Quote:
Originally Posted by Motorradist
This is largely due to the fact that wages have not kept up with cost of living (except for the 1%, they've just gotten richer). The median household income is about half what it was in the 70s ($60k). Bullshit! you say, the median household income for today is about $80k - true but in the 60s you/they were probably a single income household, now you're probably both working full time and still only bringing in about $80k unless you have "VP" in your title or you've got an engineering degree in a high-demand STEM industry - but then you probably also have $100k in student loan debt.
We are also something like 250% more productive than we were 20 years ago (hooray laptops and smartphones and 4G/Wifi) but we're actually working longer hours.
SO buying a new car becomes a joint effort with your partner. Doesn't really make sense to drop $40k on a Miata RF if you're thinking about having a kid or your partner has no interest in driving stick. Doesn't make sense to spend $20k on a 160hp/3000lbs Golf. You end up buying a Tiguan or a Mini Countryman S AWD for $30k instead and then you get AWD and a taller ride height so your wife feels safer. The Crossover is basically a minivan without a sliding door.
And it's pretty rare for a single adult to be able to afford both rent/mortgage in an urban area (that is, not in the middle of nowhere) AND $40k on a car. You probably have other priorities like your $1000/mo student loan payment. I think I know maybe 3 people my age who live alone? The cost of rent is too damn high.
So car manufacturers are leaning on two things: Crossover SUVs and lower monthly payments (yay 6 year loans - more debt!). (Margins are also a huge reason why we're seeing gauge clusters turning into TFT screens. Fewer moving parts are cheaper to produce and maintain.)
So when an entry level 4 banger hatchback costs $20k or 128i with no cargo room costs $30k, why bother? Team up with your spouse and then you can afford a $40k car with premium sound and "sport tuned" handling and a big cargo area and you both are fine with putting the kid seat in the back.
If you are a tip earner you're fucked even harder, their minimum wage is $2.13/hr and you are more likely to be a tip earner if you're a woman or minority (who are also the majority of folks that exited the work force in 2020). I know one single person who bought a new 128i, but she is a bartender and also sells drugs under the table.
So, I think of it this way. Buy an SUV from a car company who supports motorsports. Think of it like a $40k donation to their racing dept and you get a free SUV. I've heard some Ferrari fans spin it this way. $300k donation to their F1 division gets you a free base model 2 seater.
People are shitting on BMW for "catering" to the chinese market, but you know what, they're buying new cars. We aren't.
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VERY on point, BMW is another car maker, and ultimately its their bottom line they care about, and if it means ruining the shrinking western world enthusiast market, then so be it, I have a VERY hard time believing we are of any significance of the new car market.