Will Vehicle Prices Ever Decrease?

[Sccritterkiller]

What is the active driver monitoring thing?

It was in the infrastructure bill that was just passed last year...its 2026 not 25 it has to be implemented by auto makers.
Elections have consequences....

 

[JesseC]

Probably the worst time to buy a vehicle in the last decade at least. The stimulus checks gave a lot of people the funny money deposit they were unable to save up themselves. Demand is through the roof. Meanwhile, the manufacturing delays are keeping supply at a historical low. Historically low supply, historically high demand = prices we've never seen before.

I'd wait it out until the dust settles. You're right, it'll take the dealers some time to come back to reality.

 

[Dos Perros]

I think the answer is different for used or new.

 

[CorbLand]

When have prices for anything ever came down? Outside of gas prices that have fluctuated from the early 2000s to now everything I can think of has only increased in price.

It will take a major economic upheaval to bring the prices down to what we payed a few years ago. And if that happens new vehicle costs will be the least of your concerns

Prices of pretty much everything took a hit 2008-2012. It will never come back down to what the pricing was but they will eventually fall from what they are today. This is why it is always best to just buy when you need/can.

 

[CorbLand]

I'd wait it out until the dust settles. You're right, it'll take the dealers some time to come back to reality.

Someone in the industry would have a lot more knowledge and hopefully they will jump in.

Will it really take that long for them to come back to "reality?" Most people that I know that are working in the markets that have seen major increases in pricing say "its the easiest money they have ever made but they aren't making that much of it because they cant sell enough to make money." Pricing increases have not offset the loss in sales due to no supply.

 

[Billy Goat]

They have been offering 120 month financing for a while now. Unfortunately, people think they are "budgeting" when they decide they can spend $476 a month, what they don't seem to understand is APR.


I'm scared that if the prices do come back down, it will be the housing crash all over again. Too many are over their heads on vehicles, and will end up walking away from them.

Don't know what will happen. I'd sure love to sell my truck right now, but I sure don't want to replace it in the current market.


Similar thing happening with equipment right now. A buddy just traded in a 2 year old Case Compact Track loader. He had one on order for some time, his new machine has weight kits and cameras. Turns out it only cost him $6800 to run his other machine for 2 years after trade in.

 

[jjohnsonElknewbie]

I just don't think prices will come down significantly, mostly because they keep piling more and more tech. into the vehicles. Tech means more research and bigger, better, more powerful, chips and computers. Also don't forget the transition to EVs that the major manufacturers are committing to in the next 5-10 years. Last time I checked, the EVs are pretty dang expensive.

I love my '19 RAM, but I'm also committed to keeping my '94 F250 running.

 

[treillw]

I think the answer is different for used or new.

Care to elaborate? Good time for new (if you can find them) bad time for used, I assume??

 

[MattB]

I buy a new 4runner every ~5-6 years. The last 3 I bought were all in the $38K-$41K range, with the last (2018 bought in 2/2019) being the cheapest due it being a prior year model. Not sure where this sentiment that vehicle prices only go up - and dramatically - comes from.

 

[JesseC]

Care to elaborate? Good time for new (if you can find them) bad time for used, I assume??

Good time to sell used!

I have a 2000 xterra in the driveway that I haven't driven in 3 years. The resale value on the damn thing has nearly doubled.

Keep telling my wife I'm holding onto it as an investment....... yeah...... that's the ticket!

 

[Desk Jockey]

IMO I think me prices will Trend down in 2022 as the supply chain catches up. 100bps or more increase in interest rates will throw some sand in the auto finance machines gears And will slow things down a bit too. I doubt you see pre pandemic pricing again but things will get better. I think it is at least mid 2023 before you see a new ”normal”. I want/need a new daily driver but I am holding off for now until I actually have to buy.

 

[billoo349]

I buy a new 4runner every ~5-6 years. The last 3 I bought were all in the $38K-$41K range, with the last (2018 bought in 2/2019) being the cheapest due it being a prior year model. Not sure where this sentiment that vehicle prices only go up - and dramatically - comes from.

I looked at the MSRP for 4runners every year for the last ten years and every year they have increased. Just because you bought a year old model doesn't mean the price went down, it means you bought old tech. Not dogging on you, Ive bought a couple "leftover" new dirt bikes over the years and saved money.

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[mlgc20]

I looked at the MSRP for 4runners every year for the last ten years and every year they have increased. Just because you bought a year old model doesn't mean the price went down, it means you bought old tech. Not dogging on you, Ive bought a couple "leftover" new dirt bikes over the years and saved money.

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I think that's part of the point though. The prices are going up because there is more technology involved and they are more expensive to produce. The prices aren't going every year because of some other economic force that says prices on cars has to go up.

I'm not disagreeing with you. Just pointing out some nuance to the pricing fluctuations.

 

[treillw]

We need a "flip phone" in the automotive industry.

 

[GSPHUNTER]

If you trust the reports now coming out, the chip shortage will last into 2nd quarter of 22. One of the big factor in prices is the limited number of vehicles coming off the assembly lines due in a large part to chip shortage. As for used vehicles the prices are up due to lack of new vehicles so, until lines start picking up production prices will remain high. As to whether prices will come down, we will never see pre shortage prices again but yes they will come down, eventually. My brother in law put in an order for a new Ford pickup, 13 month wait. I think he's down to 11 months now.

 

[Mtnboy]

I buy a new 4runner every ~5-6 years. The last 3 I bought were all in the $38K-$41K range, with the last (2018 bought in 2/2019) being the cheapest due it being a prior year model. Not sure where this sentiment that vehicle prices only go up - and dramatically - comes from.

Have you paid attention to prices in the last 12-18 months? 2018 was a long time ago in terms of vehicle pricing.

I bought a used pick up in 2019 with 36k miles on it for $36k. The last time I had it at a dealer getting the oil changed in October they offered me $40k if I'd walk away from it that day, it had 76k miles on it at that time.

Prices have gone up, and drastically, in recent years. Will that continue to happen? Anyones guess...

 

[MattB]

I looked at the MSRP for 4runners every year for the last ten years and every year they have increased. Just because you bought a year old model doesn't mean the price went down, it means you bought old tech. Not dogging on you, Ive bought a couple "leftover" new dirt bikes over the years and saved money.

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Looking back to 2010 when the current 4runner was released, the model with the features I buy has gone up from $35,700 in 2010 (Trail) to $40,730 (TRD Off-Road) in 2021. That is a 14.1% price increase whereas inflation has increased 23.3%. With that lense prices are actually decreasing over time in inflation-adjusted dollars.

Old tech? You should take a look at the 4runner model lifecycle - not much changes from year to year. Not even from 2010 to 2021. They are all old tech.

 

[Fatcamp]

When have prices for anything ever came down? Outside of gas prices that have fluctuated from the early 2000s to now everything I can think of has only increased in price.

It will take a major economic upheaval to bring the prices down to what we payed a few years ago. And if that happens new vehicle costs will be the least of your concerns

Guns and ammo.

 

[MattB]

Have you paid attention to prices in the last 12-18 months? 2018 was a long time ago in terms of vehicle pricing.

I bought a used pick up in 2019 with 36k miles on it for $36k. The last time I had it at a dealer getting the oil changed in October they offered me $40k if I'd walk away from it that day, it had 76k miles on it at that time.

Prices have gone up, and drastically, in recent years. Will that continue to happen? Anyones guess...

We are in the midst of a significant supply shortage without a commensurate reduction in demand so prices have increased. That is basic economics. Once the supply/demand relationship normalizes and pent-up demand has been satisfied, prices will decline to levels more in-line with pre-pandemic levels. We've seen similar patterns here and there with other products for decades - no guesswork needed.

 

[sasquatch]

As long as idiots only concentrate on the monthly note, no, prices will never one down measurably.

Everytime something start becoming unaffordable they Jack on another year to the loan to fake out our idiot populous.

I think 40yr mortgages are soon to come also.

Look at everything now, it’s all about “payments”. Hell when you try to buy a short online they try and push you to 4 easy payments.


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