Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Have you ever owned a new car? You a new car, Guido,
Have you a brand spanking new car? Yes, once once
in your life. I have never owned a new car.
I buy beaters and I drive them into the ground.
I have occasionally gone to like Advance OUTO Parts, to
Auto z owner, O'Reilly or something and bought the new
car smell spray and sprayed it in my beat or
(00:20):
used cars. But I've never bought a brand new car.
And from what I'm hearing from Alex Jones of ABC News,
Alex Jones, I did Alex od of ABC News right now.
I was just reading the story about him in the
Supreme Court. I'm not going to be buying a new
car anytime soon.
Speaker 2 (00:38):
Ah yeah, Alex Jones here, yeah, yeah, yeah, Aliens here,
yeah yeah, Alex.
Speaker 1 (00:43):
Aliens want to sell you a new car, That's.
Speaker 3 (00:45):
What it is, That's right. Yeah.
Speaker 2 (00:48):
So the Kelly Blue Book that they're out with some
new data, the average price of a new car is now,
for the first time ever, above fifty thousand dollars nuts. Yeah,
so they went up in sometime even more. But this
has been going on for a while. We're coming out
of the pandemic. There was some supply and demand and
people were paying over MSRP on the regular and prices
(01:08):
have continued to go up. September, they went up quite
a bit in you know, relatively speaking, because of the
worries about tariffs and fear over tariffs. But a big
part of this is those who have the means of
buying more expensive luxury vehicles and electric cars are doing it.
And economists say that it's turned into a situation where
those who have made good investments in this economy with
(01:30):
the markets right now, that they have seen their money
grow and they can afford more and are driving up prices,
and those who can't or don't invest are being left behind.
And car makers are tailoring what's available to a higher
end market because that's what people want to buy. We
talked to to Stephen Kates at bank Rate today and
he put it this way, Well, the.
Speaker 4 (01:49):
Portion of people who are buying those higher end vehicles
a lot of that maybe electric vehicles with generally have
a higher sticker price, larger SUVs. Luxury vehicles, you know,
those are a bigger share of what is being sold today.
We're seeing that lower end cars, less expensive cars, they
are making up a much smaller share of what's being
(02:10):
currently sold.
Speaker 2 (02:11):
So if people aren't buying the lower end cars, then
autobakers are going to focus on making more of the
higher end ones and marketing those, and that's what they're doing.
Speaker 3 (02:20):
The data shows though.
Speaker 2 (02:21):
You know, when you say you go out and buy
a used car, Chuck that new cars and newer used
cars are very close in price right now. So even
if you go, you know what, I'm going to go
out and get a three or four year old car,
you're not going to save very much. If it's a
car like a Toyota or a Honda one that's going
to run for a long time. He said, its pretty
incredible you can go and get a used car for
not much less than just going and getting new.
Speaker 4 (02:43):
Costs are pretty similar. When I looked up the cost
of a twenty twenty one Nissan Sentra versus a brand
new one, the cost difference is roughly one thousand dollars,
So you could buy a brand new car for just
a little bit more than you might buy a four
year old certified pre owned car. So what is the
(03:04):
better value?
Speaker 2 (03:05):
And he says, from an economists side of it that
you would say, you know what, if it's only one
thousand dollars difference.
Speaker 3 (03:09):
You would go for new.
Speaker 2 (03:10):
We're gonna get more time out of it and less
wear and tear on the vehicle. That it's not like
it used to be. The other thing is economists are saying, look,
the twenty thousand dollars car is a thing of the
past for the most part. That yeah, there are cars
in the upper twenties and low thirties, but they aren't
as desirable and people are showing out money to get
more of what they want and more of the bells
and whistles that what do you mean it doesn't have
(03:32):
seat heaters in it? And what do you mean it
does have a big screen in it. That it's things
that we expect. And it's not only in vehicles. It
can be seen with things like airline travel as well.
That is why Spirit is having a really tough time
surviving right now in Southwest has gone to the mainline
model instead of the low cost carrier because people are
(03:52):
willing those who have the means to spend more money.
Listen to what he says that the Delta Airlines just announced.
Speaker 4 (03:57):
Another example is Delta Airlines just recorded expect more revenue
coming from first class and premium cabins than they do
from the rest of the airplane. Frankly, just people who
have the means are spending and those who are feeling
more squeezed they're staying home.
Speaker 2 (04:12):
So that money coming in for Jessepher's class cabin making
more than all the other seats on the plane put together.
And that's why on many airlines now you don't get
complimentary upgrades and whatnot if you've got status, because people
are willing to pay for it. So just to throw
some figures at you, chuck. The average new car now
over fifty thousand dollars, SOFI says. The average salary in
the US is now sixty six, six hundred and twenty
(04:34):
two dollars, so almost a year's salary for the average
car experiences. The average new car loan has now extended
because of the price of cars, to six years, with
an average car payment over those six years of seven
hundred and forty nine bucks a month. And ZIP Recruiter
says the average monthly take home pay in the US
is forty eight hundred dollars a month, so a big
(04:56):
chunk of what people are making it's going to pay
for that car, and then you got to take into
account that in six years you're gonna have maintenance. No
doubt something's gonna go wrong with the car. They're gonna
pay for, but you know you're gonna have to do one,
probably two sets of tires, maybe some brakes during that time.
Speaker 3 (05:12):
Gas of course, for electricity.
Speaker 2 (05:14):
Many families are going to need two or more cars
if you've got kids that are driving and a spouse,
so you double or triple a lot of this. That
it is expensive down a car right now because the
American public has said, we don't want the basic with
the roll down windows. We want all the bells and whistles,
and people are willing to pay for it.
Speaker 1 (05:31):
This is kind of a I think expecting of good
things to happen in the economy. Honestly, as bad as
I hate these higher prices, and I by the way,
I've seen some car loans advertised to eighty four months.
It's nuts.
Speaker 3 (05:43):
Yeah, I keep going longer and longer.
Speaker 1 (05:45):
But I believe the auto manufacturers in the market expect
people to do better in the new year, to have
more money flowing, just more first class cabins on the
airplane and things like that. They think more money is
going to be coming into our pockets, so we are
willing to pay. And it's a catch twenty two because
five years from now we'll look back and go, Wow,
(06:06):
cars only cost fifty thousand dollars on average back in
twenty twenty five. Yeah, but because we were able to
make the money and willing to pay it, that's why
they cost sixty thousand dollars in twenty thirty.
Speaker 3 (06:16):
Yeah.
Speaker 2 (06:16):
Not to be the devil's advocate, but Edmunds had just
put out today the average debt that Americans have has
reached an all time high, and more car owners than
ever underwater in their loans. So yeah, I mean it's
either that or people are just you know, taking out
more credit than they can afford. But we're in this
period where we're like, oh, we're good, we're good. Look
at the markets, and you know, at some point it
(06:38):
won't be great for those if they can't pay it off.
But as of right now, it seems like Americans at
least believe they have the money and they're willing to
go and spend it.
Speaker 1 (06:47):
Ye. Nice group picture today. By the way, before I
say goodbye, I wanted to let you know there was
who was the guy two down from you, the guy
with the white hair two down.
Speaker 3 (06:54):
From you, Chris Connolly. You may remember him from MTV
many years ago and is the MTV guy.
Speaker 1 (07:00):
Yeap, So he's working over at ABC now, I didn't know.
Speaker 3 (07:04):
Yeah, he does a lot of entertainment reporting for US
and for ESPN.
Speaker 1 (07:08):
Wow, okay, as I looked at him, No, he'd have longer,
darker hair.
Speaker 3 (07:13):
No, that's Chris Commy.
Speaker 1 (07:14):
Yeah, that was a very nice shot. That's the first
time I've ever seen of you, tog.
Speaker 3 (07:17):
He's very he's a very nice guy.
Speaker 1 (07:18):
All Right, Alex Stone, ABC News. I'm sorry, we'll talk
to you again. Well that's what they say before the
week is out, buddy, have a good evening.
Speaker 3 (07:25):
You got it, thanks, shot.
Speaker 1 (07:26):
I just I'm telling you, I can't fifty thousand dollars
as the average price.
Speaker 4 (07:31):
Now.
Speaker 1 (07:31):
I've seen, as I said, I've seen some car loans
out there eighty four months. I know there are they're
selling you right now on payments, and there are some
very reasonable payments out there. Generally it's with you know,
twenty nine hundred and thirty nine hundred dollars down and
you can get a car payment under three hundred dollars
(07:51):
a month on a nice car. But you're going six
or seven years on that car Loan, and that that
just seems like such a long time for a car.
You know, when I was coming up, it was like, okay,
go sixty months if it's a really nice car. Otherwise,
you know, thirty six is preferable, forty eight if you must.
Speaker 3 (08:12):
Yeah, now it's like seventy two, eighty four.
Speaker 1 (08:14):
Yeah, I just I don't think I wouldn't be happy
with myself if I had a car Loan nesting that long.
It just seems like such a long long time for
a car. But as I said, I've never never purchased
a brand new vehicle. Perhaps perhaps if I just fell
into some money, I might be just because I can.
(08:34):
But you know, as long as I'm up paying bills
and going to work every day, I just I think
I'll always be a used car guy. Even if I
got to buy one that's you know, seven eight years old,
As long as it has been running to the ground
until I get it, of course I'd be okay with it.
The newer stuff has too many bells and whistles. Anyway,
yesterday morning, I've because we got the mini van for
(08:55):
the hull and the grandkids around, and I'm pushing the
button and pushing the button trying to open the passenger
side sliding door, and I'm pushing up and I'm like,
my queen, she said, what's wrong is I keep pushing
this button. It's not working. She took it. She goes,
that's because you're opening the one on the other side,
and then she too many bells and whistles for me.
Speaker 3 (09:13):
Man, I just they don't even have ashtrays anymore in cars, no,
I know.
Speaker 1 (09:18):
Can you believe that that's that's very anti Chuck. I
didn't have any stolen, so nobody can steal it. That's true.
Have you ever owned a new car? You a new car, Guido,
Have you a brand spanking new car? Yes, once once
in your life. I have never owned a new car.
I buy beaters and I drive them into the ground.
I have occasionally gone to like Advance OUTO Parts, to
Auto z owner, O'Reilly or something and bought the new
car smell spray and sprayed it in my beat or
(00:20):
used cars. But I've never bought a brand new car.
And from what I'm hearing from Alex Jones of ABC News,
Alex Jones, I did Alex od of ABC News right now.
I was just reading the story about him in the
Supreme Court. I'm not going to be buying a new
car anytime soon.
Speaker 2 (00:38):
Ah yeah, Alex Jones here, yeah, yeah, yeah, Aliens here,
yeah yeah, Alex.
Speaker 1 (00:43):
Aliens want to sell you a new car, That's.
Speaker 3 (00:45):
What it is, That's right. Yeah.
Speaker 2 (00:48):
So the Kelly Blue Book that they're out with some
new data, the average price of a new car is now,
for the first time ever, above fifty thousand dollars nuts. Yeah,
so they went up in sometime even more. But this
has been going on for a while. We're coming out
of the pandemic. There was some supply and demand and
people were paying over MSRP on the regular and prices
(01:08):
have continued to go up. September, they went up quite
a bit in you know, relatively speaking, because of the
worries about tariffs and fear over tariffs. But a big
part of this is those who have the means of
buying more expensive luxury vehicles and electric cars are doing it.
And economists say that it's turned into a situation where
those who have made good investments in this economy with
(01:30):
the markets right now, that they have seen their money
grow and they can afford more and are driving up prices,
and those who can't or don't invest are being left behind.
And car makers are tailoring what's available to a higher
end market because that's what people want to buy. We
talked to to Stephen Kates at bank Rate today and
he put it this way, Well, the.
Speaker 4 (01:49):
Portion of people who are buying those higher end vehicles
a lot of that maybe electric vehicles with generally have
a higher sticker price, larger SUVs. Luxury vehicles, you know,
those are a bigger share of what is being sold today.
We're seeing that lower end cars, less expensive cars, they
are making up a much smaller share of what's being
(02:10):
currently sold.
Speaker 2 (02:11):
So if people aren't buying the lower end cars, then
autobakers are going to focus on making more of the
higher end ones and marketing those, and that's what they're doing.
Speaker 3 (02:20):
The data shows though.
Speaker 2 (02:21):
You know, when you say you go out and buy
a used car, Chuck that new cars and newer used
cars are very close in price right now. So even
if you go, you know what, I'm going to go
out and get a three or four year old car,
you're not going to save very much. If it's a
car like a Toyota or a Honda one that's going
to run for a long time. He said, its pretty
incredible you can go and get a used car for
not much less than just going and getting new.
Speaker 4 (02:43):
Costs are pretty similar. When I looked up the cost
of a twenty twenty one Nissan Sentra versus a brand
new one, the cost difference is roughly one thousand dollars,
So you could buy a brand new car for just
a little bit more than you might buy a four
year old certified pre owned car. So what is the
(03:04):
better value?
Speaker 2 (03:05):
And he says, from an economists side of it that
you would say, you know what, if it's only one
thousand dollars difference.
Speaker 3 (03:09):
You would go for new.
Speaker 2 (03:10):
We're gonna get more time out of it and less
wear and tear on the vehicle. That it's not like
it used to be. The other thing is economists are saying, look,
the twenty thousand dollars car is a thing of the
past for the most part. That yeah, there are cars
in the upper twenties and low thirties, but they aren't
as desirable and people are showing out money to get
more of what they want and more of the bells
and whistles that what do you mean it doesn't have
(03:32):
seat heaters in it? And what do you mean it
does have a big screen in it. That it's things
that we expect. And it's not only in vehicles. It
can be seen with things like airline travel as well.
That is why Spirit is having a really tough time
surviving right now in Southwest has gone to the mainline
model instead of the low cost carrier because people are
(03:52):
willing those who have the means to spend more money.
Listen to what he says that the Delta Airlines just announced.
Speaker 4 (03:57):
Another example is Delta Airlines just recorded expect more revenue
coming from first class and premium cabins than they do
from the rest of the airplane. Frankly, just people who
have the means are spending and those who are feeling
more squeezed they're staying home.
Speaker 2 (04:12):
So that money coming in for Jessepher's class cabin making
more than all the other seats on the plane put together.
And that's why on many airlines now you don't get
complimentary upgrades and whatnot if you've got status, because people
are willing to pay for it. So just to throw
some figures at you, chuck. The average new car now
over fifty thousand dollars, SOFI says. The average salary in
the US is now sixty six, six hundred and twenty
(04:34):
two dollars, so almost a year's salary for the average
car experiences. The average new car loan has now extended
because of the price of cars, to six years, with
an average car payment over those six years of seven
hundred and forty nine bucks a month. And ZIP Recruiter
says the average monthly take home pay in the US
is forty eight hundred dollars a month, so a big
(04:56):
chunk of what people are making it's going to pay
for that car, and then you got to take into
account that in six years you're gonna have maintenance. No
doubt something's gonna go wrong with the car. They're gonna
pay for, but you know you're gonna have to do one,
probably two sets of tires, maybe some brakes during that time.
Speaker 3 (05:12):
Gas of course, for electricity.
Speaker 2 (05:14):
Many families are going to need two or more cars
if you've got kids that are driving and a spouse,
so you double or triple a lot of this. That
it is expensive down a car right now because the
American public has said, we don't want the basic with
the roll down windows. We want all the bells and whistles,
and people are willing to pay for it.
Speaker 1 (05:31):
This is kind of a I think expecting of good
things to happen in the economy. Honestly, as bad as
I hate these higher prices, and I by the way,
I've seen some car loans advertised to eighty four months.
It's nuts.
Speaker 3 (05:43):
Yeah, I keep going longer and longer.
Speaker 1 (05:45):
But I believe the auto manufacturers in the market expect
people to do better in the new year, to have
more money flowing, just more first class cabins on the
airplane and things like that. They think more money is
going to be coming into our pockets, so we are
willing to pay. And it's a catch twenty two because
five years from now we'll look back and go, Wow,
(06:06):
cars only cost fifty thousand dollars on average back in
twenty twenty five. Yeah, but because we were able to
make the money and willing to pay it, that's why
they cost sixty thousand dollars in twenty thirty.
Speaker 3 (06:16):
Yeah.
Speaker 2 (06:16):
Not to be the devil's advocate, but Edmunds had just
put out today the average debt that Americans have has
reached an all time high, and more car owners than
ever underwater in their loans. So yeah, I mean it's
either that or people are just you know, taking out
more credit than they can afford. But we're in this
period where we're like, oh, we're good, we're good. Look
at the markets, and you know, at some point it
(06:38):
won't be great for those if they can't pay it off.
But as of right now, it seems like Americans at
least believe they have the money and they're willing to
go and spend it.
Speaker 1 (06:47):
Ye. Nice group picture today. By the way, before I
say goodbye, I wanted to let you know there was
who was the guy two down from you, the guy
with the white hair two down.
Speaker 3 (06:54):
From you, Chris Connolly. You may remember him from MTV
many years ago and is the MTV guy.
Speaker 1 (07:00):
Yeap, So he's working over at ABC now, I didn't know.
Speaker 3 (07:04):
Yeah, he does a lot of entertainment reporting for US
and for ESPN.
Speaker 1 (07:08):
Wow, okay, as I looked at him, No, he'd have longer,
darker hair.
Speaker 3 (07:13):
No, that's Chris Commy.
Speaker 1 (07:14):
Yeah, that was a very nice shot. That's the first
time I've ever seen of you, tog.
Speaker 3 (07:17):
He's very he's a very nice guy.
Speaker 1 (07:18):
All Right, Alex Stone, ABC News. I'm sorry, we'll talk
to you again. Well that's what they say before the
week is out, buddy, have a good evening.
Speaker 3 (07:25):
You got it, thanks, shot.
Speaker 1 (07:26):
I just I'm telling you, I can't fifty thousand dollars
as the average price.
Speaker 4 (07:31):
Now.
Speaker 1 (07:31):
I've seen, as I said, I've seen some car loans
out there eighty four months. I know there are they're
selling you right now on payments, and there are some
very reasonable payments out there. Generally it's with you know,
twenty nine hundred and thirty nine hundred dollars down and
you can get a car payment under three hundred dollars
(07:51):
a month on a nice car. But you're going six
or seven years on that car Loan, and that that
just seems like such a long time for a car.
You know, when I was coming up, it was like, okay,
go sixty months if it's a really nice car. Otherwise,
you know, thirty six is preferable, forty eight if you must.
Speaker 3 (08:12):
Yeah, now it's like seventy two, eighty four.
Speaker 1 (08:14):
Yeah, I just I don't think I wouldn't be happy
with myself if I had a car Loan nesting that long.
It just seems like such a long long time for
a car. But as I said, I've never never purchased
a brand new vehicle. Perhaps perhaps if I just fell
into some money, I might be just because I can.
(08:34):
But you know, as long as I'm up paying bills
and going to work every day, I just I think
I'll always be a used car guy. Even if I
got to buy one that's you know, seven eight years old,
As long as it has been running to the ground
until I get it, of course I'd be okay with it.
The newer stuff has too many bells and whistles. Anyway,
yesterday morning, I've because we got the mini van for
(08:55):
the hull and the grandkids around, and I'm pushing the
button and pushing the button trying to open the passenger
side sliding door, and I'm pushing up and I'm like,
my queen, she said, what's wrong is I keep pushing
this button. It's not working. She took it. She goes,
that's because you're opening the one on the other side,
and then she too many bells and whistles for me.
Speaker 3 (09:13):
Man, I just they don't even have ashtrays anymore in cars, no,
I know.
Speaker 1 (09:18):
Can you believe that that's that's very anti Chuck. I
didn't have any stolen, so nobody can steal it. That's true.
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