It would be hard to break it down like that seeing how F-150 price range is so insane. Silicon valley is also not a good indicator of anything as that’s an area skewed towards one end of the spectrum. Parking lots on wall street are not a good indicator as it’s easier to take a car service in the city than it is to drive there. I know a ton of people who would rather use pretty much any other mode of transportation than drive into Manhattan. You are also taking 2 areas that are not exactly truck oriented to begin with.
You hit the nail on the head. Ignoring the supply crunch and looking at MSRP, new cars have never been a better buy. A $16k Versa is a far better car (economy, reliability, safety, tech, performance) than any family car from 2+ decades ago. Adjusted for inflation, it would be a screaming deal in in any previous decade 2010 or earlier.
Cars are $41k average by choice. Generations got by on more basic transportation and today’s consumer can too if they choose to.
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The higher average price doesn’t necessarily mean the same car became more expensive (although that could happen).
It can also mean the distribution was skewed towards more expensive cars. Eg people buying the Platinum or KR F150 instead of the XLT. Or buying the RRS instead of the Velar.
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There are dealers asking 6k over MSRP for that Mitsubishi econo box that maxes out at 18k.
Even new econoboxes aren’t great in this market.
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The biggest econobox discount comes from shifting with your left leg.
Manual transmission economy cars like Kia Fortes are being discounted.
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I’m sure there’s some dope out there trying to tack on markup because it’s “rare” 
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I can see manufacturers killing off the last of manuals.”even during a time we were pulling 5k+ markups on econo cars, the manuals still had to be discounted!”
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Outside of car forums and anecdotal evidence, who the F knows how to drive a manual anymore?
Hundreds of millions of people outside the US.
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I think the car market is exacerbated by low rates, limited supply (chips/raw materials), labor shortage throughout the supply chain, and tons of free money (unemployment/stimulus). Most if not all of these problems will be solved in September when extended unemployment and rent moratorium roll off and people come back to work.
When i lived back in Europe we all drove manual. Rarely do you see people drive automatic trans. My first couple of cars in the US were manuals as well but to be honest i don’t like it anymore. The convenience of automatic transmission is far greater than the “cool” factor of driving a manual for me, especially in the shitty US traffic in big cities. Back home i swear i probably was in a traffic jam like twice in my whole life, here in the US it happens every day when i’m off work.
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They were going to do this anyway.
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With recent housing demand and prices starting to cool off, it’s a matter of time when the automotive market reaches it’s peak.
That’s why I am extending my lease instead of getting into this crazy time now…
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I find it really interesting that the media paints a largely rosy picture of how fantastic this economy is.
What about the millions that are behind in rent and that will be facing eviction soon?
Or the hundreds of thousands of overinflated homes sold, where everyone is stretching their budgets to outbid each other.
Car purchases where suddenly you need a $60k loan with high APR to afford your Kia Telluride.
Millions of graduates, like myself from 2020, who are entering one of the most difficult job markets with tens if not hundreds of thousands of dollars of debt from undergrad — like said above student loan repayment starts VERY soon.
Nothing in the economy makes sense anymore.
I meant in the us as the article is talking about us, but ok
Yes, exactly. The thing is all the richest counties in the country skew towards “one end of the spectrum.”. For whatever reason, that’s just what the demographic and voting data shows.
These are the type of places with the most millionaires because home prices have gone up so much in last decade. There are large areas up and down the costs where almost anyone who owned their home for 10-15 years is gonna be a millionaire.
I am not defending the media here, but I do not see where they are painting a rosy picture of the economy. Your screenshot shows news headlines that the economy grew 6.5% in Q2. Here’s a link to the Yahoo article, in case anyone is interested in reading it: https://news.yahoo.com/u-economy-grew-6-5-123709568.html?fr=sycsrp_catchall.
“The U.S. economy grew at an annualized 6.5% rate last quarter, the government said Thursday — slower than the 8.4% economists expected.”
We can agree on this.
Sadly, it is a seller’s market. I am not sure where you are located, but the housing market in MA has always been pricey. Good thing I am not looking to buy in today’s crazy market.
Well, if you must drive a Telluride or you are looking to impress your neighbors with a new car, then that’s on you (the consumer). If you can’t afford a $60k car/loan, then maybe you should be looking at cheaper options.
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Not so sure about this. At least from my limited few family members that just graduated. Hospitals are offering bonuses and student loan forgiveness again. Haven’t seen that since early 2000s. Investment banking is having a hard time filling entry level 6 figure jobs. Menial non labor jobs are 15/hr+. It all comes down to what you studied. If you can’t land at least $1000/wk then it wasn’t the right major. And if you have 100k+ in debt and can’t get a job then it really really wasn’t the right major.
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Is this finger wagging at me? Because it misses the point entirely.
I was fortunate enough to land a great job in the biotech sector in San Diego, I’m fairly set.
But millions of kids my age are not. Even fellow friends that I just graduated with are struggling, or are making $17 an hour in Covid testing labs. And millions more of Gen Z kids outside of my immediate circle of influence decided to choose art degrees.
School is expensive no matter what. Tuition alone at the University of California is ~20k a year. Housing and living expenses excluded from that.
There’s a bunch of big bubbles growing in unison, and if one pops the others are sure to follow.
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