The Increasing Cost of Car Repairs

I saw this video on YouTube and it was an interesting video as to why car repair costs have gone up in recent years. I figured I'd share.

https://www.youtube.com/watch?v=t9DNBxpvxs0

 

Auto manufacturers are moving to a business model where all cars are "luxury goods". They are producing less base trims and more high end trims. They are also upping the price of what used to be entry level vehicles.

Seems they are all going to a model of fewer sales, but higher overall individual sales values. I'm unsure if this is financially viable to keep growth going in the long run for them. We shall see.

Point being car makers are slowly turning away from "car ownership" by customers, to "mobility solutions" based on credit. Basically in the future they will want everyone to buy on credit at exaggerated prices and be constantly on the hook for "luxuries" via paid subscriptions to heated seats, remote start etc etc.

It's like grocery prices right now, there is no real economic factor driving food price inflation other than corporations deciding to widen their margins by a lot. Big business wants everyone to live 100% off credit, forever now. Same with the auto industry.

Keep your current vehicles as long as possible, folks. Most dealers near me won't even let you pay up front and in full for a vehicle now. Mandatory financing even if you have a bag full of Benjamins with you.

 

I think you made some good points. It does seem as if car manufacturers care less and less about how long their vehicles last because they want people to, like you mentioned live off the "luxuries" versus just having the vehicle to get from point A to B on a daily basis. If people are constantly buying vehicles on credit and trading in every few years then there's no reason for people to maintain them for the long haul. So manufacturers put cheaper parts in their vehicles but because of all the extra systems that gives another reason for them to charge more.

For me, a lot of these new features and bells and whistles are cool and stuff but in the end none of it affects someone from say getting to work and back everyday. I think a lot of these safety features for example are great but it turns people into worse drivers because they start relying on these systems instead of themselves while driving.

 

The worst part is the prices are never going to come down.... For anything!

 

This is all permanent, the average person is now low income.

 

It generally never does unfortunately

 

Dealers won't let you pay cash? How in the hell is that possible?!?!

 

They legally cannot stop you from paying cash, but they can "withhold" cars on the lot for others (aka people willing to do financing FROM the dealership..not even their own financing avenue).

It's not entirely legal, it's just a shady practice

 

This is by design. Financing institutions are pivoting to a "new normal" where credit will be necessary for even small every day purchases like food etc

 

What happened to "cash is king"? I used to detail cars at a dealership, and salesmen would make sure that cash buyers got priority...

 

Food is one of the few things I can still afford to pay cash for. If they tell me I can only use a credit card to buy food, then I will buy it with my credit card and pay it off immediately. About two or three years ago, I bought a new laptop, and I got a special deal from Dell through the IT department at my work. The laptop was like $800 if I remember correctly; I paid for the computer over the phone with my credit card, and then immediately paid my credit card online with money that I had in my account, so I effectively paid cash for my laptop.

Are financial institutions going to make it harder to buy stuff with a credit card and then pay it immediately?!?!

 

Cash will always be king, the system is just bring turned on its head right now by big business, the financial sector etc.

You'd think we would all have learned from the subprime mortgage crisis regarding the effect of a debt-laden society on the economy at large.....except this time it's not from people living beyond their means, but by the banks and manufacturers and retailers forcing every day working folks to live above their means. Hard times.

 

sales weasel gets more for commision plus financing kickback than commision on cash

 

My 2010 was a present from my parents in September 2009, when I was 20 years old; I had just gotten my learner's permit. My dad could have easily paid cash, but he got approved for a 5-year loan at 0.9% APR through Citadel. He paid the truck off in late 2012 or early 2013, and the title has been in my name since December 2016. I have over 191K miles, crank windows, and no payments. My truck burns a little bit of oil, but the A/C blows ice cold and everything else works. I have good credit, but I've determined that nothing could break in my truck that would come even close to a year's worth of monthly payments on a newer vehicle.

My best friend just traded a 2019 Hyundai Santa Fe with almost 95K miles for a loaded 2021 Subaru Outback with 20K miles. The dealer gave him $12K for the Hyundai, he wrote a check for $10K, and he financed the remaining $9K. His payments are like $279 a month and he expects to pay off the loan in no more than a year and a half.

As stated above, I have good credit, but I cannot fathom monthly payments at today's interest rates. Not many people have as much money put away as my friend does, either...

 

As long as you have the money to pay off your credit card when the bill is due, I don't see any disadvantage to using the card as intended (i.e. just pay the bill when it's due, instead of immediately). Depending on when you buy certain things within your billing cycle, it could result in you not having to pay for something for almost 2 months.

 

Auto manufacturers will probably be bankrupt by this time next year.

 

It's crazy, our prices have climbed and nothing has been passed onto the employees, this is the same at all shops/dealers.

Just adding to inflation and making the rich more money.

I have no idea how people maintain their cars, the prices are nuts. Even oil changes are 100$ now.

 

When I started at my shop in 2007 the labor rate was $90 per hour. Now it's $200

The rent in the area doubled as well

 

Man, I waited over a decade to get another truck. Kept waiting for prices to drop. Shits crazy. Wish I bought one years ago now, as that would have been the best bang for the buck.

 

Very good points. One thing I would add to grocery prices and other retail, is the amount of product that walks out the door. Every customer is covering those costs.