My mother is in the same 50% tax bracket as you were. She is lucky enough to have her company give her a new Audi to drive every three years and they pay the gas bill too. She is NOT complaining! Things are too expensive up here.

 

Much of the price of a new vehicle you can blame on the federal government. With every little thing taxed and regulated, CAFE, cash for clunkers, unions, obamacare, etc. The accumulated cost of all that is HUGE.


Closest I've ever come to a new vehicle was a 97 I got in 2002. Today my newest vehicle is an 89. However I'm shopping, but in an even worse category, for a semi tractor.

 

You hit on something very important here. Even if a salesperson can't read his customers, he surely gets to rehearse his spiel daily and make adjustments to what works and what does not when all the blithering is spewing from his mouth. (not all sales people fit this description). An average new car buyer gets to do this what, every three to five years on average?

Then the F&I guy gets to do this what 10-20 times a day depending on lot traffic and effectiveness of the sales team. As a consumer, you'll never say something that they haven't heard.

I walked out twice on my 2011 deal and they literally came out and dragged me back in and let me have the deal I wanted.

A good deal is a good deal, new or used. If you buy used from a dealer then you're at a significant disadvantage as the dealer is under no obligation to divulge what he paid for the car at auction or trade.

 

(My owner/operator customers lately have found great deals on gently used tractors---a few years old, way less than 500K on the clock for less than 50% of the new original price. Not sure where you're shopping but it pays to look around quite a bit today.)

Last time I seriously looked at new cars would have been in '74 or so. The options I wanted sent the "asking" price over $5K which was simply the craziest thing I'd ever heard----at that time anyway.

For the very few cars/trucks I've ever financed an interesting thing became apparent----after the new wears off I begin to loath it, making those payments for years after that just chaps my hind quarters. Because I don't like pain these days I pay cash for whatever I want. Nothing, I say NOTHING to me is so needed or wanted to make it worth financing.

As for dealerships, salespeople (commissioned) or any other retail outfit----you'll simply NOT buy anything from them and come out ahead of them. I don't want this to sound too cynical but its a fact---successful businesses make profits otherwise they cease to exist. In the case of a new truck that say lists for $74K and you walk out having paid "only" $55K who really won? It wasn't sold for a loss, in fact we might be shocked to know how much profit really was made in that "lower" cost.

Mind you I've been around a long time but only within the past 10-12 years began listening almost manically closely to ads and salespeople's blathering---I'm a bit shocked their tricks and manipulations aren't more obvious to more people. Interestingly enough hucksters seemed to have carefully honed their approaches to the general public where even today with instant communication everywhere to everyone the unsuspecting or clueless still spend more for things than they really want or can afford---again the question is "who wins?"

I'll repeat and add my own backwards admiration for salespeople who do and can read the rubes like open books. The art of listening tends to reveal everything we DON'T want them to know or think about us--try it sometime. This gives them a tremendous advantage IF you're even slightly subject to the art of persuasion.

Then again no one is gonna get rich dealing with me---I like to think I'm slightly more savvy than the average buying public, at least that segment who keeps so many of these outfits thriving.

 

Do not go new vehicle shopping around tax return season. That's a peak sales time and you'll be at a disadvantage buying new or used from a dealer.

If you are buying private party it could be to your advantage since the seller may be lusting after a new or different ride and need to sell to make it happen.

 

My family has excellent results buying the dealership owner's wife's car. It seems to work out very well.

 

The thing is most folks these days couldn't tell you what they actually paid for a vehicle. All they worry about is "how much are the payments". They run out of the door with the keys and a smile on their face not realizing that they more than likely just got reamed. Just give me the price, I've got enough sense to figure out the rest.

I bought my last new vehicle in 04'. I used to buy and or trade every year or two. Between shoddy sales folks and worthless warranties, I'll continue to drive used for now.

I have to say, that buying a big rig was a whole lot nicer process than purchasing a regular vehicle.

 

Don't you just love when car commercials feature the finance rate instead of the purchase price?

 

Two words: Money supply. Quantitative Easing 1, 2 and beyond have put many, many dollars into the U.S. economy with no real value to back them up. Prices have risen accordingly on many things.

Jason

 

Yup. Hopefully free market equilibrium will kick in, but the tinfoil hat economists just can't keep their hands off.

 

The "market equilibrium" is called inflation, and it's absolutely kicking in.


A conservative cumulative inflation rate for the last decade is 23.4%, That means on average everything costs 23.4% more then it did 10 years ago, every dollar you had 10 years ago is now worth 23.4% less, and unless you make 23.4% more now then you did 10 years ago then you're actually making less then you did then.


To take that further, these #s are likely based on government numbers so likely quite low as the government doesn't take into account "staples" like food and fuel.


If you have a retirement account unless it grew by more then 23.4%(without you adding) in the last 10 years then you lost money, and if for example it grew 50% in basic figures it actually only grew 26.6% adjusted for inflation.


Same follows for income, if you worked your **** off to grow your income to 50% more now then it was 10 years ago, you actually didn't. Adjusted for inflation your actually only making 26.6% more then you did 10 years ago.


On the flip side it also means that gas now with the recent drop is very likely cheaper then it's ever been.


Inflation is a tax on everyone with savings and everyone who is owed money. Those who have savings are taxed by it being worth less, those who are owed are paid back with money that is worth less. This is why our government will ALWAYS promote inflation, and inflation is a large part of their financial plan. They owe and don't have savings, thus they benefit GREATLY by "printing" more money to spend instead of tax it. They don't even have to print it anymore, the fed just adds to digital accounts.