The thing I don't understand is how people are still able to afford to buy new cars. It seems to me that the increase in the price of cars has far outstripped any increase in wages; this would seem to be confirmed by the figures listed here:
http://www.thepeoplehistory.com/70ye...icechange.html
The price of cars has increase at a rate about double that of wages, since 1970. I bought my first car in 1987, and have owned a total of 4 vehicles, COMBINED purchase price of $600 + $1500 + $3000 + $8000 = $13,100. Average new car costs over $30K? Won't be buying one of those anytime soon.
My most recent commuter bike purchase was $100 off of Craiglist. I could own quite the fleet for $31K.