Analysts Concerned That Vehicles Are Now Too Expensive For Many Consumers

September U.S. sales fell for most major automakers from the post-Hurricane Harvey bump a year ago. But another factor is emerging as a headwind to sales: affordability for some new-vehicle shoppers.

As vehicle transaction prices and interest rates keep rising and automakers reduce incentives, analysts and dealers are signaling that the resulting higher prices for consumers could be hitting a critical point, if they haven't already.

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TheSteve - 10/8/2018 12:00:24 PM

+4 Boost

Oh, don't worry about that. Subprime Part II is well under way, allowing people who can't afford the car to get it anyway :-/

That aside, a lot of life is too expensive for many people.

PUGPROUD - 10/8/2018 12:10:56 PM

+2 Boost

With a strengthening economy and low unemployment comes higher wages, higher interest rates, inflation and rising prices of all goods and services. From one vantage point a rising tide lifts all boats. From another view the rift between haves and have nots is widening. Of great concern is that each of these views will inflame more social and political unrest rather than working together for a better future for all.

TomM - 10/8/2018 12:22:22 PM

+2 Boost

The problem remains - actual take home money for the majority of Middle class and lower Americans have gone DOWN - Part due to the limit on tax deductions for local taxes - and also due to the 50% increase in the price of Gasoline since Trump took over.

In reality - actual wage growth among the lowest income people is still not being achieved. THe tax cut was largely a tax reduction for the wealthy and corporations - both of whom received actual and large rate cuts - no other group got that.

SanJoseDriver - 10/8/2018 3:24:32 PM

+2 Boost

The wealthy in red states. A lot of people in CA in NY got screwed overall due to lower deductions on property taxes.

MDarringer - 10/8/2018 6:29:35 PM

0 Boost

The safety ninnies have tacked on and tacked on and tacked on requirements to the point that cars are unaffordable to most.

How about a tax cut for buying a car?

ricks0me - 10/8/2018 7:15:29 PM

+4 Boost

MD said > How about a tax cut for buying a car?
That is the most liberal comment you've ever made on this forum

I agree with > The safety ninnies have tacked on and tacked on and tacked on requirements to the point that cars are unaffordable to most.

MDarringer - 10/9/2018 7:12:19 PM

+1 Boost

I was being purposefully absurd when I said the tax cut thing. I was a veiled dig at Tesla dimwits who are rich but need a kick back to buy a car.

Holydude - 10/9/2018 6:32:35 PM

+1 Boost

Never buy new anyway, unless it's a Ferrari. The best balance between a new car and an acceptable depreciation are always on the 2-3 year old models.

MDarringer - 10/9/2018 7:13:13 PM

+1 Boost

Not necessarily. In the sedan wars, an easy case can be made for the new car.