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New car prices today, why so expensive?
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KTPhil Premium Member
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PostPosted: Wed Mar 22, 2023 2:58 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Abscate wrote:
Quote:
Short version - in worker hours cars today are up 15-20% in cost, but one can argue the product is a lot better than in 1965


I think one has to concede you get twice as much car today vs 1965, easily

Power
Economy
Comfort
Features
Cost of ownership


I agree with all but the last one. Cars do not last as long now.

I know engines are more reliable and long-lived, but the car becomes a throwaway once you have too many broken and unobtainable plastic parts. "Beyond economical repair" means it's dead.

If the 1965 car lasts twice as long because it's metal and repairable, it halves the cost of ownership over its life cycle (not exactly, but you get my point).

I tend to keep cars for a long time (not just my vintage VWs), so the "feasible repair lifetime" is important to me.

But you can add another feature that new cars excel in... SAFETY. And that may trump all others.
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PostPosted: Wed Jun 13, 2018 8:19 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

Quote:
Short version - in worker hours cars today are up 15-20% in cost, but one can argue the product is a lot better than in 1965


I think one has to concede you get twice as much car today vs 1965, easily

Power
Economy
Comfort
Features
Cost of ownership
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Abscate
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PostPosted: Wed Jun 13, 2018 8:17 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

Quote:
Never heard of the A/C system being "inhibited", either; in fact on newer cars they are designed to come on with the heat in defrost mode to dehumidify the air.


Yeah, Im wrong on this.

If you start the car in winter, and push the AC button, the compressor won't go on. Once the evaporator gets above 35F roughly, the inhibit gets lifted, so with the defrost on, the AC works

Its the evap temp that inhibits the compressor, not ambient, in modern designs. In the 90s I had cars that inhibited on ambient.

So running the car in winter, warmed up, will exercise those AC parts.

On edit - this exercised my memory banks so that I remember how this burned me once.

I had a 1999 Volvo and was addressing an AC issue in winter, and couldn't get it to come on. This climate system (very common design) pushes Climate air through the AC evaporator first and then mixes with heated air from the core to blend to temperature.

My recirc door arm had fallen off, and even in recirc mode I was not getting the evap core temp above 34F, so the AC compressor wasnt going on.

Most DEFROST functions go to recirc for that reason - the cabin air will heat the evaporator above the compressor trip point, as well as removing humidity of course.
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PostPosted: Tue Jun 12, 2018 11:02 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

And....actually its not a myth at all and has never had anything whatsoever to do with keeping anything "lubed". Rolling Eyes Laughing

This is why things like this "sound" like a myth....is because typically the first people that start passing it on.....get the information so jacked up.....that when people who actually know something....finally hear the resulting garbled version years later......they find the jacked up version to be physically improbable....and call it a myth without further research.

Its a version of the "cocktail party effect" Wink

The system needs to occasionally run.. to keep the o-rings expanded under tension against the grooves they are sealing in....because even the green HBNR o-rings used with the R134 and later refrigerants....have a constant shrinkage rate from the day they are molded.....small...but constant.

I have seen this problem across a range of industries that use o-rings that store gas pressure.....or gasses and oils combined. Ray
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PostPosted: Tue Jun 12, 2018 8:23 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Abscate wrote:
Onceler wrote:
Glenn wrote:
Onceler wrote:
Wow! That's a heck of a deal, I'll have to check them out, thanks

Last month, I got my wife a Subaru Legacy Premium with a Sunroof and a few addons for $25,200 for 0% for 60 months. I only put $500 down and the rest is 60 payments.

I guess I never realized the value Subaru offers, in my town there aren't any Subaru dealers, so I never really checked them out, just cruising the lots. But I will thanks


No Subaru’s in Indiana

Hmmmmmm.

You can push the AC button all winter long and your compressor won’t go on. The compressor is inhibited below about 35F. Having to run your AC to keep it lubed in winter is an internet myth. There are a couple of designs which can run but VAG products don’t use them.


It's not an internet myth, really. It's an owner's manual "myth", and has been for decades. All of my old 1960s/ 70s Mercedes owner's manuals specify that this should be done, as did all the VWoA Z A/C kits we installed at the stealers. Wink

Never heard of the A/C system being "inhibited", either; in fact on newer cars they are designed to come on with the heat in defrost mode to dehumidify the air.
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PostPosted: Tue Jun 12, 2018 8:08 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

All of this A/C talk has me cracking up
especially when dude said "Freon"

everything we are making now has R1234YF, and that shit isn't cheap at all
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PostPosted: Tue Jun 12, 2018 7:07 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Onceler wrote:
Glenn wrote:
Onceler wrote:
Wow! That's a heck of a deal, I'll have to check them out, thanks

Last month, I got my wife a Subaru Legacy Premium with a Sunroof and a few addons for $25,200 for 0% for 60 months. I only put $500 down and the rest is 60 payments.

I guess I never realized the value Subaru offers, in my town there aren't any Subaru dealers, so I never really checked them out, just cruising the lots. But I will thanks


No Subaru’s in Indiana

Hmmmmmm.

You can push the AC button all winter long and your compressor won’t go on. The compressor is inhibited below about 35F. Having to run your AC to keep it lubed in winter is an internet myth. There are a couple of designs which can run but VAG products don’t use them.
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PostPosted: Tue Jun 12, 2018 3:02 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Onceler wrote:
Well since I started this thread, figured I'd give an update. My wife crashed her Equinox again, so I don't think I'll be buying a newer car anytime soon. But, the good news is she didn't want to fix it, and just pay it off (she's convinced it's cursed, lol) with the insurance money. It's not to bad, I think I can have it pulled by a frame shop and and start using it as my daily. But now she wants a convertible, so this thread was basically all in vain...oh well, hopefully I can at least convince her to buy a used convertible, but she's checking out camaro's Rolling Eyes


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PostPosted: Tue Jun 12, 2018 7:09 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

Its a fact of anthro that we are very poor judges of what value things are as we have a strong bias to our notion of worth set in formative years.

Here is probably the best way to 'gauge' true cost..how many hours a middle class worker has to work to purchase a mid range car, from an article in Hemmings - un-validated.

Short version - in worker hours cars today are up 15-20% in cost, but one can argue the product is a lot better than in 1965

Quote:
In 1965, the sticker price of a new V-8 powered Ford Mustang coupe was $2,734.00 (the equivalent of $19,900 today), and the average production worker made $3.00 per hour; to purchase a new Mustang coupe with a V-8 engine, therefore, required 911 hours of work, or about 23 weeks. By 1985, the cost of an eight-cylinder Mustang had risen to $9,885.00 (today’s $21,100), while production wages had risen to $12.50 per hour, meaning that one needed to toil for just 791 hours (120 hours less than in 1965) to buy one. In 2005, the scales tipped in the opposite direction: the V-8 Mustang was priced at $25,815 (today’s $30,300), and a production worker made $23.92 per hour, requiring 1,079 hours of work to buy the car. The picture darkens a bit further in 2013, where the $31,545 Mustang requires a worker earning $27.15 per hour to put in 1,162 hours in order to pay the Ford off.

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PostPosted: Mon Jun 11, 2018 8:38 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Well since I started this thread, figured I'd give an update. My wife crashed her Equinox again, so I don't think I'll be buying a newer car anytime soon. But, the good news is she didn't want to fix it, and just pay it off (she's convinced it's cursed, lol) with the insurance money. It's not to bad, I think I can have it pulled by a frame shop and and start using it as my daily. But now she wants a convertible, so this thread was basically all in vain...oh well, hopefully I can at least convince her to buy a used convertible, but she's checking out camaro's Rolling Eyes
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PostPosted: Mon Jun 11, 2018 5:58 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Cars are expensive mainly because:
1) Money is cheap, loans are long, and most buyers seem go by the monthly payment, not the price.
2) Raised expectations of what a "basic" car is. Power windows and locks, A/C, decent stereo, bluetooth... these were either not available or expensive options back in the days of the $2000 VW/Pinto/Vega/Corolla/B210.
3) Costs of R&D, crash and emissions testing, longer warranties, legal liability, employee benefits... damn, it's a lot more expensive doing business today!

Best overall buy depends on your driving, plans to keep/sell, and your own expectations. For me, the best deal is a certified used... great warranty, lower price because the original buyer already took the depreciation haircut. Probably nearly as reliable as a new car. And a year or two to check Consumer Reports/Carfax for problems before you buy.
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PostPosted: Mon Jun 11, 2018 5:18 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

AlmostHeavenWV_VW wrote:
Simply because society now can't be 'disconnected' or 'inconvienced' in any way shape or form.

There are cheap cars, but people don't like them. Not enough power, too small, not enough gadgets, etc.

A few examples of decent, cheap cars. Several of which are on the chopping block to stop being sold in the USA because everybody wants some gigantic SUV that could be mounted with a 50 cal chain gun and used in a warzone.

https://www.mitsubishicars.com/mirage/2018 (13k)
https://www.ford.com/cars/fiesta/ (14k)
http://www.chevrolet.com/cars/spark-city-car (13k)
https://www.toyota.com/yaris/ (15k)
http://shop.honda.com/civics.aspx (18K)


+1. OP, the Mitsubishi Mirage is like the pet car of EcoModder. It's super bare bones and good on gas mileage. Depending on your area, you might even be able to find a used one under $10k!
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PostPosted: Mon Jun 11, 2018 2:15 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

oprn wrote:
I learned back in '76 to never buy a new car again. Let someone else take the hit (10% is pretty conservative) just to drive it home for the first time. Then there is all the warranty hassles, driving back and forth to the dealer, fighting over whether this is covered, that is working properly or not, who pays what...

I buy them at about 3 years old. The biggest depreciation hit has been taken and they have enough time on them to prove if they are a lemon or not, then I run them for 10 or so years. That to me is where you get the best value for your dollars.


That’s a perfect model for lowest cost of ownership

We got our 99 T5 at one year old because no one wanted a high presssure turbo stick. I’m still driving it.
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PostPosted: Wed Jun 06, 2018 6:01 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

oprn wrote:
I learned back in '76 to never buy a new car again. Let someone else take the hit (10% is pretty conservative) just to drive it home for the first time. Then there is all the warranty hassles, driving back and forth to the dealer, fighting over whether this is covered, that is working properly or not, who pays what...

I buy them at about 3 years old. The biggest depreciation hit has been taken and they have enough time on them to prove if they are a lemon or not, then I run them for 10 or so years. That to me is where you get the best value for your dollars.


Between my wife and me we own 4 vehicles, a 1960 Porsche 356 Roadster, a 1964 Porsche 356 coupe, a 1996 Toyota T100 4x4, and a 2000 Toyota Avalon (one guess as to which one is hers). The only one bought new was the Roadster. By my dad. As long as you do the basic maintenance and have a good mechanic (getting harder to find for the 356s) these cars will run almost forever. Wink
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PostPosted: Wed Jun 06, 2018 4:55 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

iamdonquixote wrote:
skills@eurocarsplus wrote:
I have been in the automotive business for 30+ years now (f#ck me) and here is my take....



i thought you weren't even forty yet? Is this in 'mechanic years'?


Been in a shop since I was 8....so....I've been around....
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PostPosted: Tue Jun 05, 2018 7:14 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

the price is what it is because of the morons who pay that....well mostly the socalled super hero foot ballers,bastit ball, & other useless million dollar paid dip shits. Wink .
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PostPosted: Sat Jun 02, 2018 4:47 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

I learned back in '76 to never buy a new car again. Let someone else take the hit (10% is pretty conservative) just to drive it home for the first time. Then there is all the warranty hassles, driving back and forth to the dealer, fighting over whether this is covered, that is working properly or not, who pays what...

I buy them at about 3 years old. The biggest depreciation hit has been taken and they have enough time on them to prove if they are a lemon or not, then I run them for 10 or so years. That to me is where you get the best value for your dollars.
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PostPosted: Sat Jun 02, 2018 12:08 am    Post subject: Re: New car prices today, why so expensive? Reply with quote

Zundfolge1432 wrote:
We spied a one owner low mile 08 Prius, I’m cruising another hybrid 5th one for me I know them well enough.Very Happy


So does this make you a "Pria" owner or a "Priuses" owner?
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PostPosted: Fri Jun 01, 2018 3:55 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

AlmostHeavenWV_VW wrote:
Zundfolge1432 wrote:
Here’s some food for thought. It’s ok to buy a stripper model but you better plan on keeping it forever or be prepared to get way less at resale time. One thing you could do to lessen the sticker shock of buying automobiles is buy used. What’s wrong with paying half or less for a low mileage 5 to 7 year old car? I bought a car which retailed for nearly 50k and payed 13k, get over the I gotta have new sickness.


x2 Zund.

My daily is a 11 year old 2007 Mazda6. Bought it in 2012 (when it was 5 yrs old w 99k on the odometer- $8k) After a few years, it was paid off and I've been driving around-no car payment- in a comfortable cruiser, which I will run until the wheels fall off or parts are NLA.

The moment you sign the title on that new car- instantly it is now "used" and has depreciated 10% (or more).


Yes I get it, so gas prices are rising here and wife is pushing me to get rid of my 95 Lincoln town car. AC is out on it windows are all inoperable and the heater is broken because the blend door is seized and it needs front end work other than that it’s a cherry. We spied a one owner low mile 08 Prius, I’m cruising another hybrid 5th one for me I know them well enough. This one is also a highly optioned touring edition car with JBL audio, leather seats and Nav. Goodbye Lincoln I’m all in at 75%off the original sticker price. Hell ya. Very Happy
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PostPosted: Fri Jun 01, 2018 3:07 pm    Post subject: Re: New car prices today, why so expensive? Reply with quote

Zundfolge1432 wrote:
Here’s some food for thought. It’s ok to buy a stripper model but you better plan on keeping it forever or be prepared to get way less at resale time. One thing you could do to lessen the sticker shock of buying automobiles is buy used. What’s wrong with paying half or less for a low mileage 5 to 7 year old car? I bought a car which retailed for nearly 50k and payed 13k, get over the I gotta have new sickness.


x2 Zund.

My daily is a 11 year old 2007 Mazda6. Bought it in 2012 (when it was 5 yrs old w 99k on the odometer- $8k) After a few years, it was paid off and I've been driving around-no car payment- in a comfortable cruiser, which I will run until the wheels fall off or parts are NLA.

The moment you sign the title on that new car- instantly it is now "used" and has depreciated 10% (or more).
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