Will Vehicle Prices Ever Decrease?

[go_deep]

Simple answer, yes the price will come down, no question about it.

History has shown that if there's at least one person involed, they'll F it up. Dealers got it made today, but sooner or later they over order, they'll miss out on the impulse buyers, and the next thing you know, full lots.

If I was looking to buy and I had to trade in my truck, hand my truck over on day of order, wait 1-3 months to get the new one, and they gave me a minivan as a loaner, I'd walk. To many scenarios where someone can't wait months to get a vehicle, and that is the fuel that will fire the drive to get it back to the way it was.

 

[gbflyer]

Double

 

[gbflyer]

I’ve had a new excavator ordered for 6 months. I may see it in 9. Before JBA (Joe Biden’s America) it was maybe 30 days, 2 weeks of that being the shipping process. I can sell the 2015 model it’s replacing for what I paid for it.

It’s not just cars and trucks.

 

[Fatcamp]

Simple answer, yes the price will come down, no question about it.

History has shown that if there's at least one person involed, they'll F it up. Dealers got it made today, but sooner or later they over order, they'll miss out on the impulse buyers, and the next thing you know, full lots.

If I was looking to buy and I had to trade in my truck, hand my truck over on day of order, wait 1-3 months to get the new one, and they gave me a minivan as a loaner, I'd walk. To many scenarios where someone can't wait months to get a vehicle, and that is the fuel that will fire the drive to get it back to the way it was.

I wonder the same. And once one dealer has rows of shiny vehicles it'll make the other options less appealing.

But I have learned to never underestimate the stupidity of the consumer. Or voter.

 

[sasquatch]

I had to buy my wife a new car recently. Her car has a 147,000 miles on it and I didn't want to keep putting money in it or have it leave her stranded. I shopped for a new car in 5 different states, contacted 15 different dealers from 4 different manufacturers/models. Did I get a great deal? No, but it wasn't horrible relatively speaking. I did better than I thought I would. I will be married 35 years this year. There are times you make money. There are times you save money and then there are times you do what you have to do, to make your wife happy. This was one of those times.

Nothing wrong with buying the wife a new car if she wants one.

But don’t use trickery to make you feel better lol. At 147k miles most vehicles are just getting broken in!

What did y’all have? A Daewoo??


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[tdhanses]

We need a "flip phone" in the automotive industry.

Look at a Ford bronco base model, that is today’s flip phone vehicle at $30k for a 4x4 and manual transmission, yet still has more tech in it then most high end vehicles did 5 years ago.

 

[Billinsd]

Since the auto industry has a chip shortage, dealers are buying top tier models and base models are hardest to find. I bought my daughter a new Camry on Sunday of Memorial Day weekend at Longo Toyota in El Monte, the highest volume Toyota dealership in the country. There were a bunch of discounts and the volume of cars was shrinking. I couldn't find a black base model Camry in San Diego or Orange County or LA, except Longo had 4 black base Camrys. In fact they had about 44 Camrys.
My 2017 Civic has 94k and I want to sell it before it has about 120k. I was looking at Longo Toyota and they had about 40 Toyotas on their entire lot and most were more expensive models.

Wow, 40 Camrys right as things were getting crazy down to just 40 Toyotas in about 8 months!

So, of course I'm keeping my civic.

 

[KChunter71]

To much money chasing to few goods. That is what happens when you give to much money away. During the pandemic we where suppose to have some good deals on everything, but for some reason everything went up in price. Crazy times I swear. I never needed a stimulus check but got one anyways. I will never understand that.

Ya, I sold some things before the pandemic. Looking for deals! Joke was on me.

 

[Gerard Marcaurele]

I don’t know if the market is going to reset to lower prices, but I can tell you that there’s no way I could afford the payment on a $65k truck. So, I won’t be buying a vehicle any time soon.

 

[browning2480]

If you have to make a payment, you can’t afford the vehicle, period.

 

[HornPorn]

If you have to make a payment, you can’t afford the vehicle, period.

Quite literally a true statement.

Philosophically, I agree with this approach on all things except for real estate.

 

[CorbLand]

If you have to make a payment, you can’t afford the vehicle, period.

I have always stuck to the "you do a 4 year loan but double the payments so you can pay it off quickly." I have done this with both vehicles I have purchased in the last 10 years and it has worked well. In total, for both vehicles, I have paid less than 800 dollars in interest.

Debt can be used two ways.

 

[browning2480]

I have always stuck to the "you do a 4 year loan but double the payments so you can pay it off quickly." I have done this with both vehicles I have purchased in the last 10 years and it has worked well. In total, for both vehicles, I have paid less than 800 dollars in interest.

Debt can be used two ways.

But you still paid $800 more than you should have. Not sure why you would do that, if you had the money and could afford to just buy it. I understand what you are saying, but for a depreciating asset like vehicles, I wouldn't say that is the best approach. No fault to you though, whatever works for you.

In a normal market, by the time you are done with 6 months of your first year, you owe more than the vehicle is worth.

But I follow the borrow is slaved to the lender process. I won't ever owe a bank or anyone else anything for the items I purchase.

 

[CorbLand]

But you still paid $800 more than you should have. Not sure why you would do that, if you had the money and could afford to just buy it. I understand what you are saying, but for a depreciating asset like vehicles, I wouldn't say that is the best approach. No fault to you though, whatever works for you.

In a normal market, by the time you are done with 6 months of your first year, you owe more than the vehicle is worth.

But I follow the borrow is slaved to the lender process. I won't ever owe a bank or anyone else anything for the items I purchase.

For 80 bucks a year or 200 bucks a year if you look at it from the loan stand point, I was able to hold ~20,000 in my bank account and use it instead of out laying it. I view it as cheap insurance. I did the same thing with my wifes ring. I could have paid it off up front but they offered 0% APR for the first 12 months. Took that, made the payments to have it paid off in 10 months, didnt cost me a penny and I had my money.

You are a slave if its money in, money out. If you have self control and dedication, you arent even though you owe money. I took the philosophy you do with housing and told myself to hold out, save up and not be a slave. I watched every penny I saved be lost to pricing increases.

Neither way is right nor wrong. Just two ways of looking at things.

 

[MuleyFever]

For 80 bucks a year, I was able to hold ~20,000 in my bank account and use it instead of out laying it. I view it as cheap insurance. I did the same thing with my wifes ring. I could have paid it off up front but they offered 0% APR for the first 12 months. Took that, made the payments to have it paid of in 10 months, didnt cost me a penny and I had my money.

You are a slave if its money in, money out. If you have self control and dedication, you arent even though you owe money. I took the philosophy you do with housing and told myself to hold out, save up and not be a slave. I watched every penny I saved be lost to pricing increases.

Neither way is right nor wrong. Just two ways of looking at things.

Another way to look at it is you paid $800 to have a newer and more reliable vehicle. Holding on to an older less reliable vehicle while you save for 2 years or more can end up costing you way more than $800 in repairs and other costs associated with an older vehicle.

 

[browning2480]

Gotta factor in the risk. Something happens I would much rather not have a car payment and only have to worry about a mortgage and food. To each his own but I will never borrow a penny for a vehicle ever.

I already have an emergency fund, so I don’t need to gamble with a car loan to have that.

 

[CorbLand]

Gotta factor in the risk. Something happens I would much rather not have a car payment and only have to worry about a mortgage and food. To each his own but I will never borrow a penny for a vehicle ever.

I already have an emergency fund, so I don’t need to gamble with a car loan to have that.

If you calculate your car loan into your emergency fund, then its really not anymore risk. There is not a right way or wrong way to look at it. I preferred to keep money in my pocket for little expense. It cost me less to pay the interest than it does to insure both vehicles for a year.

I have a sizable emergency fund so if something happened, it wouldn't have caused much to me. Its also why I double the payments. If push comes to shove, you drop what you pay to the minimum and hold on.

If something happened to you, you may not have a car payment but I have 20,000 in the bank to help. You would need to sell the car to get that.

 

[CorbLand]

Another way to look at it is you paid $800 to have a newer and more reliable vehicle. Holding on to an older less reliable vehicle while you save for 2 years or more can end up costing you way more than $800 in repairs and other costs associated with an older vehicle.

This is also another way to look at it. I dont think people put as much value in reliability as they should. My pickup isnt the greatest and it is nice to hop in my wifes car for long trips.

We took it to Arizona last year and it was nice not have to worry about my car.

 

[browning2480]

If something happened to you, you may not have a car payment but I have 20,000 in the bank to help. You would need to sell the car to get that.

No I would have my emergency fund and no car payment. I wouldn’t need to sell the car. That is my whole point. But if I did, I would have money coming back to me and not paying back the bank, like you would

 

[CorbLand]

No I would have my emergency fund and no car payment. I wouldn’t need to sell the car. That is my whole point. But if I did, I would have money coming back to me and not paying back the bank, like you would

I also have an emergency fund as well with the car payment calculated into it. There is a difference between using debt as an asset and living paycheck to pay check.