Posted on 07/05/2022 10:30:52 AM PDT by SeekAndFind
Like some of you, I love to check out car models and drive salesmen crazy with the classic "just looking" line. I look at the sticker and check out all the options. It's an old habit and a wonderful way to kill time when my wife is at the mall. It beats drinking another cup of coffee at the mall café.
Last week, I made another trip to the local dealership. Everything looked normal except for the prices. Check this out:
With interest rates rising, it's also becoming harder to spread the pain of higher pricing with long-term financing.
The average monthly payment on a new car loan was almost $700 in June, up 13% from a year ago, researcher J.D. Power reports.
A $700 monthly payment? I remember when that was a good down payment. Naturally, sales are down, with more people heading to the used car area, or "pre-owned," as they call it now. Read on:
The annual selling rate is expected to decline to 13.2 million vehicles in June, down 20% from a year earlier, according to the average forecast of six market researchers surveyed by Bloomberg.
Prior to the pandemic, annual US auto sales topped 17 million vehicles for five consecutive years from 2015 to 2019.
Sales are declining as the global semiconductor shortage continues to roil auto production and drain inventory from dealer lots.
General Motors Co. said Friday second-quarter sales and profit will take a hit from 95,000 vehicles it can't sell because it's waiting on chips to complete them.
The inventory shortage drove the average price of a new vehicle to nearly $47,000 in May, up more than 13% from a year ago, according to automotive researcher Edmunds.com.
Anyone talking recession? New car sales down 20% sure sounds as though an economic slowdown is coming.
(Excerpt) Read more at americanthinker.com ...
The author’s old college economics professor had an expression about the car business and the national economy. He called it the best barometer for a recession. He may turn out to be right again.
Most car buyers simply do not want EVs or even hybrids. GM, Ford and VW have made huge capital investments that simply will never turn a profit and will be a constant drag.
No thanks.
RE: Every time I take my cars to the Toyota dealer for servicing, they want to buy them
This is my third Toyota Camry the past 25 years. The first two served me for 250,000 miles each serving me for 12 years each before I donated them to charity for tax deduction.
$47K is just the price, with interest it is a small mortgage. I bought a new truck in 2021 with interest it came to $42K. Used trucks were damn near just as expensive. The payments were only around $100 less per month w/limited warranty. Anything built in the last 10 years suffers from that other Asian disease “Chinese shite fails”. Get a good warranty. I live in a big truck area. We have a lot of bikers, trucks and muscle car owners. Of course we have plenty of “men” driving those gender fluid vehicles.
The average monthly payment on a new car loan was almost $700 in June, up 13% from a year ago, researcher J.D. Power reports.
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Not so long ago, you could rent a really nice 2-bedroom apartment for that kind of money.
What ‘new’ cars?
All the dealers here have empty lots except for some high priced trucks and SUV’s.
Not a car to be seen on the Chevy or Ford dealerships, or the Toyota, Mazda, and Hyundai stores........................
Same thing happens when Hubby takes in our 2012 Honda Accord and 2015 Rav 4. They’re basically perfect. I doubt if the back seats have been sat in more than 10 times. They REALLY REALLY want to buy them. We bought them used for cash and can’t imagine selling them.
Let them keep all this cr*p up and David French and Jonah Goldberg and Allahpundit will be personally dragging Trump back to the WH.
I have managed new car dealerships since 1991. A 20% decrease in sales, but instead of $4-5000 in rebates, there are none to $500 max. In a normal year, F150s in July would have $6500 in rebates, currently 0. I’ve been having sold orders come in that were ordered in January, the list price has gone up over $3000, the manufacturers can overcome a 20% decrease.
Ford’s only issue is that they lost 5 billion on their investment in Rivian (electric) which is bein pushed by the government.
Must have had a deadline. Can’t sell cars you don’t have.
What new cars? Toyota is at Zero inventory of new cars and announced that it will miss every delivery date in 2022.
There are about 275 million vehicles registered in the US, up 25 million in the last decade.
A reduces new vehicle sales rate is unlikely to cause any significant shortage over a few year period.
All in all, will these massive used car prices result in raised blue book numbers ? Will my auto insurance policy pay me what it take to replace my vehicle should it become totaled ?
I get the same thing. We have a 2016 Corolla which didn’t actually hit the pavement until May 2017, and we got it used with under 15K miles, under $15,000. Due to covid, three years later it has only 37K on it. It’s worth more than we paid for it.
Now I see one with 90K miles for 14,999, about $200 more than we paid three years ago.
That's our monthly bills. Land payment, phone/internet, electric, food and gasoline
Most I've ever paid for a vehicle was $3,000.00 which was a 30mpg car. Bought in Feb 2021 because I knew we'd have obama gas prices again since the same people were going to be running the show behind the scenes.
Beware of crooked dealers. Service departments have your VIN and other data that might allow them to play with titles and ownerships.
They are selling new cars..
they are selling them before the delivery truck ever gets there with the car.
They’re not worried.
I’m sure they think taxpayers will be forced to cover any losses.
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