This article is talking about the big car deflation. But 25 years ago people did not perpetually lease autos or buy new cars every 2-3 years. The only reason you saw car price inflation and people going through autos like socks was thanks to ultra cheap and open lease/purchase financing. I see us going back to the days when Autos are kept for at least 5-6 years or more. http://www.marketwatch.com/news/sto...x?guid={CE5E35EB-250B-4F6E-91B8-A06F4AAEF8A9}
Mine is just turning 8 with 110k miles. It runs and drives as good as the day I picked it up. If you buy a decent car its good for at least 150k miles and or 10 years min.
How many remember back in the day when you had to put 20% down on a new vehicle even with great credit ? From 20% down to rolling negative equity with zero down and people wonder why the banking industry is so screwed up today.
Car payments are the biggest deterrent to the average American accumlating wealth in my opinion. I am a big fan of having a paid for car and driving it until the wheels fall off. That alone would make a dramatic difference for the vast majority of Americans. Then rather than asking from handouts from the goverment, Americans might actually be able to afford to pay their mortgage, college tuition and retirements without borrowing. It's not uncommon for a family of 4 with children of driving age, to have 3 or more car payments totalling over $1,000/mo. That is insanity, in my opinion.
lots of folks on the perpetual lease program in the range of 450-600 so they can drive those infinitys and Mercedes european taxies (C class here in the us) 450-600+ x 10 years is 6000+ bucks not including the higher cost of insurance etc.. but heavy debt loads and second mortgages etc.. 0 net worth. Lots of bling but 0 net worth, on the edge of a razorblade.
Back then a BMW or Mercedes had status. It took real money to own one. Now days you see them all over working neighborhoods.
Still driving a 40+ mpg beater car, here. Paid $1700 for it in 2004, its 11 yrs old now, still running well. I can't understand why people need to borrow money to buy cars. Drive a beater and save money for a new car when you get rich if you must have something fancy. No shame in that. Disc: Yes, I own a race car and a show car, too, but they were all paid for cash
I got 2 toyotas. One with 150k the other with 113k. Neither one has needed anything other than gas, oil, and tires. I'll drive them until they die on the side of the road or a wheel falls off. I figure that will be another 100k or so miles each.
wow! imagine...a world where thrift is a virtue! good for the environment. focus on something other than external appearances. imagine, also, peace of mind working much less, but enjoying it more...actually producing/helping others