chuckp

Real Prices for New Cars Keep Going Down

jcrash

It doesn't sound like you have had many car repairs done over the last 8 years or more. Not only has there been a huge increase in cost, but car repairs have become much more specialized. Try taking your car to the neighborhood mechanic for major repairs. In most cases they will send you to the new car dealership's service dept. Take your life savings with you! If you really want to have a heart attack, get a price on auto body work. By the way, auto body work although inconsistant, is a very real expense of owning an automobile. To further complicate matters (in the opposite direction) consider that auto manufacturers since about 2007 have increased their warranty periods. Finally, domestic auto manufacturers have cut way back on the (very) low profit margin sales to rental fleets. In the very near future this will influence new (& used) auto prices upward. I can elaborate on that if you would like. Finally, all three domestic manufacturers are hurting right now, however, contrary to some popular belief, it is not because they are selling inferior products (like they did in the 70,s and going into the 80,s. They have been strangled by employee benefit packages & wages. That's changing, too. So the domestics are going to have to raise prices and profit margin or become extinct. It therefore becomes a more complex matter, however, I am of the opinion that real car prices will move up dramatically as soon as the consumer finances and borrowing power have recovered.