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Aside from the points mentioned in the article, I see a lot of arguments about economy: Real income isn't rising while cars are getting more and more expensive.
by kh1 5y ago
Aside from the points mentioned in the article, I see a lot of arguments about economy: Real income isn't rising while cars are getting more and more expensive. Just checked the price of new Leaf, and it costs the same as median 1 year salary (before tax).
I think that explains why much gasoline "kei" cars (i.e. cars with less than 0.66 liter engine) are popular. They are much cheaper to buy, cheaper to maintain, etc.
- sokoloff 5y ago> Real income isn't rising while cars are getting more and more expensive. New cars have risen in price slower than overall inflation for decades (at least in the US). In real terms (comparing against flat real incomes), cars have gotten cheaper, not more expensive. https://images.app.goo.gl/evJLcuDezo1scu8e9 https://images.app.goo.gl/evJLcuDezo1scu8e9 In case that Google image link dies soon, here’s another, slightly different one that’s likely more durable: http://dvschroeder.blogspot.com/2013/08/college-tuition-has-outpaced-inflation.html?m=1 http://dvschroeder.blogspot.com/2013/08/college-tuition-has-...
- lostapathy 5y agoAlso worth factoring in is that cars last longer and with less maintenance than they did a decade or two ago. Electric cars should require even less maintenance. If today's car costs 50% more than a car from a decade ago, but it lasts more than twice is long, isn't it actually cheaper?
- fomine3 5y agoHere in Japan, it's considered that it's good timing to replace car before 100,000km, 200,000km is too much, and 300,000km is really overkill. Maybe the BEV advantage isn't much attractive since such lower mileage and people run reliable Japanese car.
- kh1 5y agoI meant arguments I see in Japan. In fact, car price movement is different in Japan, steadily rising since the 90s. [0] (Written in Japanese; The second chart is CPI-adjusted car prices) Also PPP against US has been declining. [1] [0] https://news.yahoo.co.jp/byline/fuwaraizo/20200519-00178444 https://news.yahoo.co.jp/byline/fuwaraizo/20200519-00178444 [1] https://knoema.com/atlas/Japan/topics/Economy/Inflation-and-Prices/Purchasing-power-parity https://knoema.com/atlas/Japan/topics/Economy/Inflation-and-...
- masterof0 5y agoMaybe before COVID, but car prices are insane right now. Just go to carvana.com , or carmax, etc... You are seeing for example: a 2010 corolla with 100K+ miles in 8K+ dollars, total madness, you could get this car for 4 to 5k easily. I put this example, because this is the type of cars regular folks have access to. Dealers don't even show MSRP prices anymore, in most official sites I have seen in the west coast, you have to call in.
- sokoloff 5y agoLumber prices were also insane until the last few weeks. That’s not indicative of a structural change in the market sustainable over a long period of time.
- repsilat 5y agoMeasured auto inflation is low because of hedonic adjustments. The sticker prices have gone up a lot, but their quality/value (according to folks measuring inflation) has gone up more. For a somewhat tendentious account, with graphs: https://wolfstreet.com/2020/11/11/my-pickup-truck-car-price-index-for-2021-models-crushes-official-cpi-for-new-vehicles/ https://wolfstreet.com/2020/11/11/my-pickup-truck-car-price-... Not sure what to think of it. Obviously reversing cameras, working A/C and better fuel economy are important and real improvements worth real money.