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Distracted driving + expensive new cars = "crazy" premiums. We all pay the price when new cars are priced in the upper 5-digit and 6-digit range and a fender-b

Distracted driving + expensive new cars = "crazy" premiums. We all pay the price when new cars are priced in the upper 5-digit and 6-digit range and a fender-bender costs $5K - $10K.

toomuchtodo 2y ago
Automakers charge what the be auto market can support. They can limit supply to keep prices high. Used car market is limited by new car market sales. Structural demographics means there are less workers every year (auto repair labor costs). Costs are unlikely to decline.
- deleted 2y ago
  [deleted]
- gosub100 2y ago
  > Structural demographics Is that an euphemism for "refusing to pay a livable wage"?
  - reaperducer 2y ago
    Maybe it means fewer people being born in car-producing and exporting countries.
  - toomuchtodo 2y ago
    It is wages accelerating to a living wage and past that because of the fertility rate curve. Similar to a bond curve, but expressing productivity available.
  - l1tany11 2y ago
    Or it is a reference to everyone apparently needing to go to college etc, and there being a nationwide shortage of people entering into trades, mechanics, fabrication, machining, etc. All the “bad” jobs you should stay in school to avoid. Turns out we live in a built environment, not everyone can sit in a cube.
- reaperducer 2y ago
  Used car market is limited by new car market sales. I think the used car market might be crazy right now. When COVID hit and everyone was clamoring for used cars because new cars couldn't be made/imported, I took my wife's low-end car to CarMax for an appraisal. It was a fair offer, but I didn't bite. All these years, and 25,000 miles later, I brought the same car back to CarMax a couple of weeks ago, and the appraisal was almost double what they offered the first time. This time I let them have it. I don't see a lot of talk about used car demand anymore, but based on my experience, I think it's still high.
  - xnx 2y ago
    Used car prices are dropping, but still very elevated from pre-pandemic: https://site.manheim.com/en/services/consulting/used-vehicle-value-index.html https://site.manheim.com/en/services/consulting/used-vehicle...
- smileysteve 2y ago
  I think the used car market is suffering from a few things. Some states implemented "extreme" used car sales taxes (Ga) Cash for clunkers,zirp, caused a surge of new cars after 2008. Cars produced after 1996 (OBD2) and 2003 (wideband, multi fuel), and 2008 (8 speed zf transmissions with full lockup - and dsg for sports cars) are incredibly reliable - especially with a 100k mile warranty and service packages. Then you have the 2017 tax cuts, compounded with 2020 chips shortage. Somewhere you also have ev incentives
smileysteve 2y ago
We also all pay the price when state insurance minimums don't keep up with replacement, repair, or medical costs. - $25k bodily injury coverage might cover CT scans and a broken bone at best. - $25k property damage coverage might cover replacement of the bottom 25% of vehicles sold the last 5 years.

Distracted driving + expensive new cars = "crazy" premiums. We all pay the price when new cars are priced in the upper 5-digit and 6-digit range and a fender-bender costs $5K - $10K.

toomuchtodo 2y ago

Automakers charge what the be auto market can support. They can limit supply to keep prices high. Used car market is limited by new car market sales. Structural demographics means there are less workers every year (auto repair labor costs). Costs are unlikely to decline.

deleted 2y ago
[deleted]
gosub100 2y ago
> Structural demographics Is that an euphemism for "refusing to pay a livable wage"?
- reaperducer 2y ago
  Maybe it means fewer people being born in car-producing and exporting countries.
- toomuchtodo 2y ago
  It is wages accelerating to a living wage and past that because of the fertility rate curve. Similar to a bond curve, but expressing productivity available.
- l1tany11 2y ago
  Or it is a reference to everyone apparently needing to go to college etc, and there being a nationwide shortage of people entering into trades, mechanics, fabrication, machining, etc. All the “bad” jobs you should stay in school to avoid. Turns out we live in a built environment, not everyone can sit in a cube.
reaperducer 2y ago
Used car market is limited by new car market sales. I think the used car market might be crazy right now. When COVID hit and everyone was clamoring for used cars because new cars couldn't be made/imported, I took my wife's low-end car to CarMax for an appraisal. It was a fair offer, but I didn't bite. All these years, and 25,000 miles later, I brought the same car back to CarMax a couple of weeks ago, and the appraisal was almost double what they offered the first time. This time I let them have it. I don't see a lot of talk about used car demand anymore, but based on my experience, I think it's still high.
- xnx 2y ago
  Used car prices are dropping, but still very elevated from pre-pandemic: https://site.manheim.com/en/services/consulting/used-vehicle-value-index.html https://site.manheim.com/en/services/consulting/used-vehicle...
smileysteve 2y ago
I think the used car market is suffering from a few things. Some states implemented "extreme" used car sales taxes (Ga) Cash for clunkers,zirp, caused a surge of new cars after 2008. Cars produced after 1996 (OBD2) and 2003 (wideband, multi fuel), and 2008 (8 speed zf transmissions with full lockup - and dsg for sports cars) are incredibly reliable - especially with a 100k mile warranty and service packages. Then you have the 2017 tax cuts, compounded with 2020 chips shortage. Somewhere you also have ev incentives

smileysteve 2y ago

We also all pay the price when state insurance minimums don't keep up with replacement, repair, or medical costs. - $25k bodily injury coverage might cover CT scans and a broken bone at best. - $25k property damage coverage might cover replacement of the bottom 25% of vehicles sold the last 5 years.