Ford, Toyota, GM, and RAM Got GREEDY, Now They Are SCREWED!

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Sound the alarms! Ray and Zach discuss the "affordability crisis" present in the new car market today as the average transaction price brushes up against $50,000.

[slchambers]

I’m old and I refuse to pay for a vehicle that cost more than our home. Of course we bought the house forty years ago. Still

[jamesconnolly]

And THIS is exactly why my wife and I drive a 2012 Honda Pilot and CRV, respectively. Both are paid off, have been for many years. We pay ourselves those car payments (and sometimes more, in a good month), and have been doing it for years. Hopefully someday, our patience and our being financially responsible will pay dividends when our time comes to buy a car. These greedy automakers can bite me.

[bblakebrown]

I didn't hear anything about how they are SCREWED!" The manufacturers are focusing on higher MSPR vehicles and consumers are paying for them. From the average vehicle prices, you shared... they are NOT screwed. They are WINNING!

[mikeklassic]

Definitely a problem when it takes 10-15 years to pay off a car that'll last 5 years

[AaronClow]

THANK YOU for expressing what I feel is the appropriate amount of outrage at today's ATP's. As they have gone up and up and up year after year I have continually asked myself "who the hell is buying millions of cars at these prices?" I make a good living and I just can't bring myself to imagine under any circumstance paying $57k for a vehicle, let alone $66k. And I LOVE cars. I don't want to drive an appliance. But man... I thought I was losing touch with reality. So again, thank you.

[josephklimchock]

Don't solely blame the auto industry, blame the people buying these and making huge payments for 7-8 years. seem like many people have way too much disposable income and it hurts the people that cannot afford the average car. I bet 90% could not pay cash for the car they bought at these prices, I would love to see the stats on this, how many paid cash, etc.

[garymcgowan]

Here's the problem I see, in 3-5 years, all of these high end models that the manufacturers built will then be the only options on used car market . If they aren't making any base models now, in 3-5 years there won't be any affordable options to buy slightly used. That's going to create a ripple effect across the market and used car loans (which are subject to more corruption) are going to skyrocket.

And I don't know how people are affording $1000 a month payment, I suspect some can afford it but most cant, shown by the increasing number of delinquencies.

[sircasm]

The problem is people are dumb. I live in a tiny town full of people that park $75, 000 vehicles on the street in front of their $74, 000 houses 😂

[MRAMX]

An XLT dolled up like mine with the 302A high content package is $60, 000.00+. A Platinum or King Ranch or a Limited F150 is $70K+ and even more, in some cases MUCH MORE. $80, 000.00+ is not uncommon, manufacturers have lost their mind !

[JesseJamesSCO]

Toyota tried to charge my friend $800.00 a month for a premium RAV4. She has excellent credit and was paying for tax and tags. 72 months term, she asked for the out of door cost and hasn’t heard from the sales person.

[robertk]

I think the Ford Maverick is actually pretty reasonably priced by Ford, yet for the life of me I can't find a dealership that's not asking a markup on them, and most of the markups are STUPID high. 10 grand on a 25 grand truck?!? Oh get bent, dealers!

[justacinnamonbun]

After we crashed our car last year (a 🦌 ran across the road, or tried to anyway) we had got an equity check from GEICO for $10k after they took $5k to pay off the loan that was almost paid off. We took the $10k and bought a new car that was $22k. Could we have gone and bought a $30k car? A $40k? A $50k car? Knowing that most people put down like $1000 or $3000 or $5000 on these more expensive cars?? Sure. But why?? We were thinking of going used but used would have been almost the same price for a similar with miles already on the odometer. So we went new. We have a tiny monthly payment, compared to these people that are paying $800/month for a car, we pay $250/month. We can afford it. We could also afford more but we don't live like that. If used car prices were where they need to be we would have bought used, not even talking about that the used rates are 9% or higher.

[craigfin]

I knew one guy who worked at Walmart (Meat Cutter) and got a luxury car (Lexus) that he also overpaid (way more then MSRP) for. He was paying more then half of his monthly pay on his car note and asking people for money for gas all the time. He would even try to offer rides in his car for gas money. So yup, pops is right, many of these guys/gals cannot really afford these cars. Rule of thumb is that your car should not be better then your living situation (own home or rent). While it should be a valuable possession, it should not be your most valuable possession, especially when its an asset that only depreciates.

One of the reasons why this is happening is because so many banks nowadays just go by credit score and let the consumer figure out themselves whether they can actually afford it or not.

[ball_]

I think another thing to consider about the ATP going up is the inflated used car prices from the last two years. It will hit a wall now. People were selling or trading in used cars for what they paid for them 2 years ago. People that are use to losing money on trades weren’t, which means they had more money to spend. I also think that’s some of the reason for MA fees actually being accepted by some buyers. I sold an 11 year old truck for 30k last year. I paid 42k for it 11 years ago. That’s insane. I’ve had a vehicle depreciate 12k in a year before. If I had sold it 4 years ago I would have lost more then selling it a year ago. That just isn’t normal on a deprecating asset like a vehicle. Result was I contributed to that ATP going up. Lol

[Lookingforcompellingevidence]

People have been conditioned to buy a monthly payment, and not care what the cost actually is. If you cannot pay off a car loan in 3 years you cannot afford that vehicle.

[shovel_head]

Shelter, food is a priority and a fancy car or trucks will be repo by the thousands

[WTLowery]

Don't fall for the overpriced vehicles. And they can put their EV's where the sun don't shine.

[JKerr-iyjr]

Think we need to let the car companies experience another 6 months of poor sales until some executives pull their heads out of their A**es and get REAL!

[nealrugel]

Truly mind boggling the price of new trucks, and used. I was in an accident last weekend and now looking, and need a specific truck for towing a camping. But I refuse to pay $70k for a truck, even though it is the family vehicle. I have always bought with the mindset of the vehicle costing less than my house payment. BTW, love the channel, good info.

[clintoncoey]

I bought a 2022 Ram 2500 Big Horn last year and paid around $62, 000. I was looking for about 5-6 months before I found it. Everything else was about $10k to 15k more just because of the shortage. Thank you for educating me back then. You helped me look outside of the major dealerships to find it.