Average Family Can’t Afford Average Car

Even a Kia can top $30,000

Even a Kia can top $30,000

The average cost of a new car in America is now over $32,000. The average American household income is about $51,000. That means the day has finally come that the average American family can’t afford the average American new car.

That, friends, is a problem.

Why are cars getting so expensive? I remember shopping for new cars just 10 years ago and looking in the mid-$20,000 range for a decent family hauler. A car over $32K was simply excessive. In our modern times, though, excessive has become the new normal, and nothing good can come of that.

There’s a simple solution, of course, if you want to buck the system and tell the makers of new cars that you’ve had enough. Continue reading >>>

Japanese Destruction Leads to Higher Car Prices

Toyota Prius

Will the Prius sell for more than MSRP?

As supply dwindles and production continues to sputter, new-car shoppers are already seeing higher prices for some of the more fuel-efficient Japanese vehicles.

The cost of the imports is going up, because earthquake-related production shutdowns in Japan are reducing supply of the autos that people are increasingly snatching off dealer lots.

That’s a simple supply-and-demand equation, with cars like the Toyota Prius and Honda Fit becoming more popular as gas prices get closer to $4 per gallon. It just so happens those are also two of the cars hard-hit by production slowdowns, and dealers are raising their prices, in some cases, to over MSRP.

Will a similar price increase trickle down to used cars? It’s entirely possible.

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