100-month car loans should be illegal. Car companies need to produce basic, reliable vehicles (without CVTs or turbos on small-displacement engines) and no frills as the middle & working classes sink deeper into debt and living-wage jobs disappear.
https://www.wsj.com/business/autos/car-payments-now-average-more-than-750-a-month-enter-the-100-month-car-loan-fcd7d284
Posted by Key_Brief_8138
7 Comments
The world is about to slow down. More people using ebikes and buses. Which is good but a good portion of people will not be able to afford vehicles. Which is crazy as back in the 90s you would trade in your car every few years for a new…..like it was nothing.
You would think that car prices would follow the laws of supply and demand…
We have a glut of supply and lower demand yet prices remain high.
Its almost as if there is a concentrated effort to strip the middle class of wealth.
Okay let’s break some things down though.
Average monthly payment isn’t a great metric. It’s also going to include all the extreme payments that rich people have on luxury cars and super cars. A lot of people believe it or not can afford a $750 payment. The people who can’t need to focus on their individual situation of what they can afford. Not what the average is.
Now new cars may have an average of 50k price. This is true. Yet cheap cars still exist. Around me I could buy a new Hyundai or Toyota for less than 30k easily. Some elantras are under 25k. They exist but people tend to gravitate towards higher price cars and luxury vehicles. It’s actually inane how many people would opt for a base bmw 3 series and have a high payment instead of buying a cheap car simply because they want that status. That’s part of Americas problem. The cheap cars exist. People just don’t buy them. They buy cars they can’t afford. They also want the newest cars and upgrade constantly.
Now to your point about reliability. Cars now are the most reliable they have ever been. If your car is crapping the bed under 200k miles it’s due to not taking care of it. It’s surprising how many people neglect even the most basic maintenance like oil changes. Any new car bought these days outside of maybe Rover brands or other luxury brands that are known for being unreliable will last 200k+ without any issues.
Buy used if you can’t afford new car prices. It’s that simple. Make sure it still has Powertrain warranty coverage and is not a Japanese or Korean car (their warranty’s only cover if you have every oil change receipt ever)
You can get reliable used cars and new ones if you’re okay with not driving luxury vehicles. The most I’ve ever spent on a car was $41000. We just bought a new Hyundai for $32500 and it’s great. We’re both retired and just needed a new second vehicle. People need to align their taste with their budget
> without CVTs
CVTs are better than both automatics and manuals when made well.
> or turbos on small-displacement engines
This is the most fuel efficient option we have, it’s even better when it’s part of a hybrid setup. Why should we get rid of it.
I understand both CVTs and reliable turbos (made for efficient not performance) are still relatively new tech. But they will get better with time. That being said, I’m still upset I can’t buy a manual Tundra.
I’m puzzled, I go to Honda’s web site and these are the advertised MSRP of decent vehicles there:
CR-V ($30,920)
HR-V ($26,200)
Civic ($24,595)
Accord ($28,395)
Toyota is even cheaper:
Corolla ($22,725)
Corolla Cross ($24,935)
Prius ($28,550)
Camry ($29,000)
I don’t buy this narrative that the media is feeding us.