Manufacturers need to get a clue that dealers are poison to their industry. Every time we've bought a new car in my family the experience has been a nightmare because of all the games the dealers play. The only new car I have any interest in buying today is a Tesla because their sales model is low stress and can be done from my office.<p>I will drink a toast to the day the last auto dealership goes out of business.
I believe at least part of this is better quality cars that last longer. The 1980s started an era of crap cars that were junk after 100k miles. That's improved, over time, and not equally across all makes and models.<p>But, we finally seem to be at a point where there are fewer reasons to get rid of a 10 year old car.<p>Edit: some corraborating figures: <a href="http://news.ihsmarkit.com/press-release/automotive/vehicles-getting-older-average-age-light-cars-and-trucks-us-rises-again-201" rel="nofollow">http://news.ihsmarkit.com/press-release/automotive/vehicles-...</a>
So the tl;dr of this article is that lower prices are good for consumers, but manufacturers cannot sustain selling below cost (what a surprise).<p>I wonder what is driving demand lower.
Has supply simply finally caught up to pent-up demand from the crisis?
Is some other expenditure (housing, healthcare) sucking up discretionary spending that would otherwise go towards new cars?
Is this a leading indicator of a drop in consumer confidence/spending that more traditional indicators haven't picked up on yet?
Are people driving fewer miles (I don't know the exact numbers off-hand, but I believe the data doesn't support this)?
Are longer-lasting cars hurting new car sales?
There was a real slowdown in car sales during the Great Recession. That shortage and the ripple effects are finally coming to an end.<p>Manufacturers are cranking out too many cars for the US market.
"Automakers have also turned more heavily to leasing, and longer loans of 72 or 84 months, which keep the customer’s monthly payment affordable."<p>This is how they will make money. You have to lower credit scores but extend the payment. That justifies the higher price on average.<p>Still... I guess it is not enough. And the people that take advantage of this at 0% keep the car longer..
it's because of the experience these dealerships offer. I was in the market for a car, I just moved to DMV area from Michigan. I've had nothing but terrible experiences. I ended up just putting the money into repairing my current 8 year old car.
Over 400,000 Tesla Model 3 reservation holders who are putting off their next car purchase until the car is out - and industry expecting a ~300k decline in sales this year. Coincidence? I have to imagine 400k people committed to a car coming out in the next year is a bunch of people who might otherwise be in the market staying on the sidelines. I'm certainly one of them.
Millions of good vehicles were taken off the road after the 2008 fiasco (program to trade in). This left the used car market decimated. You could practically buy a new car for the price of a used car since there was no used inventory to speak of. Leasing was also hit very hard.<p>What we are seeing now is the used car and leasing markets recover back to where they were pre 2008. This has created some much needed competition in the Auto market.<p>Vehicles are lasting longer these days. In the 80's most vehicles already had rust on them from the factory (inside doors, pillars, etc). Since the very late 80's they started waxing and using galvanized metals. Engine tolerances were improved along with Fluid technology (Oil, Coolants, Grease, etc).<p>My advice is never buy new. Buy something either coming off lease or something about 5 + years old. If it is a Toyota there is still at least 10 years left in the vehicle. Honda's quality over the last 5 years has really suffered in my opinion. German cars should only be leased, stay away from used German cars unless you have a lot of money or can repair them yourself. Korean cars are throwaways after a few years. If you're someone who keeps a car for a long time make sure you do a lot of research because these days a lot of newer models have some serious problems like DI and CVT Transmissions that will cost more to fix or replace in a few years than the vehicle is worth.