Car affordability in 2022 and beyond

i was thinking mostly none of them

 

Or perhaps you didn’t read the article?
The guideline is “average sales price”, not MSRP.

Now, you may be correct about the Kia models.
Can you tell me what the average selling price (with options and shipping) is?

 

around here about 50 large

 

Quite a few people I think make too much money to qualify for the federal tax credit. Tesla was still selling them weren't they? $7500, oh who cares about such a thing. Have it delivered in the morning at 10 my good sales associate. Especially high tech where they just made millions on a stock by pure accident.

 

You make a great point.

To get the discount you must generate that amount of money in tax liabilities. That can be next to impossible for retirees and low-income people.

When we bought our PHEV and wanted to claim the Tax Credit (alleged rebate) I had to consult a CPA to determine how much money to convert to a Roth to generate the needed liability. If I am in that situation again, I will say the He_ _ with it and not do it.

The one exception and what I should have done is taken advantage of what KIA and Hyundai were doing at the time.
If you did a lease, they would handle the paperwork to get the Tax Credit themselves and then they would take the amount of the credit they got off the price of the vehicle. They would write the lease so you could then buy it out and pay off the vehicle.

 

Or maybe you need to consider others input.
A car that is MSRP below $20,000 should sell below that level if you time your purchase and negotiate properly.

One way to go through life is to appreciate others views and realize that in the area they live the situation - car prices and inventory - currently support such reductions and negotiation.

Your area may not be in that situation

2023 Kia Rio for sale in Burton - 3KPA24AD3PE597752 - Preston Kia

Why not appreciate others input and learn something?

 

If I misunderstood sorry.

Most manufacturers will begin releasing new models around August and they will hit the lots around September thru November and on.

So in September 2023 they will begin receiving new 2024 Rio's for example. They will also have an inventory of 2023's that are now considered the previous year's model. If the pricing is competitive, they will be motivated to move those 2023's before they become even harder to sell.

I bought a 2020 Hyundai in December of 2020. The Dealer was highly motivated to move this vehicle, he had a number of 2021 Santa Fe's arriving and many more currently on the lot, and these 2020 Santa Fe's were old news. Human nature being what it is everyone wants the new model.
I got a negotiated price well below MSRP + - a $500 Military Discount- a $500 Discount for financing the vehicle - a $500 Discount as one of our children was with me who was a student. The Dealer did not want to carry this vehicle over to the new year along with the tax liability for it. We didn't even finance the vehicle but since the Salesman had written up the contract that way we received that Discount.
After the deal was done, I asked them if they wanted to make me an offer on our trusty 2004 Sienna with over 160,000 miles on it and 17 years of reliable service- they were interested in it and offered me another $2,300. When it was all said and done I had a brand-new Hyundai Santa Fe SEL with every safety feature imaginable for about the same price that I paid for the Sienna LE back in 2003.

I am not an especially good negotiator, but I bought the car at the right time and followed the advice of people more knowledgeable than me on vehicle purchases. This is an advantage of knowing that there may people with more or different experience and that are smarter or have been exposed to more situations than yourself and being willing to learn from them. I know I did, and I appreciate their input and advice as well as Edmonds New Car Buying Service.

As we were waiting for all the paperwork to be done the Salesman commented how busy they had been in September and November with all the deals they were doing on the 2020's they were unloading at that time.

 

MSRP

It’s like the $9999 brand new Nissans
Technically MSRP wasn’t $9999

 

They mention it near the end; $20,157.

The AP article wasn't reporting MSRP or advertised pricing, but the average price for the model actually sold for, according to Cox Automotive. They own things like Kelley Blue Book and Autotrader, so probably have a wide ranging data set for these reported numbers. https://en.wikipedia.org/wiki/Cox_Enterprises

On Cars.com, there is just two new 2023 Rios for under $20k within 75 miles of me. The local dealer has just one listed on their site, and won't give a price without contact info.

 

We used to have a good supply in our area - but as you can imagine a new vehicle at that price with a 5-year 60,000-mile general warranty and a 10-year 100,000-mile powertrain warranty is not going to sit around long. I think they get over 40 mpg and also come in a hatchback model.

 

I've seen all the later posts about MSRPs and stuff, but still.... What surprises me is that there are three new cars in Australia that cost less than not US$20,000, but A$20,000 (US$12,816) before on-road costs; two of them cost less than A$20,000 on the road. The Kia Picanto is A$18,890 drive-away (including all on-road costs, like insurance and registration and stamp duty); the MG3 is A$19,490 drive-away. The Kia Rio here starts at A$19,690 before on-road costs (A$21,990 drive-away), so it's still well under US$15,000 drive-away.

There are loads of cars under A$31,000 / US$20,000.

I'm intrigued. I always thought cars were cheap in America.

 

I think you misunderstood me. Also, I do appreciate your input

The article is talking about historical data. What was the average selling price of a particular model vehicle.
The point was not, 'what minimum price is available'.

I agree with you that if you do the research, and time the purchase correctly, you can get that lower price.

The article is simply saying that isn't what happened for most people. Thus, only one car model had average sale prices under $20k.

 

The Picanto and MG3 are small cars around the size of the Mitsubishi Mirage. They are all at border of the minicompact and subcompact EPA size classes. No other car maker in the US sells a subcompact or smaller car anymore. The Rio and Corolla are examples of the smallest sedans available. Some crossovers and SUVs might be counted as smaller, but have that 'utility' price premium; plain hatchback versions of those sedans are a $1000 or more. On top of the size difference, the Picanto and MG3 are over ten years old for their current generation. The investment on them has been paid off for years, so their is more margin to absorb any rising costs. I expect they are also closer to a true stripper model of old in terms of features.

Before inflation, the Mirage and other small, 'starter' cars in the US were below $15k. The big dealerships outside Baltimore were listing the base Spark for $10k.

The base Rio, and others, here are pretty well equipped. Though if you want cruise control, you'll have to upgrade to the high trim. Delivery and usual dealer add ons brings the MSRP of that to over $19K. Want ADAS, smart key, and fancier dash displays? That adds $1800. Then the Cox Auto average sold price can include other fees and taxes.

 

Interesting discussion.
Here is an AutoTrader article dated 6/1/23 it may add to the discussion. The list is for America and has 10 cars, starting with the Nissan Versa at $15830 and ending with the Nissian Kicks at $20,440

The 10 Cheapest New Cars You Can Buy Today - Autotrader