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Breaking the addiction of insanely high car prices

1768 Views 27 Replies 15 Participants Last post by  big swede
Why Is Inflation So Stubborn? Cars Are Part of the Answer. (

"dealer markups accounted for 35% to 62% of total new-vehicle consumer inflation from 2019 to 2022"

I still cannot believe people were willing to pay more than what cars were actually worth.

"Automakers, loath to relinquish profits enabled by scarcity, started talking about exercising “discipline” in their production targets."

No wonder we're still seeing relatively empty car lots.

"According to TransUnion, the average monthly payment for a new car rose to $736 in the first quarter of 2023, from $585 two years before. Used cars average $523 per month, up $110 over the same period."

And the problem is prices never really come back down. They might normalize for a while, but we'll continue to see an upward trend. Pretty soon, $100K trucks will be the norm.
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Pretty soon, $100K trucks will be the norm.
Or there could be a limited number of foolish people available to buy.
At some point sales will go completely into the toilet.
All they are doing with this tactic is kicking the door wide open so the Chinese can just walk on in.
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I agree that people will eventually start to push back. I however do not think China will ever work their way into the American full-size truck or SUV market, most people in that market are ardently loyal to Chevy, Ford, and Dodge (Ram). The exception to the rule is Toyota, but the only reason Tundras sell as well as they do is perceived bulletproof reliability.
The Chinese don't need to do trucks.
The CUV market is really big and where opportunity awaits.
It's basically the same game H/K play.
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But, as Chinese makes (if they ever come) take a bite out of H/K, Honda, Toyota, etc. they'll be looking for opportunities to maintain their sales numbers and profits. The nice, big, juicy full sized truck market might be a tempting target for them as there aren't many other places to turn to. It might be a tough market to enter, but out of desperation they might throw more resources at it than past attempts.

Unrelated, that Escalade picture - awesome!

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Good luck to 'em.
FS trucks is where GM, Ford & Dodge don't $%^& around.
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