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Ban cars from populated areas (lemmy.world)
submitted 2 weeks ago by to c/fuckcars@lemmy.world
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[–] 28 points 2 weeks ago (6 children)

On average, Americans paid $49,855 for a new car in July, marking the highest level so far this year.

https://www.kbb.com/car-news/average-new-car-price-in-july-hits-2026-high/

This is enabled by financial illiteracy and arguably predatory 8+ year loans on new vehicles.

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  • [–] 3 points 2 weeks ago (1 child)

    When I was car shopping last spring ( after totaling my 2013 mazda 3 😩) I saw that the most favorable financing seemed to be available for the larger and more expensive models. Like the Mazda 3 and CX 30 had no special incentives but the CX 5 and 90 had some zero 0 interest offers. I imagine that the financing incentives are similar at different credit levels, so there could be perverse incentive to spend more on a larger vehicle because it’s the only way to get a monthly payment that fits someone’s budget.

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  • [–] 3 points 2 weeks ago (3 children)

    What does that calculation look like when also considering used cars?

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  • [–] 9 points 2 weeks ago (1 child)

    They’re also really expensive. When Covid shut down plants the price spiked and hasn’t recovered.

    I don’t have any data on that though. My perception is that long loans give incentive to keep ised vehicle prices high - they’re almost interest-only payments for the first 1/3 of the loan so the owner of a 3 year old average car must sell it for almost MSRP or they’ll lose money, and unless there’s pressure to sell it at a loss, they won’t, in turn driving up used prices. Thats just my pet theory.

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  • [–] 4 points 2 weeks ago* (last edited 2 weeks ago)

    If you take a look at car YouTube and media this is something that been talked about since COVID.

    Right now there is no value space for cars and if you're forced to purchase and can't pay cash interest rates are a thing too.

    There are lots of models with 250 plus days of supply my concern is that the auto loan and AI bubbles pop at the same time, that would make '08 seem fun.

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