It wasn't too long ago I found myself asking if all-new vehicles were overpriced. When the Spies spoke it seemed that most agreed with that sentiment.
But why?
Well, the boys and girls at Road & Track decided to take this bull by the horns. Their thinking? Well, they seem to hone in on outside commentary that lays the blame on two things: 1) A strong used car market; and, 2) Subprime auto loans.
Perhaps there is a third option that no one wants to discuss, though. That would be electric vehicles. How, you ask? Well, EV research and development typically runs several billion dollars. And, like most things in life, the cost will get passed onto the consumer.
With low EV take rates, it would make sense for the average buyer to get caught holding the bag as automakers ramp up their technologies.
Having said that, Spies, we want to know: Who's REALLY to blame for the surge in pricing for today's vehicles? A strong used car market? Subprime loans? Or, EVs?
...It’s not just in our heads, either. Cars have actually gotten more expensive over the past 10 years, and not just by a little bit. Edmunds says that, on average, new cars sold for more than $36,000 in February, up 29 percent from the same month in 2009. Meanwhile, median household income in the US has only risen to around $62,000, an increase of about six percent over the past decade. Even more cringeworthy? Interest rates have also risen in that time period, from an average of five percent to around 6.26 percent. Not only are cars more expensive, but your auto loan will now cost you more money...
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