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> The cost of an automobile is an even smaller fraction of an average person's disposable income than it was during Henry Ford's day. I seriously doubt that...

by jtdev 7y ago

> The cost of an automobile is an even smaller fraction of an average person's disposable income than it was during Henry Ford's day. I seriously doubt that... at $50,000+ for a new pickup, and $35,000+ for a new car? And used vehicles are still quite expensive as well (unless you buy an absolute pile of junk). Financing terms keep stretching longer to keep the appearance of an affordable monthly payment, but many Americans have become wary of the overall cost of a vehicle, which is by no means low today.

bumby 7y ago
I agree, but this seems to be driven by people wanting more car features. You can still get manual transmission/manual window cars for $11k.
javagram 7y ago
You can get a brand new car for under $20K (e.g. Honda Civic or Honda Fit) People buy $35K cars because they can. Look at sales of something like the SmartCar. They were very low despite the car being $12K-15K as people were willing to pay more.
- JoeAltmaier 7y ago
  I think the SmartCar didn't sell in the US because the mileage was shockingly bad. You'd expect 100mpg for something that small and light. It didn't seem 'smart' to American buyers at all.
  - javagram 7y ago
    33 city, 41 hwy ? Yeah it’s not amazing but people are buying trucks and SUVs with much worse MPG for more $$$. People want the additional capabilities, safety, or even just the status symbol of having a nice truck or expensive car.
    - JoeAltmaier 7y ago
      Yeah they improved it (double?) because it wasn't selling as it was? Few were going to sacrifice comfort, room, performance for a tiny car with bad mileage. Just because its manufacture was 'eco-friendly'
JoeAltmaier 7y ago
Used trucks are generally a pretty good buy. Demonizing 'used' isn't good advice. On the other hand, it drives down the price of my vehicle purchases. So go right ahead!
manfredo 7y ago
The median income in the US today is just over $60k. You can buy a new car for under $20k: https://www.truecar.com/prices-new/kia/ https://www.truecar.com/prices-new/kia/

by jtdev 7y ago

bumby 7y ago

I agree, but this seems to be driven by people wanting more car features. You can still get manual transmission/manual window cars for $11k.

javagram 7y ago

You can get a brand new car for under $20K (e.g. Honda Civic or Honda Fit) People buy $35K cars because they can. Look at sales of something like the SmartCar. They were very low despite the car being $12K-15K as people were willing to pay more.

JoeAltmaier 7y ago
I think the SmartCar didn't sell in the US because the mileage was shockingly bad. You'd expect 100mpg for something that small and light. It didn't seem 'smart' to American buyers at all.
- javagram 7y ago
  33 city, 41 hwy ? Yeah it’s not amazing but people are buying trucks and SUVs with much worse MPG for more $$$. People want the additional capabilities, safety, or even just the status symbol of having a nice truck or expensive car.
  - JoeAltmaier 7y ago
    Yeah they improved it (double?) because it wasn't selling as it was? Few were going to sacrifice comfort, room, performance for a tiny car with bad mileage. Just because its manufacture was 'eco-friendly'

JoeAltmaier 7y ago

Used trucks are generally a pretty good buy. Demonizing 'used' isn't good advice. On the other hand, it drives down the price of my vehicle purchases. So go right ahead!

manfredo 7y ago

The median income in the US today is just over $60k. You can buy a new car for under $20k: https://www.truecar.com/prices-new/kia/ https://www.truecar.com/prices-new/kia/