Language advisory as to the above video.
Dale Price at Dyspeptic Mutterings brings us the news that the days of relatively cheap rides are gone for the foreseeable future:
“Average used-car price nears $30,000….”
I have never spent more than $12,500 on a car–and that was a two year old 1995 Buick Skylark.
Nice car–all the bells and mid-90s whistles.
Not even close since, and with that in mind, it should {?} be clear I’ve never bought a new car.
Right now, our family vehicle is a 2005 Expedition XLT–literally totaled, thanks to being t-boned in a rural smash-up over the summer.
It’s still driveable, albeit an embarrassment to be seen in, so we still use it. But for how much longer? We’re playing with house money, and it’s running out.
However, the current used car market is insane, and it does not appear that we will be able to replace it with anything other than a similar wreck.
“I’ve never seen anything remotely close to this — it’s craziness,” said Schrier, who has been selling autos for 35 years. “It’s quite frustrating for so many people right now.”
When the government reported that consumer inflation rocketed 6.8% in the 12 months that ended in November — the sharpest jump in nearly 40 years — the biggest factor, apart from energy, was used vehicles. And while the rate of increase is slowing, most experts say the inflated vehicle prices aren’t likely to ease for the foreseeable future.
The blame can be traced directly to the pandemic’s eruption in March of last year. Auto plants suspended production to try to slow the virus’ spread. As sales of new vehicles sank, fewer people traded in used cars and trucks. At the same time, demand for laptops and monitors from people stuck at home led semiconductor makers to shift production from autos, which depend on such chips, to consumer electronics.
When a swifter-than-expected economic rebound boosted demand for vehicles, auto plants tried to restore full production. But chip makers couldn’t respond fast enough. And rental car companies and other fleet buyers, unable to acquire new vehicles, stopped off-loading older ones, thereby compounding the shortage of used vehicles.
Go here to read the rest. After a bad experience with the first car I owned, a cherry red 1977 T-Bird, I have only purchased new cars. Until now I have never spent more than 28K on a new car. I have seen the explosion in the cost of used cars in my bankruptcy practice where beater cars are suddenly worth far more than the 2400 exemption allowed for a motor vehicle in Illinois. Inflation takes us into strange places we would much rather not go, and we pay an exorbitant price for the trip.
Neither I nor my extended family have bought either a new or used car from a car dealership in decades.
We buy our cars as used from Hertz or Enterprise. The used cars are:
1. Well maintained.
2. Consistently below bluebook value.
3. Warranty.
4. No hassle.
5. Peace of mind.
The only downside is only certain makes and models are available and the interior will always be dark.
My Toyota Sienna has 304,000 miles on it. Have kept up maintenance.
Had a down payment saved up to buy a used mini van and sell the traveling dumpster to an employee’s son for a buck. Seeing that used prices are up 240% I’m holding on to it.
If you depend on Kelley Blue Book or Edmunds for an estimate of your own used car’s value, forget it! The valuations are too low by 10 to 20 %.
After new cars, such as our old Chevy Impala back in the day, broke the $20K barrier, wife and I went for late model used. Now, it seems, under $30K is near impossible. Meanwhile, wife’s vehicle has 140K miles on it; while my 2004 blaze yellow F150, bought with 116K miles a few years ago, is now close to 140K also. Picked it up for $6K and put $1k into it. With wife working from home and myself retired, replacing cars is not a priority. Always used to pay cash…that may change.
2003 Chevrolet Avalanche for me.
208,000 miles. 10 mpg average. Four wheel drive for Northern Michigan is a must. Just repair expenditures and petrol for the silly ride. Motor and transmission are in exceptional condition. I do like it. Anything, even with poor gas mileage, that is paid for is a good deal as long as the major components have been serviced regularly.
I looked at a 2013 Avalanche with 165,000 miles. $16,000.
Incredible.
Driving the old truck until it dies.
Middle class?
That was years ago.
A semblance of the middle class remains.
Brandon is something else.
I bought a used car a year ago and the current trade-in value is $1,500 more than I bought it for (including tax and title fees.)
That’s by the Kelley blue book estimate, which is lower than what local dealers are likely to offer.
Thank you for the link!
And that Marshall Lucky bit from “Used Cars” kills me every time. Especially the Mercedes at the end. Absolutely hilarious, if not family friendly.
Biden makes an exceptional used car salesman.