The 4th Gen is too Expensive... or maybe not?

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Trainmaster

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Today car payment delinquency is still high which indicates to me people are purchasing vehicles they can’t afford w easy credit... just like the housing market before it crashed.

Your thoughts are shared in the financial community. The Wall Street Journal nearly weekly writes about these warning signs of a car-finance market collapse.
 

ManUpOrShutUp

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New vehicle pricing has gotten to be ridiculous across the board. The average cost of a new car in 1999 was $20,686 and the median household income was $42,000. In 2018 the average cost of a new car was $35,742 and the median household income was $63,179. That's approximately a 73% increase in the average cost of a new vehicle with only a 50% increase in median household income. To top it off, the vehicles cost more to maintain and they don't seem to go for as many miles without major issues (I haven't looked up the latter stats, so there is an emphasis on seem). With that in mind, in recent years I have shied away from buying new and look to low mileage pre-owned vehicles instead. It's not that I can't afford new; I just feel like the distance between cost and value has gotten too great.
 

nate6966

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I will only carry one financed/ lease payment at a time. My wife and I each have a vehicle, plus my motorcycles and ATVs. All but the Expedition were paid for in cash. And that's in a household that's easily in the top 5-10% of the area for income.
WAY TOO MANY households are paying notes on every vehicle, have low equity percentage on their homes, and don't save near enough for retirement. I'm from the generation that saw pensions disappear and was taught that social security might not be reliable. I've always saved for that long term goal. I'm already in a good spot to retire early, but still plan on working for at least 15 more years simply because my earnings are so strong and I like what I do.
Society better shift back to a "can I afford to BUY this?" attitude instead of the BS "can i afford the payments?" mind set.
It's painfully obvious these people have never considered that debt is bondage and a form of indentured servitude.
 

JExpedition07

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I don’t disagree there will be a correction in the automotive market. Average transaction prices seem high and outpacing wages/inflation. Markup is high and it seems lots of old would be returning customers now buy used instead, that spells trouble.
 
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