The End of the Bargain: Why Good Cheap Used Cars Are Vanishing
Download MP3Episode Description:
In today’s episode, we dive into the increasing costs of once-affordable cars and ask the question: are popular and reliable cars like the Toyota RAV4 and Prius still within reach for most buyers? Here’s what we discuss:
In today’s episode, we dive into the increasing costs of once-affordable cars and ask the question: are popular and reliable cars like the Toyota RAV4 and Prius still within reach for most buyers? Here’s what we discuss:
- Rising Costs of Popular Cars:
- Cars like the Toyota RAV4 and Prius were once considered affordable, with prices around $20,000-$25,000 for a decent model.
- Due to rising interest rates and new car prices, these cars now have monthly payments that can easily exceed $600-$700, which is close to what some people pay in rent.
- Used Car Price Surge:
- Even used models are seeing prices increase by 50%, often nearing the original new car prices.
- A decent used RAV4 or Prius can now cost between $30,000-$35,000, which leads to higher financing payments.
- Affordability Shift:
- With the cost of financing rising, many people now face monthly payments that are far beyond the typical $300-$400 they might expect for a “cheap” car.
- Does this mean buyers need to settle for older, less desirable vehicles to keep payments low?
- What’s the Future of Affordable Cars?
- Is it possible to find a reliable, low-payment car anymore, or do we have to look at “junkier” options to save money?
- The shift in car payment expectations may signal a change in how people approach car buying.
- Listener Interaction:
- Share your thoughts on car payments and the used car market. How much are you paying for your car? Is $700 a month acceptable for a used or entry-level car?
- Let us know in the comments to get a better understanding of the broader public’s perception of car affordability today.
Stay tuned and share your experiences with us!
