I have noticed that not only that the price of used cars have gone up, but the new up and coming cars have gone up in price due to manufacturers jacking up the price.
I understand that there are supply chain issues and growing trend for reduction of reliance on China but will this be the new normal price?
They said that about house prices too!
One thing about Covid times, those prices hikes of items, are here to stay. Are there many things that have come down in price since Covid started?
ETFs
Major parties: negative gearing to be added so prices will continue to accelerate in the fast lane
Used $TSLA selling more than the original price.
Who would have thought that was possble?
You should see what 200 Series Landrcruisers are doing at the moment, bloody crazy.
I've seen a few for $120k - $200k is insane…
In the US many dealers have added 10 to 15 k to what they call sticker prices. Take it or leave it.
Tesla is selling imperfect cars with panel gaps within 8 days exactly priced as advertised. Later they send vans out to patch them up.
Personally I would take an imperfect Tesla over some legacy buttons everywhere crap!
Go and compare an Audi e-Tron with a model Y. Legacy polished junk vs high tech with slight optical quirks.
I personally hate everything operated through touchscreen, very difficult to use while driving. Much prefer physical "legacy buttons".
Glad you keep the Tesla wait list down. When the first Iphone came out was the same. 1000s of Blackberry users would spit onto any touch screen.
Test drove the Merc MQA. Good effort to serve the posh blended. Even the salesman admitted that every client he had that ever drove a Tesla would just laugh at Merc. Audi anyone? Meanwhile I know dozens of Audi defectors driving yank panel gap clutters. They all agree that getting off the mark is more important than fake Olympic rings!
@payless69: The difference between phones and cars though is that you can focus fully on a phone but in a car you only have your peripheral vision at best to operate it, and often not even that, you would be operating by muscle memory and feel.
@payless69: A phone is not a car. My car has both touch screen and physical knobs for climate control, I use the knobs, because I know where they are, and they are usable without having to take your eyes off the road.
Also, telsa isn't some pioneer of touchscreen, I had a car that was built in 1992 that had touchscreen only climate control.
I also dislike the idea that my car suddenly stops being functional if the computer/touchscreen stops working.
I understand that makes me an out-of-touch boomer longing for the days of manual transmission and car interiors that look like airplane cockpits, and that I'll be dragged kicking and screaming into the new world. I will absolutely be kicking and screaming all the way, though.
@whatwasherproblem: Tech Rax has a youtube for you: He smashes the Model 3 screen while driving. Does NOT affect the car at all.
You better buy a VW. There you can admire buttons!
I would take well organised buttons over touchscreens any day of the week. It's hard to quickly hit something on a touchscreen, especially if the manufacturer buries functions under submenus like they do.
Having said that, the Audi e-Tron looks like the worst of both worlds - the center console is cluttered with disconnected screens. Why?!
Cries in 2016 Honda Accord
You can have my used toilet paper for more than new.
Not possible. Just fools and their money.
Reading people paying $100k for a Hyundai EV6. I guess with all the free solar they have payback in 50 years.
The longer oil stays in the $100s the better for $TSLA hodlers.
$TSLA is the way.
My $2000 1992 Bimmer is now worth 5x -7x that now… 30 years old!
E30?
E36… M50B20 upped a size.
I did restore it. Paint, Interior, Mech and Elec all spot on.
It'll make public transport relatively cheaper, which is a good thing for the environment.
Exactly the answer of the new Labor Government in Germany. Ultra cheap train tickets to bridge the wait for electric cars.
fat chance the NSW govt is going to decrease public transport prices
As a pensioner I can travel once a year from Cairns to the Gold Coast taking around 30 hrs. Queen 'zuck steals over 2 k from the public purse to subsidize this trip.
Fat chance, I have time for a cheap flight. Had a look inside this train one day: Sterile outdated and 3 seats across. Sorry I pass!
In Communist South Australia seniors can use public transport for free. Or at least eventually they will, it was an election promise. Apparently it will only cost a million a year; the boost to retail will probably more than pay for that cost in taxes.
@AustriaBargain: I guess living under double comrades we are going to see more of it: QLD has told their privatized power company to surcharge married couples for being bigots and stupid. Comrade Bill has just increased the NDIS so he can sing: I shot (it) Sherriff and I am going to get away with it?
QLD has told their privatized power company to surcharge married couples
Eh, what's this?
@brendanm: Well their accounts department is no longer geared for new shared accounts. So having an investment property in both married names made them to just turn the power off. 6 days no power, airbnb clients trying to sue us for renting to them without power. Eventually it had to go to one single name. This means a way for a communist state to "create" more employment as we have extra accountant expenses. New in QLD: To build a garage or pool in Nth QLD you do need a Koala clearance certificate. The nearest Koala colony is over 1000km away. but no certificate the state tells the council not to issue a building permit. Thank you all Labor voters. If they find that you belong to another party, then they take your money and refuse to issue you with permits and licenses! Some QLD Oft licenses will take 5 1/2 half months to be issued and then only after 40 phone calls each being on a 13 numbers on average 3,5hrs. When I was with TPG fix line they charged 13 numbers by the minute and I spent $80 on calls talking to a QLD dept. QLD transport issues receipts for a lower fee than they collect with the ONLY way of payment accepted being card!!!
How exactly does increasing demand for public transport make it cheaper?
No, increasing the price of cars makes public transport relatively cheaper. Relative to the price of buying and running a car. The cost of public transport could double, but if the price of owning and fuelling a car increases enough then public transport could still get relatively cheaper than driving.
Running a car has always been more expensive than public transport. You're not decreasing the price of trains and buse rides, you're just making them seem less expensive. That's a very different thing.
You also didn't account for the increased demand on the public transport system if cars are unaffordable. More people riding the train means limited seats avaliable, which means the government must increase spending to keep up with demand. We end up paying for that.
@SlavOz: The more expensive cars become, the cheaper public transport becomes relative to the price of cars. If trains are full and twice as many people suddenly start catching trains, the government can just buy twice as many trains. Trains might be full at the moment, but when a train pulls away from the station full to capacity with 1,200 people is it leaving 1,200 disappointed people on the platform?
All former East Bloc countries provided free public trams. Bribes were needed to buy a Trabant!
What goes up must come down, its just a question of time.
theyve been saying that about house prices for the last 20 years
The difference is the government has consistently poked the housing market with new policies and regulations to control the price. It's the most artificial industry in the history of capitalism, maybe except diamonds and Pet Rocks.
As far as I know, the government doesn't really touch cars. Sales regulations are minimal. Anyone can buy or sell. No bail-outs for car owners etc. So it's more of a free market. Prices will eventually correct themselves.
After 20 years
If you are waiting for prices to come down so you can buy don’t hold your breath.
IMO:
1. buy now if your old car is almost dead or your situation has changed and you need a different style vehicle.
2. Wait 1-2 years if you are upgrading ‘just because’ and your current car is fine. Supply chain might have settled by then meaning prices should normalise a bit more.
3. Wait until a suitable (for you) EV is available and jump in then. Prices don’t really make a lot of difference compared to petrol savings.
Only way prices are going to drop a lot is if supply increases and they can’t sell new stock. Fossil fuel vehicles may get cheaper if EVs come down and oil prices rise a lot.
It the new world way to order.
Cars are a mass produced product. They are not scarce or limited in supply. Complex supply chain issues have driven prices up but they will eventually fall. I'd estimate over 12-24 months.
New rules mean cars have to abide by green regulations most future cars will be hybrid mix so more expensive
But as @tanksinatra has said inevitably all cars will come back to where they were pre-covid, yes prices for new cars will be higher due to inflation & better technology.
Lets not forget though the car industry was on its knees in Australia pre-covid (we were in a recession) and discounting was rife, we're heading straight back there once the supply chain issues clear up.
Between the cars being churned out of China and India, plus the increasing economies of scale for EV’s they’ll all come down in price soon.
Car makers could take a page out of Apple's playbook and hike prices every time a new model is released.
Saving on resources and 🏦 big profit would be financially justifiable.
If you after a any particular car that you really want it new, waiting list is 12 months. Will that answer your question?
pre orders got cancelled for volvo, reduce production for toyota.
plus more people entering into the market, old/damage cars need replacing.
war in ukraine etc.
supply chain, fuel prices.
demand to copper (for electric)
Newer cars will have more features thus will be more expensive
Hopefully the gov will open up more to cheaper cars from China so prices will go down
The feds removing taxes will make Australia a dumping ground for cheap junk.
Bidanese would be blinded to get GM back just because they are unionized.
Poor Yanks, having to put up with outdated junk!
2022-2023 cars got less features due to chip shortage + supply chain issues.
plus most fuel variants going to be decommissioned for electric.
2024 will be new generation of cars, mostly electric.
Because people don't want to go out to crowded places to eat etc. Services industry is in the dumps. All the money is diverted to physical goods.
Already a problem in WA with lock down pets dumped.
There is enough material being bought right now to run a season of "Horders" for the next 100 years.
People swimming in GPUs 😂
It's likely that the price rise will be permanent, but equally once supply chains are ironed out they'll then stay at that price for a considerable length of time.
As a rule, car manufacturers don't like bringing prices down as it deflates resale prices. Accordingly, the cycle will likely be prices go up, margins go up … leading to prices stay steady and margins go down.
If people are willing to pay for any ridiculous prices asked then you can't blame the manufacturers/dealers.
People talk about bubbles. They just don't now they are blowing them.
Dont worry… Interest rates are going to rise and all the mum and dad "investors" with 17 houses on "interest only" loans are going to have to start selling back their assets soon to keep this housing bubble from popping. Cars will start flooding back into the market soon enough.
I have noticed now that we are allowed to leave our houses and travel again, big boy toys like motorcycles and the like are certainly starting to come down in price and the market is once again filling to the brim as people want to sell up the toys and go back to the bars of Bangkok and the Philippines.
Wait you're telling me that Realestate.com and Domain are pure propaganda?!
But yeah, a 1% increase on a $800,000 mortgage is $8k a year.
If this happens multiple times across multiple properties either they raise rents (going to be difficult given how stressed everyone is, or heavily negative gear hoping it'll go away.
can't wait for the carnage, even ANZ is estimating a 0.4% increase in rates this month.
Pre covid my VZ SS was worth ~5k. Cheapest I saw last I checked was 20k. It's ridiculous.
Well done. 👍
time to sell it and catch the bus to take the advantage? lol
If only it were an option.
new cars are just going up in line with inflation and demand.
Even when demand falls off the manufacturers i feel are going to artificially restrict supply, a bit like Rolex does just to ensure that there's enough to fill the forward orders but nothing more.
As for second hand cars, depreciation is a guarantee in life and they'll inevitably return to normal (albeit as brand new cars are more expensive their 10-year depreciation value will be increase, depreciation rates would be constant though).
Basically will be a bottom up process, someone has to stop buying the shitters first, similar to the housing market, people will have to stop buying the shitters first before demand falls off across the market, pretty much a domino effect.
Prices will be fall but a question of how much.
Automakers typically have thin margins so this don't see them wanting to give that up. Conversely prices are ridiculous, I look at most cars and wonder how people can afford those cars, not even particularly good cars either. Car makers make more money on financing and servicing, so they need to strike a balance how to rip as much people off and not kill golden egg.
With rising cost of living, interest rates people will have to tightening their spending. Not buying a high yield investment car probably high on the priority list but look shinny Tesla with a new hat, SMH
free market will see the prices settle when supply exceeds demand until then prices will rise/remain elevated
You know what they say, a car gains 20% value as soon as you drive it out of the car lot
It looks like the Reserve Bank has just answered this question.
0.5% is enough to tank the economy, and discretionary spending will be the first victim.
And cars, holidays and credit cards top the pops.
The car manufacturers have been hedging their bets against this inevitability. Demand fall will take care of supply shortages, and they know it.
By the way, this is enough to drop house prices over 10%, almost overnight.
Sure the banks will claim they have factored in blah, blah, blah, but wait til it tickles their asset values.
It's going to be nasty.
Dealers want it to be the new normal, but it will eventually settle.. I estimate another 24 months..