Car prices are still insane.

[Isaac Zachary]

Originally Posted by redpoint5

I'm dismayed at how frequently normal people turn into hyenas when parents die and the estate needs to be distributed.

I'm the only one that liked my grandfather and spent time with him. If he wanted to give nothing to me upon his death and donate it all to charity, I'd have no problem with that. Was never my money.

Recently I discovered I'm to inherit a 25% share. No idea what that amounts to, and it makes no difference in how I handle my financial affairs. I always encouraged him to spend his wealth while he could, because he had earned it. Wish he'd have seen Europe since that was an interest of his.

I totally agree. When my parents pass away I'm not expecting a thing, although I wouldn't call them wealthy anyway. And my brother and sister and I are very close, the kinds of pals that would bend over backwards in an instant to do anything to help the other.

This is the biggest reason I'd rather not move right now. Our parents have a house here. They are established here. My siblings and I work at the same company along with our aging mother. Moving away now in their old age to boost my own financial security would be a bit selfish. If I do get an inheritance I'd rather it be divided equally among us and that I earned my share. And if they need to reverse mortgage to keep on going, that's fine too.

[darcane]

This seems relevant:
New Homes and Cars ‘Completely Unaffordable’ Amid High Interest Rates, Says Moody’s

Zandi estimates that the average U.S. household would need 42 weeks of income for a new car, as of August, versus 33 weeks three years ago, while The National Association of Realtors estimates that the typical American family can’t afford a median-priced home.

[Isaac Zachary]

Originally Posted by darcane

This seems relevant:
New Homes and Cars ‘Completely Unaffordable’ Amid High Interest Rates, Says Moody’s

I think that was kind of my point: Prices, in general, are going up faster than wages. Or at least for the moment they are.

It seems the general solution is to move where things are cheaper but wages aren't much lower.

[JSH]

Originally Posted by darcane

Zandi estimates that the average U.S. household would need 42 weeks of income for a new car, as of August, versus 33 weeks

Zandi is mixing their averages. They are using median income and the mean price of cars.

Mean Family income in the USA for 2022 was $126,500 or $2,432 per week.

Mean price for a MY 2022 new car = $48,094.

$48,094 / $2,432 = 19.8 weeks - lets call it 20 weeks.

Average can be Mean, Median, or Mode. People mix and match to mislead.

[Isaac Zachary]

Originally Posted by JSH

Zandi is mixing their averages. They are using median income and the mean price of cars.

Mean Family income in the USA for 2022 was $126,500 or $2,432 per week.

Mean price for a MY 2022 new car = $48,094.

$48,094 / $2,432 = 19.8 weeks - lets call it 20 weeks.

Average can be Mean, Median, or Mode. People mix and match to mislead.

A fair comparison would go over different percentiles:
25%-50%-75%
10%-20%-30%-40%-50%-60%-70%-80%-90%

and not mix and match type of data.

I think too a lot of people "can't afford" things because of 1. they are up to their necks in debt and/or 2. they subscribe to so many services. I know people who pay hundreds for their phone bill, then they subscribe to every video streaming service, also their music apps, etc. etc. etc. It all adds up.

[darcane]

Originally Posted by JSH

Zandi is mixing their averages. They are using median income and the mean price of cars.

Mean Family income in the USA for 2022 was $126,500 or $2,432 per week.

Mean price for a MY 2022 new car = $48,094.

$48,094 / $2,432 = 19.8 weeks - lets call it 20 weeks.

Average can be Mean, Median, or Mode. People mix and match to mislead.

Thanks, I didn't see that. I suspect it is less often used to intentionally mislead than from ignorance.

That said, the point still stands. New cars have gotten significantly less affordable over the last few years.

[Isaac Zachary]

Originally Posted by darcane

Thanks, I didn't see that. I suspect it is less often used to intentionally mislead than from ignorance.

That said, the point still stands. New cars have gotten significantly less affordable over the last few years.

Exactly. And you have to be careful with used cars. I still can't believe a less than 100k mile, 3-year-old Ford Escape can have a transmission failure resulting in $9,000 of repairs.

If I suddenly needed a car, I'd do a lot more research on used cars, or go with a new Nissan Versa, or get an air-cooled VW and rebuild the engine in my living room.

[redpoint5]

Originally Posted by Isaac Zachary

And you have to be careful with used cars. I still can't believe a less than 100k mile, 3-year-old Ford Escape can have a transmission failure resulting in $9,000 of repairs.

If I suddenly needed a car, I'd do a lot more research on used cars, or go with a new Nissan Versa, or get an air-cooled VW and rebuild the engine in my living room.

I know 2 people who can destroy an automatic transmission in any vehicle in less than 100k miles. They never learned that the throttle is variable.

My hunch is that bad transmissions can largely be avoided by getting a hybrid with an eCVT. Anecdotally, I don't know anyone that's had one go bad, and logically, the computer control should be so good that it prevents destructive operating parameters.

[JSH]

Originally Posted by darcane

Thanks, I didn't see that. I suspect it is less often used to intentionally mislead than from ignorance.

That said, the point still stands. New cars have gotten significantly less affordable over the last few years.

In 2020 it took 21.2 weeks of the average (mean) family income to buy the average (mean) new vehicle.

In 2015 it took 19.2 weeks
In 2010 it took 16 weeks
In 2005 it took 17.3 weeks
In 2000 it took 16.6 weeks
In 1995 it took 18.2 weeks
In 1990 it took 18.3 weeks

That's as far back as the DOE's average new car price table goes back.

Yes, the price of a new car is going up. Part of that is model mix and the shift to trucks and crossovers. Part of it is dealer mark ups.

If we look at like to like the story is a bit different:
A 1993 Honda Accord LX sedan was smaller than a modern Civic and cost $17,630 ($37,381 in 2023 dollars) A 2023 Honda Accord LX is $27,295

If we look at the 2023 Civic LX sedan the MSRP is $23,750.

[cRiPpLe_rOoStEr]

Originally Posted by redpoint5

I know 2 people who can destroy an automatic transmission in any vehicle in less than 100k miles. They never learned that the throttle is variable.

After seeing my mother leaving her car with the engine running and the shifter on D, relying solely on the parking brake to keep it from moving (yet shaking so much I wouldn't be surprised if the parking brake cables eventually could get loose), I wouldn't buy a car with a CVT which had been previously owned by her... I had to explain her about the P in the shifter and how it should've been used everytime the car was parked, either with the engine shut off or running.