No brakes: Car prices set record

[gristy]

NEW YORK (CNN/Money) - The average cost of a new car raced to a four-year high in the third quarter, according to a report by a Detroit-based bank.

The average price of a new car was $27,958, including financing charges, up six percent from a year ago, according to Comerica Bank.

It took 26.2 weeks' worth of an average person's salary to buy the average new car in the third quarter. That's 1.5 weeks longer than in the previous quarter of the year, according to the report.

http://www.cnn.com/2005/AUTOS/11/17/car_price/index.html

[dcfirefighter]

1. Meh.

People are buying more expensive cars. That's not necessarily a negative economic indicator.

1) Used cars are better than they've ever been
2) Just because the average price is higher, doesn't mean that the price of entry level cars has risen (and they're better than they've ever been as well)

[Deja Q]

2. The lower-priced cards are fall-apart plastic crap anyway.

[triguy46]

10. See my post #9

[ikojo]

3. I wonder how much longer are people going to be

able to afford cars whose price tags approach the yearly salary of many people?

I have a Vespa LX50 that cost $3800. It's the first gas dependent item I have owned in 15 years.




Yes, I ride it in the cold. I scooted 15 miles to work in 20 degree temps this week.

I wont ride it in the rain, snow or ice. Thankfully I live in St Louis and we tend to have relatively mild winters.

When it snows or rains I take the bus to work. Car free in St Louis isn't easy but it can be done.

[triguy46]

11. "I owe my soul to the company store"

Mortgaged to the hilt on the housing bubble, driving a behemoth with a 6 year note that they will be upside down in when its time to trade the junker in.

$27K, for what??? Hell a camry is less than $20 and its the best selling car in the US. Must be the SUV suburban/Hummer crowd.

[Dogmudgeon]

4. But -- this could be a leading inflation indicator

Prices by themselves are difficult to use as an indicator. The increasing prices of cars could be a good, or a bad, development.

But it does mean that it's harder, overall, to buy a car.

--p!

[FrankX]

5. I'm buying a $15k Toyota Corolla. Last one has 225,000mi. on it.

I'm happy with it. Runs great still.

[Skink]

6. Pre -owned.

The average time for a car to stay on Car Max's lot is a week. For good reason today's 2 year old used American car is better than a 10 year old Japanese car and cheaper.

[bananas]

7. In a few years we'll be hearing about "The Car Bubble"

it's a logical progression:
Stock Market Bubble
Real Estate Bubble
Car Bubble

[triguy46]

12. People upside down in car loans right now...

that is the automotive equivalent of the bursting housing bubble. Taking a 6 year note on a car, try to trade it after 4 years and 100K miles and its worth less on trade than you owe on the note. The dealer will take the balance add it to the new car sale, another 6 year note, with higher payments yet again. This is silly.

Buy a Scion for $14 k, or a Hyundai for $17K and a 100K mile warranty. But to AVERAGE $27K for a new car is freaking ridiculous as a nation.

[jedr]

8. to me, the higher priced car was the best deal;

bought a 03 Honda Accord. Figured it will last 10yrs. Has only depreciated 4k in three yrs and that's taking the big hit of buying it new, the car will depreciate at a slower rate form here on . A 10k new car is shot in 5yrs with 3 yrs of that having major repairs. However the other side of the coin is that new cars are not selling that well and dealers are give all types of incentives on American cars. It all boils down to dollars/miles.

[triguy46]

13. Not sure there are $10K cars anymore

the scions are a good deal at $14K. But your Accord is well under the $27K average by a long shot, so it may be "higher" than some, but way under the sick average.

[jedr]

14. O.K. 15k then, but dollar/miles is still the key...

the Accord is under the 27k mark, but still what I consider a higher priced car, but then I'm old and think that 30k is way too much. On edit; top of the line Accord is in the 23-25k range, and Honda dealers don't dicker.

[triguy46]

16. Yep, knew the no-negotiating part when I bought my civic.

[triguy46]

9. $27K is the average?????

Its just a car, for gods sake! Its not your identity, its not the meaning of life, won't make you better in bed, live longer, keep you hair from falling out.

WARNING: SMUGGERY ALERT!!!! I'll put my new 2006 Civic for $17K up against most. Fast, quiet, comfy, and we're getting 34 mgp combined city/highway, with a high of 700 miles at 41 going out to Santa Fe last month.

[AndyTiedye]

15. Hybrids May Be Driving the Average Up