Why Are Cars Suddenly So Expensive? 

Start speaking a new language in 3 weeks with Babbel 🎉. Get up to 60% OFF your subscription ➡Here: go.babbel.com/t?bsc=1200m60-youtube-patrickboyle-jul-2023&btp=default&RU-vid&Influencer..patrickboyle..USA..RU-vid

Patrick has the classic used car salesman suit to be convincing enough to get you to commit to the TruCoat™ you didn't ask for.

Good video. I have an auto repair shop. What I'm seeing here in the rust belt is people who way over-paid for used cars still making payments on rusty worn out junk. It's awful.

My wife’s car was declared totaled during the pandemic. We looked around for a Toyota RAV4 EV and most dealers was charging huge markups. We just walked out of the dealership and didn’t even enter a few after looking at the pricing on cars in the lot. Eventually we found a dealer that had the car she wanted on order from the factory and they only wanted the MSRP. We bought it on the spot and got it about a month later. I can’t believe how much people are paying for cars. We are very high income earners but have never spent more than $35-36k for a new car. It’s the worst “investment” you can make.

This is why I am still happily driving my 2002 Honda, which I bought new. Best value ever!

One thing I noticed immediately after restrictions lifted was how horrifically expensive renting a car was. The likes of Avis, Hertz etc. basically froze buying cars during the pandemic and then screwed customers over to pay for a new fleet. I imagine lack of rentals also increased second hand car scarcity.

The new car business model: "Sure our cars are expensive but we make it up in scarcity."

Like the jacket PB - I was in a dealership a few weeks ago collecting a new car that was supposed to be unavailable due to demand but miraculously was available if as the salesman said (you can move fast) as this was a cancelled order. To my surprise there were three other identical vehicles in the showroom all of which were immediately available- when pressed the salesman came clean and said these were all cars ordered by customers who can’t take delivery because they can’t get cleared for finance on the vehicles. This is a real sign of the times.

Finally have income & to get my assets / life in order. Just in time for both cars and houses to be the most unaffordable they've been in 100 years.

No discounts here in Canada. You have to order and wait for your new car 3-6 months...minimum. Until that changes, prices will not be coming down.

"The high ... prices turned out to be surprisingly sticky... As manufacturers fought to maintain the fatter margins they'd enjoyed in 2021" Yeah, there is a surprising amount of that going on lately. Not limited to cars.

Dealers charge a premium for "faster delivery", but don't always deliver on their promise. Looks like dealers want to make as much money as they can before the market cools off.

Part of the price hike is the end of small cars. Nearly all manufacturers have axed their smaller models (which had been gettering increasingly larger already anyway). Toyota is the exception so far, with the competitors pulling out of that market it might remain feasible for one or two makers to keep developing small/cheap cars. From a financial perspective doing so is increasingly just not worth it.

I haven't bought a car since my 2012 Ford Fiesta. I find myself watching more videos of used car dealers talking about used car prices lately. You've covered all the issues very well.

there was an interesting article on zerohedge recently mentioning a few things: the average American car loan payment is now ~700 dollars a month. There is also a record proportion of loans with monthly payments exceeding 1000/month, with an average loan duration of 74 months among those loans. One has to wonder how many of these loans will end up underwater after a few years of depreciation.

I was one of those people that had leased a car at the end of 2019. It was the most basic Toyota Corolla hybrid that I could get at the time. At the end of my lease, I bought the car and sold it back to the dealership and netted about $8k after taxes and fees.

I just bought a GR86 a week ago and all I can say is thank God Akio Toyoda pushed so hard to have the 86 be affordably priced. I didn't have any mark-up and it was still painful between interest and the insurance on the car.

One thing I think is went amiss in this video. While the semiconductor shortage was one of the biggest impediment on manufacturing, this was mostly self inflicted by car industry. Almost all manufacturers cancelled their regular orders from chip fabs at the beginning of pandemic assuming the demand will stay low for the foreseeable future. When the demand came back fast and in quantities they asked for the semiconductors needed back, but unfortunately semiconductor industry does not work that way. Every second a fab is not producing chips 24/7 it is a massive cost, so if you cancel your order specs are changed on the machines and filled with other orders. You will never get an instantaneous response for demanding a particular chip.

My 2018 Ford with 60,000 km is worth almost what I paid for it new. Crazy

Coming back to the country. I had to buy 2 cars for the household. I purchased new because used car pricing was very high. I expected that a 5 year old car should be about half price from when it was sold new. What I found was 5 year old cars selling for 75 to 90 % of what they cost new. So I found Stalantis cars that were in oversupply and I bought a Jeep and a Ram truck for about 20% discount from it's posted MSRP. New had way more value for me. No miles bigger discount. Other times in my life I found used cars to be better value. So I have 2 new cars and I paid about 80K for both of them including tax and License. That is a lot of money, as the last car I bought was a used Lexus RX that I got for 14K and it lasted me about 60k miles. Then returned 4K on resale. It's a different world now, I am sure that things will swing back to normal soon as people cannot keep spending at this pace forever. 👍

47,000 bought me a beach cottage walking distance but far enough away you don't hear the beach noise. It included a lower level that I modified for a cheap rental mortgage helper, and a washer/dryer room. Upstairs I installed a mini wood stove (self baffled) and still have two bedrooms and two baths. Today it bought my neighbor a VW Taureg. Ouch.

Just a note about the production quality of the latest videos: In the last several videos I’m noticing very good lighting techniques and sound capture! It’s not that the earlier ones were bad but the newer ones are looking more and more like something done by a professional media company and, at least to me, makes an impression that associates the quality of the intellectual content with the visual and audio quality. Looking and sounding great!

My employer had two used service trucks, 2005 and 2007 Chevy 2500HD's with Royal service beds and Tommy lift gates. Both were in excess of 200k miles. The one I wanted had an issue with reduced power due to bad ground in the wiring. But, it had a $6k rebuilt transmission and $5k lift gate replaced less than two years prior. They listed the trucks for $10k each so I gave up any hope of owning the truck. One person responded to the ad, offering $3,500 for the truck I wanted. The boss turned him down and the trucks sat another couple of months before the owner had to get rid of the trucks because of reduced parking. A company that buys trucks offered $1,500 for each truck. My boss then remembered that I was interested in one of the trucks so he let me make $100 payments and I soon had it smogged ($85), registered ($425), fully insured ($110 a month). Funny thing is that I was originally willing to pay $3k for the truck because I know he would have agreed to monthly payments. I couldn't believe I had paid all together, $2,000 for a service truck that is worth over $10k. My co-worker bought the other service truck that was two years newer but shortly after owning it for a couple of weeks the transmission began to fail. He wanted that truck because it had 20k less miles and knew that there was an issue with the transmission but had hoped it wasn't as serious. Fortunately, I got the truck that was in better condition. I love the truck because I can store all my tools in the cabinets of the service bed.

Personally I'm seeing a bit of a drop in the price of older cars for sale by the owners of the cars because many people are struggling with the inflation. Pricing at dealerships are still crazy though

I have to say, chip shortages are still occurring on a large scale in the automotive industry. My father, working in that field in germany just a few days ago told me, that no one dares to claim contractual penalties from chip manufacturers for failure to meet deadlines on delivery or missing delivery completely, because if chip manufacturers decided to stop supplying them, they wouldn't be able to get chips from anywhere else anyway. They have to make do with what they get, and each wafer going bad spells problems for the whole supply line.

My car story is that I bought a 70k mile '06 diesel Focus in the south of England in 2015 for £2000. Pre-pandemic they were selling for £700. Nowadays, at 180k miles, I can sell it for £1400 outside of London (it's not ULEZ-compliant)... It's mental. A friend bought a 2016 one just before the pandemic and she could currently sell it for the same amount.

I did a video over this and cars have been expensive since 2010. More importantly, dealers have been gouging, and consumers willingness to buy.

Here in Oregon. Last few months used vehicle prices dropped because high interest rates. New trucks don’t sell because high prices. Privately run used car lots have hard time selling cars. People are waiting after summer sales.

Last year I lost my car in hurricane Ian. I financed it brand new for about 16k in early 2020. It was the most bare bones new little sedan you could get but it had everything that i needed. When I went online to look for a new car all I could find were junkers for 10k+ or flagship name brand cars that were way more than I needed and could afford. I knew I wouldn't be able to get a new car but I was just looking for a reasonable midrange sedan. I ended up giving in and financing another 2020 Hyundai for about 26k. I like it but I didn't need all of the bells and whistles it came with and it hurts my soul everytime I have to make a payment. I'm sure I got screwed over by the dealership one way or another but I live in a fairly car dependent area so... 🤷‍♀️

Despite already knowing everything in this video before it started, hearing how you explain it just provides a bit of extra flavour.

Without watching this yet, I’m going to guess it is that all the OEMs realized at the same time that they’d rather sell fewer cars on higher margin than try to make their money on volume.

I love your videos! I could watch them all day. Very, very well done. Thank you for making them. Great topics too!

Glad I am still driving my 1928 Ford model A.

I've never been happier to not be in the market for a car. It blows my mind how expensive even average cars have become. I was just in the dealership this week to have an oil change done and while I was waiting and was shocked to see what 2023/2024 models of my car were selling for. I bought my car in 2018, and baring some catastrophic event, won't be in the market for quite a while. To replace my car right now with an equivalent make/model would be around a 30% increase since 2018.

Your jacket suggests you're in an adventurous mood today.

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Paul Rohrbaugh, Marc De Mesel, Nate Stapleton,Timothy Baird, WIlam, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Erik Van Ekelenburg, David O'Connor, Pjotr Bekkering, Alex, Robert W Proudfoot, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, Mark Brophy, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, David Wang, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Stephen Mortimer (to The Moon), Ryan B. Hicks, Liam, Logan Vrankovic, William Heaton, Paul McCourt, Daniel, Aaryan Koura, Christopher Boersma, Ulf Lundblad, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Daniel S. Smith, Finance Student, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Dixon Yuen, Marek Novák, Stamatis Drepaniotis Michael Smith, Ahmed Hamadto, Chris Davey, Mike Farmwald, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, Linn Engström, Veltsh, Konrad P-kala, Pastacat, Adam Vorting, Matthew McQuade, Christopher Lesner, freebird, Kenneth WedMore Lund, erfective, Jason Young, Jonathan Kopnick, Peter Hendrickson, steel, Bastien, Tom Willett, Chris Whitehead, Anil Jason, JOJO, AS7, Greg Thatcher, Ezekiel Templin, MrLuigi1138, Leszek Frankowski, Nam Nguyen, Karim THIBAULT, C, David R. Ingemi, Robert Wave, Dmitri Alexeev, Aaron Rose, Ethan Hernandez, Claude Chevroulet, Stephan Marosvary, Louis Julien, Jan Lukas Kiermeyer, Gearoid O Connor, Fredrick Saupe, Subliminal Transformation, Alex McMahon, Adi, Ben, Kurt Mueller, Janusz Wieczorek, Federico Viscomi, Corgi, Mahdi, Burgerinn, Quinn Cone, QiKaiQian, Stephen, Joshua Rosenthal, Michael Smith, Emilian Marius Tudor, Cormac, Ian Shearer, Michael Kopřiva, Tinni, Goran Milivojevic, Joe Del Vicario, Alexandre Mah, ultima9, Norman A. Letterman, maRiano polidoRi, Stephan Prinz, Gary Yrag, Mattia Midali, Matthew Berry, Jay T, Gabor, Shivendra Saklani, Zachary Tu, Jeffrey, Lane Alan Deyoe, Chett Flynn Jonathan Horn, Mo Herbert, Lane Andrews, Justin Thuet, Olaf Thiele, Ivan Ilaev, Todd Gross, Douglas Caldwell, Wade Hobbs, Volodymyr Palii, James Hoctor, Gavotti SGP, Ryne Davis, Jean-Philippe Lemoussu, Keanu Thierolf, Michael Chow, Stefan Alexander, Miroslav Ognyanov, Scott Guthery, Vanya Davidenko, Arto Karhu, James Bache, Jason Harner, Dale Patch, Stefan Penner, Arvid, Eric, Jonathan Metter, John Way, Maria Baker, Luke Solomon, Sharath Vulupala, Keith Elkin, Chris Nicholl, Luis Carmona, Vinci Chan, Olivier, Yasha, James Yoh, Eduardo Martinez, Adi Blue, Swain Gant, georgejr, hyeora, old gambling art bag, Boussaken, Lukas Braszus, Vik, Chris Albertson, Sprite_tm, matt f, Douglas Caldwell, Adgn, Ronald London, Chris Rock, Tuan Nguyen Minh, Daniel Baak, Jeremy King, Julien Debache, M1, Dougald Middleton, Tom, Diarmuid Kelly, Gregory Mahoney, Angelo Rauseo, Ryne Davis, Anne Molphy, Ekaterina Lukyanets, Alfred, sugarfrosted, Okkie, Larry, Sarah, miilo, Alexandre GUYAMIER-CROISSANT, Alex C, Henk S, Noel Kurth, John Tran, Daniel Soderberg, Daniel Ralea, Steve Crotti, Shaun Deanesh, DaFlesh, Dominique Buri, B P, Manmeet Sheera, Stephen Walker, Richard Stagg, Bo Grünberger, Justin Sublette, R, Paul Twilley, 인기 김, Dennis Arthur Rose, Louis Görtz, Arjun K.S, josef strand, Simon Crosby, Alex Do, Minnah seoh, Jacob Snedaker, Edgar De Sola, Izidor Vetrih, WhiskeyTuesday, Compuart, Felix Goroncy, Nick Top, Anita Mui, C.J. Christie, lazypikachu23, Olivia Ney, Steven, Jordan Millar, Reagan Glazier, Viki Rebic, Adrian, KoolJBlack, Deborah R. Moore, Alonso Ibarra, sam, Dru Hill, Dean Maurer, Tim Jamison, gavin, Ultramagic, HEWHOSHALLNOTBENAMED, Nigel Knight, Daniel Winroth, Paul Niekamp, Job Zamora, Zhnjy, Brian K. Lee, Tony Bianucci, storm, scott johnson, Suzy Maclay, Just Plain Old Boring Mike, Agatha DeStories, Chris Peterson, Nesh Hassan, Molly Carr, Christan, Michael Jones, Ross P, Conor Rainey, Milos Krljanovic, Richard Hagen, Nicholas Muller, Adam Stickney, Peter Weiden, RVM, Brainless, Marcio Andreazzi, Yih Pin, Ziad Azam, STEPHEN INGRAM, Michael Wilson, Gregory Lethbridge, Daan Jetten, Ivan Katanic, Benjamin, Boris Azais, Flanneryo, DoubleWhy, Paul Hilscher, Manuel Barkhau, Gaurav Batta, Earnest Williams, Harun Akyürek, Dionysis Partsinevelos, toufik ouriachi, Maximiliano Rios, Claire Walsh, AT, Atanas Atanasov, William J. Murphy, Tom Eccles, Matthew Lang, Fernanda Alario, nishil, Alfred Tagher, Ulf Lundblad, Weijie Diao, Dave Jones, Matthew Colter, Alan Medina, Georgios Kontogiannis, M, Kirandeep Kaur, Charles, William Ching, Omer Secer, Clement Schoepfer, A M, Ivo Stoicov, Christian Nwadibia, Wade Hobbs, Sam Freed, DesuuDesuu, Oliver Goemans, ML, Kalimero Eric Holloman, Matthew Kokaly, waziam, Saaientist, DebsMO, Mike Pearce, Andrew Backer, Marcel Widmer, David Kavanagh, Piotr Klos, JAG, Stonks, Yura Vladimirovitch, Ticklemecolor, Artiom Casapu, Davíð Örn Jóhannesson, Anna, M G, Jacob Warbrick, Jessie Chiu, gurbans, Eric Bowden, Michael Green, james Brummel, Sahil Kumar, Huxky, Deb-Deb, David Swastek, Fly Girl, D F CICU, michael briggs, Dakota Jones, Stephen Fotos, David Nguyen, Bill Walsh, eliott, Ignacio David Palladino, Meee, Bolutife Ogunsuyi, Mihai, Tomislav Kožić, Max Macial, Thomas Foster, D Vidot, Reginald Gilbert, Brian W. Bush, korede oguntuga Zoe Nolan, TheGabornator, Erik Johansson, Shaun Alexander and Yoshinao Kumagai

Know nothing of the car industry but lease a new one every three years. Currently have a 2022 Highlander XLE paying $756 monthly (no down, rolled TTL into the payments), no trade-in. My career has me doing a lot of international traveling and note that in my recent 2023 travels to Asia and S & C America the lots are full of inventory and the prices seem to be almost back to pre-pandemic cost. Makes me wonder if the boys back at home (USA) are not gaming us all. Example; was in a Panamá City mall, there were several new 2023 Camry and Rav4 all listed at pre-pandemic cost. Both in mid $20K.

I bought a new Crosstrek manual transmission a year ago and I lived in it with my dog for 26,000 mi camping in the winter in skiing 73 days. The local Volkswagen dealer gave me $300 less than I paid brand new and they sold it for $29K after 3 days. I also bought a new 19 f150 for 39 and vroom gave me 39,500after 59,000 mi so another win for two vehicles.

I think a gap is opening for value brands like Dacia and Renault.

I am from Spain. Just a few years ago it was possible to spec a nice VW Golf for less than 20 grand, now it’s like 30. Since I basically live in a 15 minute city, I do not have a car anymore and I have bought myself a motorbike for the rare occasions I need some personal transportation

0:00: 🚗 Car prices in the US have seen significant increases in the past three years, with used cars becoming less affordable and new cars becoming 15% less affordable. 2:36: 💸 The price of car insurance has skyrocketed due to insurers losing money and the increase in car prices. 5:23: 🚗 Car prices remained high in 2023 due to supply chain disruptions and increased demand. 8:20: 🚗 Demand for affordable used cars is high due to a lack of new affordable cars being produced, resulting in intense competition and a rise in the average age of cars on the road. 10:43: 🚗 Rising car payments and reduced credit availability are causing concerns in the auto market. 13:27: 🚗 The cost of auto insurance has increased significantly due to higher average claim payouts, higher costs of car repairs and parts, and an increase in insurance claims with legal representation. 16:07: 🚗 It is becoming more expensive for dealers to finance unsold inventory of new cars, but there is still demand for affordable cars. Recap by Tammy AI

I love how my small City is built for car traffic mostly, just love being forced to engage in this system if I want to get around in a reasonable time frame. All cynical joking aside, I like having the option to work 20 miles away as i do, but every trip, Be it a grocery run or a hang out with the boys, I need to have a car where I live. The promise sold to me as a kid around cars was freedom, but that doesn't feel free when the "choice" is so compromised.

I'm driving my old old beater truck waiting on prices to drop. I normally would have already replaced it but prices and interest rates are just stupid right now. So yes, I'm participating in Jerome Powell's attempt of slowing down the US economy because my beater truck has a very good quality of.............being paid for.

Patrick, it’s worth mentioning that the demand for vehicles skyrocketed after covid because $200 billion in covid relief funds were stolen through fraudulent PPP loans.

Interesting video. I was part of the group that got “lucky” leasing a 2019 vehicle and last summer made the decision to buy (currently 13k miles). The cost difference per month, whether a new lease or to purchase used was twice the monthly lease payment. We also recently were in an accident and the wife’s vehicle was deemed totaled, due to the reasons in the video. Once we landed on a used vehicle (company, model, year) it was pretty surprising the price differences in our area (10-15%). The biggest laugh we got was how every salesman tried to get us to purchase an extended warranty due to all the “tech” in the cars. Every salesman used this line.

We had hurricane Ian in September last year, 2022. It totalled some 380,000 l. Was near impossible to get replacement autos in southwest Florida. . . . .beater trucks with 1/4 million miles were fetching 12,000. The 'perfect storm' 😅😂 Love the channel Patrick. . . .well done!

So my car being 13 years old and still working perfectly fine for me is the average? It certainly doesn't seem like it looking at traffic, although I suppose it's getting harder to tell how old cars are that have been made in the last 15-25 years. I don't think the design of the model of my car has changed much; the only thing that would be out of date would be the fact that it's a sedan, which are now something like 20% of the vehicle traffic.

I had a company car during the pandemic. The company decided to discontinue the program because we weren’t driving on company business during the pandemic (duh!). We do not get a car allowance now that they’ve discontinued the program, only mileage and have to buy a car during the worst time to buy a car in 75 years! Quite maddening. I am looking for a new job and this is one reason why.

Adore the content Patrick, keep it coming!

Prior to the spike, hyper low interest rates drove both sales and prices. EV manufacturing produced more unwanted cars and gas-powered units are now in short supply and at a premium price.

Amazing video as usual. I can see the demands for public transit increase in coming years. Also Nice suit, Patrick.

This is an excellent analysis, thank you. I’m seeing prices come back down as inventory is coming back, we’ll see how far & fast they fall

Makes me even more thankful that I don't have to own a car anymore. :)

Yea the prices are wild. I've fully paid off a car I took credit off for and can now sell it on used market with 1% loss compared to when I bought it new + the internet I paid as well.

There are only a handful of companies outside of China that can build the more affordable cars profitably. For them the high interest rates paid by the customers who buy cheap cars continue to suppress sales. Ultimately it will be declining inflation leading to lower interest rates that resolves the current price bubble.

Thank you for such a wonderful and detailed explanation on this. Outstanding as usual.

Excellent analysis....as usual. Nice one Patrick. Thanks for all your industry.

Also a lot of people are hoarding Inventory on 1990’s cars like Toyota and Honda because they want to fix up for max value. I see them sitting in peoples yard and garages.😅😂

Just a thought, if you decide to do a follow up you may want to consider how the Mannheim Index reflects the vehicles on auction. This availability in recent years skewed the increase on used vehicles lower. Since the availability of used vehicles was down and those on auction were salvage. The overall number of totaled or salvaged vehicles is pretty consistent annually, however the fleet has been shrinking since 2019. Meanwhile vehicle miles travelled has hit new highs in the US over 2019 levels nationally.

Really enjoy all your videos!! Thank you Patrick! Depreciation on cars are getting greater...👍👍👍

Very interesting video and perfect timing . Not only are they increasing prices but also using technology and parts which makes owners get their cars serviced at dealership only .

Its worth noting that 15y old car now, is an entire different league compared to 15y old car in the 90s. Both paintjob, and engine technologies improved massively. In other words, the junk cars often aren't junk anymore

My wife's used car is currently "worth" more than $2k above what she bought it for used 4-5 years ago. I checked my 2009 Toyota Tacoma base model with manual roll up windows and manual transmission I bought in 2010 for $14k with 24k miles on it. I found the same 2008 model for $12k with 157k miles. That is double what I was expecting.

someone needed to make this video. Thank you Patrick Boyle!

Hi Patrick Very good summary of what's happening in the current car market . I just bought a new Nissan Murano so experienced a lot of what you talked about. I was also seeing that most advertised prices where a financing price and you paid more if you where buying outright. Also anything in inventory has 3-5 thousand in extras put on it that you have to pay for if you want the vehicle. I initially looked into ordering a Rav4 but it was a 10 month wait . Peter

Car prices are a real issue. Insurance is not. Wait until they send you a renewal quote/notice. You will see the price for 1 year has gone from 360 to 560 (example) or something like that. Send them an email, or online customer service chat message saying ''These are crazy prices, I'm not paying that. Give me the new customer tariff or I will be a new customer somewhere else'' presto - you will get a good deal. You will probably get very close to your previous renewal amount from last year.

Patrick Boyle: "Why Are Cars Suddenly So Expensive?" Me: Hmm🤔🤨You got me there Patrick. As a mechanic, I only know about The Inflation of Tyres!

They did also finally push a variety of models over the "100k barrier" up to where the top-end models should be priced, rather than artificially reducing prices to avoid the extra digit.

Thanks Patrick! Great analysis

it is a real issue - used cars are costing much more than they are worth and repair / servicing costs are way too high

I literally said " ooooo thats a coat" the minute the video started. Now I want that fucking suit.

Always like listening to your channel. I’d be interested to find out your opinion on the current situation in the trucking industry.

Great piece. I’ve been very close to this phenomenon, and still had a lot to learn here. Thank you!

Love the sports jacket!!

Me: Driving around in a '98 Camry. 😎 I'm actually currently learning Spanish as well.

Brilliant video Patrick ! Without a doubt, you are one of the most articulate bloggers on the interweb.

I saw a 12,000 square foot mansion in Michigan yesterday at Zillow for $5 million, the tax/insurance history stated the insurance on the house is $759 annually. My 2,445 sq.ft. house in FL (at 90 feet elevation it cannot flood) is over $3,000 per year, up 86% since 2020. The economy is crumbling before our very eyes and nothing but greed can fully explain what is going on.

Japan kept making their “k” small engine affordable vehicles. No fancy electronics. Gov taxes less. Kind of slow but for commute n shopping they r affordable. Regular cars same dynamics nicer more expensive models. New Camry very nice except price. Got a 10 year old hatch with good fuel efficiency but maintenance higher. Maintenance still less than buying new or moderately used. Bicycle prices coming down, these were ridiculous too, so get some exercise and go easier on the auto use.

I’m thoroughly convinced after being at a few dealerships that ‘ceramic coating’ is code for another transaction fee.

Excellent!

Great video, as always. Thank you!

Cash For Clunkers wiped out a generation (1990's) of cars & trucks.

Looks like I won't be buying a new car. Thanks Patrick :)

Thanks so much for answering a question I've had since some time. Also, that suit is looking fly! :D

I have a friend who put 30 miles on a truck over 18 months, then sold it to a reseller for the same price he paid new.

Hearing the problems that insurance companies have is amusing and all but they are pretty self created.

Great honest video !

Great video, really shows the scale of the problem, we had to buy a used car for the second time in the space of a year. We paid £7,500 for the first one before/around Christmas, it developed an unrepairable fault so we sent it back for a refund. Fast forward to last month, cars of similar spec/age were now going to cost at least £10k-£12k, and the insurers wanted four time what we were paying last year…

Looking forward to this.

Have been fortunate enough to live in metropolitan areas where I do not need a personal vehicle to prosper or be healthy.

Very odd I didn't get this in my notifications even though I have the bell icon on. Love the video as always, very informative

Every time I check in with the car market I gain new appreciation for my 10 y/o car which has a lot of miles put on it. I'd love to upgrade, but I can't justify the expense vs just keeping my older car another 4-5 years longer.

Why I drive a 21-year-old car that I bought used from Hertz 19 years ago. It's a simple car and easy to work on. I do all my own maintenance and repairs and invested the money I didn't blow on an expensive car in the stock market, becoming considerably more wealthy as a result.

My car broke down during the pandemic. I had to look around quite a bit to find an affordable used vehicle. It ended up being twice the age of my previous car when I bought it back in the day and it was more expensive as well. Still a decent deal overall.

I'm still driving a 1999 Toyota Avalon with over 255,000 miles, still running strong. I'm keeping it forever.

Thank you for sharing your wisdom.

Thanks Patrick, I wish you lots of luck with your Spanish and I really hope you have a great time in Spain.

Great video. I'm still driving my dad's old 1995 Ford Explorer XLT. It's falling apart and I need to buy a new car. I hope it will last long enough until the market for used cars have settled much lower than where it is right now. I would love a cargo van that I can use to convert to a camper van. But how the market moves will determine my course of action.

I bought my lease 18 months ago because buying the same vehicle in the used market would have been 30% more. I am presently looking for a new truck, but the number of base models on the lot is essentially zero, nationwide. Last month, Toyota had about 28k Tacomas in or coming into inventory within 45 days. 14 of those 28k fit the low trim, high utility spec I needed. I doubt things will get better in the market anytime soon, but hopefully this market encourages people to demand more reliability in their vehicles and less BS bells and whistles. Vehicles are tools.

Some higher demand can be attributed to fear of EV's killing the ICE, several research pages denote consumer dissatisfaction with EV's