$100,000 Cars Hitting The Road In Record Numbers - When Will This Insanity Stop?

"cars hitting the road"? the vehicle depicted doesn't exist. When it finally does, many years from now, it will sell exactly like the ELR. Meaning it won't. GM has tried this before, to fund its $30k EV dreams with an $80k EV, and failed. And they will fail this time.

Meanwhile, Tesla sold enough $100,000 vehicles to transform itself from a garage startup into a $350B historic success. I have a Tesla, You have a Tesla. We all have Teslas now.

So in short, selling a $100,000 EV is completely SANE, so long as you aren't General Motors.

The US vehicle market absorbs about 17m units a year. It can accommodate many different $100k cars and SUV's has they never sell in large numbers.

It will never stop...in fact live long enough and it will become the norm one day. My first new car cost me $1,600 and now a comparable one cost $32,000.

Like other things in our economy with prices that seem inflated (cars, colleges, housing, wide-spread luxury purchases funded by credit), the $100,000 car is a by-product of years of low, low, low interest rates.

Financing or leasing a $100,000 vehicle is easy if the rate is the 0% to 2% to 4% (credit quality dependent) that currently exists in our marketplace.

When I graduated college in 1990, I put down $4,000 and took out a $10,000, 3 year loan to purchase my Acura Integra (loved that car) and the rate on the loan was 12% I think. Let that sink in. My monthly payment (30 years ago!!) was $322/month and I paid about $2,000 in interest over the course of the loan.

Call me crazy, but I think $322/month leases a pretty nice car in November 2020!

People today don't/can't comprehend how much stuff they can afford just because rates are low!

$100,000 is nothing nowadays, but I'll admit I barely have one foot into that category and only by a lease and not outright ownership.

I remember when it was still a big deal back around 1999-2000 and my dad couldn't justify a 750iL (V12) Protection for my mother's 40th, as anything that wasn't a Bentley or Rolls-Royce, wasn't worse over $100k (excl exotics).

He went with an '01 740iL Highline instead, which I'll admit I resented (really liked extras in 750iL for backseat). $100k was solely the province of ultra-luxury or exotics back in the day.

Today, V8 midsize luxury stuff and loaded 3500 Series pickups can crest $100k. $200k is the new $100k essentially and $100k is the new $60k of yesteryear.

Lexus barely offered their first vehicle above $100k in 2007, something Infiniti has never done (GT-R was almost an Infiniti) and Acura has struggled with on NSX.

*wasn't worth...* stupid autocorrect

AGENT009 ask:$100,000 Cars Hitting The Road In Record Numbers - When Will This Insanity Stop?

Answer: The insanity will never stop because drivers/owners of these vehicles have egos bigger then the window sticker.

People don't realize how much the average car is these days.

When will it stop? When people no longer buy them...

EVs will speed the day of many more people buying $100K rides.