New car — Blog — Healy Chen

Stop it. Get some help

Headlines are buzzing about the high price of new cars. The average transaction price for new vehicles in America is now over $50,000. The average monthly payment for a new car is nearly $750. As is the wont during these high inflation times (why would Joe Biden do this?), people are grumbling about the ever increasing cost of personal motor transport.

I do not have an ounce of sympathy for this situation. The beauty of the capitalistic system is that it takes two to proverbially tango. Sling all the greed accusations you want against the automakers and dealerships: car buyers still have to sign on the dotted line. The Truth in Lending Act dictates that consumers are given complete information on exactly what sort of loan they are contracting themselves for. No excuses.

The average new car may be selling for over $50,000, but a perfectly fine Toyota Corolla sedan can be had for $22,275 starting. It’s got power everything, and Apple CarPlay. And because it’s a Toyota, it will last forever with minimal maintenance. Now you may say that you need something bigger for your family. That’s a want, not a need. The Corolla is equipped with child seat anchors in the rear. For sure it’s not as convenient as a Toyota Sienna minivan, but do you have $40,120 starting for a Sienna?

New cars aren’t expensive - the cars people want to buy, are. If stretching your wallet for that three-row SUV is going to be financially difficult, then perhaps it’s just not in a cards for you. No one is entitled to a fully-loaded SUV with all the trimmings. Consumers’ unwillingness to purchase within their means isn’t the fault of the banks or the automakers. Let’s not strip agency - and blame - from fully functioning adults.

I will however get on Porsche’s case for raising prices so dramatically over the last year…

New car unlucky

It seems my somewhat rash action of trading in the 911 GT3 for a BMW M2 Competition have inspired my brother to do the same. He recently sold his Audi A3 to CarMax for a surprisingly large sum (the used car market is absolutely on fire) and is now the proud owner of a brand new Mazda MX-5 Miata.

Emphasis on owner, because he’s not really driven the car much since he bought it home some two weeks ago. On a cruise to Monterey during the weekend of purchase, the car threw a check-engine-light on the highway and went into limp mode. A brief stint at the dealership found everything to be okay, though after a few days the CEL returned, and as of writing the car is still at the servicing department, on a hoist with the transmission taken out.

At least they’ve provided my brother with a courtesy car.

Sometimes the luck of the draw is just not in your favor, but that’s not something my brother can control. Good news is it’s a brand new car, so the MX-5 will get repaired to proper standards without costing him a dime. The powertrain warranty covers the next five years of driving, so there’s really nothing to worry about. If my brother’s car buying patterns continues (I certainly hope not), he won’t even see the end of that five years with the Miata anyways.

If the dealership cannot fix the problem, then Mazda will be compelled by California lemon law to buyback the car. If that comes to pass, my brother will simply get another MX-5. The ND2 generation of the iconic Mazda sports car is indeed too sublime and fun to forsake just because the sample he purchased happens to have a few gremlins to sort through.

I look forward to many blasts through the local mountains with my brother once his new car is fixed.