Cars are so expensive that buyers need seven-year loans(bloomberg.com) |
Cars are so expensive that buyers need seven-year loans(bloomberg.com) |
I don't know what the answer to them is other than to remove the anti-DTC laws but that seems unlikely.
While we're on the subject, here's one for you: if you buy an RV, you can get a 20 year loan. We technically have one at the moment (it'll be paid off after having held the loan for a few months). You think cars depreciate fast? Go buy an RV. I can't imagine carrying a 20 year loan on something that will be nearly impossible to sell before the loan is paid off.
Apparently the rule is to deter people who do not maintain their clunker of an RV which might break down, leak various fluids or catch fire. The given advice is to keep your rig in good shape and call the RV park and explain the situation. They may request pictures as proof e.g. a well maintained conversion of an old city bus would be fine if your pictures show as much. Some parks might inspect on arrival.
Car loans have a bit more of an inherent predatory bent since most Americans need a car to get by. That's not to say we all need a car which costs so much that an 84 month term becomes worth considering...
I bought a 20yo pontoon for $10K and I could sell it tomorrow for $5K more than I paid for it two years ago.
I cannot do that with a car. No way; no how.
But is there any study that says the components or designs are needing less repairs or are getting cheaper to maintain over that 12.8 year period as opposed to, say, an econobox sedan from 2005?
Is a modern family car with GDI, CVT, plastic oil pan, infotainment system, and litany of safety sensors going to last as long without bankrupting its owner as an equivalent product from a comparable market segment 20 years ago?
My family's limited experience with powertrain warranties is that they don't mean anything. The manufacturer put a junk engine in my Dad's truck at the factory. When they replaced it, they replaced it with a junk engine. When confronted with this, the dealer claimed it was not reasonable for a replacement engine to run without issues. Neither made it 30,000 miles.
Honda from 2005 could last 10 years in Quebec and Honda from 2015 could last 10 years. I don't have huge stats, but it seems that cars are about as reliable today as they were 20 years ago. I didn't notice them to be more reliable.
Even a 3 year old Dacia Dokker - basically the same exact car with newer trim - is pushing €15k. A new Kangoo is around €30k. That's a lot for an economy car that does nothing significantly better than the 2007 version.
Since I only drive 1-3 times per month, I decided to stop owning a car. The cost of ownership is just way too high.
I'm slightly joking, but only slightly.
I've built my own ebikes since I was a teen in the 2000s. I love them, and wish more people would use them to get around day to day. There has been such a lackluster or hostile adoption by "the powers that be" of them, I just can't see it actually making a difference in American transportation though.
At least we aren't the UK though. They have been so hostile to ebikes and escooters for a couple decades now I couldn't imagine bothering if I lived there.
Adjusted to inflation Honda Civic costs slightly more today in Canada than it costed on 2015. I'm not sure that the median salaries grew at the same rate.
Three years later I sold the car for 142k.
Adjusting car value, a 3years decrease, it should cost around 70k. But it doubled in price.
So at least here inflation on new / few years used cars is around 100%.
Its a terrible moment to buy used cars. You are way better off buyin a new car for 150-200k. Coz promos you get will drop its price by almost 30%.
Why choose that over a used car for $5k? It's not cheaper, nor is it more practical. But I'll agree, on the nice days, it's definitely more enjoyable.
I can find several middleweight tourers / adv bikes between £12k-£25k new. And that's middle/top shelf. I can even get something new under £8k if I don't need the most modern electronics and 650cc is enough.
Comparing that to the car? LOL, 5 year used car like, say, Hyundai Ioniq is £15k+
And every other bit of the maintenance is more expensive in the car. Literally every single one. Also taxes and insurance.
Gear? Yeah, boots once every 10-15 years, gloves/jacket/trousers/helmet every 5 years,
Still cheaper.
Like you said, it's more used as a policy to turn away. People who the park doesn't think fits their vibe.