Why are vehicles so expensive?

[charby]

Not looking for some smart ass answer.

I'm on the hunt for a set of wheels, actually pretty specific search. I'm looking for a used vehicle, done give up trying to figure out how to afford a new one. (32k for the a new Toyota Tacoma) 

So I would really like an up to 5 year old 4x4 Toyota Tacoma or Nissan Frontier, extended cab or 4DR, with less than 50k miles. I have a decent down payment saved up but seems like everything starts a $18k

I set off to search classified ads and car deliver inventory, holy cow batman I can't believe how much they want for used vehicles with mileage around 100k.

So can someone explain to me while a 5 year old vehicle that has over 100k on it is worth more than half of new? 

So a 400-500 a month loan payment supposed to be normal? I haven't had a vehicle payment in over 4 years and the most I ever had was $235 a month. What happened to used pickups under $10k with low miles? How can people afford a car payment on a vehicle over $30k new. That like $515 a month for six years!! 

I know they can't give vehicles away, but do vehicles need to cost as much as they do?

-C

[drewtam]

A large part of it is your looking at imports, that has 2 effects:
1 import retrictions raise the initial price, which raises the resale value
1a imports have to be imported, and that raises cost
2 the market is convinced that the imports are higher quality, and will last to 250k miles, so its worth it to pay half of the new

A small part of it is maybe its your local market, that does seem high.

Drew

[Brad Johnson]

the market is convinced that the imports are higher quality, and will last to 250k miles, so its worth it to pay half of the new

That's most of it. Plus, trucks are still a high-demand item.

If you want to have an uncontrolled bowel movement, price used diesel pickups.

Brad

[charby]

Oh I know all about diesels, pretty much dropped that out of the equation right away.

Even used domestic pickups are with in a 1-2k in price of the imports here.

Example 2003 4x4 4 door cab Chevy S-10 with 66k is listed for 17k and a 2002 Toyota Tacoma 4 dr 4x4 with 72k is 18k in the local paper today.

[MillCreek]

When I bought my 2005 Ford Escape new in April 2004, it was $ 28K with tax, license and registration.  I financed it on a three year loan from Ford with a 2% interest rate.  $ 700 per month.  In this area, used trucks and SUVs hold value pretty well.  Four door midsize sedans are a dime a dozen due to oversupply.  You can pick up a nice Accord, Camry, Mazda6 for a pretty reasonable price.  An advantage to this area is we rarely get snow, and thus don't use salt on the roads.  So the bodies tend to stay in better shape than a car from the Midwest.  My wife is from Iowa, and she comments how rapidly cars rust out back home.

[zahc]

The correct answer to any such question is, of course, because that's what the market will bear.

[mtnbkr]

If you're looking for an import, start scouring the domestic lots for recent trade-ins.  I bought two Toyotas (4Runner and Camry) for thousands less than book that way.  It also helps if you're willing to get a manual transmission, those don't move very quickly.

Chris

[charby]

I don't care whether is manual or automatic. Wife doesn't want a manual tranny. So I'm left with a auto.

I know sedans and coupes are a dime a dozen and really reasonable in price, but I have a boat. Also kind of hard to stuff a whitetail deer in the trunk of a mazda unless its already cut up and packaged.

-C

[grampster]

Hmmmmm, you say prices start at 18K?  Tell you what.  I've got an '02 Frontier, 4wd, 4d with 80,000 miles.  Let's see....how about I sell it to you for 15K?

Just kiddin'. 

My Frontier is just as quiet and tight as when I bought it.  All I have ever done is change the oil and filter every 3,000 miles, and I just put the 3rd set of pads on the front brakes.  The rotors are still nice and smooth.  I just bought the 3rd set of tires a couple months ago.  Don't get much more carefree than that.

The only drawback is that it has the snivelling V-6.  Gas mileage is only about 18 on the highway at about 70-75 mph.

PS:  Charby,  I'll be heading down I-80 through I O Way on 11-4 on the way to shoot at pheasants S. of Mitchell SD.  I'll tip my hat as I pass through.

[charby]

PS:  Charby,  I'll be heading down I-80 through I O Way on 11-4 on the way to shoot at pheasants S. of Mitchell SD.  I'll tip my hat as I pass through.

I'll be south of 80 near Iowa City on Saturday hoping that we see ditch parrots (pheasants). August counts aren't sounding so great for most of the state. On your way back make sure you stop at a HyVee or Fareway grocery store and pick up some Iowa Pork chops.

Fuel economy is really that bad with the Frontier? Most of my driving with the truck will be at interstate speeds.  I might start looking at the domestics then since that is about what the 4.3 S-10 gets on the Interstate.

-Charby

[Standing Wolf]

Asking prices are usually sucker prices.

[Declaration Day]

Going back to the original post.........$32K for a Toyota Tacoma?  Holy @#$%!

I bought a 2005 Chevy Silverado new, with 8 foot bed, extended cab, 4X4, 6.0L V-8, 2500 Heavy Duty Package for $34K.  I understand Toyota's reputation but geez, I got twice the truck for $2K more.

[grampster]

Yep.  Swmbo had a 01' Pathfinder with the big V-6.  It got about 18 mpg as well.  She just got an '06 Murano AWD and we're getting about 22.5 with the same motor the Pathfinder had.  It's got that new tranny, I forget what they call it, that doesn't shift, it just continually adapts to condition.  Smooooooth and fast.

I think if you weigh the lower gas mileage with the relative carefree maintenance on the Frontier, maybe it's a tradeoff??!!  I do like mine.

Thanks for the info on the p'chops.  I'll do that, mainly because I probably will miss every freaking pheasant I shoot at.  I once had a rooster get his foot tangled in my front sight and I emptied my Gold Hunter and still missed.  The dang bird untangled his foot, gave me the finger and flew away.  Besides, S. Dakota roosters wear Kevlar.  One of my partners shot every feather of one of them birds and when he hit the ground, he ran off into another corn field.  I carried one around in my game bag for 2 hours that my partner and I had shot out of the sky at least 6 times and I wrung his neck when he finally gave up.  When we stopped for lunch, I took him out of my game bag and he hit the ground running down the centerline, took off, circled the truck, pooped on the windshield, cackled and flew off.  The b******!!

[auschip]

Going back to the original post.........$32K for a Toyota Tacoma?  Holy @#$%!

I bought a 2005 Chevy Silverado new, with 8 foot bed, extended cab, 4X4, 6.0L V-8, 2500 Heavy Duty Package for $34K.  I understand Toyota's reputation but geez, I got twice the truck for $2K more.

I paid $24.6k for my Dodge 1500 Mega Cab, and they added aftermarket leather.  I didn't get 4x4, but it does have the LSD, power moonroof, power rear window, regular power package, and a CD player.  I think it came out to about 16k off the sticker if you include the additional cost for leather.

[charby]

Kevlar feathers...

My first rooster last year was shot about 8:30 am and dropped like a rock, my dog went to retrieve it and it decided to quit playing possum.  The bird dropped in a cut bean field and landed on its back feet side up, as the dog got about 10' feet away it decided to roll over and make a bee line to a brush pile, dog tried to get into the pile but couldn't do it.

I was pretty p'od about that one.

-C

[Felonious Monk/Fignozzle]

The correct answer to any such question is, of course, because that's what the market will bear.

Yeah, that's pretty much it.  You can, however, do what I do: reject their reality and replace it with my own. 

So, I shop local lots, eBay, and such.  I've bought a total of 6 cars on eBay, and had only one that I would consider a 'less than optimal' experience.  Not BAD, mind you, and still worth the $500 (yes, five hundred dollars) I paid for the car, but not quite the stellar bargain it was made out to be.  Goods were worth price paid, but just barely so.  Hauled a bunch o' stuff with that one for about 3 months, turned around and sold it for the same price I bought it for. 

I currently own 3 Volvo 240's, and paid less than $9,000 for ALL THREE of them combined.  I've had no major repairs or breakdowns, unless you consider a fuel pump on the one with the highest mileage to be major.  Two of the three are minty and beautiful enough to turn heads often; the third (black '91 sedan) is a little more of a beater, but ironically is the fastest of the 3.   

I guess I've just chosen a number: $5,000 is enough to ever, ever pay for a vehicle, and I plan to pay cash or not buy.  That may change as I get older, but it's my contrarian rule at this point.

[matis]

The correct answer to any such question is, of course, because that's what the market will bear.

Yeah, that's pretty much it.  You can, however, do what I do: reject their reality and replace it with my own. 

I like that.  When it comes to finances, never do what most people do.

I like the saying, "Those who don't understand compound interest pay it; those who do understand it -- collect it."

If you're a very high income person and want to treat yourself to a fancy new vehicle  -- why not?

For the rest of us, one should only pay interest on one's home, and on items that produce income or appreciate in value.   Period.

If you can't afford to pay cash, you can't afford it.

So, I shop local lots, eBay, and such.  I've bought a total of 6 cars on eBay, and had only one that I would consider a 'less than optimal' experience.  Not BAD, mind you, and still worth the $500 (yes, five hundred dollars) I paid for the car, but not quite the stellar bargain it was made out to be.  Goods were worth price paid, but just barely so.  Hauled a bunch o' stuff with that one for about 3 months, turned around and sold it for the same price I bought it for. 

I currently own 3 Volvo 240's, and paid less than $9,000 for ALL THREE of them combined.  I've had no major repairs or breakdowns, unless you consider a fuel pump on the one with the highest mileage to be major.  Two of the three are minty and beautiful enough to turn heads often; the third (black '91 sedan) is a little more of a beater, but ironically is the fastest of the 3.   

I guess I've just chosen a number: $5,000 is enough to ever, ever pay for a vehicle, and I plan to pay cash or not buy.  That may change as I get older, but it's my contrarian rule at this point.

A friend of mine also drives Volvo 240s and buys them on ebay.  He currently has 2 sedans and one station wagon.  They look fine and the one he let me drive was great.  He never pays more than $3000 for one.  Sells them for at least what he paid for them.  About a month ago, he bought a $225K foreclosure house for $106K on the court house steps -- cash!  So I guess he knows what he's doing.


My last new car was a 1972 model.  I never paid more than $3200. for a car 'till the truck I'm driving now.

I broke down and bought a 2000 Mazda pickup (really a rebadged Ford Ranger) at the car auction in 2001 for $8500.  Had 13K miles on it and 2 years to go on the factory warranty.  Drove it home and offered my then 12 year old daughter $1 for each scratch she found on it.  Poor kid couldn't find even one (!) so I had to give her some $$ as a consolation prize.

Truck IS a stripper.  Came with radio, AC, automatic, V6 and a bed-liner.  Has rubber floor mats, vinyl seats, wind-up windows and no power door-locks, mirrors or power anything.  Regular cab.

Then I overheard a clerk at an Autozone store saying that his friend wanted $50 for her pick-up topper.  He had her truck in the parking lot.  I asked for her phone number, drove to her house and bought it.  Great aluminum topper, silver,  with no dents or scratches.  She helped me lift it onto my truck.   

Aside from normal maintenance, most I spent on repairs was a pair of front shocks for $40 and a new speed sensor for $21.

I love driving my beautiful red pick-em-up truck.

Point is to learn to do things a bit differently.  Be creative.  Invest what you save.  After awhile, even on an average income, life can become quite comfortable.  Keeps the old Yankee thrift tradition alive, you know.



matis

[Mannlicher]

why so expensive?
labor costs
material costs
marketing costs
transportation costs
import tarriffs
built in cost of the legal support team
expenses to lobby Congress
the cost of borrowing someone else's money to pay for it

these are just some of the reasons

[Art Eatman]

My fullsize 2WD GMC extra-cab V8, 2000 model, esily gets 19 mpg if I run along around 70 mph.  I bought it used w/50K miles on it.  I've added about 64K.  Guess I oughta change sparkplugs.  The heaviest trailer load was a 9N Ford tractor on a 16-foot trailer; no trouble on the fairly steep grades of US 90 out of Del Rio in west Texas.

My wife got fixated on Ford Exploders, back in 1992.  She's on her third, a 1998 model.  Zero problems.  The "tire thing" was BS, from people under-inflating the (bleep) tires.  You run about 35 psi and never a problem.  I'd have no qualms about pulling a 19' outboard with it; dunno about 23' and such.  It gets around 22 mpg on trips.  You can always put Bambi on a plastic tarp in the back.  I've seen ads for a plastic, form-fitting "bucket" to protect the inside of SUVs from "goop".  J.C. Whitney?  TV outdoor shows?  Disremember.

Browse the net to find areas with problems for unemployment.  Probably find better vehicle prices where folks are getting laid off.  West Texas is right at zero unemployment; the ads show vehicles are higher'n a cat's back.

Art

[charby]

I guess since I'm looking at a 4x4 it could inflated becuase winter is just around the corner too, but even 2wd trucks are expensive.

I'm not looking for anything other than plain Jane truck, well except cruise control because I drive a lot of highway/interstate and it keeps me from getting a ticket.

I have thought about a SUV, wife has a GMC Jimmy and its OK. We talked about different vehicles and we figured a 4x4 pickup is best choice because I can throw firewood in the back, wet decoys, dead deer, fish, wet stinky dog, furniture, etc.

One option we have talked about is picking up a 4'x8' trailer, I'll take over the Jimmy and buy her a sedan. I have a pickup right now that the body is falling apart and it sure is nice just to throw crap in the back. Its 2wd and there are countless times each year I wish I had a 4x4 mostly at boat ramps when I pull my boat out of the river or lake.

-C

[Fly320s]

Charby,

I can't help you with a pickup, but I can get you a good deal on a 2001 Jeep Grand Cherokee.    It's a V8 2wd, leather, power everything, about 42k miles, only $10,500.  It's in Dallas.

[brimic]

Guess it has to do with demand.
Domestic SUVs in my area are a dime a dozen. I bought brand new Chevy Trailblazer for about $22,000 a few years ago, about $10,000 under its list price. My BIL bought a 3 year old silverado for about the same price.

[grampster]

I did the trailer thing, charby.  You have to have a place to keep it.  Sometimes where you have to store it is inconvenient, or it'll get snowed in.  Also, relatives and friends will want to use it, so when you want to use it, someone else will have it.  Also, small, short wheelbase trailers are hard to back up because they are below your sight picture usually and it doesn't take much to get them to jacknife when backing.  I installed some cane poles with flags so I could see where it was when I was backing.
 
You're much better off with a truck.  In fact my trailer is at my son's house right now, 35 miles away.

[charby]

Charby,

I can't help you with a pickup, but I can get you a good deal on a 2001 Jeep Grand Cherokee.    It's a V8 2wd, leather, power everything, about 42k miles, only $10,500.  It's in Dallas.

buts its only 2wd....

I want a 4wd!  this another reason why, this is what iowa landscape looks like for 4-5 months a year

[charby]

grampster

I know about short wheeled based trailers, I just gave a 4'x8' one away to some friends. Its was one of those $199 foldup jobs from Northern Tool. It was fine and dandy until 600# of schedule 60 pipe decided to shift on me at 60mph. Twisted that frame in a hurry, it didn't dog track and pulls fine but sits like a transverse plane. (i guess it will drain good) I wasn't too worried when I gave it to a friend because it more than paid for itself in moving my folks a couple times and moving my stuff a few times. My friend uses it to haul around a canoe that I sold to her.

-Charby