The GREAT Debate: Are Today's Vehicles Getting TOO Expensive?

In a word: yes

While I am a proponent of safety features, more and more are being mandated that should be left optional, but that isn't the real culprit. The nanny state that mandates a recall if there is a speck of dust on the car has a cost that is then built into the price of the car. Beyond that, the culture of entitlement, as championed by Queen Oprah, chants "I deserve that and I deserve that and I deserve that..." which makes options popular that manufacturers then make standard--at a cost--to consumers.

Why isn't there a bare-bones Mustang LX 5.0 for $27K? And so on. Routinely, I call for price control.

Also driving up costs are a shortage of engineers driving salaries up, expanded product lines requiring more investment, development of EV vehicles, development of autonomous driving vehicles and cost of electronic infotainment and software. There would seem to me to be a real sales and marketing opportunity for a bare bones vehicle.

I agree.

I think that when the Chinese come, they will significantly underprice the market to gain traction and they will be successful on price.

I cannot help but think that the Cadillac CTS and ATS would have sold better if you could have gotten a V8 in the at the base price.

It astounds me how expensive pickups are. With an F150, you're going to be at $40K to get a minimally acceptable interior.

I'm thankful that my brain sill thinks "poor" despite that fact that I am blessed with an income that allows me many options.

New car pricing includes:

- new tech
- new govt regulations
- higher taxes
- higher wages (including cost of living)
- levels of consumer demand
- higher costs to manufacturer/assembly
- assembly location/shipping costs

The surviving automakers are pricing their vehicles higher to recoup R&D, manuf. costs, & shipping. Prices for SUVs will remain higher on the idea that just owning one makes the driver feel more confident.

Gee....do ya really think?

No, vehicles are not getting too expensive. People love paying $100K for an ugly freakin' Ford pick-up!

Is that what you think Teslas look like?

It is what the market will bear. US sales have been near record the last few years.
I agree with MD that people believe they deserve all

Thankfully, I'm quite diversified so if the car side falters, I'm still OK

No question... when the new Chevy Blazer, loaded is over $50K... whew thats nuts

Cadillac price for a Chevy. Now if it were a Blazer in the vein of the Wrangler/Bronco then maybe, but not for a reskinned Equiverse.

It is hard for me to get into this conversation - because of my age. I bought my First House for less than $10,000 NEW.

I think the problem is not just the price of cars - but it is based in the almost complete lack of increased income for the middle class and lower over the last 20 years. If that income had kept pace with inflation - which it has not - then cars would be more affordable.

I still cannot help but think that if the average American family cannot afford the average car price- where are they going to get the money for the more expensive Electric cars? (Yes - over time the fuel costs should be lower - but you cannot factor that into a loan)

Time tells me that we are due for a correction in the stock market -= maybe a recession (even if short) - so I don't see the auto companies as good investments in the USA. My involvement in that market is currently limited to real estate.

It's called inflation, $35,000 in 2000 is now $52,000. Sounds like new car prices have kept with inflation, but perhaps incomes have not.

Actually that's not true. The average price of a new car in 1960 was 2752 and roughly 60 years later that should be $23, 346 adjusted for inflation. Cars are dramatically more expensive today.

So what is not true? That in "recent" history car prices have kept with inflation or that incomes perhaps have not?

To explain it for the 10 watt lightbulbs in the room.

The price of a car 60 years ago ADJUSTED FOR INFLATION is is $12K LESS than the average price today.

What that means is that cars have gotten more expensive over time likely due to increases in equipment and no doubt regulations.

The question of whether INCOMES have kept up with inflation is a separate and unrelated issue.

You're saying that cars are more expensive because people can't afford them, but that is Ocasio-Cortez style reasoning and is 100% fallacious.

I know thinking clearly is a challenge in the Starbucks unicorn world, but attempt it.

My 2002 Jeep Wrangler Sahara with EVERY possible option cost me $21,000 brand new (before tax).
I priced a 2019 Jeep Wrangler Shara similarly optioned and the price came out to a whopping, shocking $49,105. No darn way am I paying that for a rough riding Jeep.

Talk about INFLATION!!!!!!!!!!!

In 2002 the Wrangler was a "thing" but it wasn't a "THING" like it is now, so a part of the price is greed by FCA.