So why do you think there are no cheap basic cars being sold new?

[Piotrsko]

Yeah it's coming, but with power everything, slushbox, sloppy soft suspension.

Yucch

[Isaac Zachary]

Originally Posted by jamesqf

Please explain why I would want to buy a cheap new car, when I can buy an inexpensive used car.

To date the Insight is the only car I've paid over $5K for, and I paid well under half the new price for it.

Depends on where you live and in what time period.

Historically the USA had been full of new car buyers (and leasees) that like always having a new car. So that makes a lot of semi used cars available which because of supply and demand makes them lose value quickly and become cheaper.

But in other countries things are different. In Mexico, for an example, a 5 year old car will still be 90% the value it was when it was new (or so my little amount of investigation has lead me to believe). It seems to be because fewer people buy new cars there leading to fewer used cars.

Then there's the factor of change. Used cars are some 15% more expensive now I'm the USA than they were a year ago. And because of the chip shortage, those prices keep rising. Because with fewer chips there are fewer new cars and therefore fewer used cars and therefore higher prices.

[cRiPpLe_rOoStEr]

Originally Posted by Isaac Zachary

in other countries things are different

Sometimes it's much different. I remember when I started to see a lot of small tricycles (converted from Honda CG motorcycles) being used by commercial operators around 12 to 14 years ago in my hometown. But when it comes to private cars, nowadays even in a budget-oriented market such as Brazil I see fewer people willing to compromise comfort features such as air conditioning.

In Mexico, for an example, a 5 year old car will still be 90% the value it was when it was new (or so my little amount of investigation has lead me to believe). It seems to be because fewer people buy new cars there leading to fewer used cars.

It's quite like that in my country too, even though luxury cars often have a much higher depreciation within a 5-year timeframe than mainstream models.

[Isaac Zachary]

Exactly. In many countries the luxury cars are the ones that depreciate more. The cheap micro cars seem to stay the same until they're noticeably in need of a little TLC.

I guess the same happens I'm the USA to an extent. Once I was interested in getting Honda Grom or PCX150 and started looking for a used one. But the used ones I found that were a few years old weren't much cheaper than a new one. Maybe I just didn't look hard enough. On the other hand I got a few year old Toyota Avalon that's not exactly a luxury car but close enough and it was 1/4 of the price compared to new.

[cRiPpLe_rOoStEr]

Originally Posted by Isaac Zachary

Once I was interested in getting Honda Grom or PCX150 and started looking for a used one. But the used ones I found that were a few years old weren't much cheaper than a new one. Maybe I just didn't look hard enough.

The motorcycle market seems to have different dynamics, and a higher price oscillation for the very same model. It's also worth to notice motorcycles in the US are not seen as a simply utilitarian vehicle as they're often regarded in other countries, so it's quite predictable for entry-level models to be on short supply there.

[cRiPpLe_rOoStEr]

The 3rd generation of the Ford Ka, which had been made in Brazil before the shutdown of local Ford factories, was having better sales volume for fleets than for retail locally, and seemingly also didn't fare so well for regional exports.


Considering in Mexico the Ka was already sourced from India instead of Brazil, maybe the sales of the Brazilian model in countries such as Argentina and Uruguay ending as soon as the stocks get cleared without a replacement being sourced from India like it's now being done with the EcoSport in Argentina gives a clue about how much more cost-sensitive this segment is. Even though a 35% import duty now applies to the Indian-made EcoSport in Argentina, its prices increased around 5% compared to the Brazilian which was imported duty-free in Mercosur countries.

[Isaac Zachary]

As I contemplate my financial future I may need to cut my vehicular budget from about $700/month average to under $500 soon. Sadly, I still have two years of $180 car payments and $150/month insurance. That doesn't leave much space for fuel and maintenance costs. Tires, especially, aren't cheap.

[freebeard]

I heard groceries are going to inflate, so I've preemptively started dry fasting one day a week. It's to save money, but I feel lighter on my feet.

I paid off the $1000 car at $100 a month and put a set of 90-95% rubber used tires on it for $200, mounted and balanced.

Ontopically, the Electric Brands XBus is going on sale for $20,000, what the Evergreen FUVs sold for a year or two ago.

[RedDevil]

My and my wife's situation has changed.
Thanks to Covid-19 I'm working from home and that will likely remain so for the foreseeable future, now my company learned that it does not hurt efficiency but does cut costs. My heart condition makes me force myself to do a lot of walking, so I do all the groceries on foot. My kids go to high school now and seldom need transportation by car now.
We don't need two cars anymore.

My mother-in-law's car finally failed MOT, so she now has our Hyundai I10 on loan and we make do with just the Insight. It cuts into our expenses nicely, though the I10 never cost that much. Zero depreciation actually as we won it in a sweepstake...

We do frequently visit my mother-in-law (holidays on the coast), then we do need trunk space; one car suffices if it has enough of that.
If I had to replace the Insight now I'd likely go for a used Fit Hybrid, awaiting EV options.

[cRiPpLe_rOoStEr]

Originally Posted by Isaac Zachary

Tires, especially, aren't cheap.

I have noticed it too, as most newer econoboxes have switched from the good old 13-inch rims to either 14 or 15. Well, earlier this week I saw a Brazilian '82 Chevrolet Monza (J-Body) with collector plates, which was fitted with 13-inch wheels. Even though back in the day it was not exactly the most affordable car, it's quite interesting to notice even a modern econobox smaller than it now has bigger (and more expensive) tires.