Car buying is never going back to normal

[Lee Stewart]

Supply-chain snarls revealed buyers are willing to wait for the car they want.

Car dealers are now keeping fewer cars on lots.

That means buyers could wait longer for cars and get fewer discounts.
https://www.msn.com/en-us/autos/buying/car-buying-is-never-going-back-to-normal/ar-AA15ZU72?ocid=msedgntp&cvid=9e81d2b42ca4475bbe5a18ae5c05852f

[Ralph Spears]

The wait is 4 to 5 months to order a 2023 Chevrolet Silverado Pickup. they said they would appraise my trade when i ordered the truck and adjust the appraisal when the new truck arrives sounds like a problem to me.

[SS427]

That mindset is not just for buying new cars, its becoming the norm for many if the products we buy today. Impulse buying makes up for a lot of sales including new cars and I think this will hurt the economy dramatically.

[Z282NV]

There is definitely going to be a turning point. Whether that means a new selling structure and shutting down some more dealerships because they cannot survive their own overhead costs.

Buyers have to be smart about this and wait it out. I've always paid below MSRP when buying new. With the price of new cars going up and quality of materials getting worse along with smaller displacement engines being used I am sure manufacturers are still making their margins.

[Crush]

Ordered a 23 Ford F-250 Nov 1st. They told me 9 months. The price was ridiculous and I’m debating at this point to get it. Crazy times and I agree waiting may be the answer.

Finally, I think dealerships are doing OK as they’re making a ton of margins on what they do sell and in service which is ridiculously priced

[Lynn]

And, they have really hiked prices on parts.

My daughter broke the rear spoiler off her CR-V. I needed 5 little plastic clips from the Honda dealer. $245!!!!!!!!!

[frankk]

I agree Lynn. Thats beyond outragious

[1967 4K]

This may be a norm these days but in my area if you pay cash for a vehicle the cost is $ 1,000.00 more than the agreed price. Seems as if you don’t finance they don’t want your business!

[SS427]

This may be a norm these days but in my area if you pay cash for a vehicle the cost is $ 1,000.00 more than the agreed price. Seems as if you don’t finance they don’t want your business!

That is why I ALWAYS negotiate the contract price before I disclose payment.

[Vern B]

Plenty of people are making $1000 plus a month car payments and financing
company’s are going 8 and as long as 10 years to finance a vehicle.

The accountant in me says that isn’t something that can continue long term, especially when they can’t build a vehicle that doesn’t turns to rust before 5-7 years.

[Lee Stewart]

the average monthly payment for a new car is up 26% since 2019 to $718 a month, and nearly one in six new car buyers is spending more than $1,000 a month on vehicles. Other costs associated with owning a car have also shot up, including insurance, gas and repairs.

https://www.nbcnews.com/politics/economics/car-repossessions-are-rise-warning-sign-economy-rcna61916

[Too Many Projects]

Last new car I bought was in 1990, Cavalier Z24. Only had it 1 year. Everything since then has been 3-5 years old. Wife bought a 2002 Passat new, total POS that we lost our butt on in '07 when we bought her TSX new. Still have that car. Looks like it's 1 year old and runs like a fine watch with 135k on the clock.
No new cars in the foreseeable future here.

[427.060]

I bought a 2022 Silverado back in June. There were not many new trucks available at the time. I found this one online at a dealership about 1 1/2 hours from me. When I got to the dealership to look at the truck I noticed that they had added $5000 to the MSRP. I told the salesman that I liked the truck but not the added $5000. They took the $5000 off of the price. I traded in a 2020 F-150. After they came in with their offer I was able to get them to come up on the trade-in and negotiated a couple thousand off of the MSRP.

[70 copo]

Hey guys we are in a transition!

You have to break what used to work just fine to force everybody into something new.

Besides in a couple of years when all of the unsold EV's stack up on dealer lots unsold they have to blame it on something right?

Relax and enjoy the ride.

[jdv69z]

So these car companies are basing their survival on EV's? What happens when not enough people are willing to buy them?

[John Brown]

What happens when not enough people are willing to buy them?.

[GotGrunt]

So these car companies are basing their survival on EV's? What happens when not enough people are willing to buy them?

That’s when the government steps in, to force you to buy one.

[Dusk Blue Z]

What happened to all the 2020 and 2021 cars and trucks seen on the internet, parked in storage lots that were built and waiting for chips?

[Too Many Projects]

What happened to all the 2020 and 2021 cars and trucks seen on the internet, parked in storage lots that were built and waiting for chips?
Good question....probably crushed as obsolete and unsalable as new. Won't be long before "we the people" will be bailing the manufacturers out, again, so they can keep screwing us with our own money. Hey, that sounds a LOT like the gub'ment...:wink:

[L_e_e]

There are about 30,000+ scattered around Dearborn, MI right now.

[BLACKLS5]

There are a ton of newer Silverado's stashed around the Ft. Wayne area. I don't know the numbers, but it is in the many thousands.

[70 copo]

There are a ton of newer Silverado's stashed around the Ft. Wayne area. I don't know the numbers, but it is in the many thousands.

Ready for the mice to eat the wiring harnesses no doubt.

[70 copo]

What happened to all the 2020 and 2021 cars and trucks seen on the internet, parked in storage lots that were built and waiting for chips?

I am sure you have noticed that along with semiconductor production facilities, food production and chemical plants that happen to make fertilizer for planting crops keep catching fire all of the sudden. The result is skyrocketing prices for fertilizer. Simultaneously, the EU farm to fork regulations place draconian limits of fertilizer use on farms there which will have the effect of reducing crop yields.

I am sure it's all just confidential because despite the raw data that shows that these fires, and an overall constraint on key goods and services is REALLY happening-- any search engine result immediately tells you with link after link-- that it is not --and all this talk is just some wild conspiracy theory.

Its a transition. Relax I am sure its nothing.:naughty:

[Dusk Blue Z]

There are a ton of newer Silverado's stashed around the Ft. Wayne area. I don't know the numbers, but it is in the many thousands.

Just checked "The Googles Map" at the truck plant. My local dealer only has 4 "new" trucks on the lot, guess I'll keep my 2014 for a while.

[dustinm]

Just checked "The Googles Map" at the truck plant. My local dealer only has 4 "new" trucks on the lot, guess I'll keep my 2014 for a while.

Stay far away from the covid supply chain trucks as possible - suggestion from a friend of mine who is a GM service manager. He stated that his dealership is seeing failures on parts they never had problems with before.

[JRSully]

Used car prices are dropping, slowly, but dropping. Wait it out if you can, find a "Church Lady creampuff" IMO, "fair" deals on used cars are on the horizon

[70 copo]

Yes. The current goal is to make as much money as possible off of less new vehicle sales.

This of course has the end effect of pricing the working poor and the lower middle class out of a new vehicle.

[markinnaples]

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

[70 copo]

Understand. The WEF believes that you should not be allowed to even own a car.

Agenda 2030!

Relax it’s a transition.

[Lynn]

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

Talked with one of the lawyers I office with. A client had just left his office. Just just bought a new car, about $42k (which doesn't buy much these days). Financed it for 84 months at 7.9% for a payment of over $650 per month.

[Too Many Projects]

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.
I'm with ya, Mark. I remember earning $1,000 a month ! In 1974, my apartment rent went to $300/month and I said that's enough and bought my first house. PIT combined was $245/month. $100/month car payments were considered for the rich.

[Lynn]

I don't think that daily drivers will be affected; but I predict that 2025 will see some really silly collector car purchases in the 500k to $1m range.

[69 Post Sedan]

I read just yesterday that the current average new car payment is ~$720/mo., which is astonishing to frugal ol' me. I could never imagine paying that much a month, let alone the ones on the high side that have pushed the average up that high. But, I have friends and acquaintances who have payments for well over $1,000 a month and it almost makes me physically ill to think about having that kind of payment. Today's world is insane to me.

I’ll admit, I’m not the best with my money, but I have a coworker who was paying over $700 a month, a few years ago, to LEASE a 2016 6.2 Silverado. I was floored……I’ve had car payments before, but never that much on one vehicle…….and for a leased on at that!

Kurt

[PeteLeathersac]

‘

New or used, we only buy 1x Payment plan cars, no monthlies also helps keep total spent in check.:smile:
Owning outright lets you choose Insurance too, no personal vehicle damage coverage if your fault etc.
Higher Interest not only affects car payment itself but also amount available for it w/ mortgage/other monthlies included so whether new mortgages or current renewals at twice or whatever rate of borrower’s existing = car payments don’t fit total ratio for mortgage approval etc.:dunno:
:beers:
~ Pete

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[muscle_collector]

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. i know that certainly isnt the norm nowdays for most people

[Lee Stewart]

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. i know that certainly isnt the norm nowdays for most people

The average price paid for a new vehicle in the United States in October 2022 was $48,281. That's a lot of cash to sink into a reverse ROI asset.

[COPO]

my dad always drilled it in my head that if you cant afford to pay cash for your cars you cant afford them. I know that certainly isn't the norm nowadays for most people

My Dad was the same way, but took it a step further and said never buy a car newer than 2-3 years old. I've only had one new car in my life and it was for my wife, but buying a late model 2-4 year old car with low miles as a daily driver for cash is sound advice, albeit lately it's been smarter to get brand new given the crazy Covid pricing of used cars. That seems to have turned now and late model used car prices seem to be rapidly coming back down to earth.

Quick side note, my daughter was in the market for a new daily driver about a year ago. After shopping for a few weeks, she found a 2020, or 2021 with about 10K miles was MORE than ordering a brand new 2022, but would have to wait 4-months for the build. She bought the new one. Crazy times that finally seem to be changing.

[Vern B]

What happened to all the 2020 and 2021 cars and trucks seen on the internet, parked in storage lots that were built and waiting for chips?

There were thousands of them parked in farm fields east of Flint, Landing and around Detroit.
Apparently, mice got into many of them and ate the soy based wire coatings that have been in use for the past 20 years, so many were beyond repair and crushed.

[Z282NV]

There were thousands of them parked in farm fields east of Flint, Landing and around Detroit.
Apparently, mice got into many of them and ate the soy based wire coatings that have been in use for the past 20 years, so many were beyond repair and crushed.

Well at least someone got some use out of them.

[dustinm]

My Dad was the same way, but took it a step further and said never buy a car newer than 2-3 years old. I've only had one new car in my life and it was for my wife, but buying a late model 2-4 year old car with low miles as a daily driver for cash is sound advice, albeit lately it's been smarter to get brand new given the crazy Covid pricing of used cars. That seems to have turned now and late model used car prices seem to be rapidly coming back down to earth.

Quick side note, my daughter was in the market for a new daily driver about a year ago. After shopping for a few weeks, she found a 2020, or 2021 with about 10K miles was MORE than ordering a brand new 2022, but would have to wait 4-months for the build. She bought the new one. Crazy times that finally seem to be changing.

I've always been a frugal buyer for myself buying used 5 year old pickups, and keeping my wife and kids in a very low mile late model car some times new. In 2013 it was time to purchase a newer pickup for myself again. After spending some time looking over inventories I found that I could buy a 3 year old pickup with 90k miles for $27K or a brand new '13 with every option that I requested and zero fluff for $32k, basically an ordered pickup. That was the easiest decision ever made. On top of it I never had to worry what the PO did or neglected nor worry about a transmission going out during a cross country haul again. Now anytime GM has a substantial discount I usually jump into another new one.