How the car manufacturers and marketers screwed themseves

and yet, here we are, driving these new hi-tech vehicles. who is getting screwed?

 

Most car dealers are happy with the idea of the majority of their customers being unable to afford new cars, as long as it doesn’t prevent them from wanting new cars. That way the dealers can sell loans and get referral fees from banks for doing so. And people who otherwise could not afford new cars can have them. It puts them in debt, but the dealers, car manufacturers, and banks all make more, so they don’t care.

For the over 50 crowd, car manufacturers promote ever larger vehicles and advertise luxury and safety. Parents and grandparents then feel comfortable paying higher and higher amounts for bigger and more complicated vehicles. And the tech features are aimed at pacifying children.

While it can certainly be argued that encouraging car buyers to take on increasing amounts of debt for depreciating assets is going to hurt the market in the long run, the car manufacturers are quite happy with the current business model for now.