361–370 of 1001 posts
I think in 17 years of motoring I've spent around £5,500 in total on cars.
You can still buy a new subcompact car (like a Renault Clio or Skoda Fabia) in Europe for under 20k EUR. The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-ro…
> like a Renault Clio or Skoda Fabia Few caveats: - those are generally promotional prices - those prices are generally tied to financing (you really can't buy it cash at those prices, you need to finance it through them at crazy 7/8%+ rates) - you can wait for the car even 10 months
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I'd never seen the word "subvention" before. Today I learned it's another way to say "subsidy".
It's a europeanism. In both French and German (and probably other EU languages) the word for "subsidy" is something like "subvention" so native speakers of these language often reach for an unnatural word in English. Btw other examples include "actually" which is used to mean "currently", and "eventually" which is used to mean "maybe". Personally I'm torn whether to consider this incorrect use of the language as it i…
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It's true that affordable European models are disappearing. The average mid-range offering from, say, Volkswagen, has become quite surprisingly expensive. But this is why Chinese cars are taking over in Europe. Half the new cars I see are from Geely, BYD, Chery, etc. These average about 20,000-25,000 EUR new. My own opinion, having looked into the matter a bit, is that you'd have to be insane to buy a Volkswagen or B…
There are cheaper European cars than VW (and why compare with their 'average mid-range offering'?). The new (and widely liked) Renault 5 EV starts at around €21K, for instance. Probably a bit smaller than something made in China for the same money, but not worlds apart. https://www.renault.fr/vehicules-electriques/r5-e-tech-elect...
With your quoted Renault EV models, you really have to be careful, often they don't give the full price but just the price without battery. The battery has to be bought or rented separately.
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Yep. I think SEAT are the pick of the VAG brands. Their marketing isn't about being cheap, but they're aimed at the youngest market segment, who also have the least money, so in my experience have the best prices. Pre-COVID we got a new Leon ST — essentially a Golf estate/station wagon — for about a third off the list price: £13K instead of £20K (I know: those prices sound semi-mythical now). On the other end you hav…
That's the VAG marketing strategy. Share most parts, have the customer pay for the brand.
Spending $25k on a car (if they exist) is just an insane thing to do in my opinion. In the UK we are quite lucky in that the used car market is very good. I always just buy a ~£1,000 diesel and run it into the ground, then rinse and repeat. I think in 17 years of motoring I've spent around £5,500 in total on cars.
You can still buy a new subcompact car (like a Renault Clio or Skoda Fabia) in Europe for under 20k EUR. The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-ro…
Isn’t your argument basically saying that people choose to buy larger cars when the government doesn’t step in and penalize people for doing so? European regulators basically just forcing people to buy smaller cars is what that sounds like. Also Europeans make less money, pay more taxes, and have less access to credit, so they can’t afford more expensive cars like many Americans. Hence the market catering more to peo…
In fact, it's just a scathing indictment of wealth inequality in Mississippi where life expectancy is 10 years less and infant mortality 400% higher than in Bavaria, despite their similar GDPs.
For better or worse the EU is run as a Society whereby the US is run as an Economy, a fact conveniently forgotten in these apples/oranges comparisons.
You can still buy a new subcompact car (like a Renault Clio or Skoda Fabia) in Europe for under 20k EUR. The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-ro…
Also, the more SUVs are driven, the less safe people feel (and arguably are), accelerating the need to buy an SUV for safety reasons.
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Small cars are disappearing in the EU as well. E.g. Audi will discontinue (or have already discontinued) their A1 model (and it was the perfect little car).
The smallest class like the Daihatsu Cuore are already gone. The small cars that are left are significantly larger than the former version that shared the same nameplate. For example the Yaris is a SUV now. Can't really blame the manufacturers. The EU requires so much equipment on cars that you can't really turn a profit on a $10k car (like the Aygo/C1/107 was ~10 years ago). So if your car is going to cost $20k beca…
Even very cheap cars like the “Dongfeng Box” have multiple airbags, emergency braking, lane keeping, etc, and safe to assume a lot of the components VW/Toyota use for these come from the same chinese suppliers.
It's pretty simple (in the US, can't speak for elsewhere). There are 2 big factors at play: 1. Margins. Manufacturers make huge margins on expensive vehicles and very slim margins on cheap vehicles. The numbers differ, but I think even in the lead up to the 2008 crisis automakers had to sell 5-10 "econobox" cars to make the profit they made on one luxury car, SUV, or truck. 2. Normalization of debt. For many American…
In Europe, the average age for buying a new car is 50. This means that most of the cars sold are second-hand. Most people think that the car is a luxury and prefer to focus on their home first, then their family, and after that, their car.
Unlike the US, if a place is 1km away as the eagle flies you can get there by walking ~1.5km max. And there are bus services and although often overcrowded or with low service, they do run and you can plan your life around them.
Yet everyone still buys a car as soon as they can afford one (or often if they can't). And they use it for commuting to work every day.
To get to the point that Europe is in where even rich people don't want cars or if they have one it is for weekend trips. You need to do a lot better than this.
Unfortunately getting the US to be like Europe in this regard is not really viable, but it could get to the point where Brazil is where the poorer people can afford to not own a car.
In some big cities in Brazil they do a lot of low-cost things like dedicated bus-lanes that actually make some high-demand trips shorter by bus. Progress in this area needs to be incremental, there is little point in investing crazy amounts of money in one big project. Instead the investing should be lower and constant.
sometimes one big project can make a big difference, like a new rail-bridge or metro. But in general getting people into busses is more efficient even if that means rich people still won't want to get into that bus.