*Absolutely true.
I'll take "Things I would not have believed 20 years ago," for $80, Alex.
And the answer is $260.55.
What is, "how much will it cost to replace the headlamp bulb on my 2013 Buick?"
Hmmmmmm. Judges, can we accept that? (ding dong)
Okay, the complete answer is "low beam headlamp bulb, but we can accept that.
For the past 50 years or so, the useful life of an automobile was approximately 20 years. After two decades, it gets more difficult to find parts and repairs become more expensive. The surviving cars slip out of the practical transportation market and into the collectible and antique world. Those not worth saving, become scrap metal.
In the 21st, this may change from twenty years to ten, or possibly five. One can ask any tech guru whether or not to repair or replace a five year old computer and expect the same answer. What does one do when their car contains four or five computers and a large number of smaller electronic controls? Any of these little brain boxes can cost a grand or more, if they can be found, and without one, things like the headlights or the windows no longer operate.
This kind of thing comes with a commensurate increase in price. This morning I walked past a GMC Denali which still had the dealer sticker on the window. The list price was a hair over $72K. The last time I spent that much money on something, I got a kitchen and a carport big enough to park two Denalis. Of course, this includes a lot of stuff that is not absolutely necessary for the driving experience, but manufacturers discovered quite some time ago, there's no real market for "stripped down" models. This is especially true when the sales volume of low end models is so low, it actually increases the per unit cost to build one. More profit can be made by adding options and selling more at a slightly higher price.
What does all this mean for the future of our car culture? Will there no longer be a true "used" car market? According to smart guys who give advice, transportation should not exceed more than 20% of a household's monthly budget. This includes the car note, insurance, fuel, and maintenance.
This means our Denali is going to cost about $1600 a month to operate(4.5% loan), which translates into a household income of about $100K. In my state, the medium income is under $45K, so I'm not sure who is going to buy the $72K Denali.
I'll take "Things I would not have believed 20 years ago," for $80, Alex.
And the answer is $260.55.
What is, "how much will it cost to replace the headlamp bulb on my 2013 Buick?"
Hmmmmmm. Judges, can we accept that? (ding dong)
Okay, the complete answer is "low beam headlamp bulb, but we can accept that.
For the past 50 years or so, the useful life of an automobile was approximately 20 years. After two decades, it gets more difficult to find parts and repairs become more expensive. The surviving cars slip out of the practical transportation market and into the collectible and antique world. Those not worth saving, become scrap metal.
In the 21st, this may change from twenty years to ten, or possibly five. One can ask any tech guru whether or not to repair or replace a five year old computer and expect the same answer. What does one do when their car contains four or five computers and a large number of smaller electronic controls? Any of these little brain boxes can cost a grand or more, if they can be found, and without one, things like the headlights or the windows no longer operate.
This kind of thing comes with a commensurate increase in price. This morning I walked past a GMC Denali which still had the dealer sticker on the window. The list price was a hair over $72K. The last time I spent that much money on something, I got a kitchen and a carport big enough to park two Denalis. Of course, this includes a lot of stuff that is not absolutely necessary for the driving experience, but manufacturers discovered quite some time ago, there's no real market for "stripped down" models. This is especially true when the sales volume of low end models is so low, it actually increases the per unit cost to build one. More profit can be made by adding options and selling more at a slightly higher price.
What does all this mean for the future of our car culture? Will there no longer be a true "used" car market? According to smart guys who give advice, transportation should not exceed more than 20% of a household's monthly budget. This includes the car note, insurance, fuel, and maintenance.
This means our Denali is going to cost about $1600 a month to operate(4.5% loan), which translates into a household income of about $100K. In my state, the medium income is under $45K, so I'm not sure who is going to buy the $72K Denali.