NormanQ

Real Prices for New Cars Keep Going Down

Could the rise in gasoline prices and how it relates to the cost of a new car be the same thing as how higher interest rates lower housing prices? I'm a finance novice. I just recently found out about the relation between mortgage interest rates and housing prices. This made me think about all the really cheap pickup trucks that seemed to go for $25k + a few years ago but are now selling for $15-17k. This is just anecdotal evidence, but I realized that a person's monthly car payment could have easily doubled in the past few years if they got one of these pickup trucks or SUVs combined with a commute in from the 'burbs. Could the rapid rise in gasoline prices pinch dealerships' and the automakers' bottom line because people just can't afford a $299/month car loan plus the unplanned $300 for gas/month?