I don't disagree that young folks can harm their finances by spending gratuitously on cars. But, I see it differently as far as long-term trends. I'm actually

I don't disagree that young folks can harm their finances by spending gratuitously on cars. But, I see it differently as far as long-term trends. I'm actually surprised at how stable new car prices have been, while the quality and capabilities have been expanded. Let's consider two benchmarks, because these are ones I've thought about before. I'll consider a two decade period from late 1990s to late 2010s, so also ignoring the recent pandemic market distortions. One is a practical economy car, e.g. Toyota. The other is an entry-level, all-wheel-drive luxury/sports sedan, e.g. Audi. A 1997 Corolla at $14k compared to a 2017 Corolla at $18k (28% increase). A 1997 A4 at $28k compared to a 2017 A4 at $38k (35% increase). But, this ignores that the newer cars were up-classed and almost competed with their larger sibling models from twenty years before. The 2017 Corolla and A4 were nearly as big and well equipped as the 1997 Camry and A6, respectively. To try to stay at more similar size, power, and features, consider a lower model class for the later time period. A 1997 Corolla at $14k compared to a 2017 Yaris at $16k (14% increase). A 1997 A4 at $28k compared to a 2017 A3 at $32k (14% increase). During the same time period, other living expenses like housing, health insurance, and energy pretty much doubled for me in California. The median US household income also grew from $37k to $60k (62% increase) in this same time frame. So, I see the new car market as having significantly "beat inflation" in a practical sense.