Why are new cars so expensive?

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andyofcolumbusmerkur
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Why are new cars so expensive?

Post by andyofcolumbusmerkur » Fri Nov 22, 2019 8:38 am

I know I know incomes are up and interest rates are low but seriously why are new cars so expensive?
You're only as good as the last car you build.

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John Brennan
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Re: Why are new cars so expensive?

Post by John Brennan » Fri Nov 22, 2019 8:47 am

Follow-up question:

Why do they depreciate so quickly, since so much money goes into their design, manufacture, safety equipment, etc? :dunno
This is my car, and these are my people!
1989 XR4Ti 5-Speed
2001 BMW Z3 3.0 5-Speed
2015 Fiesta ST 6-Speed
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Re: Why are new cars so expensive?

Post by merkurdriver » Mon Nov 25, 2019 1:41 am

For maximum profit.

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R Code
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Re: Why are new cars so expensive?

Post by R Code » Mon Nov 25, 2019 1:52 pm

Loaded with technology & content + general inflationary pressures I assume. The "leasing mindset" that really came on strong in the late 80's hasn't helped either, since it convinced folks that they can & should drive more car than they can afford to buy, and skewed the entire market toward the higher end of the spectrum. All the electronic nannies that insurer's want & today's ill-trained & distracted drivers need to stay out of trouble don't come cheap either.

Just look at how the weight of vehicles has grown over the years. On some level, even ignoring the "value add" on the technology & content side, on some level you are paying by the pound, and the material & labor components of same are going nowhere but up.

::rant off:: ::practices deep breathing:: :)
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'89 XR4Ti (5 speed)
'86 Chevrolet C20
'67 Cougar Std (289/4 speed)
'66 Mustang Coupe (289/Auto) - my wife's 1st car
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Re: Why are new cars so expensive?

Post by Ed Lijewski » Sun Dec 01, 2019 8:49 am

"They" aren't "all" expensive, only those tiers you drool over and lust to have. Adequate transportation models are available (of course those models are equipped with less uh neighborhood status...).

YMMV
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Re: Why are new cars so expensive?

Post by Ed Lijewski » Sun Dec 01, 2019 6:31 pm

Corroboration:

https://youtu.be/nRAJwaLV-iU

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Re: Why are new cars so expensive?

Post by andyofcolumbusmerkur » Mon Dec 02, 2019 10:29 am

Ya that's the show I had just watched on tv. I wasn't actually out car buying lol. Notice how out of all those cars they only had 2 budget cars on the lot. If you want a basic car with roll up windows, regular headlights, and regular knobs on the dash good luck. You will make a sizable payment every month for the next 96 months, and the car will be total junk by the time it gets paid off.
You're only as good as the last car you build.

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Re: Why are new cars so expensive?

Post by eaton53 » Mon Dec 02, 2019 10:52 am

John Brennan wrote:
Fri Nov 22, 2019 8:47 am
Follow-up question:

Why do they depreciate so quickly, since so much money goes into their design, manufacture, safety equipment, etc? :dunno
I take advantage of this "market correction".
Why buy a new mid level milquetoast mass market sedan when you can buy something that someone paid $60K+ for new for less money?
Just a few years later they're less than half price.

Wife's car was $67K MSRP... bought earlier this year, 3.5 years old with 33K miles, $40K off.
I'm going to do the same thing on my next car.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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Re: Why are new cars so expensive?

Post by John Brennan » Mon Dec 02, 2019 11:14 am

eaton53 wrote:
Mon Dec 02, 2019 10:52 am
John Brennan wrote:
Fri Nov 22, 2019 8:47 am
Follow-up question:

Why do they depreciate so quickly, since so much money goes into their design, manufacture, safety equipment, etc? :dunno
I take advantage of this "market correction".
Why buy a new mid level milquetoast mass market sedan when you can buy something that someone paid $60K+ for new for less money?
Just a few years later they're less than half price.

Wife's car was $67K MSRP... bought earlier this year, 3.5 years old with 33K miles, $40K off.
I'm going to do the same thing on my next car.
I agree, and would add that this rule applies to just about any car... I made an exception almost five years ago and bought a brand-new Fiesta ST, and although I absolutely love the car (just turned 60K, no major problems, an absolute blast to drive), in retrospect, the best thing to do if wanting most of the benefits of a new car, is to buy one that's maybe a couple of years old (e.g., a lease return) and let someone else take that new car depreciation hit. Next time... :banghead
This is my car, and these are my people!
1989 XR4Ti 5-Speed
2001 BMW Z3 3.0 5-Speed
2015 Fiesta ST 6-Speed
2015 Edge 3.5 V6 Auto/Paddles

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eaton53
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Re: Why are new cars so expensive?

Post by eaton53 » Mon Dec 02, 2019 5:32 pm

John Brennan wrote:
Mon Dec 02, 2019 11:14 am
eaton53 wrote:
Mon Dec 02, 2019 10:52 am
John Brennan wrote:
Fri Nov 22, 2019 8:47 am
Follow-up question:

Why do they depreciate so quickly, since so much money goes into their design, manufacture, safety equipment, etc? :dunno
I take advantage of this "market correction".
Why buy a new mid level milquetoast mass market sedan when you can buy something that someone paid $60K+ for new for less money?
Just a few years later they're less than half price.

Wife's car was $67K MSRP... bought earlier this year, 3.5 years old with 33K miles, $40K off.
I'm going to do the same thing on my next car.
I agree, and would add that this rule applies to just about any car... I made an exception almost five years ago and bought a brand-new Fiesta ST, and although I absolutely love the car (just turned 60K, no major problems, an absolute blast to drive), in retrospect, the best thing to do if wanting most of the benefits of a new car, is to buy one that's maybe a couple of years old (e.g., a lease return) and let someone else take that new car depreciation hit. Next time... :banghead
Sometimes it pays to buy new. One doesn't save money buying a used Jeep Wrangler.
I daily drive a 2015 Chevy Cruze diesel because VW's dump in the diesel mess kit made a new one dirt cheap. It's a good car, lots of torque.

My wife's driving a 2015 Cadillac XTS Platinum that someone lost their shirt on.
One of my co-workers has a 2012 Lexus GX460. I told him to let me know when he's ready to sell.
Yeah, it's a gas hog, but I have a Chevy Cruze diesel that I can use for menial tasks like driving to work.

Then, when I retire I want to trade the Cruze in on a Cadillac ELR because I think they're really good looking. They'll be real cheap by then.
I can drive that all summer and to car shows if it looks like rain and the XR to the show if the weather's nice.
I'll drive the Lexus during the winter or if I'm running errands. ELR's can't haul anything, but they're extraordinarily good on gas.

That is the plan... four cars that had $220K MSRP that I gave $60K for.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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Re: Why are new cars so expensive?

Post by Ed Lijewski » Tue Dec 03, 2019 10:28 am

Descartes: "Cogito Ergo Sum"
Lijewski: "Sum Ergo Drive-O. Mucho!

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John Brennan
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Re: Why are new cars so expensive?

Post by John Brennan » Tue Dec 03, 2019 11:01 am

Ed Lijewski wrote:
Tue Dec 03, 2019 10:28 am
Ford takes it seriously:

https://www.autonews.com/commentary/hac ... cker-shock

YMMV
Interesting read-- I hope he means it. Case in point: I might have used my car's CD player once or twice, in five years and 60,000 miles. I have never once used the navigation feature (I guess I know where I'm going... and if I don't, the nav in my cell phone is way better and easier to use), nor a host of other useless-to-me features in The Screen. When did Screens become mandatory in every damned car, even a subcompact? That's one thing I love about the XR, and also my '01 Z3: analog gauges, no screens, no BS. Of course, it's kind of moot when the only car they make any more is the Mustang (thanks, Ford, for another orphan), but again-- I hope he means it.
This is my car, and these are my people!
1989 XR4Ti 5-Speed
2001 BMW Z3 3.0 5-Speed
2015 Fiesta ST 6-Speed
2015 Edge 3.5 V6 Auto/Paddles

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Re: Why are new cars so expensive?

Post by eaton53 » Tue Dec 03, 2019 11:26 am

Thanks to Tesla, the screens are about to get completely out of hand.
I will never own a car that has a mega screen or that requires a phone to do anything.
I navigate with my phone (the Cruze doesn't have nav), but I don't even have the phone paired to the car.
Mark Copeland - I'm 50 miles west of Kewanee, IL

'89 XR4Ti
Car was the 2014 MCA Merkur Preservation Award Winner
I'm just the latest caretaker and I'm keepin' it REAL shiny!! 8)

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andyofcolumbusmerkur
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Re: Why are new cars so expensive?

Post by andyofcolumbusmerkur » Tue Dec 03, 2019 6:06 pm

eaton53 wrote:
Tue Dec 03, 2019 11:26 am
Thanks to Tesla, the screens are about to get completely out of hand.
I will never own a car that has a mega screen or that requires a phone to do anything.
I navigate with my phone (the Cruze doesn't have nav), but I don't even have the phone paired to the car.
This young lady seems to really like hers.
https://www.youtube.com/watch?v=aXkqkOFmb_E
You're only as good as the last car you build.

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Re: Why are new cars so expensive?

Post by Ed Lijewski » Tue Dec 03, 2019 6:18 pm

Damn. I could have watched any other ~10 minute Engineering Explained or Project Farm video and actually learned something...

YMMV
Descartes: "Cogito Ergo Sum"
Lijewski: "Sum Ergo Drive-O. Mucho!

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