truck socialism" manifests in higher rates of fatality and injury, to carbon and particulate emissions, to road damage from heavier vehicles, to increased upward pressure on raw material prices for larger vehicle production, fueling, and maintenance.
The proliferation of SUVs and pickups is just another reminder that American marketing is the best in the world.
I love my Mazda 3 Hatchback. Small and fun to drive but put the seats down and you have a pretty decent sized trunk for large items.
This is really a crisis of masculinity. Men do not understand how to be men, but they see a TV commercial saying tough men drive pickups, so they go buy one. 90 percent of pickup owners do not need a pickup. Remember coal rolling? Yeah can't do that with a small gasoline car. Many people need to grow self-esteem, but instead they grow their vehicle. It is also very cheap to make a pickup truck, they cost around the same to make as a full size sedan, but since everyone is willing to spend 100k they know they can charge so much more playing on in-se-curities.
A huge wall of text, cmon bro you don't need what you like or want or need, bro cmon bro trust me. 😂
I cannot agree more with this comment and I'm glad you took the time to articulate it so well so I don't have to
@@00_UUFragile masculinity really is out of control, it's causing homophobia, misogyny, wasteful spending, violence and self harm. I'm trying to figure out why though? Perhaps harder economic times are causing some men to feel inadequate and so they compensate with irration behaviors?
We are missing the big picture. It's not just cars. Everything is getting more expensive (cars, houses, education, healthcare, childcare....). The problem is wages haven't been keeping up for decades and now we are at a breaking point. In the past, people were able to mitigate a lot of these rising prices. Women entering the workforce in the 70's and 80's added another income. Globalization starting in the 90's tamed consumer prices. And delayed onset of adulthood with young adults living in mom's basement and not having kids helped people get by. But what now??? We are now in a situation where it takes two working adults just to pay rent and buy two cars even without kids.
And that is why I am proposing a new law that mandates threesome marriages. Two guys and a lady or vice versa. Your choice. Will keep the economy chugging along!
Actually the next shakeout will be people with kids, while childfree people thrive and uphold the economy. Parents will be shuttled into the economic underclass to become overworked wage peasants. This engine is going to keep running and you will not get a revolutionary change to magically make things affordable again because new groups will always rise to keep it going--childfree, people with foreign money, people with side hustles, etc. It will get worse.
In the past, homes were smaller, cars were smaller, families had just one car, people barely ever traveled by airplane and so on.
The problem is that we now consume more.
Look at the list of the most sold vehicles in North America and Tell me how many of them are small sedans and hatchbacks
@@PatG-xd8qn another problem is that they made small and full size sedans extremely uncomfortable. If you drive 2006 Toyota Avalon and 2019 Toyota Avalon, you will immediately notice how low newer Avalon is. Roof slope is low, seating position is low, interior space is much smaller up front. After so many years of poor sales Avalon was cancelled and now replaced with much higher riding Crown, which also happens to cost much more - here is the profit. Hyundai did the same thing with their sedans, they are extremely hard to get in and get out being so low to the ground. People with back pain (senior people that happen to buy most new cars) just don't feel comfortable using one. In the same time they cancelled all economy spacious cars - no more Scion, no more Kia Soul (getting axed next year), no more Honda Element/Honda Fit, no more Chevrolet Cruze/Chevrolet Sonic, no more Prius V in the US.
@@00_UU Personally my 2022 Mazda 3 hatchback has lots of interior space and I can use it for everything, going from skiing to mountain biking to kayaking!
In fact, most crossovers have less cargo that hatchbacksm. People buy such SUVs because it's trendy and because people feel like they are safer, even though it's not really true
Bought me a 2008 Impala LTZ for $1,300. She just needed Plugs and Wires and now she drives like a Dream! And Paid for!
Duct tape is getting expensive. Gotta hold my 1999 Corolla with 220k together somehow!
😂😢😅😊
220k? Just getting broke in! My buddy paid $1800 for his Corolla with 200k miles and has had it for 9 years and has just shy of 400K miles and hasn't done any major repairs!
@@halfpeltaltwhat portion of the year is there snow on the ground where your buddy lives
Audi, Nissan, Honda, and Toyotas built in the 90s can hold up for over a million miles easy. Just take good care of it and get regular maintenance or do the maintenance yourself and you're fine.
JB Weld to the rescue
Conventionally, I personally would only buy a car new if, and only if, I intended on keeping it until the wheels fall off (10+ years easy). However, at the moment many "used" car prices are so close to new there is no purpose in buying used at all.
It's funny you and others say this yet it's blatantly false, because even if a new and used car are the same price as you say, the new car loses 3-4k in value when you drive it off the lot, and 15% per year after that. Oh, and you can't buy a new car for $5k like you can a used car.
@@nathangallagher5112 Sorry to say, you are wrong - At least In the car market I was in there is no way to get the specific car that I wanted for a decent deal used barring one that was beaten to within an inch of its life.
Though my car market was a tad more specific then your average commuter vehicle. Picked up a Toyota Gr 86 for MSRP in 2023. There are *used models today* selling for 15k miles that are selling for within 2k of *brand new prices*. It was quite astonishing to me, but it is a high-demand car.
So if you are looking for a *specific* vehicle I can assure you what I am saying is correct with a degree of certainty because I myself went through it when seeking to purchase. If you are looking at "general commuter cars from Point A to B" that *could* be correct - provided you don't want anything other then that specific thing.
@@nathangallagher5112 I wrote you a detailed response, UA-cam decided to censor it.
Long story short - I know for a fact its true within specific car markets. I am an enthusiast and bought a GR 86 in 2023 - used models were almost to the penny the same cost as a new model. The same is said of many other specific models of car that aren't just "Commute a-to-b" vehicles.
This is why used Toyotas are holding their value relatively well.
toyotas and hondas been holding value ever since it was started where u been bruhhh?????
My car has over 300,000 miles and is 13 years old. It has been done depreciating for years now 😂😂😂😂
Cars dependency is a ball and chain, not freedom.
Here are my thoughts about car buying.
1) Choose a good used car. You do not need some fancy vehicle with all the bells and whistles. Just need a car that is safe, easy to drive, comfortable to drive, reliable, and within budget. We have people today wanting their cars decked out with all of the fancy electronics and gadgets due to all of the marketing. This drives up the cost of a car. All of this extra stuff is expensive. We have people wanting to "keep up appearances". They gotta have the newest fancy car like they have their fancy new iPhone.
2) People are enticed to buy a car with a heck of a lot more features then what they really need because of the "easy money" traps that are heavily marketed to them. All of these financial products are expensive...more so the consumer. The car companies, and the financial companies, are playing you. The "cheap and easy" money they are promising to you in the form of a loan and financing costs more then actually paying for the car in cash. They are doing this because they can make more money off those financial products then selling you the actual car. Go to the dealer or seller with a budgetary number in mind. Carry the cash. If they don't want to play ball with a cash offer, walk out. Go find somewhere else to buy. Remember, if they do not sell that car, they are having to cover the carrying costs on the inventory as a dealer (or seller has to make their payments until they can unload it on someone else). I have played hardball like this, and I have gotten them to see things my way. You only need to purchase what YOU need, not what anyone else says YOU need. Don't be influenced by others.
3) Remember that the minute you drive that new car off the dealer's lot it rapidly depreciates in value. Look at Quality, Cost, and Delivery...and the cost of total ownership for the vehicle on an annual basis. If it is not something you can afford, then you do not buy that car. I understand there is a feeling of FOMO and related. Just gotta take someone with a cool head with you who can help you reason it out. Sometimes that extra effort of weighing the pros and cons for everything will lead to a better conclusion then just going on your feelings and FOMO.
4) Remember, when negotiating a price, you can always walkaway from a potential deal. Just be ready to lose the deal. Go into any negotiation as though you are ready to potentially lose. Play hardball, and perhaps you get a better offer.
5) Buy only the amount you need. Don't buy anything more because of a perceived "better deal". There is no FOMO here. Your bank account will thank you for this. Only buy what YOU need.
6) Do your research and determine what product/car best suits you. Look at the facts. Look at the figures. Do some math. Arrive armed and ready to negotiate. Understand your Needs, and your Wants. What can you live without? What can you compromise on?
7) Shop around. Do you need that Tesla? Why not a Toyota? Why not a Nissan? All are good. What are your needs vs what are you wants? What can you live with?
8) Set a goal for savings and/or big purchase. Only purchase something when you actually have the money. If you don't have the money, then don't purchase. Don't consume. Avoid falling into that debt trap. Remember the banks and car dealers may sound friendly, but they are NOT your friends. They want to make more money from you then what you intend to spend on it. Grow the backbone, and tell them 'No Thanks'.
My thoughts on car buying: avoid it if possible
Purchase assets, not liabilities.
New cars prices are astronomical, combined with high interest rates, and lower longevity due to increased technology and turbochargers. This mix causes high payments and low resale value, leading to more customers under water on their loans.
I don't feel sorry for them neither. That's what they get for buying JUNK.
Tesla rules them all now
@@FlyWithTyy Tesla is the biggest piece of junk of them all $100,000 for a car that has worse build quality than a 1995 Ford Aspire that was built by Kia? 🤣
@@user-sk1eh3pg6jI’ve spent under $80 in maintenance on my model y in 20k miles (two tire rotations, third one next week). What was that about build quality?
@@qwerty112311 You never had to buy washer fluid? Never had to buy wiper blades? Never had to buy a cabin air con filter? $80 my ass. And for the record build quality and scheduled maintenance don't have any relation to each other whatsoever. Take a look at the uneven paint and huge panel gaps that aren't even lined up properly on your car then get back to me.
Still drive my mercedes 300D ive bought in 1984. Same engine too, no plans to purchase anything new.
I can repair everything myself and bodywork gets welded when needed. No electronics or emission garbage. Sure its not very good on diesel mileage but thats the last thing to worry abut. A car is a tool not a show off how rich you are.
Beautiful car.
300D is a tank… one of the best. runs and runs even with little service 👍
got a nissan versa stick shift in 2018. even though i could have paid all the cash. put just enough down to maximize the 0% apr for 5 years. used the car for 5 years prior to paying the full amount with no interest. car runs great, gas saver commuter. was my 1st new car. did some road trips. feels like made at least one correct decision.
I met a guy today with an 80 year old Willies Jeep. Runs perfect and all work performed by himself with relative ease.
A car is a necessity of life unless you live in NYC
This is mostly true, but for me during hard times, I relied on my bike. Just be sure you get one small enough to fit on the public bus’ bike rack.
San Francisco and maybe Seattle. I do not own a vehicle Living in Texas public transportation is poor. So I have huge calves from cycling. The heat, the druggies on the bus, and just the stigma associated without owning a vehicle sucks. I earn a decent income but I can't give in. I would feel defeated walking into a dealership at their mercy.
NYC is a sh1thole
@@Taylormademan900 nothing beats some good old lambo feeties, or the shoebaroos
1- never buy new car
2-buy what can you afford
3- learn how to fix simple things
Best car is what you have now
1- never buy car*********
Always buy a new car , just keep it for 20 plus years. Used cars are just money pits.
@@spotlight1220that makes no sense because your new car you keep forever will need maintenance just like a used car.
Exactly 👍
@ryans413 but at least you know what's wrong with your car and how you've maintained it over the years.
Because manufacturers are keeping prices high for record profits.
Also to fund the EV movement someone has to pay for it
@@BitcoinTo100K china is funding it for their country, why in the world cant the government do the same ?
It takes two to tango. The prices are high because people pay them. Just because you don’t see value in a new car doesn’t mean nobody does.
The pandemic taught the dealers they can fraudulently hide inventory then claim “supply and demand “ why there’s markups
@@qwerty112311wait I thought it was supply OR demand
DOH!
It will never stop until all of us come together and force change. This applies to more than just this situation.
My coworkers are buying teslas and take up $65k loans. Thats $65k with interest not included. I have a paid off 2014 kia sorento and i am totally okay with not owing $65k😊
3 years ago bought the wife a new car. The price for a 5yo vehicle with 50K miles was the same as a new car. Why buy used when you can buy new at the same price ? Makes no sense to me. A 5yo vehicle with 50K should be priced half of new at the most.
Last month bought a new truck. Same problem, price for a 5yo vehicle with 50K miles was the same as a new. So I bought new.
I do not understand how this can be. Something major problem with the car industry.
Older vehicles don't have the trouble or expense of new. My '99 diesel with a quarter million miles is worth the same as what I paid for it in 2003 with 50K miles. Less plastic, more life.
I buy used cars with 100k+ miles for 6k or less. Never been left stranded. Never even had a major repair. Buying new is flushing money down the toilet.
Um, stop buying new cars then? Buy what will work for your needs? This will lower the cost of new cars eventually… if everyone begins doing this. Supply and demand..
any cars built after 2019 are lemons
70k miles of use so far out of my $1000 car. I do all my own maintenance and repairs. Everything works perfect. Just did a 3200 mile trip. Don’t need full coverage either.
That's a dream right I might just learn how to work on my own cars to avoid the large repair fees
@@cyyber1 People just want to keep up with the Jones!
That is greaf! If I had a garage I would do my own maintenance.
@@Kyumilli you do not need a garage to do your own maintenance. I did a lot of mine when I was young right in the parking lot of the apartment complex!
@@AgonxOC i park in underground parkade but my strata doesn't allow car work unfortunately 😢
Buy a car that’s 5 year old at least with cash otherwise it’s of no use to get a used car with high interest
what
By historical standards interest rates are still low. They’re only high compared to the last 15 years.
With even a money market rate earning 5%, unless the interest rate is more than about 8.5% on the auto loan it's a poor decision to pay cash.
@@jeffmorgan5152locking in 8.5% gains is a poor decision?
@@SigFigNewton Paying cash to avoid interest on a car loan can be a mistake. The growth, leaving the cash invested even at a very safe 5%, outpaces the cost of interest on an 8% auto loan. (You pay simple, but earn compound.)
Hold to my 12 year prius c with 200k km mileage.......recently brake failures cause around $1800 to repair. Will continue using the car for 2 year more.
I do my own maintenance, a full brake job will run $200-$500 max depending on what needs replaced. If it's just pads & rotors it can be less than $200.
Buy used cars in cash and learn to work on it with UA-cam videos. Build wealth. I’m now a pro mechanic on my wife and I’s 3 paid off cars (buy one extra so when one breaks down no big deal). I love UA-cam !
Saved close to 500 dollars doing my own brake job. I did all 4 wheels fronts have discs back have drums. I replaced the rotors and pads and rebuilt the entire drum brake system in the back new shoes new drum new brake cylinders. Bled the brakes added new fluid and I only paid 150 bucks for everything.
Say it again for the people in the back!!!!
So half of Americans around me owe on average $15,000 for their vehicle driving? This is insanity 😂
I owe 26k and I'm told my car is only worth 16k
I'm actually surprised it is that low. I would have guessed much higher.
@@JAlexanderCurtisit’s because many are leased. These are the people you see driving brand new cars every 3 years. My mom does this, only she buys the EXACT model and color as previous ones, so other than the license plate, everything’s the same because the manufacture hasn’t changed anything. She leases because back when she bought, she would get something obviously different every time, so back then, it did not make sense to buy. But the very first lease has been the exact same vehicle, that would’ve been paid off a decade ago. That said, she’s a woman in her 70s, so I think she just likes the idea of not having to worry about maintenance. After a decade, odds are good that something on her lease would have failed by now and be out of warranty.
There cellphones too 😂
@@OutdoorsmanPackI honestly wouldn’t consider cell phones. I got a brand new iphone 15 256GB on launch day (last September), but it wasn’t $900. It’s $35.32 for the next 24 months. It was purchased on an installment plan, so there is no interest. $35 a month to have the latest and greatest. Now then, you may be wondering about the actual service plan. Well, I’m on mint mobile, so it’s not crazy. Even if it were though, I would consider it a subscription service. I am subscribed monthly for their service. You wouldn’t consider Netflix to be part of that debt issue, would you? Sure, if you’ve got several subscriptions, then it could be a problem, but no one is looking at subscription services as a major debt issue, except for maybe consolidation companies.
Car ownership does not have to be expensive. I bought a pre-owned, manual Corolla nine years ago. It had >100K miles on the clock when I bought it, and I've almost tripled that total. The car still runs like new and looks great. Original cash price: $5,000.
Looking at prices for new cars, I can't believe anyone actually pays that much.
Toyota and Honda are great cars. They'll last forever as long as you take care of them.
Keywords: 9 years ago….
@@Sisa_LimpsonExactly 🤦🏻♂️.
@@Sisa_Limpson whats inflation for $500
A car is a liability however, a necessity for most. That’s the paradox.
A necessary liability.
The reason why used cars are expensive now is because of the "Cash for clunkers" program that was ran about 16 years ago. That removed thousands of vehicles from the market. In return, that drove up prices when you take the supply and demand that's on hand into consideration. Less cars equals to less parts and those that need the parts have less to go around therefore driving up the cost for used cars.
This documentary comes at the right time. I'm relocating to the US in January and my employer has given me a dealership to purchase a car from. The prices are ridiculous and when I check online for used cars I get even more shocked. I don't know how I'm going to manage to get an affordable used car to commute to work.
I'm glad I bought my Tacoma new in 2014. Got only 140k km on it, all maintenance kept up on, no accidents except a minor bumper collision in a parking lot at 5km/hr. 10 years later Toyota has been trying to buy it back from me for 55% of what i paid for it. Told them it Works like a dream and they couldn't afford the price Id be willing to part with it and will probably drive it till i die cause it'll probably outlive me.
2012 Tacoma here. 98k so far. Love Toyota’s for that reason. And they keep there value better than most.
Same here, brother. I have over 200k miles on my 2014 Taco. Best vehicle I've ever owned. I plan on putting a half million miles on my baby!
Out of curiosity, why would a car company want to buy back an old car from a user?
@shmookins to make money and sell you a new one. I was getting the same offer with my truck. I'll never get rid of my taco unless it get totaled
So the problem is predatory lending and not financially irresponsible Americans ? Record debt levels but it is always someone else's fault !!! STOP IT !!!
I live in Japan, and here buildings depreciate just like cars do. My newly built house is worse less today than when I moved in 6 months ago (the land retains value). Combined with decent public housing, this keeps housing costs low. Just something to think about.
So investing in real estate is not advised in Japan? How do you grow wealth then? 401k?
You see how Chase approved 7% but the dealer bumped it to 8%. That should br illegal.
In my town… it’s so hard to get around with no car. The buses come every hour and a half. Bus hours are 8 am to 5 pm. Everything is so far away
Where do you live?
My $16,800 Honda Fit has 235k miles and still runs like a charm 😅
Luxury cars = Money pits
My Lexus IS250 is 13 years old.. & all I done was tires & brakes .. so I’m not sure that all our money pitts
@@larkt6693 correction....I meant the BMWs, Audis, Benz, Maseratis, Land Rovers, Aston Martins, and Porsche. 😆
My 2k dollar Pontiac is 20 years old has 202,000 miles and still runs like new. Starts on the first crank every time.
Porsche is usually as highly rated or more than Toyota and Lexus for dependability by consumer Reports and JD Power. However they cost a lot more for repairs and maintenance for some reason.
Something people overlook is how the government is the one making it more expensive.
💯 Underrated comment
Gov is trying to force use of EVs when we don't want them and it's forcing manufacturers to subsidize them by raising the price of fuel vehicles.
One critique of looking solely at average monthly payment - this does not account for term lengths. I would assume that in addition to monthly payments going up, average term lengths is also going up. This exacerbates unaffordabililty since longer terms are typically associated with higher interest rates.
Yall remember when pickup trucks were working vehicles for the middle class instead of a status symbol by people who “tow” their kids and groceries
To be fair kids nowadays are heavier 😂😂😂😂
Now trucks are for white collar workers with low T
Let me guess. Vehicle manufacturers put in technology nobody wants which drives the price up. The dealerships then add more onto the MSRP. The insurance company sees every vehicle on the road is more expensive and decide to increase everyone rates. Mechanics require more training to try and fix these new technology features and charge more for it.
Also some claim insurance is going up for everyone because so many buy SUV's and trucks now which according to the national highway 🛣️ safety cause more fatalities and damage when they hit something. However I'm not sure if they would go up for those with the small sedans. If people actually did the speed limits would greatly reduce fatalities.
Since 1996 I have owned 3 Subaru’s, 2 95 sedans and a 96 wagon. I put over 900k miles on those 3 cars, other than 1 engine and 1 transmission it was all routine maintenance. Very reliable and inexpensive to maintain, 24 to 26 avg mpg on regular. All 3 are AWD, never failed to get me where I was going. I always used quality fluids, tires, and OEM parts. Those 3 cars helped me retire and I still have all of them. I owned a lot of nice vehicle when I was young and had planned on purchasing a nice vehicle after I retired 2 years ago. But the more I look at the pricing, taxes, insurance, cost of ownership and the level of service that some dealerships offer, the better those old Subaru’s look.
Nothing wrong with that man!!
As someone who went car-free 7 years ago, it's wild how anyone wants to go through this just to live their life. I'm a part of my city's car sharing, Communauto, for the couple handfuls of times a year that a car is the right tool for the job. Public transit, cycling, and walking are all my default mobility methods now. Maybe you too can break free from the chains of car ownership, and reap the several thousands of dollars extra a year that you're not dumping into a machine!
Ummm walking to like bad because it’s hard and stuff and uhh cars are freedumb okay! Everyone knows that in the past no one walked anywhere because America is big or something.
Stop buying cars that are 20% car and 80% gimmick. Noone needs keyless entry and start, electrically heated steering wheels or self-opening trunks. That stuff might look good at the dealer but horrible at the repair shop.
Then why work? To be able to afford a boring car just to have some wheels? Why not lease, not give a damn about repair costs because the car is under warranty and actually enjoy life? IF you can't afford a new car, then a 20 year old car will still need a lot of maintenance over the years. And new parts for even 20 year old cars are insanse. For instance IF I wanted to change my gearbox on my Honda 8th gen Civic, the used one is about 300 bucks. New one, 3000 bucks. For a 20 eyar old car.
Cannot avoid it. Most cars now have this electronic junk standard. I do not need Lane Keep Assist, but it is almost always there. They stuff this junk into cars to justify higher prices and *safety*, but who asked? Also plenty of people *think* they need AWD when they need winter tires and driving skills instead, but you will never see car manufacturer advertise winter tires instead of AWD, people may just get smart.
@@HyperVegitoDBZBecause leasing is the most expensive way to operate a car...you put a few thousand down every few years + lease payments and then do it all over again continuously. You could buy two used cars and customize them yourself and still be way better off than leasing and you'll have one to spare.
@@Tigersfan829 You could, but they would be equally expensive to repair new, as the leased one, with the warranty. Unless you want to repair the same as 20 year Olds, with used cars, from junk yards etc. With quality of modern cars and cases that some don't even make 100k km before the engine dies, is it really so expensive?
Lose 10% driving off the lot. Lose another 20% in 5 years. Lose 80% at trade in 5 years later.
5 yr old car Magically regains 90% of msrp once dealer puts it on the used car lot.
America is still one of the cheapest countries where you can buy and run a car. It only really becomes expensive when you take out loans/finance beyond your means.
check out china
you'll own nothing and be happy
20% down, finance max of 3 years, payment no more than 8% of your take home pay... or better yet, pay cash
Agreed. Basic rule of thumb, and too many idiots cannot meet that minimum threshold - but decide to finance it anyway.
Conclusion: too much gimmicky computerized junk added to cars makes them expensive to buy and even more expensive to repair.
There's definitely a potential market for a manufacturer that makes affordable, simplistic and reliable cars without all the gadgets.
Saturns used to be great...thats why GM stopped making them
I remember basic Toyota trucks too.... they stopped selling them. I blame the EPA CAFE standards and other government regulations.
Sooo, no one’s talking about how many brand new cars are literally sitting on lots across the country? Every single dealer in my area doesn’t have a single space for another vehicle.
You have to make roughly 60k annually and have good credit to buy a new car unless you’re getting the smallest car on the lot. That cuts out 68% of Americans
From the UK: I've been looking for a succinct explanation as to why insurance premiums have increased so much, and you've provided it. Great work.
In America you have three choices:
1. pay a bunch of money for a car
2. pay a bunch of money for rent because you lived in a place with decent public transit (very rare)
3. spend like three hours going to and from work (your bus decided not to show up today)
Can't forget the 1 hour bus frequencies too!
Or you could do none of those. You do not need to buy a new car and you certainly don’t need to finance one.
@@louiszhang3050 America has some of the cheapest car prices in the world!
One can buy a very inexpensive used car. Issue is people want to keep up with the jones! So yeah people need to live within their means!
@@AgonxOC Not everyone wants a 300k 1990-something with a questionable maintenance record. Questionable maintenance and the previous owner's negligence can cost you just as much as a new car.
50k miles in on our used Nissan and we almost had to drop $4500 on a new transmission if it wasn't for a warranty we had.
@@fartpluswetone8077 The problem is YOU bought the WRONG car. Nissan has been KNOWN for nearly two decades to have issues with their CVTs which they started using in the mid 00s.
You could buy a nicely used car built in the 00s with less than 100K for not too much money. You can also shop around and find great deals on used cars and they do not have to be 20 years old with 300K.
I have been around the automotive industry to know a few things!
Toyota Honda Toyota Honda Toyota Honda Toyota Honda TOYOTA HONDA TOYOTA HONDA!!!!!!!!
Got it?
The simple answer is that they don't want you to own a car. It gives you way too much freedom, and the power hungry people in charge don't like that.
I am so glad I am not car obsessed like many Americans. I am fine with using transit and my bicycle. I have monthly passes from 2 transit agencies and monies I set aside every month for ride-hailing, and even with that, it's still cheaper than a monthly car payment.
I've never owned a car in my life. Don't feel like I'm missing out and I am saving tons of money by using public transport instead.
Can't miss what you never had. You've got the right idea.
Unfortunately safety is more cause of a concern now. As mental illness and crime is in the rise.
I've never lived where there was 'public transportation'. I'd have to drive 160 miles to the closest bus stop.
You Just Pay it in taxes and wasted time
😂@@jackbelk8527
If people stop financing their cars and actually what they can actually afford with cash.. car prices will crash as manufacturers will have to make cheaper cars
Young people, here's some advice for you: A buddy of mine bought a Jeep YJ in '91. He still has it. He never bought another vehicle. He invested all those car payments he didn't have to make. He's doing extremely well financially.
My cars 20 years old I bought it for 2k and have no car payments and insurance is cheap. I do the basic maintenance and it’s held up well. I look across the street and every home has a new car big trucks big SUVs and I know some of these vehicles are worth 50k and up.
@@ryans413This is great for you but again life is to be enjoyed. What is the purpose of working extremely hard making it to your dream career and not rewarding yourself with quality of life? You work hard to reward yourself with convenience
The reason new cars lose so much value so quickly is because we are paying for a lot of non value added things. Most of these are government mandated things.
As a professional mechanic myself, I'm annoyed they didn't dive deeper into the monopolies and proprietary lockouts plaguing the industry.
When an auto manufacturer owns an entire supply chain, they can name the price. When the mechanic needs proprietary tooling, which requires a subscription to maintain, we have to pass that cost down to the consumer.
So much greed plaguing the industry, and they buy skimmed the surface. 🙄
Simply, its because of government and its regulations. Toyota makes cheap/simple vehicles for foreign countries that are illegal to import into the US.
Crazy yeah - and insurance being so high (varies per state) is insane
If you can't pay cash, you can't afford it!
I've always said this, I've never had a car payment and never will.
Yes and also very important not to tell the dealer you're paying cash up front.
They will charge you more if they know they can't sell you finance with interest on it.
Because the interest is part of their business model and an essential part of their profits.
@@QoraxAudio So true!
People do this all the time buy things they can’t afford. Buy houses they can’t afford buy cars they can’t afford. If you have to finance something then you can’t afford it plain and simple.
It's sad how the Car dealerships are OK w/having a "sketchy/shady" reputation and do nothing about it. It's pathetic. More car makers need to cut the middlemen out and sell directly to the customers like Tesla.
It's not Getting that Expensive.
The $20-$25K Car is the Same car as the $50K-$75K Car with the Leather seats, Millions of Cameras and Sensors, Programmable LED Light Displays, 16 Speakers, Tv's, WIFI for the Back Seats, Spotify/Pandora Subscriptions, etc...
Just buy the one without all that Crap. Because they're worth the same as soon as you get them home in your driveway.
They have the same engines, Transmissions, Drive Trains, Water Pumps, A/C Units.
They're literally the same cars.
Everything is expensive
I bought a car in 2022 and was paying $650 a month, including an extended warranty for peace of mind. In 2023, the car broke down, and the warranty provider claimed it had sludge in the motor, refusing to cover the repairs despite my proof of regular maintenance. As a result, I had to return the car to the lender because I wasn’t going to continue paying $650 a month for an inoperable vehicle.
What was “regular maintenance” and what car was it?
@@blueoval250 Regular maintenance, meaning the recommended maintenance that is required per the mileage and also regular oil changes. It was a Nissan Pathfinder.
@@mchl1985 unfortunately what is recommended can be nonsense. 10k mile oil changes are going to create problems even with high quality oil. Depending on the vehicle and what kind of driving you do 3k-6k mile oil changes with quality oil.
This is one of the reasons why I don't buy warranties.
Why？Because 99% of US politicians work for the large corporations, helping them monopolize the market!
In sharp contrast, there are more than 130 car brands in China, because their government encourage entrepreneurship and despise monopoly. The end result of such fierce competition is better products and lower prices for the consumers!
You can’t be in a hurry buying a car. Take your time, read everything, & google it. Go ahead, beat the snot (by asking lots of questions) out of the sales person.
i dont see how used cars lose 50% in so many years if they try to sell used cars for almost the same price as a new one.
Isn't this already published?