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buyingHere’s Why Cars Are More Expensive Than Ever

18:32  10 may  2019
18:32  10 may  2019 Source:   familyhandyman.com

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Wondering why car prices keep going up? Carmakers have been trying a new strategy and have prioritized making more expensive vehicles. The average price of a new vehicle is the highest ever for the first quarter, according to CNBC. At ,319, that’ s about ,000 more than 2018 during the

The average cost of owning a new car went up five percent this year, according to the latest AAA data. Financing is the largest factor of the increase, accounting for a 24 percent increase over 2018. Here ’ s a breakdown of the report, plus tips for the cheapest time to buy a new car .

Here’s Why Cars Are More Expensive Than Ever© BATMANV/Shutterstock suv-2 Have you gotten sticker shock lately when you’ve looked at the cost of a new car? It’s not your imagination. The average price of a new vehicle is the highest ever for the first quarter, according to CNBC. At $33,319, that’s about $1,000 more than 2018 during the same time frame. Because of that, new car sales are expected to drop by as many as 2.5 million units compared to the same quarter last year.

You'd think the drop might concern carmakers, but as it turns out, the increase reflects a choice. Many automakers are discontinuing less expensive cars in favor of SUVs and pickup trucks, which bring in bigger profits.

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The change in customer’ s buying patterns affects Apple, which makes its own changes to compensate.

Well here in the US there are ever more regulations for one. Now every car needs to be equipped with a back up camera along with other safety equipment. which adds to the price, (apparently no one knows how to use their mirrors). Why are German cars much more expensive than American cars ?

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"Carmakers always say they build what people want," Wall Street Journal cars reporter Dan Neil told Marketplace. "But they never mention the fact that they spend billions to tell them what they want. It wasn't just that consumers spontaneously desired a truck that was as big as a house. No, that was a gradual process. And it has been pushed by the automakers primarily because bigger equals more profit."

In late 2018, Ford announced it was phasing out its Fiesta, Focus, Fusion, Taurus, and C-Max models in the United States while continuing to make the Mustang and Focus Active. Other big automakers did the same, with General Motors ending production of the Chevy Volt, Cruz, Impala, Buick LaCrosse, Cadillac XTS, and Cadillac CT6 in the United States. Fiat Chrysler is discontinuing the Dodge Dart and Chrysler 200.

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College tuition has more than doubled since the 1980 s . Kirdy is just one of the more than 44 million "I'm trying to do the responsible thing and eliminate loans before considering any expensive , fun More student borrowers might partly explain why government financial-aid programs have grown

My girlfriend and I are renting a car to go from san francisco to santa barbara. This used to cost about in the last year or so (not including gas, of course). Now it’ s about 0 and up no matter where we look…

"I can tell you right now that both the Chrysler 200 and the Dodge Dart, as great products as they were, were the least financially rewarding enterprises that we've carried out inside FCA in the last eight years," said Fiat Chrysler CEO Sergio Marchionne said, according to Marketplace. "I don't know one investment that was as bad as these two were." Here’s what happens to cars that don’t get sold.

So where does that leave consumers? Well, if you’re in the market for an SUV or top-of-the-line pickup, you can expect better features. Chrysler CEO Mary Barra said the company is investing in "newer architecture" for its trucks and SUVs.

But if you’re looking for a smaller, less expensive car, you might be squeezed out of the market, LMC Automotive President of Global Forecasting Jeff Schuster told CNBC. More and more buyers are likely to look to used cars instead. But before car shopping, make sure you know the secrets car dealers don’t want to tell you about leasing.

Pus: find out 13 ways you’re shortening the life of your car here.

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