First published https://www.marketwatch.com/story/are-we-witnessing-the-demi...
Automakers have all but abandoned the budget market
11–17 of 17 posts
Re: Automakers have all but abandoned the budget market
#12I wonder if this is actually bad. There's an argument I see in favor of building luxury condos and apartments. If they're built, the richest people will vacate their current residences to live there. The next richest people vacate their current residences to move into the now empty residences of the richest people. The third richest group also upgrades to the now empty apartments of the second richest, and so on. At…
But Will they? Why would everyone choose to pay more just because large housing landlords wish it so?
Re: Automakers have all but abandoned the budget market
#13I wonder if this is actually bad. There's an argument I see in favor of building luxury condos and apartments. If they're built, the richest people will vacate their current residences to live there. The next richest people vacate their current residences to move into the now empty residences of the richest people. The third richest group also upgrades to the now empty apartments of the second richest, and so on. At…
The flaw in your comparison is when I move out of my bottom-end house to move up the housing ladder, a developer comes in and buys my affordable house, and proceeds to put a 4500 sq. ft. monstrosity on the 7500 sq. ft. lot, thereby pricing out the bottom-end. I see this constantly in the Seattle suburbs of Redmond and Kirkland. Especially Kirkland; at the rate they're going, there won't be any "starter homes" in Kirk…
These logical errors are rampant in any discussion regarding housing, healthcare, education, taxes, social services, and everything else that might inconvenience a billionaire ever so slightly.
Re: Automakers have all but abandoned the budget market
#14Non-issue for me. I buy only used Corollas, Civics, Accords, and Camrys.
They last forever. My last car was a Corolla and lasted me 17 years. I bought it for $4500, it comes out to about $20 per month when amortized. Never had a problem with it - no major repairs. It also looked very stylish and great during that time.
I just purchased a used Civic about 5 years ago for $5,500 and I expect it to last another 15 years.
Re: Automakers have all but abandoned the budget market
#15Earlier quoted context omitted.
Why sell 20 $20k cars that make $2k in profit each ($40k profit), when you can sell one $80k car that makes $40k in profit? That's the reason they're all ditching budget cars. The thing is that the budget cars aren't actually gone, they've put 2 inches of lift on them, jacked up the price, and then called them crossovers.
Yep, plus the shift to selling lower volume but higher profit products is accelerated when you have supply chain constraints preventing you from pumping out units in high volume.
Once the supply chain restrictions ease, you’ll probably see the car manufactures start to realize that they make more money if they get 2000 in profit on a $20,000 car then if their competitor gets that profit.
Re: Automakers have all but abandoned the budget market
#16Non-issue for me. I buy only used Corollas, Civics, Accords, and Camrys. They last forever. My last car was a Corolla and lasted me 17 years. I bought it for $4500, it comes out to about $20 per month when amortized. Never had a problem with it - no major repairs. It also looked very stylish and great during that time. I just purchased a used Civic about 5 years ago for $5,500 and I expect it to last another 15 years…
But now a $5,500 civic is 15 years old already with over 200k miles.
Re: Automakers have all but abandoned the budget market
#17Non-issue for me. I buy only used Corollas, Civics, Accords, and Camrys. They last forever. My last car was a Corolla and lasted me 17 years. I bought it for $4500, it comes out to about $20 per month when amortized. Never had a problem with it - no major repairs. It also looked very stylish and great during that time. I just purchased a used Civic about 5 years ago for $5,500 and I expect it to last another 15 years…
But now a $5,500 civic is 15 years old already with over 200k miles.
Age doesn't matter on Toyotas and Hondas - only mileage and condition. ALWAYS bring to your mechanic first. Not one that the seller suggests as it could be a friend of theirs. Never buy a car without a mechanics approval. Pass on it if the seller says no. Ask before you drive there so you don't waste your time. Just say to them, "Would you recommend this car to your own kid."
i did a super fast review of availabel vehicles. These are not all $5,500 but in the same price range. But there are some at $5,500 and less, and under 100K miles. This is done real fast right now. If you are serious about a car, you will have a LOT more time to look, and should.
Buying a car should be a serious and time-consuming project in order to make sure you don't get fucked. A nice looking car can still be a mechanical shithole. But if a reputable mechanic says, "Fuck yes, buy it now, it's a fantastic deal" well, have the cash ready.
Also, you can buy older and cars with more miles on the as long as they are Honda and Toyota, as they can last forever if maintained. And again, have your mechanic always inspect.
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2003 Honda Civic 98,900 miles $6900
https://losangeles.craigslist.org/sfv/cto/d/granada-hills-20...
2001 Honda Civic clean title 56,000 miles, $6,700
https://losangeles.craigslist.org/sfv/cto/d/glendale-miles-h...
2015 Honda Civic $7,500 - 74,563 miles
https://losangeles.craigslist.org/lac/cto/d/whittier-honda-c...
2007 Toyota Corolla - 84,650 miles - $5,500 It even states in this advertisement - "Your mechanic welcome"
https://losangeles.craigslist.org/sfv/cto/d/los-angeles-2007...
2004 TOYOTA CAMRY - $5,500
https://losangeles.craigslist.org/lac/cto/d/los-angeles-2004...