Riddle me this. Despite overproduction of cars and low demand, cars are getting more expensive. How come?

Riddle me this. Despite overproduction of cars and low demand, cars are getting more expensive. How come?

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Why do you keep making this thread?

This is the first time i made this thread on biz.

money supply/debt increasing faster than production, happens with almost everything not only cars

The same reason why houses get more expensive, they get nicer and people want em

u ever heard of inflation?

this. inflation + cars are much superior to cars in the past + have to meet more stringent regulations

This. Many big purchases are priced at what people are able to borrow. Without central banks cars, houses, healthcare and education would all be much cheaper.

Do you have maybe a better riddle that's not so easy? I mean damn everyone on biz but OP knew why

Not even inflation though, just a whacking great big debt/credit bubble pumped by central banks. For example, the average house price throughout human history has been between 3 to 4 times the average local annual salary. What changed from the mid-90's?? Deregulation of banks and asset bubble pumping.

Quantative Easing,.. like with everything

>durr is da inflammation bcs da joo lizard print dollur

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inflation is definitely a factor as to why the price has risen. OP's chart goes back to the early 1900's. deregulation of banks and debt is a factor too though, i agree.

yes

so when is the car bubble going to pop? I wanna get a brand new mustang for 5k

But what about economies of scale and continuing improved technology?

>economies of scale
they've been maxed out for decades
>continuing improved technology
just makes them better, not cost less

cause now, people are dumb enough to get the money from a bank to buy 4 wheels

But what about automation?

My 2001 Audi S4 was in the $30k range when it was brand new.
Buying a similar car today would be over $50k. Inflation is a bitch.

so what do you think it is you fucking brainlet?

It's literally cheap money. That's why you see zoomers that never worked in their life wearing all balenciaga 2000 dollars outfit left and right

Mandated safety feature increase has had a part

Who needs backup cameras? 15 airbags per car? Lane switch assist? Lane departure warning?

Then unnecessary bs like wifi, appleplay, in car fridges, all sorts of feature creep

We can probably stop havingthis thread now

I would blame fuel economy regulations more than quality of life improvements.

This + inflation are two big reasons, but car companies also increase mark-up greater than the rate of inflation. Car companies also charge more for the government mandated amenities than they originally would have charged for things like lane assist and back up camera when they were just options. It doesn't cost $5k extra in materials and labor for different paint, they just know you'll pay anyway.

Things mentioned above. Also automakers are basically banks, they dont give a shit about sales, but loans and bailouts.

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because the dollar is in the early stages of hyperinflation

Capitalism. In a market socialist economy overproduction would mean they'd be practicallly given away until production corrects.

MFW conservicucks think capitalism is efficient.

MFW capitalism doesn't even follow basic supply and demand and let's central banks plan the economy leading to an inevitable market panic.

you wish doomer fag

>the average house price throughout human history has been between 3 to 4 times the average local annual salary

No... That's what it is now... If anything the cost of a home was 3/4 the average salary.

ditto

Back in my day you bought yourself a colored fella for about $3.50, and made him carry ya ‘round town.

This but you also have to include research, for companies to keep up with development costs, especially black hole of elecrics/hybrids that is required to meet EU emission quotas, the cars just have to be more expensive. Then there's bunch of other shit mostly relating to safety. If an electric car is sold at 20-40% loss (including development costs), where else companies are going to turn to make up for it? It's not like people are going to stop buying new cars altogether.

gov subsidising vehicles and snt at least in devloping countries

Regulation. Inflation. Cost of car dealers rather than direct selling. Also electronics. Insurance also.

>he thinks supply and demand are related
>he doesnt know
it's your "free market". Bravo Capitalism

This but unironically. Except once production gets into the stratosphere planned economies are better, but we're far from that being viable.