America’s Pandemic Car Bubble Is Now Trapping Buyers in Debt

[Coelacanth]

I only once ever bought a new vehicle; my 1998 Dakota Sport that I had to special-order with RWD because all the 5.2L-equipped trucks on multiple dealerships were 4WD and I didn't want that. I think it was about $23K CAD back then. I bought my 2008 Pontiac Torrent GXP used for $16.9K with 2 years left on extended warranty, the sticker price was over $41K new. I bought my 2005 Dodge Magnum AWD RT for $6900 with about 92K km on the odometer. And lastly, I just bought a 2002 Durango in very good condition with 190K km on the dial for $5200 CAD. No new vehicles for me, either. The prices these days are insane, you might as well call a new vehicle a mortgage...that depreciates very quickly, unlike real estate.

 

[Coelacanth]

paid for......... and fairly low miles oem parts in stock


View attachment 2029482

What year is your Durango, what motor, and how many miles on it? It looks very similar to the 2002 Durango I just bought. Previous owner (only one owner) was religious about maintenance and many of the deal-breaker issues were repaired over the past 5 years, but one thing concerns me is the 4.7L timing chain, which hasn't been replaced yet. This one has 190K km (118K miles) on it:

 

[toolmanmike]

Just bought a used 23 Buick Enclave. 3 years old, $20,000 less than sticker price. Let someone else take the hit.

No more new ones for me.

View attachment 2029416

$22,860 less than sticker, 3 years later. I was able to print out the original window sticker this morning. Dang, I wish we could print out the original stickers for our old cars.

 

[eldubb440]

What year is your Durango, what motor, and how many miles on it? It looks very similar to the 2002 Durango I just bought. Previous owner (only one owner) was religious about maintenance and many of the deal-breaker issues were repaired over the past 5 years, but one thing concerns me is the 4.7L timing chain, which hasn't been replaced yet. This one has 190K km (118K miles) on it:

View attachment 2029954

my durango is an 01...... 4.7 228K, uses a little oil, runs great........ engine has never been opened up....I had to put a transmission in it

 

[Coelacanth]

my durango is an 01...... 4.7 228K, uses a little oil, runs great........ I had to put a transmission in it

Was your timing chain ever replaced?

 

[eldubb440]

Was your timing chain ever replaced?

no, I edited my post

 

[Unkle Krusty]

New stuff scares me more than mature stuff.
My 007 V6 truck is a keeper, so is my 77 Dodge camper van, and my 007 SV1000 Suzuki. But I am having trouble getting insurance on my 59 tin boat, even with a new Tohatsu OBM.
I did buy new when I could expense them.
But as someone said above, wots a car payment, or a mortgage payment.

 

[Richard Cranium]

I had the occasion to drive my Brothers 2004 Toyota 4Runner last week that passed 300,000 miles a few months ago.

Thinking of our old 60s cars, at 8 years old they were blowing oil, leaking, rotting, dented, with interiors that were falling apart. If they had 85,000 miles on them, they were ready for the junkyard.

 

[Coelacanth]

Thinking of our old 60s cars, at 8 years old they were blowing oil, leaking, rotting, dented, with interiors that were falling apart. If they had 85,000 miles on them, they were ready for the junkyard.

The engines in those old cars, however...outlasted most modern car engines.

 

[Richard Cranium]

The engines in those old cars, however...outlasted most modern car engines.

True, but they do need a few rebuilds to go 300,000 miles.

 

[68BabyBlue]

Thinking of our old 60s cars, at 8 years old they were blowing oil, leaking, rotting, dented, with interiors that were falling apart. If they had 85,000 miles on them, they were ready for the junkyard.

My current GTX was headed that way in 1975. It rose from the ashes because it was a Plymouth dealer's personal ride. Most of them didn't fare as well.

 

[70 sublime]

I buy new, then drive them until the wheels fall off. I don't like inheriting others problems. I also target the manufacturers "0% for 60" financing deals. 3 of my last 4 new cars were bought that way. Its like paying cash, but better. Our newest car is wife's 2021 Nissan (on a 0% for 60 loan). Our 4 driver cars are 2007, 2014, 2016, and 2021.

I have traded in my truck a few times on new trucks when the time comes
Always ended up with the same salesman ( he was a true mopar guy that had the toys back in the 70's )
He was getting old and actually passed away sitting at his sales desk at the dealership Was a great old guy and miss him
We got talking one time about the interest rates and some times they are at 0%
He let me in on a company secret 0% just means they do not give as big of a discount on the sticker price as 4% or 5% interest rate does
They get the same money out of you one way or another
I have a 2021 Ram quad cab classic and looks like it will be my keeper truck as the new prices have gotten so stupid and I have and never will pay more than $500 a month on a 5 year loan to get a new one

 

[Kern Dog]

Thinking of our old 60s cars, at 8 years old they were blowing oil, leaking, rotting, dented, with interiors that were falling apart. If they had 85,000 miles on them, they were ready for the junkyard.

In parts of the country that get snow, yeah. The west and the south were quite different.
The interiors dried and cracked and the classic torsion bar front end often needed new front end bushings by 75,000 miles but the rest of the car wasn’t so bad.
I’ll add:
The term “predatory lending” feels like a term designed to let irresponsible people off the hook for making poor decisions. I cannot imagine a loan company sending agents to chase down people and force them into taking out loans.

 

[Triplegreen500]

Looked at a Genesis

Michelle got one when we sold her house. Dealer network SUCKS, we have to go 1.5 hours to get to the nearest one. I tried to tell her....(Insert Forrest Gump voice) and that's all I'm gonna say about that.

Last new car I bought (and probably will buy) is my 14 Grand Cherokee. 1.25% APR loan, cost me a whopping $645 in interest.

Used prices skyrocketed during COVID because manufacturers couldn't get parts to make new cars (remember the "chips" debacle?). People bought what they could find, dealers marked up what they could get.

People in general don't understand financing. Interest rates. Total of payments. And they've been taught/conditioned not to care. Predatory lending? Harley will sell you a $40k CVO if you have shitty credit....at 24.99%. AND PEOPLE ARE STUPID ENOUGH TO DO IT. "Predatory" is hiding these details from the customer; EDUCATION would shut it down right away.

 

[Don Frelier]

New stuff scares me more than mature stuff.
My 007 V6 truck is a keeper, so is my 77 Dodge camper van, and my 007 SV1000 Suzuki. But I am having trouble getting insurance on my 59 tin boat, even with a new Tohatsu OBM.
I did buy new when I could expense them.
But as someone said above, wots a car payment, or a mortgage payment.

You have insurance on an aluminium boat?

 

[Richard Cranium]

I am having trouble getting insurance on my 59 tin boat, even with a new Tohatsu OBM.

I've been using this company for years. Their rates are very reasonable.

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You have insurance on an aluminium boat?

Along with liability insurance, if the boat is worth upwards of 5 grand, yeah, you should get property insurance for it.

 

[YY1]

People in general don't understand financing. Interest rates. Total of payments. And they've been taught/conditioned not to care. Predatory lending? Harley will sell you a $40k CVO if you have shitty credit....at 24.99%. AND PEOPLE ARE STUPID ENOUGH TO DO IT. "Predatory" is hiding these details from the customer; EDUCATION would shut it down right away.

100%

Every pitch is "what can you afford per month?" with no consideration for total cost, or finance cost over time.

 

[dsd1967]

I made out pretty well during the plandemic. My FIL retired from Chrysler and we typically buy new and drive them into the ground. It ends up being about 13 years until the rust gets too bad and the vehicle starts to nickel and dime me enough to consider buying a newer one.

In 2018 I was looking to replace my 2005 ram but I wasn’t thrilled with the new ram offerings at the time but didn’t want to buy the ram classic and have it be an old body style immediately. So as an interim solution I bought a 4 door Wrangler thinking that in a few years my wife would replace her 2012 2 door wrangler with the 4 door and then I would get a new ram. In 2021 I was driving by the dealer and saw a “B5” blue ram and decided that was the color I wanted and it had the options I wanted. I offered up the 4 door to the wife and it turned out she wanted nothing to do with a 4 door wrangler so I traded it in. With employee pricing the dealer couldn’t jack me around on the new truck price so that was set. This was at the time they couldn’t get anything new or used on the lot so that were paying a premium on used vehicles. Turns out that I paid $42,800 for the wrangler in 2018, drove it 40,000 miles in three years and they gave me $42,000 in trade in. In Ohio the trade in reduces your taxable value of the new purchase. I had nearly paid off the wrangler so in the end it cost me a little over a thousand dollars to drive a new vehicle for three years.

 

[Hey-O]

I've owned a bunch of new cars in my time, starting at 16, averaged out to about every three years over my life time. After 1986, Chryslers only, and employee discounts, and from a friends Dodge dealership. I've been blessed and I know it. I passed out friends discounts, back in the day like it was candy. I made a ton of money for my friend and Chrysler. I only got 12 a year and got the rest from people that didn't use them.

Those days are long gone and so are my needs for the smell of a new car. The fact that I can afford a new car has nothing to do with spending huge money on a car that's overpriced and junk. All of these new 4 bangers with twin turbos are not for me and never will be. The recalls and failure rates on all of these new overworked turboed 4 bangers is stupid high, industry wide. Cars were fun, like boats, and you should only spend so much money on fun that ends up in the trash, as in worthless. I look at a few people I know that hate cars, but won't hesitate to spend big on eating out a few times a week, pick your poison. I have one more new car in me and I'll pull the trigger when I feel it...... The other day, Theresa reminded me that I told my daughter, who just had a baby, that if she had another one, her jeep would be to small and I'd give her my Durango. I only said it because she's 40 and would never have another one. She's got a year or so to get my Durango, before I move on, one more time.

 

[Triplegreen500]

she wanted nothing to do with a 4 door wrangler

Smart woman.

Wranglers should have 2 doors and three pedals. And, honestly, six cylinders in a row ...