Car buying is never going back to normal

[Lynn]

Originally Posted by markinnaples

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

Talked with one of the lawyers I office with. A client had just left his office. Just just bought a new car, about $42k (which doesn't buy much these days). Financed it for 84 months at 7.9% for a payment of over $650 per month.

[Too Many Projects]

Originally Posted by markinnaples

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

I'm with ya, Mark. I remember earning $1,000 a month ! In 1974, my apartment rent went to $300/month and I said that's enough and bought my first house. PIT combined was $245/month. $100/month car payments were considered for the rich.

[69 Post Sedan]

Originally Posted by markinnaples

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

I’ll admit, I’m not the best with my money, but I have a coworker who was paying over $700 a month, a few years ago, to LEASE a 2016 6.2 Silverado. I was floored……I’ve had car payments before, but never that much on one vehicle…….and for a leased on at that!

Kurt

[70 copo]

Understand. The WEF believes that you should not be allowed to even own a car.

Agenda 2030!

Relax it’s a transition.

[Lynn]

I don't think that daily drivers will be affected; but I predict that 2025 will see some really silly collector car purchases in the 500k to $1m range.

[PeteLeathersac]

‘

New or used, we only buy 1x Payment plan cars, no monthlies also helps keep total spent in check.
Owning outright lets you choose Insurance too, no personal vehicle damage coverage if your fault etc.
Higher Interest not only affects car payment itself but also amount available for it w/ mortgage/other monthlies included so whether new mortgages or current renewals at twice or whatever rate of borrower’s existing = car payments don’t fit total ratio for mortgage approval etc.

~ Pete

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[muscle_collector]

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. i know that certainly isnt the norm nowdays for most people

[Lee Stewart]

Originally Posted by muscle_collector

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. i know that certainly isnt the norm nowdays for most people

The average price paid for a new vehicle in the United States in October 2022 was $48,281. That's a lot of cash to sink into a reverse ROI asset.

[COPO]

Originally Posted by muscle_collector

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. I know that certainly isn't the norm nowadays for most people

My Dad was the same way, but took it a step further and said never buy a car newer than 2-3 years old. I've only had one new car in my life and it was for my wife, but buying a late model 2-4 year old car with low miles as a daily driver for cash is sound advice, albeit lately it's been smarter to get brand new given the crazy Covid pricing of used cars. That seems to have turned now and late model used car prices seem to be rapidly coming back down to earth.

Quick side note, my daughter was in the market for a new daily driver about a year ago. After shopping for a few weeks, she found a 2020, or 2021 with about 10K miles was MORE than ordering a brand new 2022, but would have to wait 4-months for the build. She bought the new one. Crazy times that finally seem to be changing.

[dustinm]

Originally Posted by COPO

My Dad was the same way, but took it a step further and said never buy a car newer than 2-3 years old. I've only had one new car in my life and it was for my wife, but buying a late model 2-4 year old car with low miles as a daily driver for cash is sound advice, albeit lately it's been smarter to get brand new given the crazy Covid pricing of used cars. That seems to have turned now and late model used car prices seem to be rapidly coming back down to earth.

Quick side note, my daughter was in the market for a new daily driver about a year ago. After shopping for a few weeks, she found a 2020, or 2021 with about 10K miles was MORE than ordering a brand new 2022, but would have to wait 4-months for the build. She bought the new one. Crazy times that finally seem to be changing.

I've always been a frugal buyer for myself buying used 5 year old pickups, and keeping my wife and kids in a very low mile late model car some times new. In 2013 it was time to purchase a newer pickup for myself again. After spending some time looking over inventories I found that I could buy a 3 year old pickup with 90k miles for $27K or a brand new '13 with every option that I requested and zero fluff for $32k, basically an ordered pickup. That was the easiest decision ever made. On top of it I never had to worry what the PO did or neglected nor worry about a transmission going out during a cross country haul again. Now anytime GM has a substantial discount I usually jump into another new one.