Saturday, April 19, 2014

The Economy - New Cars

Did you know that the average price for a new car is around $32,000? Ouch! I was not aware that cars had become so expensive. I know that with "creative" financing you can afford to buy just about any car, but $32,000 is steep. When did it become normal to have cars cost almost an entire years wage? Or has it been that much and it's just that the number is what it is because of inflation? No matter what the reason, cars are only selling because of low interest rates. If interest rates pop up, then people will not be able to afford cars. Are the auto companies prepared for that in any way? I would guess that they are not and will go through some tough times when things take a turn for the worse, which they will at some point.

What do you think?