There’s been a slow, yet steady change in the automotive marketplace over the last eight years, and you, the consumer, have been the lobster sitting in the pot as the change has occurred. The market has gotten significantly worse for car buyers. The number of franchise and independent dealers has been reduced by almost half. And yet, those surviving dealers have had an unprecedented run of year-over-year growth since 2008.
But as that growth has slowed in 2016, car buyers find themselves paying more money for used cars than ever before. We know that the typical American household can’t afford the typical new car sold in America, but we may soon be approaching a day when that same household can’t afford the typical used car, either. In fact, according to NADA Data, the average used car transaction price in 2016 will crest $20,000 for the first time in history, and will be 59.1 percent of the average new car transaction price of $33,903.
What does all of this mean to you? That buying used may not be the smartest financial choice you can make. In fact, it might not be very smart at all.
So the Halloween Hooptiefest 24 Hours of LeMons at New Hampshire Motors Speedway went well, with the Rust In The Wind Saab-powered Nissan 300ZX taking a very improbable overall win, and we of the LeMons HQ crew were packing up the gear on Sunday afternoon and getting ready to head home… when we heard that all of our flights out of Logan— in fact, all flights out of the northeastern United States— were canceled due to ZOMG THE END OF THE WORLD IS COMING PANIC YALL!!!1! The plan had been to drive our rental Kia Sorento 70 miles or so to an airport hotel, spend the night there, and grab our flights early Monday morning. We got to the hotel in Burlington, Massachusetts, where we convened an emergency meeting of the very exhausted LeMons brain trust. (Read More…)
As collateral damage of Super-Sandy, stories are making the rounds of water-logged cars dumped on unsuspecting buyers by criminal dealers. Like many fake pictures posted on Twitter and Facebook, these stories are mostly made up, or pushed by new car interests. The dangers lurk elsewhere: In your neighbor’s driveway, on eBay, in the classifieds. Read this story if you don’t want to become a belated victim of Sandy. (Read More…)