New car prices soar to historic high as buyers face mounting sticker shock, Average monthly payments climb to $766

[feelosofer]

I would not suggest buying a 15-20 year old hooptie BUT a lot of people could fin themselves a solid 5-10 year old car with most of the modern amenities you need. But people are willing to go broke to ride the newest model vehicle even if it's sitting in a poor crime infested area. The dealers don't even make money on the cars per se but really they are in the business of selling loans/debt then flipping the repo'd cars to start the cycle again. If Americans as a collective said 'no' the market would correct itself.

 

[hood b. goode]

Ride what you got till the wheels fall off yall

 

[LDC]

I would not suggest buying a 15-20 year old hooptie BUT a lot of people could fin themselves a solid 5-10 year old car with most of the modern amenities you need. But people are willing to go broke to ride the newest model vehicle even if it's sitting in a poor crime infested area. The dealers don't even make money on the cars per se but really they are in the business of selling loans/debt then flipping the repo'd cars to start the cycle again. If Americans as a collective said 'no' the market would correct itself.

And this is why it'll never reset. Just like with the houses, the interest rates ain't really the problem, it's that they cost too much to begin with. You got CR-Vs going for $40k that probably would've been low 20s 15 years ago. After the COVID chip problems that they blamed the price increases on beginning of the decade, every year there's articles about cars sitting on lots and the prices gonna drop later in the year etc. But they haven't cause it's just like everything else, once they see the masses are willing to pay for it anyway it becomes the new normal. And people need cars so .

After the recession and fuel costs started impacting airlines, they said baggage fees were temporary to ease costs. But they never went away cause they saw people didn't mind paying and kept traveling.

Another thing is even tho things are bad for most people, the people in the market for those luxury cars are doing fine so it's nothing for them to pay $100k. Companies have no incentive to lower the prices.

 

[winb83]

That's because people are buying trucks and SUVs and they change the numbers. A new sedan isn't costing you $50K unless it's a fully loaded hybrid or EV likely from a luxury brand.

I bought a brand new fully loaded 2025 Civic hatchback early this year for around $35K and put down $28K. Payments are $152 a month for 5 years @ 5.99% from Honda. I could refinance it down to 3.99% from my credit union today but I'm not gonna bother because I'll pay it off halfway through the loan.

 

[Oatmeal]

It still amazes me how people still buy brand new vehicles

Especially unless you are a legit multi-millionaire. But I guess someone has to be a guinea pig for these new cars on the market

interest rates are much cheaper on new vehicles than used

I was forced to buy a new car because I got a new job and needed 100% reliable transportation. I was originally going to get a basic used pickup like I had before. I 2014 I paid $2200 for a 2000 Ford Truck but it got totaled, in 2024 that same year with more miles than what I had on my old truck was now $6500

I ended getting a 0% interest loan for 5 years on a new crossover. Used cars at the time were 4.9% interest.


The thing is i put that down-payment money in a High yield savings account when the returns were high so that gave an extra "discount" by taking advantage of the 0%

 

[Hoshi_Toshi]

It’s just some dumb people out here. That’s all

 

[winb83]

I was forced to buy a new car because I got a new job and needed 100% reliable transportation. I was originally going to get a basic used pickup like I had before. I 2014 I paid $2200 for a 2000 Ford Truck but it got totaled, in 2024 that same year with more miles than what I had on my old truck was now $6500

I ended getting a 0% interest loan for 5 years on a new crossover. Used cars at the time were 4.9% interest.


The thing is i put that down-payment money in a High yield savings account when the returns were high so that gave an extra "discount" by taking advantage of the 0%

That is the #1 bullshit rationalization people make for buying a new car. All used cars are not unreliable and all new cars are not reliable. If the car is good it's good and if it isn't it's not. I bought a certified used car got it inspected and drove it for 5 years. All I did was the standard maintenance on it and never went into the shop for more than that. When I bought a new car it was because I wanted a hybrid hatchback instead of the sedan I had and I knew it was a wasteful purchase but I made it anyway admitting that.

Buying a new car for most is almost always a dumb move. Today I could have taken what I put down on the car I have and added $1K to that and got it as KBB says fair value is about $29K. My car is in virtually the same condition it would have been in getting it today and doesn't even have enough miles to need an oil change or any maintenance yet. Would have saved me at least $4-5K and I'd have effectively the same car with 8 months less warranty on it.

I paid that $4-5K to get the car 8 months newer but with no meaningful difference.

 

[winb83]

It’s just some dumb people out here. That’s all

Many people don't think logically about cars or houses. They go out and get the most expensive of each that they can get approved for payments on. Situations change and suddenly "affordable" payments become a burden.

Because these people are playing around with someone else's money they don't feel the financial impact of what they've done until it's too late.

 

[WIA20XX]

What car can you get for under $2k in 2025? Most shyt boxes sell for 3-5k.

This looks like they asking you to bring cash and then rob you, but...

 

[SupaVillain]

Bought a used whip for $18k. Payments only $400/month Would've been $300/month with warranty.

i can afford something new now, but im waiting.

same, bought a CPO '21 Hyundai Sonata, payments only 455, but it's manageable, considering the fact i needed a new car

 

[tay1]

Dealerships are going to lose a lot of money OR there's going to be a unprecedented level of predatory lending going on.

 

[WIA20XX]

Kind of a nothing burger when all is said and done.

• Most of the loans are bundled together and sold as securities. When they fail, it's just financial institutions holding the bag
• The dealers themselves are usually set up as LLC's or S-Corps - and the banks that lend them money to buy the cars - have the cars as collateral. So the dealer is not gonna get hurt.

The folks getting hurt are gonna be the employees at the dealership. Staff, Mechanics, and Sales People. And nobody cares about them

It's up stream from the dealers is where the real problem is.

American car makers create something like 10 other jobs in the making of the car.

 

[Oatmeal]

That is the #1 bullshit rationalization people make for buying a new car. All used cars are not unreliable and all new cars are not reliable. If the car is good it's good and if it isn't it's not. I bought a certified used car got it inspected and drove it for 5 years. All I did was the standard maintenance on it and never went into the shop for more than that. When I bought a new car it was because I wanted a hybrid hatchback instead of the sedan I had and I knew it was a wasteful purchase but I made it anyway admitting that.

Buying a new car for most is almost always a dumb move. Today I could have taken what I put down on the car I have and added $1K to that and got it as KBB says fair value is about $29K. My car is in virtually the same condition it would have been in getting it today and doesn't even have enough miles to need an oil change or any maintenance yet. Would have saved me at least $4-5K and I'd have effectively the same car with 8 months less warranty on it.

I paid that $4-5K to get the car 8 months newer but with no meaningful difference.

Man, the shyt up here was TERRIBLE, I'm in Cleveland so dead in the rust belt so used cars can be fine but rust and frame rot is the main thing that kills cars. The majority of the cars I've owned were still functional when I had to junk them because of structural issues. The market ain't how it used to be pre-COVID. At that time EVERYTHING was a rip off, I don't even go to shops and do my own maintenance so there wasn't any savings with a used vehicle thats out of warranty. We already see that these tariffs caused the prices of parts skyrocket which I foresaw and factored into my purchase.

I just had a coworker I helped with a Kia alternator install and he paid $200 for one when I remember them being $80 7 years ago.I remember getting brake pads and rotors for $130 now they're $275

I would always try to buy cars from Pennsylvania because they had inspections to alleviate some of the rust problems.

Spoiler

Its the same situation with housing, I been looking at houses for a couple years and it's getting to the point where it's more economical to have one built. All the affordable stuff has "hidden" costs (new roof needed, old windows, basement needs waterproofing) thats $55k out the gate, you cant even get home owners insurance if the roof is over 15 years old

 

[Ezekiel 25:17]

That is the #1 bullshit rationalization people make for buying a new car. All used cars are not unreliable and all new cars are not reliable. If the car is good it's good and if it isn't it's not. I bought a certified used car got it inspected and drove it for 5 years. All I did was the standard maintenance on it and never went into the shop for more than that. When I bought a new car it was because I wanted a hybrid hatchback instead of the sedan I had and I knew it was a wasteful purchase but I made it anyway admitting that.

Buying a new car for most is almost always a dumb move. Today I could have taken what I put down on the car I have and added $1K to that and got it as KBB says fair value is about $29K. My car is in virtually the same condition it would have been in getting it today and doesn't even have enough miles to need an oil change or any maintenance yet. Would have saved me at least $4-5K and I'd have effectively the same car with 8 months less warranty on it.

I paid that $4-5K to get the car 8 months newer but with no meaningful difference.

Yeah a lot of people are clueless about cars. They still think anything above 70k is a lot. For me, it's just getting broken in.

Most car brands will run to 200k if you do the maintenance, even American.

 

[Sir Richard Spirit]

$400k is an average or starter home in many places. And it’s not even an option in others.

Yes.. those are very limited places.. you can go into multiple areas outside of major cities and even in some major cities and buy a home cheaper than $400,000.