The sad state of vehicle sales has mostly to do with the outrageous increases in new car prices that go way beyond transmission of supply chain costs and dance right on in to price gouging territory. The prices still have not corrected to something sane according to the actual inflation curve.
The average price of a new car these days is $48K. This is insane. For that price tag to make any kind of sense at all, you have to have an income of nearly half a million per year. Median household income in the U.S. is around $75K meaning most of these households, if they're even purchasing a vehicle at all, would be buying used.
It would mean financial ruin to borrow two-thirds of your income for a car. The automakers have forgotten Henry Ford's lesson. He payed his workers enough so they could each afford the products he was selling. Our companies don't pay their employees enough to afford their products any more. <Surprised Pikachu!> Sales are down.
The average price of a new car these days is $48K. This is insane. For that price tag to make any kind of sense at all, you have to have an income of nearly half a million per year. Median household income in the U.S. is around $75K meaning most of these households, if they're even purchasing a vehicle at all, would be buying used.
It would mean financial ruin to borrow two-thirds of your income for a car. The automakers have forgotten Henry Ford's lesson. He payed his workers enough so they could each afford the products he was selling. Our companies don't pay their employees enough to afford their products any more. <Surprised Pikachu!> Sales are down.