Gecko
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Average new car transaction prices are up $10k over 2020 at almost $49k in Feb 2023:
Average transaction price for a RAV4 is now $37-38k. A RAV4 nearing $40k.
Average transaction price for a Camry is now $33-34k.
The 2016 and 2019 4Runners I bought before my GX were $46k and $47k (Limited 4x4) -- we know the 4Runner has barely changed since then and that (98% same) vehicle now sells for $54-55k in 2023. GX 460 prices are up ~$10k model-for-model over 9 years - also 98% the same car as it was in 2010.
... the above examples are only Toyota, but they apply to nearly any automaker with regards to major increases in the price of new vehicles. At the same time, "affordable" family cars and sedans have disappeared over the last 6-7 years and not surprisingly, auto loans are now stretching to 7 years, and average APR is around 6% presently.
Realizing real wages haven't grown -- and in some cases have decreased -- combined with inflation, this is feeling a lot like a bubble to me.
We're starting to see Ford and Chevy offer lower promotional interest rates on some models, which is usually the first sign of pressure that OEMs are feeling, but it was just a few months ago we were reading that dealers and brands wanted this to be the "new normal" because it was so much more profit: cars sold before they even arrive, sold at MSRP or greater. It only takes 1-2 brands to start offering better deals before the others eventually have to follow suit in some way, and I don't think we're there yet, but I do think it's coming.
Would love to hear from other folks on this. Happy to open the floor for policy discussions, but not political flame baiting, so keep that in mind.
Average transaction price for a RAV4 is now $37-38k. A RAV4 nearing $40k.
Average transaction price for a Camry is now $33-34k.
The 2016 and 2019 4Runners I bought before my GX were $46k and $47k (Limited 4x4) -- we know the 4Runner has barely changed since then and that (98% same) vehicle now sells for $54-55k in 2023. GX 460 prices are up ~$10k model-for-model over 9 years - also 98% the same car as it was in 2010.
... the above examples are only Toyota, but they apply to nearly any automaker with regards to major increases in the price of new vehicles. At the same time, "affordable" family cars and sedans have disappeared over the last 6-7 years and not surprisingly, auto loans are now stretching to 7 years, and average APR is around 6% presently.
Realizing real wages haven't grown -- and in some cases have decreased -- combined with inflation, this is feeling a lot like a bubble to me.
We're starting to see Ford and Chevy offer lower promotional interest rates on some models, which is usually the first sign of pressure that OEMs are feeling, but it was just a few months ago we were reading that dealers and brands wanted this to be the "new normal" because it was so much more profit: cars sold before they even arrive, sold at MSRP or greater. It only takes 1-2 brands to start offering better deals before the others eventually have to follow suit in some way, and I don't think we're there yet, but I do think it's coming.
Would love to hear from other folks on this. Happy to open the floor for policy discussions, but not political flame baiting, so keep that in mind.
