I am not buying the poor college graduate routine anymore - I know what the starting salaries are now. Plus, these new college graduates have been around the world on their dime or mama's dime and continue to travel (not on the Uncle Sam uniformed service technique). If they chose basket weaving - then choices have consequences.
Yeah well they got fed a line if BS. There was a time when a college degree mostly guaranteed a better paying job, and now anyone savvy knows it doesn’t unless you need it for your particular specialized field. A generation in between got hosed.
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I'm not trying to give you a "routine". It's also not a "routine" that applies to me, as I joined the military, worked hard to get where I am and have a six-figure job, house and car. It's just a matter of fact regarding young people these days; the numbers don't lie.
"Are you ready? Okay. Let's roll."- Last words of Todd Beamer
Automakers are cutting production in anticipation of increases tariffs. Curbing spending now to offset increased cost of doing business.
Uber and Lyft might be hurting car buying. But I’m not sold on that idea. First, Uber and Lyft users by and large are the same folks who previously used public transit or bicycled places. That’s what data for users is showing. Second, anecdotally, the number of cars I see wearing temp tags and Uber/Lyft stickers is substantial. It has prompted a whole new class of car buyer. The “not really a side gig” side gig buyer.
I’m pretty sure the base model Nissan Sentra, which is one of, if not the cheapest new car in the USA, come with a temp tag and an Uber sticker by default. So do new Priuses.
You also have to account for increased vehicle longevity, a now substantial inventory of used vehicles, that was missing for nearly five years post-Cash for Clunkers.
Cars are a luxury and therefore expensive. There are $50k+ Hyundais and Kias these days.
I just bought a new Z71. Zero percent interest, lifetime power train warranty, 12 free tanks of gas, and first service is free. There were plenty of trucks to pick from full-size and Colorado. I figure it’s the last new truck I’ll ever buy so I hope GM doesn’t fold before I need to test out that warranty.
“If you know the way broadly you will see it in everything." - Miyamoto Musashi
Don’t worry, it’ll be in the shop next week...it’s a Chevy after all. [emoji41]Originally Posted by GreggW
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AKA: SkyLine1
When I bought my Crosstrek, they didn't have a used Forrester or Outback on the lot and only a couple of new ones.
Never thought I'd get there, but leasing is looking better and better. Just paying cash is basically a thing of the past unless you are rich. If you want something nice, it's more than my mortgage and I bought my house in 1989.
Totally with you there, thinking about just leasing my next car just because of how much tech keeps getting integrated into these things. Mostly interested in the new safety features because precious cargo.When I bought my Crosstrek, they didn't have a used Forrester or Outback on the lot and only a couple of new ones.
Never thought I'd get there, but leasing is looking better and better. Just paying cash is basically a thing of the past unless you are rich. If you want something nice, it's more than my mortgage and I bought my house in 1989.
There is a bridge I used to take to work that didn’t allow full size trucks or SUVs. I bought a Trail Blazer instead of the Yukon I wanted, because I needed to be able to get back and forth to work. Yes, there was another route, but twice as long traffic wise.
While the automotive OEMs are bracing for a recession, that is not the reason the OP could not find the truck to test drive at his dealer. The reason is that dealer did have any to sell because the "supply days" for that vehicle have been as low as ten days; the average for the industry is 69 days. So the Colorado is selling quickly. All of those vehicles on dealer lots are not owned by the OEMs; they are owned by the dealer, who likely financed them through the OEM's captive finance unit. The faster those vehicles sell, the less finance charges the dealer has to pay. 90 days is the magic number as the OEM's finance unit usually pays for that long to "floorplan" the vehicle. After that, the dealer pays the cost which averages about $40 per interest point per month per vehicle. Even at 3%, the dealer is paying $120 per month per vehicle that has been on the lot longer than ninety days. And floor plan rates are closer to 5% than 3%. So the cost per vehicle could be $200 per month.
Right now, trucks and SUVs are selling well, and sedans are languishing on the lots. If a deal is desired, target a vehicle with a build date (on the window sticker) greater than ninety days in the past as the dealers are much more motivated to sell those. A lot of vehicle can be had for $25K if one carefully shops. With the 2020 MY vehicles arriving, target 2019 or 2018 MY vehicles as the floorplan expenses on those vehicles is a financial drain on the dealer. As an example, I bought a sedan that had been in dealer inventory for almost two years. As a result, my cost OTD was less than 70% of MSRP.
Unless you have a business to write off a lease, it makes no sense. Lease prices are all about residuals, the price for the vehicle when it is returned to the dealer. OEMs learned the hard way to set residuals low as a lot of used vehicles became losses when the residual was much higher than the vehicle value. The mileage limitations combined with the dealer charging for every ding and scratch means leasing is a bad deal for the consumer.
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