Why Car Payments Are So High Right Now

[@_santos13]

I’m sorry but $30k for a Corolla should be a felony…

[@AgonxOC]

Blame it on all the fancy electronics that we all want. That is a lot of copper in all those electronics.

[@AgonxOC]

@@Kenoooobiiiii you do not want them, but the majority does, hence why the cheapest cars have all that mess.

[@sambulthuis287]

@@AgonxOCit has nothing to do with what people want, it has everything to do with what is easiest and cheapest for the manufacturer to produce. Most people I know would rather have a “dumb” car versus one with all that extra crap

[@AgonxOC]

@@sambulthuis287 again you are wrong. It’s easier to manufacture dumb cars. The vast majority of people DO want all that tech. Again because you do not want it does not mean other also follow your ideas. Manufacturer see what consumers want and provide those things.

[@sambulthuis287]

@@AgonxOC no, it absolutely is NOT easier to manufacture dumb cars. It is far easier and cheaper these days to have cars with screens versus an entire array of buttons. Much easier to program a screen versus 30 buttons. And yet most people hate screens, because they’re clunky and hard to use, hence why most people prefer the buttons. See the problem here?

[@DevoutSkeptic]

Never been happier not having a car payment.

[@shine-on-tv8082]

And stuck in the city 😂

[@shiftymcgee9359]

@@shine-on-tv8082how is not having a car payment being stuck in a city? Payment free people actually own their cars by having a physical title.

[@Johnfisher12345]

Same! Never had one and never will.

[@Korloko]

@@shiftymcgee9359 He can’t imagine a scenario where someone pays off debt (or pays cash for a car).

[@thewiseguy3529]

@shine-on-tv8082 I have 6 vehicles all run and drive perfectly and have cruise control and AC automatic transmissions. ZERO PAYMENTS. WHAT WORLD ARE YOU LIVING IN?? IT SOUNDS MISERABLE

[@myveronicajones]

Can we talk about the cost of car insurance next?

[@user-zu5do6ri6r]

That's a self inflicted issue. Prices are gonna keep going up if you keep paying.

[@PopBandit]

That is a flagrant statement at best. In the United Businesses of America we cannot Legally drive withouy insurance, unless you are sovereign which is a hoop with risks.​@user-zu5do6ri6r

[@drewdevon2009]

​@@user-zu5do6ri6rone problem with that...cars are a necessity for most and insurance is legally required

[@jeffjames9568]

@@user-zu5do6ri6rpeople say stuff like that all the time like we have a choice to just not pay it

[@notyourdan3388]

​@@user-zu5do6ri6r If you don't have enough money for insurance you don't have enough money for the cost of a car accident

[@Rtruo85]

Why are they so high? Because Americans keep telling themselves they need that 85k GMC Denali 2500 to live. 96mo payments at 8%? Yes. People do it to themselves.

[@cwwcww7465]

My stupid friend , who actually has some money, but up to his earlobes in payments, came home with a 10 year loan....120 months on one of those things......all modded out. 10 years....$1000.02 a month.....for 10 years. 120k for a pickup truck.... 😂haaaaaaaaaaa Stoooooopppiiiiidddddd......😂

[@Ka0sNinja117]

Outside of pickup trucks, the most popular cars sold in the USA are the Toyota RAV4, Tesla Model Y, and the Honda CRV. The days of big SUVs are long gone for most Americans.

[@joncarbone]

Then ask why they don't have a retirement

[@Priust189]

I have a 12k Yaris at 18 percent interest

[@Leslie83249]

Keeping up with the Joneses!

[@NYCGemini2000]

paid my car off earlier this year and it’s working perfectly fine and has 70,000 miles on it. not buying another car until this car runs to the ground

[@MasutaMJ]

Nothing wrong with that

[@Zeke2p9]

Honestly I thought they sent insurgents to mess up the car the exact second people finish their payments. XD

[@HERRERACARRIERSINC]

Smart

[@SeveraLF]

Same, except mine has less than 20k miles on it lol

[@4estrnr472]

Literally same boat 2020 4Runner paid off 70,800 miles. When I bought my car new I felt comfortable making the payments. I can’t afford a new car these days it’s insane.

[@justinfitzsimmons9635]

What is even funnier is that the car dealers are adding mark ups on cars that should be only 19,000 to 23,000 at the regular price and putting 10,000 to 20k on some car models because they are greedy and want to make commission. this needs to be regulated and punished to stop the car dealers from making buying a new car a luxury.

[@bonniehalf-elven]

Consumers have the power to regulate it. If people don't buy them, the prices will come down. Good old supply and demand.

[@journeytree]

​@@bonniehalf-elvenYou prople say that, but in reality people are stupid and cannot think for themselves in most situations.

[@SmokyOle]

​@@bonniehalf-elvenI'm an economist. People can't just not buy cars. This is one of the most low IQ responses I've ever seen and you keep commenting this. People need a car to get to work people need to work to have money. So the hyper capitalist economy has forced people to buy these overpriced cars. And the dealerships know that.

[@jeffmiesen]

@@journeytreeThey are, the only thing the government should do is make a true free market. Why do we have to go to dealerships to buy new cars? Let us buy directly from the manufacturer.

[@gmoney698]

@@jeffmiesenthe manufacturers are the ones raising the prices of the vehicles they produce so the dealerships pay more. They’re also who rebates and incentives come from. It’s them making the most off of the way things are not just the dealerships

[@Jamesmonroe1077]

God Bless 25 year old Toyotas

[@corychecketts]

Just rolled over 203k miles on my 2001 LS 430. Simply amazing.

[@BoneStack117]

2000 Toyota tundra extended cab, with 280,000kms

[@pavelbuchnevich1229]

2002 GS300 with just over 260K miles and still running strong.

[@wagyu_killer]

hybrids will not last 18 years

[@wturner777]

@@wagyu_killerMy hybrid is lasting 14 and counting.

[@colestaples2010]

It’s called greed from manufacturers and stupidity from consumers

[@martincarr4204]

But in this tiktok age, these fools buying 100k vehicles, seems like nobody knows the value of money anymore, these younging think they are celebrities, so they can buy whatever......there is no reason to buy a 100k or more vehicle if the person is not a millionaire and even most them, do not buy one.......

[@ld4974]

I was just telling my wife that same thing this morning. Been looking around for a vehicle, but I am not in a rush. Prices are crazy because of the greed of dealers and the stupidity of buyers to pay the prices and fees they are asking for. Fortunately, I'm in a position to take my time and find a reasonable value.

[@SecretMountainTroll]

Producers want prices to be cheap as it keeps them competative in a market

[@MaximGhost]

... and 22% cumulative Bidenflation forcing the Federal Reserve to increase interest rates.

[@MaximGhost]

@@martincarr4204 Yup. Only the young/naive use TikTok these days. We were young/naive once too. Now we know they just need to get into debt trouble that first time to learn how the world really works. Time is the best teacher.

[@andyroo9381]

I just mailed in my payoff loan amount for my 2020 Honda Accord. I was fortunate enough to have excellent credit and secured a 1.9% interest rate. With my trade, and $3K cash down, my car payment was still $600.00 per month. That kind of car payment chokes you. Some months were really tough with mortgage, home & auto insurance and basic living expenses. It was tough at times, but I made it through.

[@SuperBennnnnnnnn]

I will never put money down. It is a scam. It barely influences your monthly payment up front.

[@Radio-sg3dh]

@@SuperBennnnnnnnnwhat not a scam it’s a principal only front payment not a scam

[@Aaronduhmoron]

​@@SuperBennnnnnnnn maybe not scam persay, but on 30k+ vehicles you basically need a 10k or more down payment to be under $400/monthly

[@SuperBennnnnnnnn]

@@Aaronduhmoron thats pure bs, learn to haggle...

[@jah5075]

Here's the trick....DON'T do it again in the next few years! Try this.....Continue to pay $600 per month to YOUR brokerage account that's invested! You would be able to buy whatever you want in 5 years and could care less what current interest rates are.

[@F0XRunner]

I'm still driving a 2007 Honda fit. That little car is a gold mine of reliability, low maintenance, high gas mileage and tens of thousands of dollars saved by not having to buy a new car 😆

[@romain198426]

Exactly!!!!!! who cares if you look silly

[@The_Red_Squirrel]

@@romain198426 Looking silly is better than being stupid.

[@vm-my6hg]

Haha, u know things are messed up when people tie their self worth to their car & call others silly for making a sensible choice.

[@herrelladventures]

My friend Ben has 220,000 miles on his Fit. Nothing silly about a quality vehicle. You'll have the last laugh compared to everyone else in debt for a new vehicle.

[@marcus-hoonigan7]

AGREED!!! I have a 2010 Honda Fit and its not fast by any means but goes anywhere (living in CO I take it camping as often as possible) reliable and fun as heck! Seats fold up or down depending on how you need to stow gear and seats 4 kids for playdates. Put rally lights on it for the backwoods lol

[@KiamKweli]

The irony. Younger generations are driving less than previous generations. They'd rather Uber and Lyft everywhere or take public transportation. Congrats auto industry, you played yourselves.

[@myshots101]

True, kids don't even want to learn to drive anymore.

[@rxonmymind8362]

​@@myshots101Mine doesn't. 😂

[@itypethetruthnobshere8975]

ubering everywhere gonna cost more than a car payment

[@martincarr4204]

Depends on the locations, most places in america, a person needs a car, unless it is a big city.....People forget a lot of places in America do not have public transportation systems or a reliable uber or lyft type service, if it exists..not everyone lives in cities or suburbs, they are more rural parts than there a major metropolitan areas......

[@KiamKweli]

@@martincarr4204 Less people live in those parts. My point still stands and those are literally millions of sales. Farming communities for example are shrinking not growing. People leave rural areas, and move to larger towns or cities everyday for opportunities. Not to mention the fact that tech companies around the world are investing billions of dollars to automate driving, including Uber. There are already semi trucks driving autonomously on various highways in both Texas and California.

[@NoamPitlick-bg8kw]

Bought my 19 Cruze new, payments were $342 a month, paid it off in late 22. The folks with no car payments definitely have a happier life.

[@ah4800]

Such junky cars tho

[@NoamPitlick-bg8kw]

@@ah4800 My Cruze has never been on a do not buy list or unreliable list. And I looked at them all. Nor has any others. That’s how junky they are. So your personal opinion means nothing.

[@ah4800]

Lmao ok

[@ah4800]

​@@NoamPitlick-bg8kw try some research. Your ignorance doesnt make it good

[@ah4800]

​@NoamPitlick-bg8kw people like you deserve to pay cash for junk. Can't even take 10 minutes out of your day to research and see they're giant piles of junk. I service 1 for a family member. Tiny, gutless, poorly made. You cheaped out and now you just want to justify your purchase, I get it. Next time don't be an idiot

[@Kryptic1046]

America's obsession with overpriced trucks and SUV's is absurd.

[@SDBDUB]

This.

[@44report22]

We have no control for the price

[@thewiseguy3529]

@@44report22 yeah you do, the more you buy it, higher in demand the higher the price goes up.

[@alex1vid]

​@44report22 Sure people do. Self control and not buying. But people seem unable to control impulses and are obsessed with perception.

[@ejc889224]

I've l never bought a brand new vehicle, and I never will. I can afford a new vehicle, but it makes zero sense because of the depreciation and the "thrill" of a new vehicle fading quickly. Before you know it, you're paying way more for a vehicle that has 4 wheels and an engine.

[@michaelhatfield5808]

The best car payment is zero. Now I pay myself.

[@wturner777]

I’m on the same boat.

[@Official-Comments]

You really have to wonder who is paying $1k a month for a car.

[@HighlordFrancis]

@@Official-Commentsone of them is my co-worker who likes to do as much overtime as he can. Dude is a slave to the bank 😂.

[@TommyTomTompkins]

How much you paying yourself?

[@michaelhatfield5808]

@@TommyTomTompkins The amount of these silly car payments. $1K.

[@davidburrow5895]

It really bothers me that car manufacturers have completely abandoned the entry-level market. You used to be able to get a base model small car at a reasonable price. Now everything is oversized and full of bells and whistles. Of course those things cost a fortune.

[@user-zu5do6ri6r]

Government regulations. Cars with auto emergency brakes are now legally mandated.

[@Hefe179]

Because people don’t buy the base models lol

[@EdgeXXI]

I drive a 2007 just-a-truck. She has no screens, no wifi, but she has a new engine, transmission, and best of all, she's all mine.

[@spencerathearn3586]

Nice, my truck is a 2010

[@jimdarhower4945]

Referring to your truck as “she” over and over is cringe and goofy.

[@thewolf1801]

No one cares

[@aymane.bencheikh]

​@@thewolf1801He couldn't give a sh that you don't care. His wallet is happier though.

[@thegreat9481]

@@jimdarhower4945Lol you must not have any wheels

[@ljacobs357]

Americans continue to buy big, high tech expensive cars and then complain about the payments. Silly.

[@error-mc5xw]

Well said

[@rara1800]

@@error-mc5xw that’s not exactly true even if you go economic it’s still high

[@Hello-fd7tt]

Wrong, people were BEGGING dealerships to start bringing in smaller, more affordable cars the past 5 years. The manufacturers were not listening and still aren’t. Enjoy paying those floor plans and lot fees, dealerships, especially on the trucks.

[@vm-my6hg]

​@@Hello-fd7ttwhy were sales of SUVs & pickups increasing all the time if that were true ?

[@jimmaag4274]

What cars?

[@AidenLiamf7q]

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[@MasonJacobo2w]

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[@AlexanderOwenb9l]

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[@MasonJacobo2w]

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[@rebeltheharem7028]

Buying a 50K car with features you don't even need, at an interest rate you can't afford... yeah, it will seem like it.

[@javtimestwo]

The features are needed. Majority of drivers have a smart phone that connect to the vehicle UI so those features can be enabled. Decades those features were not available so of course those drivers didn't have access. Does not mean if they were available that a driver from the 80's would have declined. It is called "Evolution"

[@luisostasuc8135]

Right. For another thing that's similar, the only thing I care about in a phone is that it runs for 2 years at least. I'll pay a little extra for a great camera, but nothing will convince me to spend more than 300 on a phone. It's sad that that's how high the floor is now, but any cheaper and I would have to replace it more often as software strains the hardware.

[@armandolimon7465]

Interest rates aren't even that high. They're back to normal after a couple of decades of artificially low rates. The 1980s had double digit interest rates, and Americans didn't freak out like they do now with normal rates.

[@kwilliams2239]

@@luisostasuc8135 Buying a new phone every other year is just as bad. They go from fifteen hundred to zero in six seconds flat. Cell phones aren't cheap and there is nothing new in phones anymore. Speaking of a depreciating asset!

[@kwilliams2239]

@@armandolimon7465 Yeah, we were indeed freaking out. An 18% mortgage (ours was 14%) mortgage isn't pretty. 10% inflation wasn't pretty. 10% unemployment wasn't fun. Yeah, people were indeed freaking out. Carter's "stagflation" was freaking everyone out.

[@shiftymcgee9359]

Interest rates need to stay high to keep inflation low. Also, manufacturers have zero interest in keeping prices low if people keep buying cars/trucks at 45,000-100,000. Yes there’s corporate greed, but it’s ultimately consumer driven. Answer, don’t buy anything unless you absolutely need it.

[@DevoutSkeptic]

It's all just supply and demand. You can't get mad at the dealerships for charging high prices for new cars when consumers keep lining up to buy them.

[@paskowitz]

As much as I would be inclined to blame corporations, you are absolutely correct. Consumers kept demanding more and more BS technology they did not need that their phone provides. All these safety features like standard radar cruise control and 360° cameras drive up the price as well. Totally unnecessary, when the driver is the ultimate safety feature. Driver's education standards have not been changed in this country decades. We are solving the problem from the wrong direction and it is costing us.

[@JAlexanderCurtis]

You are stating something that no one else wants to admit. We all love to blame the evil corporations for prices being high, but the truth is, that if trucks were sitting on lots for months on end collecting dust and rust, then they wouldn't be $100,000. The companies keep increasing the prices and they continue to sell out. If a company can only make 500,000 trucks a year and they will sell them all at $60k+ prices, then why would they sell the same trucks at $30k? If we want prices to come down we can control that. Stop buying the cars and trucks and guess what, the prices will come down. We are starting to see it already, slowly. The crazy car prices are only because we are paying them. If we stop, the prices will come down until they start selling again.

[@speedy0]

That’s one of the federal reserve’s goal. Cooling down the economy while some people will lose jobs at some point; or, worst case, economy collapses.

[@iddddaduncan]

Interest rates will never go down as long as the Fed keeps printing money

[@mattp733i]

Still driving my paid off 2006 Lexus GS430. Just hit 200,000 miles. Cant believe the engine is still super quiet at idle and car still runs great! Quality is better and more reliable than these new cars they are making.

[@sunshadow9704]

you lie to yourself. Modern car are way better than old luxus. In all categories.

[@mattp733i]

@@sunshadow9704 Modern Cars = Too many unnecessary computer modules and cheap plastic parts that break. All these modern cars are designed to fail and not last. How about this give me 1 modern car with an engine that will outlast a 3uzfe engine? I'm waiting...🤣🫵🤡

[@sunshadow9704]

@@mattp733i The quality of the car is not determined by how many 100K miles its engine can last. It is in very different domains such as quality of the build, tech components that lead to greater safety, performance, comfort, etc.

[@mattp733i]

@@sunshadow9704 Quality, dependability, reliability, and safety is what most people look for in a car. Performance is a plus, but performance comes at a cost usually with higher maintenance. If you believe these modern day cars are better than an old lexus you gotta be smoking something good 🤣. You obviously were never an automotive technician. I don't need to take my old lexus to the dealer to constantly get software updates or hook up a computer to my car after changing a battery. Oh I can go on and on....🤣😂

[@tednguyen7258]

u a boss

[@krassimirpetrov7131]

My Toyota has 246,359 miles and it runs better than most new cars I’ve driven. I fix it myself but it’s not hard and it doesn’t break often

[@Ludercia]

99 Camry here. 225,000 miles and NO payments! Runs great!

[@toninocars]

Same with my Toyota Just replaced the batteries after 13 years

[@mocheen4837]

My 4Runner has over 190,000 miles on it. It is starting to burn oil now.

[@Dougie2fly]

@@LuderciaI’m willing to bet that the AC blows snowball cold too !

[@Ludercia]

@@Dougie2fly It sure does!

[@gabo2212]

Another big challenge is how expensive it is to repair cars. You can’t just replace a part, you need someone to use a computer to program that part. People are opting to just buying a new car every 5-6 years because they can’t deal with the high repair costs

[@fen2453]

As a mechanic, its never been easier to repair a car. People are just dumber

[@steeldriver5338]

@@fen2453 The issues I've noticed is that the layout of the engine bay in newer vehicles makes simple repairs more complicated. I can change out the fan belt in my 2012 tacoma relatively easily. The fan belt in the 2020 F550 at work is buried by a bunch of hoses and other parts and the overall space to work with is smaller. My grandpa's 1992 dodge ram has an engine bay so roomy you can see the ground. I can change out a water pump on a 1997 Ram in a couple hours, it's right there. Engine bays are becoming more crowded and more complex and bonehead engineers are making design choices that intentionally make it harder to perform simple maintenance. Is this not the case for you?

[@maescreativespace444]

@@fen2453mechanics are shady af

[@blainemitchell]

It's much cheaper to get a car fixed than have an $800 monthly payment.

[@ethenjordan2010]

It’s called warranty and upkeep. Seen plenty at over 100k miles.

[@leifcatt]

Got an e-bike 3 years ago for neighborhood errands. No insurance, no ICE repairs, no fuel at the pump. Costs about 18 cents for a full charge that will take me 30 miles. This, as a side vehicle, has pushed back my need for a new car for years and years. Everything is too expensive. Corporate America's need for more and more of our money has reached the tipping point where we have no more money to spend. And all the corporate greed masters can't understand why.

[@cam6887]

What’s good for corporations is usually what emits the most CO2. EBikes are the future of city mobility.

[@EricKorbly]

What a great idea.

[@letsgobrandon416]

The best thing that could happen to the car market is for people to stop using debt to buy cars. It would plummet their prices, and force manufacturers to remove all the BS features inflating their prices on new manufacturing, saving both money and resources. Good for the people, good for the environment.

[@doujinflip]

What's better for the environment is denser and more footpath-connected urban design that allows people to not need cars, using more passenger-gallon efficient public transit where it's too far to walk. The tech that's mandated for cars are largely to prevent wasteful fuel burn and collisions.

[@robertgrays8790]

The features required on new vehicles are required by state or federal law.

[@bwofficial1776]

@@doujinflip Not everyone wants to live on top of each other in cities and walk/ride the bus everywhere like a poor person. Cities already have sidewalks and buses, go live there if you don't want a car. I'm not giving up my car because I like being able to go anywhere at any time. I'm not giving up my yard either, I worked hard for it and my four walls.

[@cdlahm7571]

@@bwofficial1776How dare these woke-ufied libruhs dare infringe on our God given, constitutional rights to a dodge ram 2500

[@DTMH25]

@@bwofficial1776 This notion that only poor people use public transit or should be the ones using it is the problem. The US is too car centric and needs investment in public transit that will benefit everybody not just people living in dense cities.

[@nerdobject5351]

This is the consumers fault. Period. No one forced you to buy a car with 700 dollar a month car payment. There were plenty of used sedans out there everyone.

[@perrytree01]

Exactly this!!! People always do it to themselves.

[@mocheen4837]

I deserve to drive a Dodge Hellcat even though I only make $50,000 per year. I can afford the payments since I still live at home.

[@4izm0v]

Affordable Chinese cars are not available

[@jayjya]

Used cars have also skyrocketed

[@jrSoccerSuccess141]

Hard to argue that when many cities make car ownership a necessity and not an optional feature...

[@snowcrash4286]

The death of sedans, compacts and base models killed car prices

[@paultruesdale7680]

Sedans are not dead. Crossovers are very popular, but there are plenty of hatchbacks and sedans being sold new.

[@curtis1997]

And I’m over here driving a 21 year old Jeep. What do these people do for a living to afford a $1000 car payment and all their other bills?

[@Johnfisher12345]

28 year old Lincoln here, and I couldn’t be happier. It just so happens that my car of choice happens to be astonishly cheap to buy, own and maintain, yet hardly anybody else wants them. Great, works perfectly for me!

[@jamisojo]

​@@Johnfisher12345 what car?

[@christianvidal1088]

18 yr old grand marquis runs like dream, and I make enough money to have a payment like that but can't see myself paying that much money for a car

[@8MunchenBayern8]

There are wealthy people were a 1K payment is nothing for them, but a huge amount...at least half of them, it's eating into a big portion of their net take home per month..... All to keep up with the jonses. One job loss and they're screwed.

[@Oinkiepiggy]

Based off of my life experience only 9 years as an adult. Manufacturing, or salary office jobs.

[@maxsilverstone8600]

Another thing they didn’t mention is that manufacturers and dealers are pushing bigger and bigger cars onto consumers. 80% of new car sales are “light trucks” aka SUV’s and Pickups. It’s become surprisingly difficult to buy a modest car like a sedan or even a subcompact.

[@derkies2133]

Yeah, a camry starts not much over 30k, corolla at 24k

[@brianmaloney45]

They stopped making cars as well. Have you noticed the ONLY car Ford makes is the Mustang? Everything else is a pickup or SUV.

[@wannabe41]

Chevy is also phasing out sedans. Only trucks, SUV’s and the Corvette will be manufactured.

[@jamisojo]

​@@brianmaloney45 that is because people are buying SUVs. Or they are buying goofy electric cars. You can't sell a normal sedan to someone who already bought an electric one.

[@The_Red_Squirrel]

American car manufacturers will continue to build bigger and more expensive cars if they can convince consumers that is what they need.

[@bullydakidd2023]

I got into a car crash in 2019. I received $14,000 for my totaled car. I didn't rush to buy a car. I took that 4k of that money and threw it into a HYS account, and the rest in two stock that were low priced at the time but are doing extremely well now. I take the Public train to work , walked to grocery store, rent a car once or twice a month to travel to travel to see 2 hours away or leisure activities, and do bulk shopping at Costco so I don't have to go to grocery store often, Uber /lyft to airport when I traveled. I saved a whole lot of money not having a car and now that I've got into a rhythm of not having a car, and working this system(rentals, Uber/, public transportation) , it's hard to think about buying a new car. I've taken money that would be going into paying for a car, to savings accounts, brokerage accounts, and my retirement account. My net worth has climbed dramatically by simply not owning a car.

[@ctbryant09]

I have become a stellar amateur mechanic by avoiding a new car payment for the last 6 years 😂

[@aaronw4040]

Heck yeah dude. I wish more people would at least try. I would much rather try to figure out how to keep an old car running than pay over 700 a month on a fancy new one.

[@gravemind6536]

Even just paying someone to fix your car is far cheaper than a car payment. You probably spend in 1 year what you would spend in 1 month maintaining an older car compared to buying a new one.

[@sldj15]

NOOOO WAY! I’ll walk or bike before I pay over $500.00 monthly for a car payment.

[@StillMe69]

First of all, if you plan to finance a car you sure would walk because you won't find one that cheap Second of all... why would you finance a car and have a payment?

[@knightofwind2929]

electric bike goes far

[@InternalLocuss]

Unless they add bike lanes to the freeway, I cant see myself biking to work…

[@Jazzmaster1992]

This is not a real option for most people I'm afraid.

[@noxnyc23]

500 would be doable. I’ve heard people paying almost 1K monthly 🤣

[@MSG685]

I have a paid off 2015 Es350 which still looks and runs like new but the urge to upgrade is strong. Thank God for videos like this to remind my how good I have it.

[@TheJVILLEGAS18]

In our household, we only buy cars 5 years or older, (where most of the depreciation happens) and stick to brands like Toyota or Honda that last a long time (and hold their value). Never had a car payment and every car hits 200k miles. Gotta save 💰 where you can 💪

[@JohnSmith-qe6fb]

I have an Odyssey that is damn near bulletproof 🤣

[@iali00]

Very smart. It’s what I always did until I got a little more money and paid cash for a Model Y. Love that car and no payments. If you can’t pay cash for it then you can’t afford it.

[@johnm3489]

You will soon. 5 year old vehicles are still close to 30 or 40k

[@SRD1281]

​@@johnm3489You do know cars can just be bought outright, right?

[@tgjuanir9330]

🔥👏🏾

[@virginiakingsford2232]

I have worked as a total loss adjuster for the last 6.5 years When Covid first happened no one was buying cars and everyone was selling their second vehicle as people lost jobs or became work from home and prices dropped. Then people started going back to work and prices soared. This was late 2020 and 2021. I had a lady buy a car for her daughter during this time and then total it 6 weeks later. She bought it for 8k. We gave her 12k. We owed ACV and prices shot up. During 2022 parts were hard to come by and cars were being totaled simply because we didn’t have a part. (I’m looking at you Tesla and Honda). Prices were a little better- but still not good. Now 2023/2024 prices are as normal as they are getting. Problem is people who bought at the inflated prices are now having their vehicles totaled and are upside down on their loan.

[@CycleCruza]

My best advice, only buy a car that you can buy in cash in full and buy it at the end of of its worst depreciation decline. Some of the best cars are the older ones anyways. Get out of the debt mindset . Being debt free can make your life much easier.

[@tednguyen7258]

some people are just dead broke

[@GetOffMyyLawn]

There is nothing wrong with buying a new car, but most people buy based on a monthly payment vs the price of the car. Dealers will tack on all kinds of worthless junk... door guards, nitrogen filled tires, window etching, paint protection, maintenance plans etc. People need to understand what they are buying, negotiate the price (not the monthly payment) and get a car they can actually afford. Research the cars you are interested in before you go to a dealer, and don't "overbuy".

[@StillMe69]

[@finalboss7956]

Not only that. It would be one thing if ppl bought new & actually kept it, but most ppl buy new & trade it in, in 4 - 5 years

[@kevineusebio]

this was everyone's fault for killing cheap smaller cars for luxury SUVs and Pick-up trucks. Car manufacturers wouldn't have discontinued them if y'all weren't swayed from buying smaller, cheaper cars over oversized tanks that towers over every car on the road. now all we have are high-priced depreciating asset to drive to Target/Walmart once a week.

[@maindimon]

100%

[@doujinflip]

Yeah, would be nice if a Honda Fit or Toyota C-HR were still offered at American dealerships.

[@fgh24710]

I think it’s important to note that auto makers are generally leaning towards making luxury vehicles because the profit margins are higher. I also think automakers know how flooded the used market is, so it makes it even more difficult to compete in the cheaper smaller car space when there’s stiff competition against their own used cars that have significantly depreciated in value and are now more financially attainable.

[@jubayarahmed342]

That's why i got a 2011 toyota seinna, paid 8k cash, and it's been running smoothly. I don't need a fancy car with mortgage payments.

[@SURENITY]

As a 24-year-old fresh graduate who has driven his beloved 2003 Acura MDX every day with now 300,000 miles (since I had bought it with cash when I was 15 years old mowing lawns.) I aim to not have another car until I am 30. I also aim to never have a car payment. I will always pay in cash. 300k, meticulously maintained, SH-AWD, and that 3.5 260HP Vtec purs like a kitten. 💯 It is a blast to drive every day! Be smart people. Buy a well-built and well maintained vehicle that you can either buy in cash or pay off briefly. And always maintain your vehicle properly. Treat your car well and it will treat you well.

[@alphabanks]

Maintain it and keep rolling I have 215000 on my 2012 Accord I'm not interested in purchasing a vehicle anytime soon.

[@MessyPointedBlob]

Alot of dealers outright refuse to do cash sales these days (because they can and arent obligated to)

[@phenex551]

Well said… it’s been my motto all my life and I just turned 60. I have a ‘98 Audi A4 V6 manual with 310,000 miles on it. The engine is original except for maintenance. A few years back I retired and bought a 2014 BMW i3 REx, cash, $13k!..dirt cheap!😁 Anyway, to reiterate, you have a great mindset, and that will lead to much peace of mind throughout your life. IMHO.

[@phenex551]

MDX, great vehicle!👍

[@rbartow22]

@@MessyPointedBlob Don't tell them you are paying cash UNTIL you have the negotiations all done. You're not required to say how you will pay, you can also tell them you have outside financing if need be. When it comes time to sign and pay and do all of that stuff that's when you drop check/cash payment. The big thing is paying "cash" as in bringing $20,000 into a dealership in $100's is something they obviously can refuse and there are some legitimate reasons why they may not want to. But a bank cashiers check is legal and valid tender and most states do not allow places to decline that payment once you've verbally agreed on terms. A dealership in Washington had to deal with a state AG office after refusing and ended up just giving the car to the consumer in order to duck the bad PR and DOJ potential lawsuits.

[@connorparadis4804]

Maybe a bigger problem not talked about is how our political decisions over the last half century have made it practically impossible to live without a car except for a handful of (expensive) cities. We pretty much sold our entire transportation system to a handful of large auto companies and now we’re paying the price.

[@djplonghead5403]

Yea. There is the option for us to pay minimal money for transportation and it require zero effort from us. The Government could manage it just like roads (except it would be easier and better). You look at places like Amsterdam and see that people can live their entire life without buying a car- let alone a 60,000 dollar car.

[@Nita_A115]

South Florida Public Transportation packed with people on it. High price car, high price interest and high price insurance. Owing a car is half of the rent in South Florida. That's why so many people are leaving America. People are moving to Asia, Africa and Mexico. The rent in other countries is 700.00. Compared to America rent 1,500.00 to 2,000.00 rent a month. There needs to be rent control.

[@Johnfisher12345]

@Nita_A115 🤣🤣🤣 What?? Nobody is leaving America except the ultra-wealthy, get your head straight

[@Johnfisher12345]

@djplonghead5403 Live in a tiny little country with no car? No thanks, I like my big comfortable car and the freedom to drive all over this vast country. You keep your little tiny euro-dreams over there in euroland where they belong. That’s not what America is about. Stop trying to make America like some place that you’ve never been to but somehow think of it as utopia.

[@thailux6494]

@@Johnfisher12345Lisbon is full of Americans. I know a few of them and they’re not millionaires at all. Just wanted to go to a “better place”, according to them.

[@jasontomica8938]

2023 burgman 400cc scooter here paid off in one day, 70mpg not to shabby and cheap full coverage insurance and easy to park!!!

[@27pascl78]

I used to have one. Loved it but constantly buying new rear tires. And to dangerous, I loved to speed on it 😂. I do miss her though.

[@DJ-vj4vi]

These same people complaining about car payments being too high are the same ones financing a car paying $400-$1000 a month for a car note.

[@nicholasforan9105]

Sometimes that’s all they can do

[@KeefChief_]

@@nicholasforan9105I’m trying to understand the importance in his comment like duh… plus it’s cheaper to pay 1500 for a down payment on a car loan than pay some one 2500 for a lemon with 180k miles

[@Feraeond]

@KeefChief In the long term, as long as the engine systems and transmission last, it is still cheaper to spend two months' worth of new car loan on a Craigslist car that needs minor repairs than a new car...which still might come with manufactured problems not covered by warrantee. The only time I ever bought a new car, it had an issue where it would fail to stay running if the RPM's dropped too fast, because idle speed wasn't calibrated correctly to catch it somehow. Impossible to prove to the dealership while not moving and they simply said it didn't happen to them when the mechanic took it out for a test drive himself! That's the last time I ever bought a new vehicle.

[@r.r.r9300]

​@@KeefChief_ A lemon doesn't make it to 180k miles.

[@spazzman90]

10 years ago we had a lot of cheap car choices. The Versa, Fit, Yaris, Spark, Fiesta, Mirage, Rio, and maybe some others. All gone and have not been replaced, except the Mirage. Which they are asking like $17k for that guy. I'm pretty sure we'll never see 17 million annual sales again.

[@Johnfisher12345]

There still are plenty of cheap car choices. It’s called craigslist, wheels and deals, facebook, ebay, etc.. USED cars, not new. WAY cheaper than new, no monthly payment, cheap registration and insurance, etc..

[@levimagnusson5880]

I believe the Kia Rio is still around, or at least under a different model name. But the prices in general are crazy high. A base model Honda civic is $24K, which is insane

[@johnkonde1975]

@@levimagnusson5880 Kia Rio is not around in the USA. There is no 2024 Kia Rio. in the USA. It's indeed very sad that greedy carmakers have eliminated so many affordable entry level new cars just because they make little profit for them.

[@johnkonde1975]

@@Johnfisher12345 Most people are not mechanics and don't want to risk buying an old used up car for 5k and find out it needs at least another 5k in repairs before it's functional

[@Salz88]

Whar are you talking about? Craigslist and FB marketplace is full of BS SCAMS. Sick ans tired of contacting people thru those sites.​@@Johnfisher12345

[@stmiller8828]

“That ($760/month) is basically a house payment” haha

[@rafael502]

In 1995 maybe

[@nitind]

Is the roof additional or something?

[@user-zu5do6ri6r]

It's funny because a large portion of people are living in their car!

[@Casca-su3ty]

😅😅😅😅ahouse payment where do u lived buddy. Average mortgage is 2 to 5k a month my payment is $ 3,500.00

[@Rod_91ks]

You can still find $800 apartments here in KCMO. Granted not the best area or place but still a 1 bedroom apartment.

[@icecold8974]

Cars come with a bunch of unnecessary crap now too. Things that I don’t want. You used to be able to buy a standard car with manual windows and locks, steel wheels, a couple airbags, a radio and A/C for $17k. Now you are forced to way for backup cameras, blind spot, push button, heated seats, park assist crap, etc.

[@phenex551]

So true!

[@Anon1mous]

Back up cameras are a federal mandate. I wouldn’t own a car without one. I have older ones that didn’t come with back up cameras so I bought some on Amazon and installed it myself. Too many kids have been killed by cars and especially trucks backing up over the years so I wouldn’t be complaining about that safety feature. Should have been mandatory years prior.

[@armandolimon7465]

@@Anon1mous How old are you? Backing up a vehicle isn't that hard.

[@icecold8974]

@@Anon1mous my car is a 06, no backup camera and it’s just fine, I turn around and use my eyes.

[@ohidalgoe]

Dealers also don’t want your cash. They want you to get a high apr car loan

[@MrJimmy3459]

They're high cause people keep buying them, same thing with college tuition. People keep giving them business no matter how much they charge

[@mikea5745]

Americans have no choice. Most people live in areas where you must get around by car. There is no infrastructure for bikes, trains, busses, or even walking in many areas. We willingly gave car manufacturers an absolute monopoly on our ability to get around, so we really have no right to complain the car manufacturers are cashing in on it

[@MrJimmy3459]

@@mikea5745 Guess you've never heard of used cars, Im 40 years old NEVER in my life have I ever blown money on a inflated priced new car

[@wan3416]

There is always a choice. Those that convince themselves otherwise see their own misfortune then whine on the internet. Do your research. Buy used

[@ccutehoney]

A college degree actually makes you more money compared to a car 😂😂 so it’s not a comparable thing. Just an undergrad degree guarantees you 5-10 grand more in any job 🤷‍♀️

[@MrJimmy3459]

@@ccutehoney You do realize college tuition has inflated at 400% over the rate of regular inflation, right? Yet you want to talk about 5-10 grand more a year please tell me your joking...

[@michaelsledge3904]

Bought a 2016 mustang gt and paid it off in 2020. I have 128k miles and will ride this vehicle until 328,000 miles.

[@quadsnipershot]

just buy used and based on what you can afford, their are some good sub 20k cars

[@Johnfisher12345]

There are plenty of good sub-$5k cars! People need to stop spending huge money to buy way more car than they need.

[@drewh22]

@@Johnfisher12345 Not sure where you're living, but that's not really the case where I live (and in most bustling places in the USA). If a vehicle runs, $5k is pretty much the bottom dollar you're going to see on that vehicle, and that's one with a lot of miles. Not everybody wants to buy a project. I will say that there's plenty to be found in the $10-20k range though.

[@andrewlalis]

@@drewh22 I got a working car for 3400 bux that just had a broken passenger seat electronics and 190k miles. Still runs beautifully. You just have to shop around on craigslist to find people who just need to get rid of something fast.

[@Johnfisher12345]

I hear this all the time, and it’s from people who aren’t actually looking at used car prices. They just casually stroll used car dealer lots once a month or so, see a few high prices, but make no more effort to find anything else. What you need to be doing is perusing craigslist constantly. Set up some automatic searches for the kinds of vehicles you’re interested in. Have the cash in hand ready to go, so when the right deal comes up you can pounce on it right away. My current daily driver, a 28 year old Lincoln with 133k miles, was $2,100 about two years ago. My previous Lincoln of the same year was $480 in 2010. Both great cars, both have served me very well, both have been all over this country. Both cheap, reliable, and exactly the kind of cars that I wanted. But they both came up suddenly where I had to be ready to go buy them right away. I knew what I wanted, the prices were right, I couldn’t be happier.

[@Johnfisher12345]

And that first Lincoln in 2010 was purchased in the heart of the SF bay area, which I think you can call a bustling location. I don’t live there any more, but I still have friends who do, so I look on craigslist for them regularly to help them out. The deals are definitely still out there. Can you log on on a random Saturday morning and just expect to find a deal right away? Nope, absolutely not. It requires patience and planning, and being ready to go and decisive when the right deal comes up. To be honest, that’s why I find the deals and most people don’t, because most people are neither decisive, nor ready to go.

[@DarthNero]

People: I want that fully loaded big SUV Also the same people: “Why are these payment 900/mo. Its too expensive”

[@chrisgarcia8105]

Yes rates are high but people are buying expensive cars that’s the problem. They don’t wanna settle for cheaper cars they rather have a payment amount Similar to a mortgage. I don’t feel bad for them at all.

[@user-zu5do6ri6r]

When your living in your car, one cannot be worried about the car breaking down.

[@kineticstar]

Ford: Everything is 100k because we deserve it. Kia: We dont look so bad now, do we!

[@speedy0]

Foreign vehicles (Kia, BYD, VinFast) will come in. Build the vehicles in here and sale it 30-50% cheaper.

[@Oinkiepiggy]

Kias are absolutely garbage I'm not saying that because I don't like the brand. All modern cars are junk junk junk

[@KK-tt6ui]

Where’s Daewoo at!?

[@TszHoNgan]

​@@Oinkiepiggyhater gonna hate

[@jayhawker03]

@@Oinkiepiggy As a brand Hyundai/Kia products are in fact garbage. They may have new designers that make the cars look flashy, but underneath it is still the same cheap stamped steel constuction and low-end suspension/drivetrain componets. Their success is only from the fact that they pack a lot of tech in at a low price. All the componets that actually matter are as cheap as can be.

[@FenrirsBite77]

Simple, stop financing cars you cannot afford. Buy used, learn to maintain your vehicle.

[@jaydubya9265]

That’s no fun

[@dneth19]

but you know the rates for used vehicles are significantly higher? unless we have money to pay in full its just gonna cost a lot. and the insurance for used vehicles are higher as well.

[@FenrirsBite77]

@@dneth19 that's why people should learn to finance what they CAN afford. If they CAN'T afford it, save up for it. If they can't save up for it, then they must find another way to make more money. Sounds harsh, but it is the tried and true way. Lookup Dave Ramsey's videos on this topic if you don't believe me.

[@FenrirsBite77]

@@jaydubya9265 right? But fun can turn to pain when it comes to finances.

[@dneth19]

@@FenrirsBite77 yeah I agree with you. but the thing is the value of used and new vehicles are not as big as they used to! a decent used vehicle will definitely push you past 20,25k and not that most are willing to take risks by getting an old car (which again would cost money to repair) Im not disagreeing with what youre saying, but then again not everyone has cash to spend on a vehicle nowadays. so the corporations just keep gulping down our hard earn money one way or the other (especially insurance companies)

[@demisemedia]

Cars are unaffordable, gas is unaffordable, houses are unaffordable, healthcare is unaffordable, groceries are unaffordable.. I see a trend here. 😑

[@gregorypaine513]

CRAZY JOE S U.S.A.

[@vbelbel490]

Thank a Democrat for electing resident Biden.

[@Cybersawz]

We're still driving a reliable 1997 Honda Accord with 188K miles on it, and my 2003 Tundra with 108K. Both bought new, and long since paid off. No issues other than regular maintenance. New car prices are absolutely insane!

[@mocheen4837]

My son in college drives our old 2001 Honda Accord with 110,000 miles on it. We detailed the car and added a ceramic coating to it now that he parks it outside. The car looks brand new and he receives a lot of compliments on the paint condition. I’m t shines more than most new cars that I see on the streets. I installed an Apple car play radio, backup camera and dash cameras on the front and rear.

[@Johnfisher12345]

The idea of going into interest-laden DEBT over a depreciating liability is INSANE. Yet so many people think they just HAVE to have a new car. It’s absolutely mind boggling.

[@jerrylundegaard2592]

How does a liability depreciate?

[@rxonmymind8362]

Didn't go new bought a 2021 Toyota Venza with 50k at $25k. Excellent choice. Kep the payments below $500. As much as I could have gotten anything in the $1200 monthly payment range I wasn't about to contribute to that insanity. Yesterday I got 41 mpg. A good day.

[@acbc3543]

My car is 12 years old and I’ve paid it off long ago. I want to drive it for 18 years

[@Andrew_28]

How can CNBC make videos like this and simultaneously act bewildered that Americans are unsatisfied with the economy? Maybe watch your own stuff? 🙄

[@Nick-jz2jr]

And then cuts to a Chevy Silverado commercial…

[@RichardKing-sx6xc]

Also, they will tell you Biden 100% Tariffs on Chinese cars are awesome. 👌

[@major3477]

​@@RichardKing-sx6xcThat's because Chinese cars would put American brands out of business.

[@PatFan1980]

Consumers are part of the problem too. If people keep buying cars at these mark up prices, even with “better” incentives, then dealerships will continue to stay with the mark ups

[@dmoton314]

I organized my whole life around not needing a car! Not only have I saved money, but I'm healthier because I walk more, and I'm less stressed - the upsides outweigh the downsides. Not everyone can swing it, but more people should try. Cars are great, but our car dependency is literally killing us... in more ways than one.

[@discocycle]

me too and it's soooo worth it!!!

[@joeyvigil]

I paid $8500 for a 2013 Corolla last week. Sooo glad I don't have a car payment.

[@rachelforgione3957]

I paid 10k for a 2017 forester and I have no regrets, I paid in cash as well. I wanted slightly fancier amenities and got lucky that a friend of a friend was selling theirs.

[@johnkonde1975]

Great deal! Here in Dallas, the cheapest brand new base trim 2024 Toyota Corolla LE gasoline sedan is going for 28k out the door. This includes the forced pre-installed accessories and dealer markup. Since Corollas are in very low supply and high demand, dealers can easily sell them for over MSRP

[@XC-Z-cv8qw]

Wtf $8500 for a 2013 car????

[@cantbuyrespect]

@@XC-Z-cv8qw so 25% of what new cars cost is expensive to you?

[@XC-Z-cv8qw]

@@cantbuyrespect Yeah, $8500 for a 2013 car is very, very expensive. You can buy way newer model with less mileage with that money

[@cheddargoldfishcrakers4591]

5:19 I would like to push back on this a little. I feel like a lot of us just use our car literally just to get places. I don’t need air conditioned seats and ambient lighting. Keep the “basic” cars around, there’s always a market.

[@DareToBeDeviant]

Bring back the 90s and early 2000s manufacturing of vehicles. There's no reason for everyone to have backup cameras, lane assist, auto braking, ludicrously bright headlights, butt warmers, hand warmers, 12 inch touch screen infotainment, 30 airbags, and 200 pounds of sound dampening. Some of us just want or need the bare bones of a car, truck, or van. Oh, wait, we can't have that nowadays because big government keeps saying so. It's the reason why so many automobiles are sold around the world ... except the United States. The latest car I've owned is from 2001 and it runs just fine. Barely 108K miles on the clock with its 3800 Series II engine. It'll go for another 200K while your SUV is at the shop for the 17th time or in the junkyard with a blown 4-cylinder which was overworked to move 7000 pounds.

[@gregorymalchuk272]

Blame the government. They mandated backup cameras and auto braking and probably the other stuff too.

[@SRG7796]

The higher technology, high risk of breakdowns and high cost of maintenance

[@peter_shadow7559]

And high prices and ego that costs more to maintain

[@dr.burtgummerfan439]

That's why you buy used, pay cash, and save for repairs and maintenance.

[@lousanto1054]

I bought my first car---a 1979 Camaro---in 1990 for $500 and had it for a year. Now you are lucky to get a car for $500/month. I currently drive a 2014 Ford Focus with 192,000 miles and have no intentions on replacing it until it does not run. Car prices, even used ones, are out of hand!

[@the_dude111]

My parents bought at least 14 different cars over the years. I make 4x as much money and only bought 3 cars over the last 25 years. Screw having a car loan, keep driving your old one!

[@darthdaddy6983]

Similarly , I have 3 cars that are over 25years old.. oops 4 actually An 80,83,90 & 94 all mint, but my daily is an 08

[@elisanoro]

It's crazy how car dependant the US is with awful public transportation, yet they don't make it any easier for us to be able to get a car. Like?? Pick one or the other... Either give us better public transportation so we aren't so reliant on cars, or make cars more affordable!!!!!

[@The_Red_Squirrel]

American consumers need to be more savvy by buying cars suited to their needs, and buying second hand if that is all you can afford. It's called living within your means.

[@jamisojo]

There is no "they". You are in the same boat as everyone else. Live somewhere with good public transportation or buy a car you can afford. Or use a Taxi/Uber. Better yet, live in a wonderful small town with dozens or hundreds of friendly neighbors rather than in a giant city with anonymous millions of people all around you. An affordable car works great in small towns.

[@Johnfisher12345]

These kinds of comments are just so ignorant. ANYONE can go out and buy a cheap used car tomorrow. The fact that you won’t save any money and want “easy” government solutions is precisely why things keep getting worse for YOU, but not for me. I save my money, I buy used cars for cash. No payments, cheap insurance and registration, never have to worry about making a payment. Learn to live within your means!

[@elisanoro]

@@jamisojo I come from a very small town and even that was heavily car dependent. It also depends what type of small town you come from. Some towns have friendly people, some don't (like mine). But that's besides the point. The places in the US that have the best (or any) public transportation are cities (especially bigger cities), but cities are hella expensive to live it, so not everyone can afford living or moving there. And then sometimes the transportation ain't even that good. It's actually better to drive. But driving leads to public transportation not being prioritized or funded. So on and so forth. Endless cycle... but even so, I feel like there's a way we can remedy this and make it work. But it could alsojust be blissful thinking 😅😅

[@johnkonde1975]

@@Johnfisher12345 anyone can go buy a cheap used car but that same cheap used car will need expensive repairs

[@CarlosMorales-hn4pu]

The a/c on my 15 year Honda still works, 400 miles for a tank full, no mechanical issues, if something breaks I’ll fix and keep it moving I got Spotify on the aftermarket and the speakers sound amazing This right here not my problem

[@andidede3653]

They raised prices because 1, shortages from COVID and people buying like never before and 2, the majority of people cannot afford to pay cash for a car outright. You get rid of lower price point cars, you get people into higher loan amounts and longer terms because most consumers tell themselves if I can afford the monthly payment then I will be alright, not looking at the whole price of the car instead. The average household makes somewhere in the 77K range for a couple so on average people make 30-40K for 90% of all jobs out there. I do not see how people convince themselves that it is okay to purchase a brand new vehicle where the average price is almost 50K. Todays incentives mean nothing when the price jumped 50% in 2 years.

[@mathieuminneboo4452]

Buying a new car on a loan is the dumbest thing you can do.

[@axnyslie]

Buying a new car is the dumbest thing you can do. An auto just one year old with 12K on the odometer is significantly less expensive.

[@TheZombaslaya]

Agreed! It made sense back when you could get 0% financing but now, it’s insane

[@thewiseguy3529]

It really is. But everyone still does it!!!!! Definitely don't have a shortage of dumb in society

[@thetrailoutthere]

Even if it's 0%apr?

[@jamisojo]

​@@LarryEngel-b1b I would agree, but people don't need social media to compare themselves to everyone else.

[@JoseFlores-xh5cj]

Signed a car loan on March 2009 at age 19, it was a 2008 Ford Fusion with 42k miles for $19,800 and can't remember the interest rate. Even to this day it is something I regret wasting money on, not to mention the insurance didn't like a 19yr old driving a 1 yr old car at that time. Damn right I still drive that car.

[@HughesEnterprises]

The problem is the cheapest cars today have all the bells and whistles from a high end luxury car of 20 years ago. There are no bare bones zero features commuter cars available now. Roll up windows, no power steering, no A/C, no power anything, no navigation or Bluetooth. No excuse why a $10K new car can’t exist today.

[@homesteadingWithDylan]

Hell yea there is homie, Chevy spark. Roll up windows, manual locks, no whistles or bells, 15k cad new

[@GrnXnham]

Probably 1% of consumers would want a new bare bones car like that today. If you have $10k, however, you can always look at the used market.

[@HughesEnterprises]

@@homesteadingWithDylan That’s still 50% more expensive than the car I’m talking about.

[@PabloGonzalez-hv3td]

Only going to get worse with electric cars. Battery packs don't last decades.

[@rickzane6433]

Look up Dacia in Europe, it was a Romanian car brand which became an offbrand of Renault made for Eastern Europe. Very few options, cheap and reliable. When French people heard about them, they wanted them as well, so they also started selling them in Western Europe. There is a market, as long as dealership fees and greed can be kept in check.

[@markmilitant]

Be careful these insurance companies will pay partially for the totaled car but then your rate skyrockets up and you’ll have to shop again for a new car 😢

[@davidp2888]

People can find the extra $700/month to make a car payment. What they fail to realize is they will be making that payment for 72 months or longer. 6 plus years…that’s insane.

[@TampaBoy]

Our dual-income, no kids household making almost $300K per year has a 2005 Honda and a 2010 Lexus. We take care of the maintenance on them and are wise with our money. The best part is we have money to put into our house and more importantly we have money to spend on experiences and vacations with our friends a family. People try to look rich and flashy with their cars but I know when I see someone driving a flashy new car that chances are they are deep in debt. It's sad.

[@StillMe69]

I hear ya! We have about the same thing as you. This year is the 1st year since 2011 we have not taken a trip or vacation about every month. We chose to stay at home for a year and its kinda killing me Starting about Thanksgiving we will be back to trips and vacations. I don't know how these people do it staying in the same place, doing the same thing week after week, month after month just to drive a new car... which in just 1 year is already an OLD car!

[@laserwizard2]

Paid my car off a year early last December. Enjoying life!

[@guardianoffire8814]

Just wait.... the govt will demand that turn it in and purchase another car....

[@dennis3351]

People do not need all the electronics in vehicles today. Waste of money.

[@letit023]

Bring In the Chinese cars, soon you'll see those "expensive" cars drop

[@doujinflip]

Though your ride will end up in the shop even more often, because the new quality minimum becomes the nearly-disposable Chinese alternatives.

[@therealjayseh]

Nope not with the tariffs that the United States government will be putting on them.... Dream on.... But it's a nice dream

[@Love2Cruise]

CCP will be tracking you!

[@23Kaugummi]

quality is now much better, even better than tesla. so dont worry... you will get better cars for less ​@@doujinflip

[@deemen7132]

Yep. They will stop cheap chinese cars from US soil, the rest of the world gets cheap cars though

[@TheRealWinser]

I was talking to a car salesman recently and he told me that $1k payments are pretty much the norm at his dealership. He sells popular domestic made vehicles.

[@Cybersawz]

That's what he'd like you to believe. It's BS to get you to buy an expensive vehicle. Don't fall for the BS.

[@handleyobusiness]

He's lying through his teeth. 😅

[@TheRealWinser]

@@Cybersawz except he is a friend that lives several thousand miles away. He isn't trying to sell me anything.

[@badam1814]

The average new car payment is in the $700 range right now.

[@k20z3keith7]

Norm doesn't mean not stupid or well thought out 😂

[@andrewfranco94]

I pay 343 monthly for my 2020 Toyota Camry SE AWD. Honestly, it's an excellent economic vehicle.

[@PraveenSrJ01]

That actually isn’t too bad

[@OnCloud7188]

My original car crashed on me, had fluid on the engine and the repair costs were more than what I owed on the car. Decided to just get a new car, they rolled my negative equity on to my new loan and jacked my car payment up to the roof. I’m grateful to have a car but God I hate this car payment!

[@beaniemac]

🤮

[@Johnfisher12345]

No fault but your own on that one

[@backs8189]

@@Johnfisher12345 exactly lol.

[@lfkatzke]

As Bill Engvall would say: "Here's your sign".

[@heuthao7027]

“Negative equity” That explains it.

[@madierose]

Do people really need it explained to them why car payments are so high? Seems like it is obvious to anyone competent who pays attention to general principles of economics and finance.

[@puddincup9879]

lol. People are clueless

[@Johnfisher12345]

They’re high because people are willing to pay them. It really is that simple.

[@Baddknewz]

​@@Johnfisher12345That's literally it. People are spending more, so places are charging more. The only people truly affected are the average consumers.

[@vm-my6hg]

You'd be surprised how little people know, look up the Jimmy Kimmel show's name a country on the map.

[@JakoWako]

@@Johnfisher12345 Guess I’ll walk to my job that’s 20 miles away. Hope I don’t get run over on the highway 🤷‍♂️

[@truneilson]

The dealership ran a homeland security check on my a few years ago when I came in to pay cash for my car.... thats how weird it is to have someone BUY a car outright. I will never buy a car I need a loan on, if everyone did this car prices would plummet. We all need to stop using credit and only start buying items we can afford.

[@thekaerichtexas]

My car note is 222. I will NEVER get a 500+ dollar car note. Ive had coworkers who have $800 car payments that make 50k, and have, mortgage, child support, college debt, etc. Its crazy to me

[@Malitubee]

Mine was $225 at one point and I still thought that was too much lol. I couldn’t imagine $800, absolutely not

[@furiahispanica3823]

$250 max for me, anything higher is theft.

[@u.s7072]

@@thekaerichtexas right? At a certain point you can’t even blame the market because there are much cheaper options still available. Everyone wants to go broke pretending to be rich.

[@prettylady818]

This is the era I’m from where car notes were $250 a month with good credit. My brother’s truck payment was $1100 a month 🥴He ended up totaling the vehicle.

[@OmarHernandez-jp9kx]

Mine 396$ on a used corlorado just 11 months and I’m out .in positive equity also

[@grrlsports]

House payment is $4000, car payment $700, daycare $2000 for one child. How is a young couple supposed to start a family on the median salary of 85k when there’s also sky high groceries and studebt loans to FACTOR in??? Someone please explain.

[@TinLeadHammer]

Rent a hole, ride a bus, do not procreate, reduce the burden of planet's overpopulation. Then muslims will take over.

[@StillMe69]

To answer your question, I have a question for you. There is only 1 word you can choose for your answer... YES... NO. Would you like to be born in this day and time knowing you have 60-70-80-90 years to live in this type of world? When you give me that 1 word answer, I can answer your question.

[@thekaerichtexas]

Rent a small apartment, buy a used cash car, delay having kids, get a hugh paying job basically dave ramsey, don't get a student loan

[@StillMe69]

@@thekaerichtexas My wife is not on board but if it was just me, I would buy a cheap trailer and the property it was on and be set for 30+ years. My buddy in Abilene bought trailer and the land it was on for $67k. Trailer is a 1983 and it was just remodeled. No lot rent or anything. I saw a nice piece a few months ago at Lake Granbury $189k. A person could have that paid off in 5 years and be free. As for the high paying job.. I could never do it but I am thankful others can. I've always had to own my own businesses. Nowadays I'm basically retired and I can sleep till noon, work 15 hours a week and make the same as someone making $75k a year.

[@jsebby2284]

Is this sarcasm? Genuine question

[@jasonroman578]

If someone wants to pay 800-1000$ a month for a car payment let them. It’s our own choice. If you don’t have a car payment awesome! If you refuse to pay those prices don’t buy. For the rest of us, I’ll pay my 800$ a month car note and drive with a piece of mind under factory warranty

[@connordoyle502]

In 2020 i bought a 2019 camry se for 27k (right before the market went on steroids). I dumped 5k into getting a custom dash, 6 speaker JL audio system, JL subwoofer, 2 amps, sound dampened all the metal, with a custom head unit that interfaced with my camrys stock computer and has wireless android auto/apple carplay. Paid it all off in march even though my monthly was 212$. I got a concert in my reliable, fuel efficient vehicle every day. 10/10 would highly reccomend

[@patmclaughlin107]

I live in Central Texas, and most vehicles here really huge. Even white collar professionals have pickup trucks. Many have really huge SUVs. It just makes no sense. Most of them could just buy some nice sedans or small SUVs, but everyone must own these expensive huge vehicles. It’s crazy!

[@gregorymalchuk272]

It's people like that combined with CAFE standards that force the rest of us to drive shot boxes. The company has to make up their poor mileage with junk with all kinds of mpg doodads, CVTs, cylinder deactivation, turbocharging, etc.

[@peter9274]

Im very fortunate that i grew up and living in a pedestrian and public transit friendly city. Never had a car, but i do buy myself a nice pair of ON Cloud walking shoes every 2 - 3 years. No car payments, no insurance payments, and no shoe payments. Amazing!!

[@NadiaSeesIt]

I found 2019 Rav4s that cost as much as a new one, not sure what to do on that one. Hard to fund good used cars.

[@imitationpitaya]

I think this is another problem. It’s easy for people to say “just buy used” but there are only so many used cars, and at that good used cars that are affordable or worth buying. If you know what you’re looking at and have skills with car repairs, you have more options, but that’s not going to be universal either

[@livefreevinnie]

I combined my car payment and rent together by buying a Class B RV. My rent has not gone up for the past 3-4 yrs.

[@markmilitant]

Not everyone wants to be single

[@therealjayseh]

And not everyone can afford a companion! 🤪 Whether you are blind or deaf, water is still wet.

[@elisuarez88]

I’ve had my Toyota FJ since 2012 and it still runs like new, never burns any oil. Good luck getting me to buy a car anytime soon.

[@billhayes4682]

The fact that no mentions of absurd fees dealerships charge makes this article weak. Let us buy direct!!

[@richikraut9400]

Unlike home affordability, this is not at all a system issue. This is completely consumer driven. Don't be an idiot, buy a 5 year old Toyota, or whatever. You're welcome.

[@Ben-bo9dl]

It is definitely a system issue. China makes cars for 2 thousand dollars.

[@mc1996]

There is a problem in the system, taxes and profits are surreal. It's easy to solve buying used or keeping old good running cars, but even those get more and more expensive to buy and run with all the taxes and ways to push people into new, bigger, heavier and overpriced models

[@KeefChief_]

Considering some of you folks are selling 15 year old cars with 190k miles for 1500- 3000 dollars yes it is the “consumer” who’s causing it, it’s much easier to pay a down payment on a loan.

[@sickactor]

I pay $700 for a 2020 Mustang GT. Should be done paying it in the next 5 years. Been my dream car since I was a kid.

[@RichardKing-sx6xc]

Good, you made a choice with your money.

[@gtileo]

The problem is ,people keep paying the obscene prices for cars. And because they're offered 7 year terms that drop their payments per month, they are able to pay for these vehicles. Manufacturers see that and keep jacking up the prices. The truck market is sickening for that. Trucks are 40% more costly than they were 4 years ago and why shouldn't it be when consumers keep throwing money around just because they have no measurable amount of will power and aren't able to sacrifice for their future selves

[@javiermcfarlane4912]

I’m glade that eBikes have advanced in the last couple years. For $1700 you can get an e-bike that can take you from 50 to 100 miles on a single charge depending on how much pedal assist your using. Plus it can carry 300 pounds of cargo with the ability to add kid seats. I’m able to get to most places in the city in around the same time as a car and don’t have to pay for parking or insurance, while charge my bike cost less in electricity then a microwave

[@brianmaloney45]

That's nice, but not an option in northern winters or southern summers....

[@javiermcfarlane4912]

@@brianmaloney45 it’s not too bad for me at least. Just invest in proper clothing and you should be fine for the winter. And for summer, while I doesn’t get too hot around me, I can comfortably ride in 80 degree weather. When it rains I have a helmet that covers my head. combine that with a warm coat, and some gloves in winter and you should be all set, for summer wear a summer rain jacket and you should be fine. I have been biking all year round for multiple years now, it takes some getting use to but once you do it works very well.

[@doujinflip]

I rode multiple years through all four seasons of Northern China, which features bone-chilling winters and muggy sweltering summers. You just have to dress correctly and not rush the ride.

[@bwofficial1776]

No thanks, I'd like to go outside my city and not be out in the elements and go faster than 10MPH. Bikes can't go on the highway.

[@MessyPointedBlob]

@@javiermcfarlane4912 Lmao, no you won't be fine in the northern winters. It's not just the cold, it's also the snow, the slush, and the hazardous conditions that brings. Nobody rides a motorcycle here in the winter because 2 wheel vehicles simply cannot remain stable. It's the same for ebikes that affected by the same physics as a motorcycle.

[@saint438]

I bought a brand new 2019 Ram crew cab truck during Covid for 23k. A few months later the dealership wanted to buy it back. I’m still driving it with under 40k miles on it. I won’t be buying another vehicle anytime soon. These prices today are unattainable for a lot of people.

[@vato915]

Bought our latest car cash last year and we're gonna drive for a looooong, long time!

[@markmilitant]

Stay safe insurance is insane right now if u get into an accident they will pay for totaled car but insurance skyrockets up then you’ll have to reshop around

[@Johnfisher12345]

There’s nothing new about insurance being expensive. That isn’t a revelation.

[@jamisojo]

​@@Johnfisher12345 my house insurance just went up 50+% in only a few years. That is not normal.