VEHICLES & TRANSPORTATION
Massachusetts
Cars are very expensive and we don’t all have like 40k laying around for a new car.
- 🚗 Car Ownership: In New Zealand and the US, household car ownership rates are similar, with a slight difference in numbers (1 in 5 vs. 1 in 3). Americans tend to have slightly newer cars, often financed at lower rates than in New Zealand.
- 💰 Car Financing: Financing makes sense for many Americans, as low interest rates on loans make it more affordable to invest money elsewhere. This contrasts with some people’s preference to buy cars outright, especially in certain cultures.
- 💵 Car Prices: New car prices in the US have surged, with averages around $30k to $50k due to a shortage of chips and higher demand for SUVs and pickups, which are prioritized for manufacturing.
- 🚙 Used Cars: The used car market has also been impacted, with prices rising sharply, though they are expected to stabilize as manufacturers catch up with demand.
- 🏠 Cultural Differences: In some cultures, buying a car without paying upfront is not common. People may prefer older, reliable cars over new ones, as long as they are well-maintained.
- 🇺🇸 US vs UK Car Preferences: Car types differ between the US and UK. In the US, people tend to buy larger vehicles like trucks and SUVs, while in the UK, smaller hatchbacks and cars are more common.
- 💸 Affordability: Many people question why others buy new cars when they can opt for used ones and avoid loans, reflecting different financial priorities and expectations.
- 🏠 $250K for a new home: The figure is mentioned but lacks any relative context or comparison to standard metrics.
- 🚗 Basic car costs: The base cost for a new car starts at $20K, but can go much higher depending on brand and features.
- 🚙 Luxury features: Many US cars are larger and include luxury features, such as leather seats, Bluetooth, automatic systems, and touchscreens.
- ❄️ AC and Bluetooth: AC is common and considered essential in the US; Bluetooth music is also highly valued.
- 💸 Car financing: Low-interest loans (often under 3%) make it easier for people to finance cars rather than paying upfront.
- 📉 Current loan rates: Car loan interest rates have risen recently (up to 4.5%), but historically they were much lower, around 2%.
- 💳 Building credit: Financing a car is a way to build credit in the US, which is important for future loans and renting apartments.
- 📉 Used car market: The used car market saw prices rise, especially post-2008 and during the pandemic, and vehicles tend to last much longer now (up to 200K miles).
- 💵 Cash for Clunkers: This 2009 program reduced the availability of cheap used cars, pushing the used car market upwards.
- 🚗 Car repairs: Modern cars are more difficult to repair due to complex designs, leading to fewer people fixing old cars themselves.
- 📈 Used car prices: Current prices for used cars have been inflated by factors like shipping costs, chip shortages, and opportunistic “car scalpers.”
- 🚗 Car affordability is an issue: Most Americans can’t afford to buy a car outright due to high prices; financing makes it accessible.
- 💳 Financing makes sense: Even if you have cash, low interest rates often make financing smarter than paying upfront, especially with inflation.
- 🏦 Lending is lucrative: Car dealerships and manufacturers profit from offering loans, which adds to the financial pressure.
- 🌎 Lack of public transit: In many areas, especially outside major cities, a car is a necessity due to limited transportation options.
- 💰 Car prices are high: New cars often cost as much as a year’s salary; used cars are also expensive, making financing crucial for most people.
- 🏠 Building credit: Financing a car can help build credit, which is beneficial for future big purchases like a house.
- 🔑 Financing rate impact: Loans often have very low rates, sometimes lower than inflation, making them an attractive option for car buyers.
- 🛠️ Dependency on cars: Due to the size and infrastructure of the U.S., owning a car is almost mandatory in many regions.
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