I do think part of it is how darned long cars last now.
I have an 18 year old car that I purchased used long ago and currently has no mechanical issues. I've had a few repairs but nothing terribly expensive. I have no interest in replacing it.
When you think about it, people who are frugal will buy practical and cost effective cars and drive them for a decade or more (that is, if they buy a car at all!). That means they either never buy new at all, or when they do they do so only seldom.
People who are chasing the new shiny will continue to churn through new shiny. And of course they want to pay a lot to get only the shiniest.
So I can see why the average new car cost would creep up, because buying a new car at all is a luxury in most cases.
I have an 18 year old car that I purchased used long ago and currently has no mechanical issues. I've had a few repairs but nothing terribly expensive. I have no interest in replacing it.
When you think about it, people who are frugal will buy practical and cost effective cars and drive them for a decade or more (that is, if they buy a car at all!). That means they either never buy new at all, or when they do they do so only seldom.
People who are chasing the new shiny will continue to churn through new shiny. And of course they want to pay a lot to get only the shiniest.
So I can see why the average new car cost would creep up, because buying a new car at all is a luxury in most cases.