Just being honest, I'm 22, married and a homeowner...

So I haven't really paid that much attention to the prices of automobiles for really an extended period of time... BUT, I have noticed how outrageous they are.

My first new car was a 2002 Nissan Altima 2.5 S. Paid ~18,999 for it new in 05/02. I felt it was a good deal for a decent and VERY roomy car.

I have since bought a 2000 GMC Sierra 1500 ext cab for ~15,000.

I am just wondering - When I look at my budget and say realistically that $25000 is my maximum, making a pretty good $50k a year, why do I feel that these car prices are outrageous?

Does it truly cost $30k to build a GTO, or $30+k for a 300C/Magnum (w/HEMI)??? Why in the hell are these things so outrageous? Even for someone with great credit, financing these things still costs $500-$600/mo!!

Should we just consider this normal? I just can't get over it. I'm sure a lot of you are in a better financial position and may not share my opinion, but why can't these manufacturers make a car thats affordable?

My rule of thumb anymore is "let someone else buy it new and take the immediate $3000 hit". I would rather buy a very low mileage, used "new" car then pay the high price because I HAVE to have it new.

I look at it this way: A lot of the newer cars that are coming out are claiming to appeal to young people. Sure, they appeal to us, until we see the price tag.

I would love to own a GTO or a new GM car but I'm not going to pay $500/mo payments for 5/6 years to get one.

 

I find cars pretty expensive these days too. I'm looking hard at the Legacy GT in that $25k range. Unfortunately, it looks like GM and DCX decided to move RWD V8 cars upmarket. The only RWD V8 cars you can get under 25 really are from Ford, the Crown Vic and the Mustang GT both come in just under that.

 

1. The GTO costs $33K because it is a low volume car, built on a relatively low volume production line, not to mention the fairly big trans-Pacific shipping costs from Australia.

2. The $33K 300C is relatively cheap, and would compare favorably with a short-wheelbase S-class from 10 years ago. Of course, a V8-powered S-class used to start at over $90K.

They do make "affordable" cars. It's just that you can't expect to buy a high-powered, S-class sized for the price of a 4-banger Altima.

If you buy a high quality, low depreciation car...

...then new is the only way to go. Used BMWs are for suckers, because the depreciation isn't nearly enough to justify the wear and tear of a used car. If you're happy with high depreciation rental buyback crap, then buy used exclusively.

If you can swing $500-600/month, a lot of highly desirable metal is within your reach. I'd guess that a new Boxster would actually be below your payment range, and a 325i Sport would be in the low $300/month range. The secret is leasing.

If you do too many miles to have an affordable lease payment, then tough...

If you just have to have a high depreciation domestic, leasing is probably not such a good idea either.

Does anybody have any idea as to how strong the residuals are for the 300C? Could the 300C's excessive popularity add up to some fairly cheap lease payments?

 

I don't necassarily need a high powered car. The Altima was a combination of reasonable mpg, good power, 5 speed fun and overall nice styling and a nice car for the money.

My main concern is that the cars people WANT are too expensive. GM makes these cars that people want and they can't figure out why they aren't selling that well.

It just astounds me that automakers are still in business. Not everyone wants a $16000 Cavalier.

Would it not make sense, not only to sell more vehicles, but revamp the brand name, by making fun, desired, and overall nice cars available to more people. I mean, people think GM affordable and they think Cavalier or Sunfire and nowadays, as that platform is aging, people are turning away and spending about the same or less and getting a Honda or Toyota.

What actually prevents GM from building an F-body like car or even a Grand Prix at an affordable price? Would it not be more cost effective to sell 10000 cars at $20000 than 5000 at $25000?

People are buying cars. GM just doesn't seem to care about the guy wanting to spend less than $25k on a new car -- and not have a cracker-jack boring car.

Yes, the Cobalt is coming, but...........

 

I'm in the same boat as you, I'm 23, just got married and just bought a house, even down to the $25,000 price for the car. I would say the biggest thing to help you when buying a car is a down payment. I figure when I buy my next car (in 3 years) I should have $5,000-$10,000 for a down payment. Wich will bring my loan price to $15,000-$20,000. Which in my eyes is not bad at all.

 

I'm in a similar situation, but my question is not "why are cars so expensive" it's "Who's buying all those $40,000 cars???" I don't quite get it. I only have one car payment but those cars still seem way expensive. Then again, I don't have $30,000 in credit card debt.

 

I honestly think that if you compared the ACTUAL inflation-adjusted cost of cars from the 50s-60s-70s, that ours today would be significantly more expensive. All the damn government regs on emmisions, saftey, yadda yadda yadda, all make the car significantly more expensive.

Note: I like saftey features, but I still think the government should mandate much stricter licensing requirements before passing a single extra auto-safety law...

 

Gov't or not, I'd still like to see an affordable car hit the market!

 

Yes, I saw an article on this a few months ago...and it was something like, if you just inflate prices from that point in time to now, cars are still on average double the cost what they would be otherwise.

And I agree with the statement made, who is buying all these $40+K cars?! I know there aren't that many stock brokers out there. If the average middle class income is around $60K or so, that leaves a lot of $30-K cars out there to be bought up....but it seems all these $40K cars are really hot for auto manufacturers... They've gotta be making TONS of personal sacrifices for these cars. OVER A CAR! I just don't get how auto manufacturers are still in business either...Especially when I see none of my personal acquaintances buying new...20-29 year olds... Even a Cavalier for $15K after rebates seems completely rediculous. Just buy a 1 or 2 year old one for $7K, which might even be free after trade in of your 4 year old Malibu.

I think Scion's Tc is gunna be huuuuuuge. Toyota quality at Kia price with a decent looking car anybody can grow to like.

 

Where are you going to get a Toyota or a Honda for the SAME price as a jbody? Or LESS? We had a special on Cavaliers at 11,999 CDN here. The next closest thing from Toyota was Echo, priced at 15,xxx and Corolla at around 17,xxx. Honda is in the ballpark figure of 17,000 as well with its Civic.

And the last I heard (which was about 6 months ago) jbody sales were doing fine, in GTA area at least.

 

Ummm....Scion?

 

if you want affordable, there is the Aveo, which IMO, is a much better looking and from what I hear, riding car then the xA. And its about 4-5k less.
I belive the Cobalt will be a big hit as well. It offers much more quality then the Cavi ever did, not to mention it will have things to attract the kids.

 

Well there is the Solstice, but I really do have to wonder about a car without a trunk.

 

GM management should be ashamed to offer the Aveo as a Chevrolet. This car is dubious on every level, and even the fuel economy seems poor for a car this size. Bottom line: the Aveo is probably the worst new car purchase on the market today. A year old Taurus is a far better buy for an "entry level" buyers, and if new and Korean is a must, try a sub-$9K Accent or Rio. At least they have 10/100 warranty.

The Cobalt is a another issue. If GM attempts to sell it without Cavalier levels of incentives, I doubt that it will succeed. The Chevrolet brand currently enjoys minimal credibility with affluent 20-somethings. Will a $19k Cobalt coupe sell without rebates?

 

Regarding the who's buying the $40k cars...remember, ALOT of people now are doing 6-7 year loans. Thats why so many people are upsidedown when they try to trade them in. My personal limit is 5 yrs, I figure if I can't pay it off in 5 yrs, I can't afford it.