US/Canada: The End of the Affordable Car

[MetroMPG]

They just need to amortize the loans even longer to bring the payments down!

10 year car loan, anyone?

Now everyone can afford an F-150!

[Top_Fuel]

10 year car loan, anyone?

We're getting close...


19% of new vehicle loans and 11% of used vehicle loans are now 84 months (or longer).

One fifth of all new car loans are 84 months or longer

[Wallythacker]

In the text of the article 2 things stand out. Many, many people have 96 month pre-approval in place. 8 years. Good or bad credit. People just don't want a massive monthly payment, even if they stay underwater longer. Item 2. Dude mentions if you spend your driving years in the bottom of the barrel, a MIRAGE, you're still dropping close to $120,000 MSRP on Mirages over your lifetime.

The model, IMO, is to eventually price cars so high only the very well off can "buy" them and everyone else gets forced into leases. Pay forever, premium rates. You'll never own another car in your life but you'll be paying a hefty sum every month for the privilege of leasing one.

Anyhow, the more I read the more this reminds me of 2007/8.

Oh, I dug this gem up regarding the fleet age. Very good reading. https://www.spglobal.com/mobility/en...122-years.html

[Fummins]

What about the 40 year mortgage offered in 2008???? What a bargain, for the lender. I know someone who signed up for one of those deals, their interest rate was pretty crappy even for today.

[MetroMPG]

Oh, I dug this gem up regarding the fleet age. Very good reading. https://www.spglobal.com/mobility/en...122-years.html

Wow...



My fleet sure isn't helping the numbers.

Average age is... 22.x

[Mark]

In the text of the article 2 things stand out. Many, many people have 96 month pre-approval in place. 8 years. Good or bad credit. People just don't want a massive monthly payment, even if they stay underwater longer. Item 2. Dude mentions if you spend your driving years in the bottom of the barrel, a MIRAGE, you're still dropping close to $120,000 MSRP on Mirages over your lifetime.

If I won the lottery & became a multi-millionaire overnight, it wouldn't change what I would drive one bit. I would still plan on driving my Mirage for another 10+ years. There are much better places to put money. Throwing money at vehicles would remain very low on my list.

As of December 2022, the average new vehicle cost was $49,507.

"A brand-new car loses somewhere between 9–11% of its value the moment you drive off the lot." Oct 31, 2022

"Cars typically depreciate 20% the first year."

I am someone who does the math.

I realize there are exceptions to the above statements.

If I were wealthy, I may help someone in need of a vehicle. I wouldn't change what I currently drive, however. I would buy a new aluminum trailer. My 29 year old steel trailer is quite rusty, & it's a bit small for my Kawasaki Mule 610. I got my $387 out of the trailer over the years. A shiny new 5' x 10" aluminum one would be nice!

Outside of that, I would pay off the remainder of my mortgage & travel a bit more. My oldest daughter lives in Europe, and I would visit her more often. I would find ways to help others more.

I feel blessed with what I already have, and that's a nice place to be in life!

I find the auto industry to be a bit disgusting these days, & I'd rather not be a part of that any more than necessary!

I see Mirage owners as being practical, and those are the type of people I want to hang out with!

[Wallythacker]

Wow...



My fleet sure isn't helping the numbers.

Average age is... 22.x

My fleet average is .....18 years ...It would fare worse if I still had my 80's Porsche

If I won the lottery & became a multi-millionaire overnight, it wouldn't change what I would drive one bit. I would still plan on driving my Mirage for another 10+ years. There are much better places to put money. Throwing money at vehicles would remain very low on my list.

As of December 2022, the average new vehicle cost was $49,507.

"A brand-new car loses somewhere between 9–11% of its value the moment you drive off the lot." Oct 31, 2022

"Cars typically depreciate 20% the first year."

I am someone who does the math.

I realize there are exceptions to the above statements.

If I were wealthy, I may help someone in need of a vehicle. I wouldn't change what I currently drive, however. I would buy a new aluminum trailer. My 29 year old steel trailer is quite rusty, & it's a bit small for my Kawasaki Mule 610. I got my $387 out of the trailer over the years. A shiny new 5' x 10" aluminum one would be nice!

Outside of that, I would pay off the remainder of my mortgage & travel a bit more. My oldest daughter lives in Europe, and I would visit her more often. I would find ways to help others more.

I feel blessed with what I already have, and that's a nice place to be in life!

I find the auto industry to be a bit disgusting these days, & I'd rather not be a part of that any more than necessary!

I see Mirage owners as being practical, and those are the type of people I want to hang out with!

If I became stupid rich I would buy back the 4 cars I regret selling the most

1970 Hemi 'Cuda 4 speed, (my biggest all time regret of owning cars)
1970 Boss 429 Mustang
1985 Porsche Turbo
2005 Ford GT

I'd still drive the Mirage but at a certain level of richness you need to concern yourself with security. you don't need presidential level but always having someone to watch your 6 is never a bad idea. I guess someone could follow me.

[Wallythacker]

The fleet age is going to go parabolic in about 5 years if there isn't a correction in prices or more affordable models introduced into the market. I don't see more affordable models coming, we lost the Spark, Micra, Fiat, Festiva, Focus all overnight it seems. Detroit has quit selling small cars in no uncertain terms. The only cars we are likely to see will be foreign made, likely from the Pacific Rim, forget European Renaults/Skodas etc (they had their shot) and the only car I know of is the Mirage. There are no other small cars being made that would easily adapt to the NA market. There might be garbage Hyundai/Kia/Suzuki tailored to the Pac Rim. Dirk showed us there are a variety of small cars still out there in the Caribbean, but if any of the manufacturers thought them consumable/viable for NA they would already be for sale here. That they're not says it all.

It might become like Checker, holding out against the odds until it's obvious it's a lost proposition.

[7milesout]

If I won the lottery & became a multi-millionaire overnight, it wouldn't change what I would drive one bit.

I would. I'd buy back all the cars Wally let go, find out where each one of you lives, and come do big ole smoky donuts in front of your houses, homes, apartments, condos, trailers. All while smoking a big fat stogie, with 2 or 3 topless hookers leaned out the windows screaming. And then come back in this forum and post my mpg figures of my Hemi Cuda gets including all the smokie burnouts. I'd try my best to get 5 mpg or less.

[Basic]

My fleet average is .....18 years ...It would fare worse if I still had my 80's Porsche



If I became stupid rich I would buy back the 4 cars I regret selling the most

1970 Hemi 'Cuda 4 speed, (my biggest all time regret of owning cars)
1970 Boss 429 Mustang
1985 Porsche Turbo
2005 Ford GT

I'd still drive the Mirage but at a certain level of richness you need to concern yourself with security. you don't need presidential level but always having someone to watch your 6 is never a bad idea. I guess someone could follow me.

Holy crap what a stable...