Are We Witnessing The Demise Of The Affordable Car?

[FordFreak]

I'll probably keep the Ranger until the wheels fall off it. (Never did that with a vehicle before) My next vehicle, and probably last, will be an EV or whatever they're trying to push on us all for greater control. It seems like the younger crowd wants to be lorded over by their government as long as everything is free. They only want to work until they don't while being paid full-time wages, and a lot of other bizarre stuff I won't discuss.

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[RedlandRanger]

I just did a quick pursue of Edmunds and every non luxury manufacture has multiple models with a MSRP under $30k and a number of them have a model for under $20k. The issue is you will never see them on a dealers lot because no one will buy them. Virtually everyone wants all the bells and whistles in there vehicles. I am no different, my Lariat has every option that was available with a MSRP over $48k. A 2wd XL for $25k would have served me just fine but that was not what I wanted.

Before I retired I was always amazed by the number of high end vehicles in the parking lot at work. A very high percentage of these vehicles belonged to hourly production workers that did not earn enough to really afford them. The manufacturers offering ultra low mileage leases are the only way they could afford the monthly payment. Not sure what percentage actually could meet those low mileage constraints but dealers will keep rolling them over into a new lease.

IMHO, the demise of the affordable vehicle is just as much the fault of the consumer as it is the manufacturers and government.

^^^ THIS

I fell into the "revolving lease" hole many years ago. You get a new vehicle with a relatively small payment on a lease - the lease comes up, and you go to turn it in and instead of buying it out, they can put you in a NEW vehicle for the same money or just slightly more - but it is BRAND NEW. Rinse and repeat. People never build any equity at all but keep driving relatively new vehicles. I was smart enough to get off that treadmill many years ago.

And I was going to say this earlier, but I concur that affordable options are mostly due to consumers - most everyone (I'm guilty too) wants a fully decked out model - and all those options cost money. Manufacturers are only building what people are buying.

 

[JohnnyO]

Yes and no to the part about equipping with more stuff. There are still a lot of these vehicles that are 40k+ and the extra safety equipment is all optional. Parking sensors, blind spot, forward collision warning, lane departure, etc. I always look at the vehicles on sale at local dealers and what comes with them and I have to laugh when you see a 60K truck and you don't even get LED headlights and leather seats. That should be a minimum for something that expensive.

Partly, but things like emissions equipment, traction and stability control, TPMS, backup cameras, air bags, are all required now and add to the cost. My wife totaled her Chrysler minivan last October in a low-speed chain reaction crash and the front end was kinda smashed but the biggie was that it had like 12 airbags that all went off.

My boss (regional manager) visited my office this week, he's a car guy too, and was eyeballing my Ranger since his son needs a new vehicle. He lives in Florida and I explained that 2wd STX with no options is a perfectly acceptable truck and would sticker for about $31k (assuming you could find or order one). Mine is a 4x4 STX with exactly two options, the Bed Utility Package that I don't need and the Tow Package that I do. I'd like carpeting but I can live without it and a locker would be nice but is not absolutely necessary.

 

[NTXTremor]

Inflation sucks, doesn't it?

For reference, my 1968 Olds Cutlass convertible sold for about $4000 in 1968 back when the median household income was $7,700. That is a big percentage of annual income. In today's money that car would have cost about $34,000. My dad bought a brand new Buick Grand National in 1985. MSRP of that was $12,640. In today's money that would be about $35,000.

Virtually ever car on the market today is better than either of those and many times safer. Can you buy a "comparable" car for $35000 today? A 2023 Ford Mustang EcoBoost Premium Fastback has an MSRP of $32,795 and goes 0-60 in 5.0 seconds and 1/4 mile in 13.6 at 102 mph. That is not comparable, that blows their doors off in a safer, better handling package!

I know that there are other examples that would be more extreme, like a 1968 Ford F100 versus a new F150, but if you really compared like to like, a bare bones F150 today is probably similar in price to the F100 when adjusted for inflation.

In my opinion, cars are better today than ever, and the true cost has not changed that much. The value of the dollar, on the other hand, has changed, but so have wages. It is all relative.

 

[Motorpsychology]

I think it is as much or more the case that household incomes have not kept up, and health insurance/medical costs have led inflation for at least a generation, sapping the budget even more.
The F150 has been the best selling truck since 1977,
A 2023 Ford F150 XL 4x2 Regular Cab 8'box has an MSRP of $35, 890 incl Destination/Delivery.
Using an inflation calculator, in 1977 it would have been $7,018.00.
Below is an invoice I found online for a 1977 F250. Keep in mind that today's F150 has more payload & towing capacity than a 250 then; same with the 350 2bbl V8. I also assume this had a granny gear 4 spd but I don't know. So basic trucks of comparable capacity have really stayed about the same. Add in all the "luxury," (A/C, CC, PW PL ABS etc) performance, safety and environmental improvements that are now standard and today's pickups are a pretty good value. The out of reach-ness comes from the $200/mo cable, $900+/mo family medical, $200+ per kid in daycare yadayada.

 

[FunInTheSun]

Partly, but things like emissions equipment, traction and stability control, TPMS, backup cameras, air bags, are all required now and add to the cost. My wife totaled her Chrysler minivan last October in a low-speed chain reaction crash and the front end was kinda smashed but the biggie was that it had like 12 airbags that all went off.

My boss (regional manager) visited my office this week, he's a car guy too, and was eyeballing my Ranger since his son needs a new vehicle. He lives in Florida and I explained that 2wd STX with no options is a perfectly acceptable truck and would sticker for about $31k (assuming you could find or order one). Mine is a 4x4 STX with exactly two options, the Bed Utility Package that I don't need and the Tow Package that I do. I'd like carpeting but I can live without it and a locker would be nice but is not absolutely necessary.

Locker is only a $410 option (at least it was for 2021)

 

[JesseS]

I just built a new '23 Ranger exactly the same as my '21 that I paid $39K for OTD, it would now cost me close to $50K for the same truck OTD, with Tax, Lic, & Reg. That's a $10K increase, and that is for a XLT SC 4X4, can't imagine what a Tremor build would be

 

[gfitzge2]

Inflation sucks, doesn't it?

For reference, my 1968 Olds Cutlass convertible sold for about $4000 in 1968 back when the median household income was $7,700. That is a big percentage of annual income. In today's money that car would have cost about $34,000. My dad bought a brand new Buick Grand National in 1985. MSRP of that was $12,640. In today's money that would be about $35,000.

Virtually ever car on the market today is better than either of those and many times safer. Can you buy a "comparable" car for $35000 today? A 2023 Ford Mustang EcoBoost Premium Fastback has an MSRP of $32,795 and goes 0-60 in 5.0 seconds and 1/4 mile in 13.6 at 102 mph. That is not comparable, that blows their doors off in a safer, better handling package!

I know that there are other examples that would be more extreme, like a 1968 Ford F100 versus a new F150, but if you really compared like to like, a bare bones F150 today is probably similar in price to the F100 when adjusted for inflation.

In my opinion, cars are better today than ever, and the true cost has not changed that much. The value of the dollar, on the other hand, has changed, but so have wages. It is all relative.

I agree completely. And there really is no apples to apples comparison. Today, even base models have so many more features. Things like anti lock brakes, air bags, and backup cameras, things that hadn't even been thought of back then but are considered safety essentials these days. Tune ups were often needed every 10k miles and even the tires didn't last as long or were as safe as today. Most vehicles last much longer today too. There were muffler shops every where because exhaust systems rotted out from within in a few years, now they are mostly stainless steel, and last well over 100 thousand miles. I could go on but you get the point.

Are young folks just getting started priced out of new vehicle purchases? May be, but a used vehicle will probably last longer than a new one would have back then.

Talk about price insanity, check out this Grand National.

 

[Bob902]

https://www.foxbusiness.com/money/car-debt-piles-up-more-americans-struggle-make-payments

 

[JohnnyO]

Locker is only a $410 option (at least it was for 2021)

Right, except I bought it from dealer stock and it was what they had. The engine in my old Sport Trac blowed up at 212,000 miles and waiting two months or more for a special-ordered truck would have been very inconvenient.
This one was 95% what I would have ordered anyway and even the color was right. I would have skipped the Bed Utility Package and got the locker and carpeting but otherwise I wouldn't have done anything different. And I could take it home right now today.

 

[FunInTheSun]

Right, except I bought it from dealer stock and it was what they had. The engine in my old Sport Trac blowed up at 212,000 miles and waiting two months or more for a special-ordered truck would have been very inconvenient.
This one was 95% what I would have ordered anyway and even the color was right. I would have skipped the Bed Utility Package and got the locker and carpeting but otherwise I wouldn't have done anything different. And I could take it home right now today.

I ended up with 4x4 the same way. The dealer had literally the EXACT truck I had spec'd out at Ford.com, except for 4WD. I mean exact color, packages, etc. Everything, but it had 4x4, and I could get it NOW. So I did (Helped that my wife said "If you like it, you should just get it.") LOL. Paid the extra money for something I will rarely use, but IS cool to have...

 

[FerdRanger]

2024 Fords starting at $33,270*

*optional equipment not included

 

[Dr_Strangelove]

"How did my neighbor get her mirrors the same color as her door handles? I want that."

 

[dtech]

https://www.foxbusiness.com/money/car-debt-piles-up-more-americans-struggle-make-payments

Perhaps car loans should be paid off instead of student loans, maybe better for the economy . I don't currently have an auto loan but I'd get one if I knew someone else would pay it off. Got go now and write my elected representatives.

 

[yamahaSHO]

Partly, but things like emissions equipment, traction and stability control, TPMS, backup cameras, air bags, are all required now and add to the cost. My wife totaled her Chrysler minivan last October in a low-speed chain reaction crash and the front end was kinda smashed but the biggie was that it had like 12 airbags that all went off.

My boss (regional manager) visited my office this week, he's a car guy too, and was eyeballing my Ranger since his son needs a new vehicle. He lives in Florida and I explained that 2wd STX with no options is a perfectly acceptable truck and would sticker for about $31k (assuming you could find or order one). Mine is a 4x4 STX with exactly two options, the Bed Utility Package that I don't need and the Tow Package that I do. I'd like carpeting but I can live without it and a locker would be nice but is not absolutely necessary.

2WD STX here... Paid $29k, and I have the locker, carpet, 8" Sync, BLIS, etc. This is the most expensive vehicle I've ever purchased (not to be confused with the most I've ever spent on a car), but I was looking for bang for buck. I priced out an F-150 and stopped when I saw it would cost me about $65k... Nope.

I ordered a Maverick for my wife, which will be a couple thousand more than my truck, but I started at an XLT, added quite a bit, including AWD and 4k tow. Originally, I opted for the hybrid, but the chances that we would receive it would be low, so I changed the order and we'll order a hybrid next year, if we still want that cost savings and the Ecoboost likely won't lose any value to sell.

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