Not stocks, hard assets.

I have a Dodge Powerwagon with 27K miles and a Toyota Tundra with 56K miles that I’m sure are appreciating in value faster than my 401(k).

I was sent this picture, I hope it’s photo shopped because of it’s real it shows you just how absolutely fucked the car market is.

That is a 53% market adjustment.

Autoweek is reporting an average price increases in used cars of 32.7%.

Because it’s Biden’s goal to make everything worse, he just announced new fuel efficiency standards.

In a major step to fight climate change, the Biden administration is raising vehicle mileage standards to significantly reduce emissions of planet-warming greenhouse gases, reversing a Trump-era rollback that loosened fuel efficiency standards.

A final rule issued Monday would raise mileage standards starting in the 2023 model year, reaching a projected industry-wide target of 40 miles per gallon by 2026. The new standard is 25% higher than a rule finalized by the Trump administration last year and 5% higher than a proposal by the Environmental Protection Agency in August.

Every time fuel efficiency standards go up, so do prices.  The engineering that goes into vehicles increases at a rate that exceeds the normal rate of technology adoption as prices decrease.

Look at the new Toyota Tundra.  They got rid of the naturally aspirated V8.  They have gone to a turbo charged V6.  That is a more expensive engine with a lot more complicated moving parts made out of expensive alloys.  Plus all the R&D that went into the upgrades.  The price for a 2022 Tundra is also way up (MSRP without market adjustment).

So these mandates will drive up the cost of already ridiculously expensive cars.

For the Manhattan/DC elite they don’t care.

For everyone else who lives and works where public transportation and car service isn’t feasible, it’s a fucking financial disaster.

New cars will be the property of the wealthy elite and the rest of us will be holding onto decades old shit-boxes until they are dead because of the cost of a decent used car has become unaffordable.

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By J. Kb

12 thoughts on “I’m invested in Dodge and Toyota”
  1. Ok, I’ve not been paying attention to the price of used vehicles except to note news articles telling me they are going up in price.

    My local Toyota dealer is listing 2022 Tacoma SR5 Double Cab at $39,xxx.

    I’m being told that places are selling 2019s for $39,999-$43,999.

    I’ve never seen a time when used trucks were selling for more than MSRP of new trucks.

  2. Keep in mind that the pic you posted is for an unusual truck (Ram TRX) with high demand right now. That ADM (additional dealer markup) is not typical for just any new Ram truck.

    1. Ben is right. When Dodge annonced the TRX the truck sold out in 12 MINUTES. If Im gonna pay 148K for something it better be armored and have at least TWO Dillion mini guns on it…. For once In my life I have a truck (2015 Tundra) that is worth almost twice what I currently owe on the loan..

  3. Don’t forget the dealer scam for fabric protection, etched glass, and N2 filled tires. $3000 according to the sticker. Holy shit. The fabric protection is nothing more than a can of scotchgard, the etched glass is meaningless, and the N2 filled tires relies on people not knowing that air is 79% nitrogen already. The very scant benefit it provides (tire pressure is a bit more stable over time) isn’t worth the $500 fee. Just get a bargain basement air compressor for your garage and check tire pressure once per month and after every cold snap. Jeez. Surprised they didn’t add undercoat protection and loan insurance fee.

    But yeah, the dealership where I bought my truck 8 years ago calls/emails/texts and sends junk mail weekly wanting to buy it back. The dealer lots around here (just outside of Houston) are half empty and the used car lots are worse.

  4. All those new high mileage features like the 25 speed transmissions, turbochargers, etc., will drive up the maintenance costs and shorten the useful life of a vehicle. Just like battery powered vehicles that need a new battery 7 or 8 years into their life, who will buy a new tranny or a new engine for their 10 year old truck?

  5. I won’t address the fact it’s a TRX, that’s been covered. But trucks in general are stupid. I could sell my 2014 1500 for a PROFIT. I paid $19.5k for it in Sept of 19.

  6. It’s probably real; the used car market is insane at the moment.

    True story:

    Two years ago we bought a used Ford Transit from the Ford dealership, for about $25k. Low-mileage, a few options that make it very convenient as a kids-and-friends hauler, decent power and economy.

    Last week we got a call from the same dealership offering us $41k to buy it back.

    I’d be interested in taking them up on it, but: a. we love the van, and b. there’s nothing comparable available on the local market to replace it with, in anywhere near that price range.

    I infer from that data that the local demand for these vehicles is so ridiculously outstripping supply that the dealership thinks it’s worth paying out the nose to get it back into their inventory to re-sell.

  7. There is a good reason I keep sinking money into my 97 Honda Civic sedan to keep it running. My truck is a 91 Mighty max (Mitsubishi version of D50 Dodge) with over 300,000 miles and it is still a usable backup vehicle.

    I have brake pads in shipment now and just changed out the timing belt and water pump on the Honda. I just wish I had another inch or two clearance between the engine and inner fender. I don’t have small hands. My meathooks are XL, so it was a challenge.

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