"According to U.S. Bureau of Labor Statistics, the total cost to own and operate an automobile averaged a frightening $12,296 in 2024, roughly 30% higher than a decade ago. Driving the numbers are new-vehicle prices, now averaging $48,883, according to Cox Automotive’s latest data. With middle-income buyers priced out of new cars, demand for used cars has strengthened, now averaging around $25,500." "Among the major stressors: car insurance. Lexis-Nexis Risk Solutions’ annual report found average insurance costs rose 10% in 2024, after soaring 15% in 2023. Full-coverage policies now average $2,680 annually, up 12% from June 2024, says Bankrate."The cost to fix damaged cars has increased by 28% since 2021.
Seemingly minor damage to vehicles equipped with Advanced Driver-Assist Systems (ADAS)
can be extremely expensive to repair. Vehicles sometimes need to be "totaled."
New cars include more plastics which degrade under daily heat extremes.
Wet timing belts erode over time—this can contaminate/kill the engine.
https://www.msn.com/en-us/money/markets/high-costs-have-ended-america-s-love-affair-with-cars/ar-AA1H7OBD
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So, I shopped around and found a major insurer with much lower premium.
I thought I was pretty smart!
Now, on 6-mo renewal, my premium is up +16% ! The Fed is worried about inflation in 2-3%.
I should have known - lure new customers with low initial quotes & then raise premium immediately.
Seemingly minor damage to vehicles
Tell me about it. I recently was in a fender bender (my fault, first time in over two decades and I wasn't at fault for that earlier one). 2MPH. Front fender dented, minor scratch to side mirror and some scratches along side of car (more dust than scratches). Cost to repair? Almost $7K.
Fortunately I never dropped my collision insurance. And after 5 years without accidents, I supposedly have accident forgiveness. I'll see what my premium is in six months.
The shop did a magnificent job, and they were really helpful. (And I feel sorry for the workers who did the repairs in near 100 degree heat.) Still, numbers like this show why insurance costs are so high.
(This happened one block from home. Statistics show that 75% of accidents occur within 25 miles of home, 52% within five miles. I've made the grade, I'm another statistic.)
https://hutzlerlaw.com/what-percentage-of-car-accidents-happen-close-to-home/
This is slowly getting to cars too.
I have read that in many car models, to replace the headlights, they have to disassemble the entire front portion and then put it back. So, that's what adds to the time and labor.
I had a car once that had a difficult access for battery and required special tools to replace it.
Even DIY oil changes in some cars are tricky.
Many auto parks came from overseas, Higher cost today due to tariffs, easily 10+%, and they were passed to the customers. My auto mechanic confirmed that. Labor rate at show stay flattening. Only materials produced domestically are oils (especially synthetics), and some hydraulic fluids.
EVs accidents that damage the battery cells located on the floor may get the vehicle totaled. Many insurance companies do not want to replace the entire battery. OEM Tesla battery cost $20-25K.
“Bait-and-switch” is common among insurance companies. We have hand the same scenario as @yogibb above.
I can vouch for that. Had to replace a passenger side headlamp bulb in a 2009 Silverado.
It took over an hour and a half, many cuss words, and a few shredded knuckles. FWIW I replaced the driver side bulb in 10-15 min just 6 mo earlier.
OTOH, the likelihood you would need to replace a headlight assembly, sans a collision, is really low. BUT, most people would be surprised to discover that many automotive parts are not plug-and-play. They require being implemented (coded) into the car's software upon replacement. Another cost, that requires manufacturer's software/equipment. The reason is that many parts have discrete controllers (processors) built into them, with unique calibrations or identities.
As to the aforementioned Audi headlights - these are really amazing for sure. They can identify an oncoming car and rather than turn off the high-beams, they only dim the portion that is aimed directly at the oncoming vehicle. This allows you to still see your path while driving at night. And not blind oncoming drivers. It is called variable-light-distribution, and extremely helpful to older drivers, in particular. Usually, it is only equipped on the higher end vehicles in the lineup. We are talking $100K+ Audis, etc.
I know, TMI. Hey, I am a car guy.
And even if you could open that cheap TV, there would be nothing inside you could fix. Just a couple circuit boards, with very minute components baked on. Though I did help a neighbor replace a soldered-in-place fuse on a cheap TV, that got taken out in a lightning event a few years ago.
Most people do not want to hear it, but things like TVs are basically obsolete in about 6-8 years nowadays. I had a 10 year old TV that failed (again lightning). I was not sad to see it go, all the smart functions were basically useless. The world had moved on from the hardware embedded inside, years ago.
More and more idiots on the highways tailgating and pulling out into traffic. This has to increase accident rates and cost of auto insurance for everyone. In addition to struggling to make payments on their big rolling houses these folks are likely paying enormous insurance costs related to moving violations or accidents.
Michigan expressways are now posted 75 MPH. Many are driving 85 +. I don't mind as long as they’re sober and know what they’re doing. Small mistakes are amplified at those speeds.
I shopped around and found auto insurance with low premiums.
Twelve to 18 months later, premiums increased significantly above the initial amount
and were no longer competitive.
(more dust than scratches). Cost to repair? Almost $7K."
That's crazy!
Since it's become so expensive to repair damaged vehicles,
it's not surprising that insurance companies often opt to "total" them instead.
A few years back I met a person who bought damaged Mercedes. Once purchased they were sent over seas to be repaired at lower cost & resold. Hard to believe he made his living this way.
Some go to stateside auctions for purchase and repair by enterprising individuals. Keeping in mind that a branded (salvage/flood) title will reduce a car's value precipitously. In certain cases, a car repaired with parts from other wrecked cars, will need to be re-programmed by the manufacturer. Who can, at will, refuse to do the programming. This can render the car completely inoperable. All the various modules have to play nicely together or anti-theft systems can refuse to allow the car to be started. This is part of the reason that flood cars are an absolute nightmare - instantly totalled.
Things like this are why one can sometimes find an exotic car at auction for a tiny fraction of its original cost. As the poet Forest Gump once said, "Auction cars are like a box of chocolates...".
No quarrel with paying cash. But no desire to drive a car for 20 years either. I love new cars. For years I was piling 20,000 + miles a year on everything with long commutes to work + frequent 5-hour weekend drives to the cabin and back. Vehicles weren’t worth much on a trade after 4 or 5 years. So drove them into the ground. Now, retired, I put less than half the miles on them. Still pretty good trade value after 4 or 5 years.
The bells and whistles on newer vehicles are wonderful - like the blind spot warning (my first ever). And it even signals if a pedestrian walks behind when backing up. The lane tracing was good on the 2018 Honda, but much more accurate and reliable on the new Toyota. And the self dimming rear view mirror really works. Even the brightest high beams from tailgaters don’t bother me. Power seats. Heated seats & steering wheel. AWD. Put that in your pipe and smoke it when it’s 15 degrees out and pitch dark at 5 PM in January.
Yes, it’s an extravagance. Not the best use of money. But I can do without other niceties. And if I want to “enjoy” 20 year old technology, I still have the rusting old pickup to drive. But driving it feels like torture compared to the new car. I always check insurance rates with my local agent before buying a new vehicle. Huge difference among different brands and models. The one I have now is quite reasonable.
--- In Michigan, a rebuilt salvage title signifies a vehicle that was previously declared a total loss (salvage title) due to significant damage like a crash, fire, or flood, but has since been repaired and inspected for roadworthiness. This title indicates that the vehicle can be legally registered and driven on public roads after meeting specific requirements.
Here's a more detailed explanation:
Salvage Title:
A salvage title is issued when an insurance company or owner deems a vehicle a total loss due to extensive damage.
Rebuilt Status:
After a vehicle with a salvage title has been repaired, it can be inspected by a certified Michigan Salvage Vehicle Inspector.
Rebuilt Title Application:
Upon passing the inspection, the owner can apply for a rebuilt salvage title.
Michigan Rebuilt Title:
This title indicates the vehicle was previously salvaged but has been restored to a safe operating condition.
Orange Title:
In some contexts, particularly in Detroit, a rebuilt title may also be referred to as an "orange title".
Registration and Insurance:
Vehicles with rebuilt titles can be registered and insured, though some insurers may have restrictions, such as offering only liability coverage.
The main reason is the fastest inflation in decades we had under the previous administration. See 2020 to 2023 chart https://fred.stlouisfed.org/series/CUUR0000SETA01
I didn't realize you were an auto racing enthusiast.
I'm curious why the Yugo was your platform of choice.
These cars were slow and often criticized for poor safety and reliability.
Did you swap the engine and modify the suspension?
Perhaps an LSx V8 similar to the one referenced in the article below?
https://www.thedrive.com/news/18974/this-unassuming-yugo-has-an-lsx-v-8
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How Trump’s Tariffs Could Upend the Auto Industry—and Raise the Price of Your Next Car
Trump wants an all-American car. U.S. vehicle sales could plunge by as much as 20% if he uses massive levies to get one.
It is important to note that total cost of ownership should not be confused with purchase price. Car prices, like-for-like, have not gone up 30% in a decade. A 2025 Honda Accord base MSRP is only about $3000 more than a 2015 Accord was. Which is closer to 12% over 10 years. Well below even muted inflation rates.
I wonder what impact tariffs will have on new car prices over time? I guess we will have to come back to that in a year or two.
lower-value parts while higher-end components are produced domestically.
However, President Trump wants cars to be 100% made in America
and has proposed 25% tariffs on imported cars and parts.
Car prices could increase by as much as 15% and U.S. vehicle sales
could decline by up to 20% according to some estimates.
Despite the overall decline in U.S. manufacturing, the auto industry is huge.
Long-term impacts to the industry could be devastating.
https://www.msn.com/en-us/autos/news/how-trump-s-tariffs-could-upend-the-auto-industry-and-raise-the-price-of-your-next-car/ar-AA1Hrqw2
The best part (and takeaway) is that there is a company making cellphones in the U.S., and the phones are $2000 each, and not particularly good. Now extrapolate this to what you are going to pay for a 100% American made automobile, parts and assembly. And the potential QC issues of trying to manufacture everything here. Cars that cost 4x what they do now, and are rife with defects while they work out the flaws in 5 to 10 years.
The movie “Gung-ho” depicts American auto manufacturing (to a Japanese parent company). These is no QC on part sourcing, assembling, and testing, before the cars are rolling of the floor.
michael keaton movie car manufacturer
My first car was a Camry assembled in Kentucky with Japanese components. In was a nice touch to see a check list (in the glove compartment) with 50 items that were signed by individuals who carried they out. In was a very reliable that ran flawlessly for 20 years until our family grew.
My guess is that Trump loses interest in a year or so, after a few questionable "deals", and calls it a day, basically moving on to other inanity. Some foreign automakers will increase output on U.S. soil. That is not a bad thing, to be fair.