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Why Americans are suddenly paying $550 per month for new cars

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Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@CassieCard wrote:

@DaveInAZ wrote:


My first car in 1968 was a Triumph Spitfire, a 2 seater convertible sports car that was so much fun to drive. I called the big American cars of that era American land yachts because in my parents' enormous Chrysler it felt like you just floated down the road, in my little Triumph you could feel the road.


There's a little place in New Hampshire near the seacoast that specializes in old British cars: http://www.britbits.com/

 

They have a few Spitfires for sale right now (click the sales link).

 

I love those little cars! When I drive by there I can feel the pull on my checkbook, which is why I have never stopped to look around. lol

 


Ah, thanks for that link! I'd love to have a Spitfire again, and they aren't too pricey. I also had an MGB and they seem to be more pricey than Triumphs. But my MGB in the 70s was already so rusted the floorboards were plywood - Ohio, salt on the roads in the winter.


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Message 11 of 32
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@Saeren wrote:

@MakingProgress wrote:

@Saeren wrote:

@Soelden wrote:
More than 7 million Americans are now at least three months delinquent on their auto loan payments, the benchmark for many lenders to trigger a repossession.

Thats a scary figure.  I cant believe how many people justify taking a loan on a new car that will depreciate at least 50% over the life of the loan.   Ill stick with my $3000 truck Ive had for 4 years lol.


I won’t get any vehicle that isn’t new. I want a 5 year warranty and 5 year service contract to go with it. 


You are going to have a hard time finding a 5 yr warranty.  Most US Automakers are all offering 3 yr / 36000 miles bumper to bumper and 5 yrs / 60000 powertrain.   Hyundia and Kia offer 6 yr / 60000 bumper to bumper and 10 yr / 100000 mile power train.  


I paid extra for it. I got premiumcare and the top tier maintenance plan (the one that included recommended and optional maintenance) on my 2004 Focus and 2009 Fusion. Never paid a dime for anything except tires. Even windshield wipers were covered. 


One of the main reasons I bought my Kia was the 10 yr / 100,000 mile powertrain warranty. When I moved the vegas in 1999 I bought a Chrysler, only the 2nd time I bought an American car. It almost qualified for a lemon law - while under the 3 yr / 36000 warranty the instrument panel went out, a/c, transmission, etc. With the Kia the only problem in 10 years was over heating, plastic overflow tank had a crack. No more American made cars for me.


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Message 12 of 32
Super Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@DaveInAZ wrote:

@Saeren wrote:

@MakingProgress wrote:

@Saeren wrote:

@Soelden wrote:
More than 7 million Americans are now at least three months delinquent on their auto loan payments, the benchmark for many lenders to trigger a repossession.

Thats a scary figure.  I cant believe how many people justify taking a loan on a new car that will depreciate at least 50% over the life of the loan.   Ill stick with my $3000 truck Ive had for 4 years lol.


I won’t get any vehicle that isn’t new. I want a 5 year warranty and 5 year service contract to go with it. 


You are going to have a hard time finding a 5 yr warranty.  Most US Automakers are all offering 3 yr / 36000 miles bumper to bumper and 5 yrs / 60000 powertrain.   Hyundia and Kia offer 6 yr / 60000 bumper to bumper and 10 yr / 100000 mile power train.  


I paid extra for it. I got premiumcare and the top tier maintenance plan (the one that included recommended and optional maintenance) on my 2004 Focus and 2009 Fusion. Never paid a dime for anything except tires. Even windshield wipers were covered. 


One of the main reasons I bought my Kia was the 10 yr / 100,000 mile powertrain warranty. When I moved the vegas in 1999 I bought a Chrysler, only the 2nd time I bought an American car. It almost qualified for a lemon law - while under the 3 yr / 36000 warranty the instrument panel went out, a/c, transmission, etc. With the Kia the only problem in 10 years was over heating, plastic overflow tank had a crack. No more American made cars for me.


I actually had surprisingly few issues with my Focus or Fusion... and it’s amazing because I didn’t take very good care of either of them. I would sometimes go 7000 miles between oil changes, I regularly pushed my Focus up to the governor (which kicked in at 138), I floored the gas all the time... yeah I was a bit aggressive with my driving lol. 

 

But I didn’t really have any issues with either of them regardless. I miss my Fusion a lot. That V6 was nice. 



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Message 13 of 32
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@DaveInAZ wrote:

@Saeren wrote:

@MakingProgress wrote:

@Saeren wrote:

@Soelden wrote:
More than 7 million Americans are now at least three months delinquent on their auto loan payments, the benchmark for many lenders to trigger a repossession.

Thats a scary figure.  I cant believe how many people justify taking a loan on a new car that will depreciate at least 50% over the life of the loan.   Ill stick with my $3000 truck Ive had for 4 years lol.


I won’t get any vehicle that isn’t new. I want a 5 year warranty and 5 year service contract to go with it. 


You are going to have a hard time finding a 5 yr warranty.  Most US Automakers are all offering 3 yr / 36000 miles bumper to bumper and 5 yrs / 60000 powertrain.   Hyundia and Kia offer 6 yr / 60000 bumper to bumper and 10 yr / 100000 mile power train.  


I paid extra for it. I got premiumcare and the top tier maintenance plan (the one that included recommended and optional maintenance) on my 2004 Focus and 2009 Fusion. Never paid a dime for anything except tires. Even windshield wipers were covered. 


One of the main reasons I bought my Kia was the 10 yr / 100,000 mile powertrain warranty. When I moved the vegas in 1999 I bought a Chrysler, only the 2nd time I bought an American car. It almost qualified for a lemon law - while under the 3 yr / 36000 warranty the instrument panel went out, a/c, transmission, etc. With the Kia the only problem in 10 years was over heating, plastic overflow tank had a crack. No more American made cars for me.


We just bought a new Kia Sportage.   We had it narrowed down to the Kia Sportage and Chevy Equinox.   We were replacing an Equinox, and the deciding factor was the Kia warranty. 


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Message 14 of 32
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Super Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

Love my 2012 Toyota RAV4 . Bought new July 2012 so 7 yrs old, and currently only has 48K miles on it. I stay up to date on all maintenance according to Toyota schedule, and all work is done at the dealer as well.

Its been paid for a few years now, and I will keep it hopefully for another 7-10 yrs. If I can hold out that long....lol

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Message 15 of 32
Regular Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

I currently lease a VW Jetta which will be up April 2020. Only reason I made this move is my 1999 Expedition with 300,000 miles finally gave up after 10 years of service to me and I needed a way to build enough credit without being soaked in interest..

 

Hopefully my credit will be in good enough shape by next year to find something decent for a good price. 



Message 16 of 32
Established Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

The numbers of rising car payment amounts and delinquent car payments aren’t surprising. Personally, I do drive an expensive car, but live VERY modestly otherwise. Even at that I buy Certified pre-owned and look more at interest rate than payment. Yes, I have to consider payment, but certified pre-owned and lowest interest possible gives me the most car for the dollar and I’m paying less in depreciation. Bottom line, as with anything financial...LIVE WITHIN YOUR MEANS!
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Message 17 of 32
Valued Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

I bought a 1984 chevy k10 1/2 ton new that I am still driving daily 35 years later.  I have 217k miles on it and I still enjoy driving it.  I keep the truck in excellent condition and get compliments on it all the time.  I can't even imagine paying the prices that people are today.  I have a friend who paid $70,000 for a new chevy pu. I wouldn't do it even if I could.  I will be driving my truck till the day I die. 

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Message 18 of 32
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@Imhotrodcrazy wrote:

I bought a 1984 chevy k10 1/2 ton new that I am still driving daily 35 years later.  I have 217k miles on it and I still enjoy driving it.  I keep the truck in excellent condition and get compliments on it all the time.  I can't even imagine paying the prices that people are today.  I have a friend who paid $70,000 for a new chevy pu. I wouldn't do it even if I could.  I will be driving my truck till the day I die. 


...and I thought I was going to win the thrifty award with a decade-old Subaru and a 90's Toyota.

 

Admittedly, not a lot of miles on either of mine.

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Message 19 of 32
Moderator Emeritus

Re: Why Americans are suddenly paying $550 per month for new cars

Great thread! Unreal the amount people will pay for a car. As has been said, personal taste and priorities. Seems I saw an ad on TV that said and you can own a British Land Rover starting at $56,500 last week ... when I looked at them several times over the years I had to be careful not to slam the door as it was so thin I would have caused damage ... but oh well, as long as I am not paying the bill ... none of my business. Smiley Indifferent

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