When I see data proving how incredibly stupid the average American is all day, I can't realize why they do what they do. Information below from The Kobeisse Letter are astounding for individual like me who has never tried to keep up with the Joneses, deliberately lived for decades below his capabilities and sees the vehicle as a way of moving from point A to point B, alternatively than as a symbol of position for my neighbors, friends and family, which proves how rich and successful I have become.
Not only did the average price of the fresh vehicle exceed $50,000 (it's cursed MIDDLE!!!!!!), but the mob's problem masses fund $41,000 from this cost for 6 years after 7% to 8%. This means that the average "buyer" of the fresh car pays around $750 per period for an asset whose value drops all day. They're practically as much at hazard as they leave the square. From my perspective, this is confirmed by the fact that my monthly home payment for 30 years was $689 a period before I paid it.
The average price of a fresh car at $39,000 in 2020 already seemed absurd to me, but an increase of 28% to $50,000 since then has been the actual consequence of consumer stupidity and proof that the bank group and Fed's money printing device encourage fools to do stupid things. Another example of the reported bullshi CPI BLS at 3% is the fact that, although the price of the fresh vehicle clearly increased by 28% since 2020, the government says the price only increased by 21%. They reduce the rise due to the fact that now you can press the button to warm up, and if you go besides far to the left, the signal will ring.
True madness is seen in the increase of full credit debt on cars from $1.35 trillion in 2020 to $1.65 trillion now. That's a 22% increase in the last 5 years. For a real perspective, BLS recorded real average weekly earnings of USD 377 in January 2020 and $387 in September 2025. Real wages have increased by 2.7% in the last 5 years, but the average fool thought it was a large thought to spend 28% more on a fresh car and drag 28% more debt for it. Without even considering an increase in car insurance rates of 70% from 2020 (from $1,500 to $2,600). Stupid truly smokes.
The reason why I think specified behaviour is crazy is due to the fact that I haven't bought a fresh car since 2010, and that was a inexpensive Honda hybrid for $20,000 due to the fact that oil cost $150 a barrel, and I had to drive 60 miles both ways to work all day. We sold this vehicle 2 years ago after 13 years of reliable operation. We presently have 2 2012 Honda Civics that we bought utilized in 2015 for about $13,000 each. Both are somewhat below 140,000 miles, and I am not going to give them up. Regular oil exchange, tire replacement and basic maintenance let Honda to drive 200,000 miles or more.
Our "new" car was bought 2 years ago, a 2021 Honda HRV, with about 27,000 miles per horse, for $22,000. The clerk in the surviving area was amazed erstwhile I pulled out my checkbook to pay in cash. seemingly no 1 does. erstwhile you don't have a payment for a car for a decade, you can actually put distant adequate money to buy a basic, utilized car with your savings.
I do not realize why the vast majority is so unaware of finance and self-centered that it "needs" the most ingenious vehicle on the road. I realize the commercials of vehicles bombing us on tv all 5 minutes, but I can't accept the idiotic millions of idiots borrowing tens of thousands to pay for the worthless assets just to make others think they're rich. And let's not even start by 25% of people who lease cars due to the fact that they "need" fresh wheels all 3 years. These idiots rent cars forever.
Of course, stupidity and stupidity always have consequences. The illustration below gives you the first insight into the disaster that awaits our economy erstwhile this debt bubble breaks. They say we have a strong economy with low unemployment. If so, why are the backlogs in car loans at the level of the large financial crisis of 2008/2009 and rising? Wait until the recession is officially recognized, the layoffs will velocity up, and the banking group will tighten the credit standards. The number of utilized cars available for my next acquisition will be astronomical.
I will never feel sorry for anyone who decided to live beyond his means by borrowing $60,000 on BMW – he downloaded an exotic yearly vacation with a credit card, bought the 6-room McMansions with a 5% advance erstwhile he had 1 child, ate in restaurants 4 times a week on AMEX and mostly guided by ego and uncertainty to look like a success, while in fact he was just stupid. There are quite a few individual bankruptcies on the horizon.
https://www.theburningplatform.com/2025/12/10/you-cant-fix-stupid/
