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In another look at the growing affordability crisis in America, Ray and Zach run an experiment with one new and one used Nissan Rogue to see if either of them can fit within the budget of a median household in Texas.
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Might be a manufacturing supplier shakedown soon, with multiple companies going belly up. Or it will be entry level and high end vehicles, with very few mid priced options.
I don’t know about most other Americans, but I certainly can’t afford a new car. Average payments are rediculous.
One of the best financial decisions I ever made was to stop financing new cars. I buy used cars with cash, $5 to 10K. no car payment. and the cost of maintenance and repairs is far below what I used to pay in car payments. Once you can get past the idea of a car as a status symbol, and think of it just as a means of transportation, you will be much better off.
I see people driving brand new cars everywhere and not working either driving around on weekdays. Apparently I must be doing something wrong working all the time 😂
best advice buy a 10 year old camry or corolla drive for the next 20 years
A hundred grand for a new truck all of the company’s are going to go out of business soon they are not many people that can afford it so let it be
Are we assuming these 2 working people are sharing a vehicle?
Can you stop making that face in your thumbnail
This blip will last as long as tax returns do, that’s it. Then it’s repo heaven and carmaggedon time.
For me I could afford a new car but I would instantly be living paycheck to paycheck. For an average car note plus the increased insurance costs that's $500 a month easy. So I'll just hold off another year or two or three while I drive my beater.
I’m holding out for the slaughter… I drive a 2003 Tacoma with 347k miles. I will rebuild her if I have to to avoid paying these prices.
I want the current Gen 4 runnner before they ruin it with turbos… the inventory is so low.
But our luck is the maker will crash and they will just get a bail out.
Side note; I still find it nuts how ppl can willingly spend over $60-100k on a new vehicle and the manufacturer only provides a 4 year 60k miles warranty, let alone the subpar "shitty" (imho) 2 yr technology and or electronics warranty…
I wouldn't factor gas as you need to buy gas regardless of the vehicle
The only new car I can afford that is of any quality is a Nissan Versa!
Somethings gotta give. I simply don't understand it. I can't even afford a Corolla now. What in the hell is going on? We've truly become a nation of 1% and 99% can go phuck themselves. Even if you make 100K if you live in or near a city that's paycheck to paycheck, even eating hot dogs and PBJ for food.
You have to make six figures fol that vehicle foh… if you said a BMW or any other luxury car I would say okay but for that Nissan please that's a joke
As a long time south TX resident, I find the medium income for a 2 earner household ridiculously low. Nobody, family or friends are making that little. My step son, high school dropout, working as a garbage man makes that much on his own. Then his young wife working at a daycare of all places is making $17 an hour which comes out to about 35k.
I must say I usually enjoy your videos, but you guys dropped the ball on this one.
With Ray goofing simple math and then getting the sales tax in TX wrong. It has been 8.25% NOT 6.25% as long as I can remember and I ain’t no spring chicken.
From Google: “The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions (cities, counties, special-purpose districts and transit authorities) also may impose sales and use tax up to 2 percent for a total maximum combined rate of 8.25 percent.”
$505 payment for 8 years on a NISSAN ROGUE
It’s easy to see how overpriced vehicles are already impacting our transportation in the US. Car dealers are selling less and less cars every year. The only way they continue to survive is by raising the prices of the cars they can sell. Basically, less customers are supplying more of their revenue. On top of that, car dealers are using the revenues from their service departments to supplement the loss in their sales. That’s one big reason why car dealers don’t want to sell pure EV’s because they take less maintenance. Dealers would be suffering even more if they had less revenue from maintenance. That’s why they want to build and sell hybrids because they have even more parts that can break than a traditional gas engine vehicle.
Another sign of overpriced vehicles is apparent in the rideshare industry. Uber continues to break records with rideshare customers, even during a time of rising fares. This is because so many people continue to lose ownership of their own vehicles, due to high costs, repossessions and mechanical issues, which they can’t afford to fix. As more people continue to lose access to their own personal transportation, we’ll see demand for ridesharing continue to rise, as people still need to find ways to get around. Uber is basically benefiting from the car industry’s overpriced vehicles.
I don’t want to get into housing, but it’s the same thing. As people continue to get priced out of owning their own houses and vehicles, they are forced into renting those items. In turn, any business that supplies automobiles and housing via rent will profit. People that are forced to continue renting are just pissing $$$ in the wind.
Great info. This why several years ago I started buying only low mileage used cars with in my budget. To stay current with trends I buy vehicles that the model has been out for a few years but still current in styling. Finally I only buy in stable or down market. Avoid the current over priced situation. The number one thing to remember is vehicles are consumables not an investment. You will never see the money you spend on your vehicle again.
10% should be from post tax not pre tax! 🙂
Adding the insurance is kinda mundane.. if you drive a old paid off car you still have insurance…. Bottom line cars and trucks started to be unaffordable around 2010… now we’re in 2023 and they’re just insane and people are just buying in on payment… the dealers just keep added 12-24 more months to the loan… 60 months is enough.., 72/84/96 is just asinine.
Go chiefs !!!
I would not worry about the repayments too much in Texas, someone is likely to gun you down before you have paid off your car.
Ppl are not paying any longer. Suckers pay these prices…I was at a used car dealership the other night and there was NO ONE else in there…just salesppl…This guy was trying his best to sell us a car…I respect working ppl, but we just could not find anything decent in our budget…So, we drove a bunch of cars and bought nothing…It was fun driving cars. I think that the recession will hit us like a ton of bricks and car prices will drop BUT prices are sticky on the downside, so we shall see. I think i am going to stay put for now…
For apartment dwellers in major cities paying for secure parking can run $200-$300. Add that to the cost of buying.
Ten percent of total NET income should be the most spent on a vehicle and the loan should never go beyond 60 months.
Out here makin’ it work with a ‘95 Montero Mitsubishi🥴 But man I’ve been hanging on since last year waiting to buy something newer. Imma flip a table I swear…
I’m in the market for a new car and was interested in the Nissan Z or the Toyota Supra. None are available. One dealer had a Z on which they were charging a premium over MSRP. So I view this as unavailable too. I can pay cash for a car but won’t pay gold-plated prices.
Got a use buick enclave for 17 for 390 a month 100 month full coverage
Ten, twenty years ago, before the Fed started all this bs, the people could afford anything. Now, they can afford nothing!
$662 for a rogue I'm officially done. It doesn't get any cheaper than Nissan rogues quality and price just a mess
Your best video yet. Too bad it's going to fall on financially illiterate ears….those of the average American consumer.
That new name hit ngl 💪🏽
all these people buying these ungly suvs……and expensive…..ohh…i hate suv,s …hump shaped…..short wheel base boxey things
And that's only 1 car for 2 people going to jobs. They will need 2 cars to last for the period of the loan.
Affordability:
If we can't afford the payment on a 3 year loan for the difference between the value of the trade-in and down payment and the out the door price of a vehicle then we should be very concerned with the affordability of the vehicle. Why? Because a vehicle is a depreciating asset and if we encounter an unforeseen financial reversal the asset will be underwater.
People are going by the %90 rule not the %10 rule 😮
Well number one we don't need all the gadgets all anyone really needs is a engine, transmission, heat, ac and a good radio everything else needs to go then there is a vehicle most can buy it's just that simple.
Capitalist free market economy at work (nothing wrong with that in this example). Pandemic reduced the supply, demand boiled over. Suppliers raised prices to point where new demand can match supply. This balancing act is a process. Now, with increased prices if demand moderates, suppliers may have a reason to start selling cars cheaper. The average consumer has only one power in a free market – the power to withhold purchase.
It's no a major problem, it's us as consumers who over buy and over pay. If we stop, they stop. Hit 'em where it hurts!
The current pricing explosion is not merely only occurring in the automotive industry. What's actually happening (in simple terms) is that your 'dollars' no longer have the *purchasing power* as they did prior to ~2008 due to rampant inflation. Inflation is simply the devaluation / destruction of the purchasing power of a nation's currency. The current inflation is primarily due to *extravagant and profligate (reckless) government spending* resulting in your money becoming more and more ***'worthless'***.
Its very hard for the consumer to even track the ongoing inflation. What the government 'reports' as (Consumer Price Index – CPI) inflation does NOT include food, fuel nor taxes, etc.; 'REAL' inflation can be approx. estimated by simply 'doubling' the govt. published amount. That 'real' inflation rate% should then be compounded yearly (by internet interest rate programs) to get an appoximation of what your government is **STEALING** from your wallet, and totally without your consent !!!!
Rx: the auto dealers are NOT being greedy (more than usual). They are just trying to 'keep up' with the INFLATION that is destroying the *value* of ALL US 'money' and all items whose 'value' is based on US dollars …. The 'dollar' purchasing value **now approaching approx. 1.5—2¢ !!!!! per 'dollar'** (in comparison to recent US 'dollars').
Doesn’t all of this just prove the case that dealerships are terrible for us consumers? Imagine if we could all just buy vehicles for one price directly from the manufacturer like Tesla.
You are completely wrong…. There are PLENTY of affordable cars….
Not even hard to find at all!!!!!
Mansions are not affordable but there are plenty of affordable houses!!!
I have 3 cars I want another one
and it seems the dealerships are completely content with not selling some cars, even though they have 3 in the entire lot – they are hold out for someone to pay 20% over sticker
This is all part of the government plan. They don't want you to own a car. They don't want you going places that they can't control your movements around. It all about control the poor people and keeping them under control while the rich do what they want. It happening everywhere and nobody talking about it with all their one world rule. They are taking your right and freedom away and people are to stupid to see . They don't want you to own a car
So very true!!! I started looking a month ago and have been disheartened by inventory, loan rates, and pricing. Even used cars are overpriced.