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It's an upside down world...


f.f.jones
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It's an upside down world...

It used to be that dreaded sticker shock came from the prices of new cars. Now used car prices are just as bad.

How bad? The average used car sold for $29,594 in January, up from $22,676 last year, a 30% increase, Edmunds.com reports. 

 Motorists are being forced to pay top dollar for basic transportation. Among three-year-old models, the Versa, the venerable Dodge Grand Caravan minivan (up 69% to $25,789), Toyota’s Prius hybrid (up 61% to $28,758) and even the Chevrolet Sonic, a discontinued subcompact (up 55% to $18,473), are basic vehicles used to get from Point A to B that have seen some of the biggest increases.

 

https://www.msn.com/en-us/money/companies/you-knew-used-car-prices-were-high-heres-how-outrageous-it-has-become/ar-AAU3WYE?ocid=mailsignout&li=BBnb7Kz

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Suddenly, It's 1946!  Supply chain disruptions are always followed by a period of inflation, to wit:

1946 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,072.

1947 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,219

1948 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,313.

1949 Chevrolet Stylemaster Six 2dr Sedan, factory price: $1,413.

1950 Chevrolet Stylemaster Six 2dr Sedan, factory price: $1,403.

Eventually, supply issues are resolved, catch up to demand, prices level off, sometimes recede a bit.

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9 minutes ago, 58L-Y8 said:

Suddenly, It's 1946!  Supply chain disruptions are always followed by a period of inflation, to wit:

1946 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,072.

1947 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,219

1948 Chevrolet Stylemaster Six 2dr Town Sedan, factory price: $1,313.

1949 Chevrolet Stylemaster Six 2dr Sedan, factory price: $1,413.

1950 Chevrolet Stylemaster Six 2dr Sedan, factory price: $1,403.

Eventually, supply issues are resolved, catch up to demand, prices level off, sometimes recede a bit.

During the war, there was the Office of Price Administration (OPA) government agency which controlled the price of goods, including cars at that time, as there was limited supply. Office Of Price Administration | Encyclopedia.com

 

Craig

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13 minutes ago, 8E45E said:

During the war, there was the Office of Price Administration (OPA) government agency which controlled the price of goods, including cars at that time, as there was limited supply. Office Of Price Administration | Encyclopedia.com

 

Craig

indeed, the OPA was instituted to tamp down inflation during the war restrictions and shortages.  Once those controls were released, the pent-up demand on short supply manifested itself.  This situation also manifested itself in labor and material issues that appeared in the escalating factory prices.

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12 minutes ago, Barney Eaton said:

Looking down the road......... what happens when the computer chip supply arrives and the parking lots full of cars and trucks are released to dealers?

1953 Henry had his sale blitz to make Ford #1 over Chevrolet.

2023 Chevrolet repeats history and tries to overtake Ford to be #1 in light trucks?

 

Craig

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Just happy I'm not in the market for a vehicle.

 

I think you'll see "manufactured" shortages and crises on many products, now that the unscrupulous have seen what they can get away with.

 

"god Money, let's go dancing on the backs of the bruised" Mr Reznor hit the nail squarely with that one, right at the tail end of the 1980s decade of greed and still relevant now.

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45 minutes ago, 60FlatTop said:

Averages are like statistics. Manipulative at best. One has to take into consideration the number of 36 month lease turn ins that play into the figure. Nearly 60% of new car "sales" are leases.

 

Again that it is an average, but I heard from a friend of mine who manages a Buick/GMC/Cadillac Dealership on Long Island it is over 80% and has been for some time now around here anyway.

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21 hours ago, rocketraider said:

Just happy I'm not in the market for a vehicle.

 

I think you'll see "manufactured" shortages and crises on many products, now that the unscrupulous have seen what they can get away with.

 

"god Money, let's go dancing on the backs of the bruised" Mr Reznor hit the nail squarely with that one, right at the tail end of the 1980s decade of greed and still relevant now.

The 'greed' part is on behalf of the seller.

 

Covetousness may come into play on the part of the buyer, depending upon the motive.    Is it REALLY necessary to also have a brand new vehicle or the latest iphone just because a neighbor or a co-worker did?  I know I don't have to be the first on my block with the newest of the new; especially when one knows supply exceeds demand and its priced accordingly.  In fact, I think I'm still first with the oldest vehicle on the block!!

 

Craig

Edited by 8E45E (see edit history)
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I think the electric car will bring about the cradle to grave leased car. It will have a relatively high purchase price that will encourage leasing. And a lucrative used price with high financing. Last time I looked it up the average vehicle (average again) on the road is 17 years old. I can see picking up 20 years of lease interest on the capital price of those cars easily.

 

 

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Good old American greed.  If there is less of something, real or imagined, the sellers look to raise the prices.  If the orange crop is bad and your income relies on the sale of oranges then there is some justification for raising the price.   In used cars there is just greed, and in new cars it’s all greed when dealers add inventory adjustment fees in thousands or tens of thousands of dollars.  Here in the northeast we get hit with gas adjustment pricing when summer blended gas gets converted to winter blend and again when the winter becomes summer.  Gas is in “short supply” yet everybody selling the blends always has plenty and never runs out.

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Negative legislative practices and regulations contribute to all of this and only compound the effects. They get away with greed because constituents encourage it as entitlement runs amuck from bottom to top. It's akin to giving a thief a role as CEO of a banking institution, of which those are plentiful too. Truly an upside-down world.

 

 

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What the heck are you guys moaning about again ?

Just consign your old/used car(s) with Barrett-Jackson or Mecum auctions, so you too can be rolling in the dough and laughing all the way to the bank because some nitwit with more dollars than sense will pay crazy prices(s) for all of them..

Problem solved.

 

BTW, what is a “sticker shock” ? 
Something electrifying ?

 

And so far, I haven’t seen anyone holding a gun at my or someone else’s head forcing me or  them to buy anything, let alone a car.  Maybe I live in in a different reality or universe than some of the AACA forum members ?

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Inflation or devalued dollar has some bearing on that figure. Apparently Edmunds greedily wrote the article to promote their own interests.

Prices.png.900b0a0af2462d0d30b4b8b74feba36c.png

My issue would be the tax supported goods and services that were contracted at the pre-inflation prices. Inflation raises the collected sales tax to an amount greater than expected. That would be called windfall profits to a company. I have seen no agency reduce taxes on something like gasoline to adjust for their "windfall", even in the name of the poor working families needing a basic used car or the gas to run one on.

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Supply and demand. It's as natural a law as gravity. There was nothing to prevent the complainers here from buying up cars 2 years ago and selling them at a fat profit today. Didn't think of it? Didn't want to risk capital? Only one person to blame.

Of course there is always central planning and fixed prices. Ask any number of other nations how that's worked out.........Bob

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4 minutes ago, Bhigdog said:

Didn't want to risk capital?

Mental image of about ten of them in a row. Could describe each. My Grandfather used to say they had fish hooks in their pockets.

 

The cry of greed and injustice can bring a smile after you get stuck with the lunch bill often enough.

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16 hours ago, f.f.jones said:

 

 Motorists are being forced to pay top dollar for basic transportation.........

FF Jones I would not say anyone is being forced to pay top price, the consumer is electing to do so. The transportation they presently own should also be selling for top dollar and have some equity as well. Upgrading a vehicle is a luxury, not a necessity, it only becomes a necessity when the vehicle is neglected or abused. So some people have put themselves in a position where their car has little or no resale due to a lack of maintenance or even a simple periodic cleaning of the seats. They could always opt to repair what they have  

 

My wife's Cadillac is 8 years old, when it was 5 years old I was going to trade it in with 40,000 miles and was offered $8.500 for it, and the new one we were looking at was in the 60's.  Now 3 years later they are offering me $16,000 with 55,000 miles on the car, and that same vehicle they are getting $70,000 for. So I feel everything is relative 

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47 minutes ago, John348 said:

it only becomes a necessity when the vehicle is neglected or abused.

Not true.  Live in the rust belt and mother nature,  no matter how good you treat it,  will consume the vehicle.  Since it's mostly caused by road salt you don't have a choice to not drive on only roads treated with it,  as every road is treated with it, over and over and over and over.   Sometimes during the same day and when it is completely bare.   They have a philosophy of use it or lose it and believe me they take it seriously. 

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My daughter bought a 2017 Porsche Cayenne about 10 months ago. The dealer called her to see if see was happy or wanted to sell it. He offered $5000 more than she paid for it. She kept it as she said she would have to pay more to replace it. Smart kid but I’m biased. 
dave s 

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3 hours ago, auburnseeker said:

Not true.  Live in the rust belt and mother nature,  no matter how good you treat it,  will consume the vehicle.  Since it's mostly caused by road salt you don't have a choice to not drive on only roads treated with it,  as every road is treated with it, over and over and over and over.   Sometimes during the same day and when it is completely bare.   They have a philosophy of use it or lose it and believe me they take it seriously. 

 

I will give you that, I saw that with my own eyes, but you have to admit that only accounts for a small portion of vehicles,  I never had seen anything like it in my life. The Ram pick-ups seemed to be the worst recipients of the rust.

Downstate on Long Island the furthest anyone could be is 10 miles from salt water, and they are not that bashful with the rock salt and we hardly see the same attrition. I realize winters are longer and much more severe in your part of the state. We get a lot of rain in between the snow, so that washes the salt away

I was not referring to rust, I was referring to people just do not maintain their cars in general  

Edited by John348 (see edit history)
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If your non-farm neighborhood kids, like ours, at the age or 4 and 5 can drive electric and gas golf carts around the block, and if your pre-teens can drive cars in the same neighborhood, then thankfully the world isn't totally upside-down for you, and hopefully you are encouraged by this post.

My goal for 2022 is to have some of the teen kids in our neighborhood drive my 1932 Buick through the gears.

Hey, life is short, and I don't mind fixing mechanical things (like teen-fatigued clutches), even on a third member Buick.

Youth experiences are my #1 priority, Buick clutches are #2....#2ish, or so, unless my back hurts...

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