Do you find that your mind cant keep up with Inflation?

[Dawg52]

Reality: two thousand dollars can and has been a bad day at the dentist. Still it is a shock to this old guys system. It’s not that we don’t see some big numbers in our lives. This semester Cool Hand’s ‘all in’ college cost will be roughly $25,000 and believe me I know that is quite a bargain but, still it 37 times what I paid. My first semester at college cost $230, almost a tenth of this repair. Books were always under $100. Now its easily $100 a book. Funny but that $230 was big money nearly 50 years ago.

Tuition and dorm fees per semester totaled $400 for me 45 years ago. But I had a loan to pay it off over 10 years so it didn't hurt too bad.

 

[bolt]

I suspect globalization & the last adminstrations QE-1 to QE-5 is finally catching up with the dollars value. imho
It takes time

 

[CardsFan]

It has always been my opinion and actual observation that the TRUE inflation rate is way higher than what the government reports. They have a keen desire to keep the CPI as low as possible because it affects many government payouts linked to the CPI. We have had a decade of ~2% inflation yet my expenses (taxes, insurance, food, car repairs) have been averaging about ~5% per year in increases.

Then don't get me started on the cost of "fun" stuff like concerts, excursions, dinners and lobster rolls. In 2008 my wife and I were getting lobster rolls in Maine at the rate of 2 for $9.99. Granted it was during the recession but recently paid $23.99 for a roll this summer. The point being is that certain commodities have stayed the same (i.e. boneless chicken breasts at $1.99/lb) while the rest of the stuff has gone up way higher than CPI would indicate.

Let's face it concerts, fancy dinners and lobster rolls in Maine are going to inflate faster because the buyers (mostly old farts like me), can afford it. In 1973 I bought a ticket to the Watkins Glen festival, $10 for a weekend of music. Now, if I want to see some of the same old farts that played there, the tickets are $200 for a 3 hour concert.

OTOH, in 1978 I bought a 15" color TV (back then color was still just optional) for about $350. The last TV I bought was a 35" HD for about $279.

As Linda Ellerbee used to say: "and so it goes.."

 

[rick55]

Sorry im late to this party. I would get the brakes fixed (maybe look online for a dealership coupon) and then get another estimate from a trusted local mechanic. Honda’s are great vehicles, and you should hang on to this one until after he graduates!

 

[UnrealizedPotential]

Vehicle repairs are expensive period. I remember maybe 10 ago my car went on the blink. It was $2200 to fix it. He asked me what I wanted him to do. I said lower your prices. In the end of course I paid, because it was worth it to me.

Repair costs for vehicles are one of the biggest reasons I want to find a place to live that has an excellent transportation system and I won't have to worry about that anymore.

 

[meleana]

The cost of housing. I can't believe that our new build, 4 room, 1100 square foot ranch house on a postage sized, leased lot (no rental charge, btw) is going to cost almost as much as what we can get when we sell our totally remodeled 2600 square foot colonial house on 10.5 acres.

 

[Dtail]

It has always been my opinion and actual observation that the TRUE inflation rate is way higher than what the government reports. They have a keen desire to keep the CPI as low as possible because it affects many government payouts linked to the CPI. We have had a decade of ~2% inflation yet my expenses (taxes, insurance, food, car repairs) have been averaging about ~5% per year in increases.

Then don't get me started on the cost of "fun" stuff like concerts, excursions, dinners and lobster rolls. In 2008 my wife and I were getting lobster rolls in Maine at the rate of 2 for $9.99. Granted it was during the recession but recently paid $23.99 for a roll this summer. The point being is that certain commodities have stayed the same (i.e. boneless chicken breasts at $1.99/lb) while the rest of the stuff has gone up way higher than CPI would indicate.

Big +1
That is why in general it is better to have somewhat higher inflation, so we can take the advantage on the investment side, while the cost of many day to day goods will still be roughly the same (higher prices) as when the inflation rate is lower.

I know this is counter intuitive to some extent.

 

[John Galt III]

I think some prices are going way up because *some* people will pay the higher price, and there enough of these people to keep the profits rolling in to the seller. The smart or frugal folks will just buy it somewhere else. I sell stuff at a flea market now and then, for low, low prices just to get rid of it. *Some* people are regulars and come to get great deals. Other people just can't be bothered, and go pay full price at the first regular store, or online, place they find an item for sale. Of course this is nothing new. I've noticed at my local watering hole that appetizers, which I perpetually think of as costing less than $5, are now $9 to $15. Appetizers! And a hamburger and fries is $13. I am the one(?) person on the planet who will not pay $13 for a hamburger and fries, I guess. I will also not pay $4 for the McDonalds's or BK version of the same thing. In both cases the price is too high. I will, however, pay $3 plus $1 tip for a pint of excellent creamy stout at the local watering hole's bar, at happy hour. They've got my number there, lol.

 

[atmsmshr]

Inflation

Gack - My first three rides were less than $3,000 combined (more than 30 years ago). Of course, one was a VW beetle that you could peek through the floorboards on a cold wet Pennsylvania day.

Four years at main campus for Penn State cost me less than $25k. (Back when states used to help flagship public universities).

I have always liked auto mechanics, but got sticker shock from a stealership 20 years ago when billed for $2k to replace emissions equipment for a check engine light. Never again.

Got by nicely for a long time with an OBII CEL scanner costing $50 and DIY savings added up. A few years ago, sprang for a shop grade scanner (which has now paid for itself).

Safety issues.
- Brakes can be a safety issue if pedal is too far, brake light is on, squealing, overheating or pulsing when braking. A moderate DIY project with good savings. Quality rotors (Zimmerman) and pads (Ackebono) can be sourced and delivered via Amazon. Aways good to flush brake fluid at the same time with a power bleeder. Sort through a few You tubes to get the right technique. Showed my 23 yo DD how to replace pads and rotors on her 2004 RX 330 last year. She did most of the work.
- Suspension can be a safety issue if squeaking or groaning. (early sign of ball joint failure, and worn bushings cause misalignment and excessive tire wear.) A harder DIY by far because it take more strength and specialty tools. Using an independent can be problematic because they may use off brand china cheapos that wear out quickly. Replaced my own suspension control and thrust arms, sway bar and links several times. For DD, gave her a Christmas present of Meyle suspension parts (dirty look at Christmas) and found an indie who would do the work with these parts on her FWD car. (Now at 186,000 miles and going strong)

If the vehicle has 'good bones', good safety ratings, well maintained engine and transmission and no rust; one time repair costs are worth while when compared to new/used car payments.

 

[JoeWras]

Let's face it concerts, fancy dinners and lobster rolls in Maine are going to inflate faster because the buyers (mostly old farts like me), can afford it. In 1973 I bought a ticket to the Watkins Glen festival, $10 for a weekend of music. Now, if I want to see some of the same old farts that played there, the tickets are $200 for a 3 hour concert.

But here's where the Old Farts intersect with Millennial Culture.

It is about experiences in the new culture, and this is driving up prices big time. That selfie with the lobster roll in your hand is gonna cost you!

My wife's niece, a Millennial, absolutely LOVES the oldest of farts: The Grateful Dead. The fact that the Dead are dead doesn't stop her. She's out spending all kinds of money every summer following "Sons of Dead" or whatever is out there.

And CardsFan, don't even think about going to a Cubs-Cards game at Wrigley Field. If you try to calculate the inflation rate one of those games compared to 1975, you will break your calculator.

 

[Car-Guy]

What model did you buy?

Grand Cherokee Trackhawk

 

[CardsFan]

And CardsFan, don't even think about going to a Cubs-Cards game at Wrigley Field. If you try to calculate the inflation rate one of those games compared to 1975, you will break your calculator.

Been there, done that (DS lives in Chicago). The wonders of "Dynamic Pricing".

 

[ncbill]

Every sports game I want to watch (college or pro) is cheaper at home on my HDTV.

Once can even use a VPN to never worry about blackouts.

 

[GravitySucks]

Kind of hard to calculate inflation for a TrackHawk. There's never been a production vehicle like it before.

Grand Cherokee Trackhawk

 

[bolt]

Additionally the older one is with a good memory, the more inexpensive data points one has for comparisons.

I recall McDees .18cent burgers to .27cent cheese burgers in the 60s.
I saw a kid drop a slice of cheese, the McDees mgr. said that "cost me .10cents a slice"! Next time your fired

 

[JJpop]

My brand new 2019 Chevy Impala was 45 grand out the door.

I think maybe you should have shopped that price a bit more.

 

[IMATERP]

I value a new bare bones vehicle @ 25k. Upon purchase, I give it a useful life of 10 years. Thus a car has a worth of about 2,500 a year to me. When I reach the 10/11 year period of owning a vehicle - I ask myself the question “Is it worth putting the additional $$ in it, to gain more time?” I also take into account if the car does last the additional year - approximately how much less would I receive when selling the vehicle. Then I make my decision to fix or sell.

In May 2018 I sold my 2008 base Honda Accord LX for $6,500 (Private Party.). It was very clean but beginning to make sounds that signaled repairs. That same day, I purchased a 2018 Toyota Rav 4 Hybrid (base) otd for $24,800. So my net cash outflow for the vehicle was $18,300. In May 2028, I’ll once again assess the condition of my vehicle in conjunction with what I could sell it for.

I d agree that if you have to keep the vehicle, call several shops and obtain quotes over the phone.

I

 

[Doribe]

Dealerships are and always have been one of the most expensive options for car repair. If it is not a warranty repair, I use a trusted private mechanic.

There are a lot of ways to have a good life and spend less than "full price". Pay attention to how the 20-somethngs are spending and you will find they are finding ways to have a good life with less money.

For example, A newish phone can be found on Swappa or Glyde for under $200, compared to new for $700 or so.

 

[ncbill]

I think maybe you should have shopped that price a bit more.

One can always hire a broker to negotiate for them.

These broker review are from a popular leasing site, but could also be used to negotiate the price for a purchase:

https://forum.leasehackr.com/c/reviews

 

[RobbieB]

I think maybe you should have shopped that price a bit more.

No shopping involved. I ordered it to spec and they had to build it. Let me know when to pick it up after it arrived.

 

[aja8888]

I think maybe you should have shopped that price a bit more.

California...different money...

You know, the weather factor.....

Ever seen the bumper sticker.."The Weather's Here..Wish You Were Beautiful"..

(I spent 12 years in the LA area)

 

[freedomatlast]

Ray, I don't know why you keep going back to this same dealer that seems to try to tear you off time after time. The dealer service department will generally try to sell you things you don't need to meet their profit objectives, especially if they sense you don't know much about cars, and have the money to pay their ridiculous quotes.

Isn't this the same dealer that tried to tell you that you had an oil leak that needed to be dealt with at some ridiculous price when actually it was some minor seepage that any vehicle that age would be expected to exhibit, and never left a drop on the floor? I apologize in advance if that wasn't you. Also, sorry if this is a little too direct but it drives me nuts to see people pour big money into older vehicles for parts and labor that isn't needed at the time, to "fix" something that is fine as is.

With that said, I've made a ton of money buying, fixing and reselling used cars over the last 40 years. I've seen the estimates from dealerships given to poor unsuspecting folks, so they sell them cheap. After I buy them, I check them over very carefully and fix anything needed to pass state safety and emissions inspections and what's needed is generally about one tenth of what the dealer tried to get them to pay for.

For example, many dealers in this area will tell you you need brakes when the pads are at 5 or 6/32" thickness . BTW, 5 or 6/32" is about half the original thickness. PA state inspection rules say they pass at 2/32". I could go on an on with similar examples.

As far as the "suspension stuff" is concerned, there really isn't much to go wrong with the front end of a vehicle with rack and pinion steering other than struts, ball joints, tie rod ends, and hub bearings and on most Japanese cars (especially Hondas & Toyotas), these generally last WAY beyond 134,000 miles.

Obviously I didn't see the car before the repairs and maybe it did need all that work, but I doubt it, based on many years of experience with many many used Japanese imports.

$2000 seems to be the new goal for some dealerships to try to get out of each customer. I guess they think most people have a credit limit on their card high enough to accept a $2000 charge.

My son in law just took his 60,000 mile import SUV in for state inspection and the dealership wanted to do $2000 worth of work. They wanted to do brakes all around. The fronts had 5/32" left and the rears had 7/32" left. They wanted to do a coolant flush and transmission fluid flush and the manufacturer doesn't call for that service till at least 100,000 miles. Luckily my son in law is savvy enough to know not to bite and know not to go back to this dealer again.

A good, honest, independent mechanic is worth his weight in gold, and is generally busy enough that he doesn't have to invent things to replace to make a buck.

 

[GreenEggs]

YouTube and some basic tools will allow you to do many of your own repairs. Even if you don't want to do the work yourself it's good to know what's involved in the job when discussing it with mechanics.

 

[RobbieB]

After the car is off warranty I'm not going to the dealer.

Yup, didn't have the car I wanted in 2018 so I had to order up a 2019. To spec. But this does have advantages I hear. I guy I know had this to say;

From my time at GM I would say the actually prefer to take an order, the dealer might feel otherwise. Cars that are already sold when they are built are flagged during the build process, special care is supposed to be taken and the car is not eligible for testing or being pulled of the line for any reason, like going to audit to verify (a sample of production goes to the audit building etc.)

So if I paid a few thou more for this...

 

[trumpeting_angel]

As a child, I heard my grandfather complain about prices in the supermarket. He and my grandmother had run a corner grocery store, he the butcher and she did everything else. I remember feeling he was so quaint as he shook his head over the price of a TV dinner. Retirement inflation was hard on him.

These days I feel like my grandpa when I buy food. I bought 8 peaches at the farmer’s market and paid almost $10! The peaches were outstanding (and literally came highly recommended) but with a jolt I realized how some bakeries can charge $16 for a peach pie! I keep reminding myself that it’s inflation, and I planned for it, but i still feel like my grandpa, leaning over the freezer compartment, muttering about the prices.