By on April 4, 2019

Image: GM

As new vehicle prices continue to climb, many wonder how high MSRPs can go before the public decides to take a pass — assuming they haven’t already. Sales growth is slowing, even in seemingly bulletproof markets like China. Even before this ominous backdrop unfurled, dealers were making noise about new car prices that had grown overly ambitious, claiming they couldn’t endure another period of sustained economic hardship.

Edmunds estimates that the average transaction price of a new vehicles reached $36,495 in December 2018 — a 3 percent increase compared to December of 2016 and a 13 percent increase compared to December of 2012. Taking that knowledge, Road & Track compiled a broader picture of the new-car market and where it might be going.

Spoilers ahead if you don’t want the unpleasant non-surprise ruined.  (Read More…)

By on July 24, 2017

2017 Chevrolet Trax and Sonic - Images: GMPerhaps we oversimplify it. Perhaps we don’t.

Take one Honda Fit or Chevrolet Sonic or Mazda 2, alter the exterior body panels, clad the wheel arches or bumpers in a modest amount of black plastic, periodically route power to the rear wheels without any fancy AWD systems, elevate the roofline, and increase ride height just a bit. Use a typical small car engine, the same transmissions, and many of the same interior bits.

The result: HR-V, Trax, CX-3. Call it a crossover. Dare even to call it an SUV.

And then, according to Kelley Blue Book, charge customers $7,700 more for the privilege. (Read More…)

By on June 16, 2017

2017 Nissan Titan King Cab - Image: NissanNissan USA has priced the 2017 Nissan Titan King Cab from $33,745; or $36,775 with four-wheel drive.

In King Cab format — aka extended cab — only the three entry-level trims make it out of the Titan’s Canton, Mississippi assembly plant: S, SV, Pro-4X. The SL and Platinum Reserve are, ahem, reserved for Crew Cabs.

While General Motors’ full-size truck twins, the Ram 1500, and the Toyota Tundra have all switched to conventional front-hinged door configurations for their mid-level cab format, Nissan is sticking with the bodystyle utilized by the best-selling truck in America: Ford’s F-150.

But the configuration may not matter. With savings of just $2,180-$2,680 compared with the bigger Nissan four-door, it won’t be easy to convince buyers to give up their crew cab desires. (Read More…)

By on August 25, 2016

Niedermeyer shares some truth with the PBS NewsHour

As we reported just the other day, analysts are somewhat confused by the continued rise of used car prices to near-record highs, despite a flood of lease returns hitting the market.

This just goes to show you the stupidity of most people who call themselves “analysts.” There’s absolutely no reason to think that used car pricing will go anywhere but up in the near future. If these analysts had ever spent a single day in a used car department at a franchise dealership, they’d understand why. Unfortunately, they haven’t.

But guess what? Your friend Bark has! And I’m here to tell you why this used car bubble isn’t going to pop any time soon.

(Read More…)

By on April 5, 2016

1995 Explorer Limited

It’s just the title of a recent Charlie Hunter album, but it says a lot about life in post-2008 America: Not Getting Behind Is The New Getting Ahead.

Here’s one example: According to Business Insider, the average middle-class family can no longer afford the average new car. Is that true? And if it is true, how and why did that happen, and what can be done to fix this sad state of affairs?

(Read More…)

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