Do you think new cars are way over priced?
Wednesday, February 17th, 2010I mean, I think of how many new cars are probably made and even sold in one day, and sometimes I wonder if we’re being way overcharged for new cars. What do you think? Does it really cost them $20,000 +++ to build them?
I don’t think cars are overpriced, if by that you mean they have an artificially high, inflated profit margin. Too many car manufacturers (domestic and import) are not profitable for that to be the case. In addition to the basic manufacturing costs of a car, you’ve got to consider development costs, marketing, warranty claims, and everything else that adds overhead. I think it’s more a case that people just spend too much on them.
If you just want basic transportation to get you from point A to point B, you can get still get a brand new compact car with power windows/locks and AC for around $15k.
But people have demonstrated they’re more than willing to spend $25k+ for bigger, heavier cars with bigger engines and all kinds of optional luxury conveniences (moonroofs, large alloy wheels, premium stereos, leather seating, power seats, etc). Heck, people will spend $35k+ just to get a "luxury" version of a car that already has these accessories!
