The $25k car is going extinct?
This is a great example of how factually incorrect narratives - so long as they align with a preferred agenda (which is that things are not affordable any more) - it gets upvoted.
Reality check:
- In 2025, there are 12 new car models available under $25,000
- In 2005, there were around 10 new models under $15,000 (25k adjusted by inflation)
So the premise that “cars used to be much more affordable” is not true. This article is full of misleading or outdated information that distorts the real trend.
HN deserves better data-driven discussions.
You can still buy a new subcompact car (like a Renault Clio or Skoda Fabia) in Europe for under 20k EUR.
The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-road vehicles are classified as non-passenger automobiles with everything that entails, notably much less stringent emission standards) and made the small cars unprofitable to make in comparison.
It's pretty simple (in the US, can't speak for elsewhere).
There are 2 big factors at play:
1. Margins. Manufacturers make huge margins on expensive vehicles and very slim margins on cheap vehicles. The numbers differ, but I think even in the lead up to the 2008 crisis automakers had to sell 5-10 "econobox" cars to make the profit they made on one luxury car, SUV, or truck.
2. Normalization of debt. For many Americans, having a monthly car payment in perpetuity is considered acceptable. Car loans have their place and can be used responsibly, but due to marketing, sales tactics, and cultural sensibilities what often ends up happening is that people start from a monthly dollar amount and then work forwards to buy the most expensive vehicle they can, even if it means taking the loan term out to 72 or 84 months. It's also very normal for people to never pay off their car, instead trading in the vehicle after 3-5 years and rolling equity in the loan over to their next car. Obviously, this consumer habit is great for dealers, manufacturers, creditors and buyers of consumer debt, as well as the US Government and investors -- it's just not ideal for the consumers themselves if they're trying to preserve wealth and build savings.
These two factors create an environment increasingly hostile to the cheap entry level car. Consumer demand is low since most don't spend responsibly, and automakers don't really want to make or sell them because the margins are so slim.
Nobody else has said it so I guess I will.
The reason the US car industry does not want a $25k car is that the financing opportunities are crap for a car of this low cost.
In the same way that airlines exist to offer you a miles based credit card, the US car dealerships survive by offering you a loan for the car. Or perhaps, a car to go with your structured finance opportunity.
I don't know why inflation is dismissed so quickly. The article lists the industry average price increase as 29.2% and the inflation value I got out of the US Bureau of Labor Statistics calculator[1] was 26.2%. So sure, "this isn’t just a case of inflation affecting the entire vehicle market" [emphasis mine], but it is mostly that.
One fact not mentioned in the article - Americans now owe $1.64 trillion in auto loans, and cars make up 9% of all consumer debt in the country. In fact we now owe more on cars than student loans. The average loan term is rising - almost 6 years now. 60-day delinquency on auto loans is at 6.6%, the highest ever recorded, and is as high as 9% in some states.
So while car prices keep going up, people also keep going deeper into debt to buy one they can't afford.
You can blame manufacturers or banks, but ultimately the problem is unchecked consumerism and treating cars as a status symbol, which is sadly pervasive in this country.
Last year we bought a car.
While not being a petrol head I was still living in a lala land where you could buy a brand new car for 10k EUR. Nothing fancy, just "a car". Obviously it turned out to be not true.
After some digging it turned out that in the last 10 years the price of cars went double. Literally double. Same car, like Fiat Panda, with the same engine and configuration, that ten years was worth one potato is now worth exactly two potato.
Long story short, the entry level car now costs close to 25k EUR. [1]
But here's the kicker.
While subvenstions seem to fail in most cases for regular people - like gvt giving people money to buy apartements equals to apartments being equally more expensive - it seems to work wonders for automotive thanks to Chinese.
EU offers up to 10k EUR subvention for electric cars and with that in mind you can get something like BYD Dolphin for slighly less than 20k EUR. Which is mind blowing. The car is comparable to Volvo XC40. Of course this is just an example and there is plentiful of other options.
[1] If you're not familiar or comfortable with EUR just think 1 EUR is 1 USD and you'll be fine.
Completely unmentioned: Chinese EVs are $10k worldwide except USA.
https://gmauthority.com/blog/2024/08/2025-byd-seagull-ev-sta...
Strange article based on incorrect information. My son and I are buying car and there are so many under 25k. In total there are 12 new models. Adjusted to inflation things did not change a lot in last 20 years (in 2005 there were 10 models less than 15k).
- 2025 Nissan Versa – Starting at $18,330
- 2025 Hyundai Venue – Starting at $21,395
- 2025 Kia Soul – Starting at $20,490
- 2025 Nissan Sentra – Starting at $21,590
- 2025 Nissan Kicks – Starting at $21,830
- 2025 Hyundai Elantra – Starting at $22,125 Ok - 2025 Kia K4 – Starting at $21,990
- 2025 Toyota Corolla – Starting at $22,325
- 2025 Chevrolet Trailblazer – Starting at $23,100
- 2025 Subaru Impreza – Starting at $23,495
- 2025 Buick Envista – Starting at $23,800
- 2025 Toyota Corolla Hybrid – Starting at $23,825
Electric vehicles eliminated the need for manufacturers to sell (usually small and cheap) efficient ICE cars in the US.
For years, CAFE regulations have meant that manufacturers must meet minimum fleet fuel economy averages or else pay fines. In order to sell more profitable but less fuel-efficient F-150s, Ford also needed to sell little Fiestas or Focuses. In order to sell Suburbans, Chevy also needed to sell Cavaliers or Sonics. But now that Ford can sell Mustang Mach-Es and Chevy can sell Blazer EVs for 50 or 60 grand AND get credit for something like 100 MPG equivalent, there's no longer any incentive for them to spend huge sums developing cheap cars that will net tiny profits (if any).
They don't mention the amount of mandatory additions to the car from government regulations. Obviously not the only factor but it's certainly a factor. Cars now have 6 to 8 airbags, backup cameras, more high strength steel, automatic breaking systems etc etc. I love the safety that those all bring, but it's not free.
The dealer inventory model is the real killer here. The article mentions that only ~20% of US buyers pre-order cars, compared to Europe where build-to-order is common. This fundamentally changes the economics. When I worked at a dealership software company, we saw the data firsthand - dealers would rather sit on one $80k truck for 60 days than move five $25k sedans in the same timeframe. The financing alone makes it worthwhile. A buyer financing an $80k vehicle at 7% over 72 months generates ~$20k in finance reserve profits that get split between the dealer and lender. The $25k car? Maybe $3-4k if you're lucky. The Maverick situation is particularly telling. Ford designed an actually affordable truck, and dealers immediately marked it up 25% because they could. That's not a supply chain issue - that's dealers extracting maximum value from artificial scarcity. What's interesting is that direct-to-consumer models (Tesla, Rivian, etc.) haven't really attacked this market segment either. You'd think cutting out the dealer would make sub-$25k vehicles viable again, but even they're chasing higher margins upmarket. The only real solution I see is Chinese EVs eventually forcing the issue. BYD is selling the Seagull for ~$11k in China. Even with tariffs, that could land here under $25k and completely reset consumer expectations. Until then, we're stuck with dealers optimizing for finance profits over volume.
Aka how to shoot yourself in the foot and hand over the market to Chinese manufacturer. In Europe, only Renault created a low cost brand (Dacia).
Once chinese brands become commonplace everywhere, tradional carmakers will have a hard time taking back market share. In Europe they closed or are closing the last HCOL factories, killing any remaining brand loyalty.
welp, guess my corolla needs to last until I die. I spent about $9k usd (in australia though) on it second hand pre covid and I'm just gobsmacked at the prices of vehciles now even years post covid. I make good coin and I just can't see how non-"enthusiasts" can justify spending so much money on their vehicle. there are houses in my suburb with 3-4 of these expensive, new model cars out front.
in 2021 my beloved Honda Fit got totaled. I bought it new in 09 and only had 80K miles on it. They don't sell new ones in North America any more. So I bought a Kia Rio. They don't make those any more. I don't really like it but with the current chaos in the economy I'm not trading it in any time soon.
I was in the UK for the first time last month and was struck by how many hatchbacks and sedans they have that we don't in North America.
The closest thing to affordable and comfortable I could find this past year after maintenance costs pilling up on my ‘15 Ford Fiesta (that I got for a staggering $14k post college) was a Honda HRV Sport. Has all the basics, incredible sensing system, lots of space decent gas mileage and drives well at around 28k in Ohio. My partner has an Accord and honestly its a better car. Incredibly good gas mileage, reliable, perfect for an A to B person that doesnt want to worry about their car.
Another financial point with impact on birth rates and demographics.
It is now very difficult (I can count with my fingers) to find a <100k car that can have 3 child seats in a row. Or that can sit 7 people that is not a SUV pedestrian child killer.
With rebates a 20,000 truck. Who knows what it will cost when it actually comes out. But I love the concept.
Spending $25k on a car (if they exist) is just an insane thing to do in my opinion. In the UK we are quite lucky in that the used car market is very good. I always just buy a ~£1,000 diesel and run it into the ground, then rinse and repeat.
I think in 17 years of motoring I've spent around £5,500 in total on cars.
The sweet spot has always been a 1 year old used car with low miles. There’s lots of those for less than or about $25k. Honda, Toyota, and Mazda have models in those ranges that will easily last a decade.
As someone working for the German automotive industry I see part of the reason being a nearly constant crisis situation. Software is another part that seems to consume a huge amount of resources for little outcome. See Cariad from Volkswagen for an example.
Suppliers suffer from a constant flood and drought of contracts. Crisis -> We need so save money -> Supplier contracts are frozen or cancelled -> "Oh, we can't do stuff ourselves/We need help" -> Supplier had to let go experienced staff, hire cheap/unexperienced replacements/outsource -> Quality suffers and costs explode -> Repeat. Also not paying/delaying payments drives more suppliers out of business.
You also better promise the impossible because the cheapest offer wins. One time I got a PowerPoint as the technical drawings for electric charger test station. Just some black boxes, lines and names. That was the documentation. I should help the project management with documentation of the current state, but had to provide quite a bit of engineering in addition. Also had to talk to the Chinese supplier directly (nobody in the team spoke Mandarin). What a joy.
We don't want affordable Chinese EVs.
That's the answer here. They can build cars better, cheaper, faster than we can.
Instead Ford wants to sell a 80k SUPER F-250 BIG MANN TRUCK. All for what, you to drive 10 minutes to Walmart, buy groceries and drive back.
The best car is the one you don't own. No payments, insurance, parking tickets.
Unfortunately most American cities are centered around driving. So much money , and space wasted on these multi ton metal boxes. In many places most(much) of the city is literally just parking spaces.
Is anyone following Slate auto? They claim to be making a suburban pickup in the Ford Ranger size for ~20k. I've been cautiously optimistic about my reservation.
They apparently optimized for cost and molecularity, most notably by removing the infotainment system, which apparently is the biggest warranty / "feature" cost center.
I wonder if there's a business model in leasing cars from Mexico to Americans and swapping around once a year to get around the problem of having Mexican plates. Then you can get Chinese cars into America.
I was in the market looking for a used SUV for my wife to haul around our kids last year. Dealing with dealers who wouldn't budge even a few hundred off the inflated listing prices, the interest rates on financing and then the insane insurance costs was not pleasant. I have an old Subaru beater that I was also thinking about upgrading but after this whole fiasco I decided to spend some money to fix body and small mechanical issues myself and drive this thing another 10 years hopefully. It's just not worth it.
I might be alone, but I miss the ridiculously simple all manual cars/trucks with crank windows, 5 speed and a clutch, and just the simplest damn interior.
I don't want all the damn gadgets, those things inevitably break and then cost thousands to fix.
I recently needed to buy a car and my criteria was essentially I wanted least expensive new car on the market (I know I could have gone used but for this particular need I wanted a new car). The number of new vehicles that start under $20k is slim pickings. There are, what, maybe 3 in the US (if you don't count a couple that are discontinued)? And once you get into tax and title, you're going over $20k anyhow. Plus, with interest rates as they are, I don't know how the average person in Amercia affords a new vehicle these days.
I’d be interested to see what this does to overhead costs of businesses that actually need a large vehicle.
I have a small horse farm and drive a 2010 F-150. I haul horses, 900lb. hay bales, feed, lumber for repairing fences and building shelters, etc.
If my truck breaks down I am going to have to scrape through used inventory to find something that fits my needs. I don’t need leather, 16 cameras, seat warmers, and a high end sound system. I need a truck that can get done everything I need around the farm, and I need it to be cheap enough that I’m not worried about it getting scratched.
All cars seem to be luxury vehicles now, I don’t know what folks are doing the just need something more utilitarian.
ICE cars have peaked. ICE car from 2012 is almost no different from ICE car in 2025 other than entertainment value and this is why every manufacturer is targeting premium market even with solved ICE technology.
Car manufacturers that cannot build affordable cars are going extinct. 12000$ for a new electric car in China. That is the real competition.
I don't care about the prestige of owning a car, it is a utility for me that will never be worth 60000$. You can pay me 500000$ yearly and I would reconsider.
Everything in here matches with my experience in the auto industry, but I don't think it gets the whole truth. Car companies, particularly the American and German brands, make the vast majority of their money from new car buyers and leasers, not the used car market. Over the past few decades, OEMs have focused almost exclusively on serving those customers, to the detriment of virtually everyone else. Those are very different customers than the people who want to buy $25k cars. Worse, even if you do sell that kind of vehicle, it depreciates and goes right back into circulation on the used market competing against the new cars because the customers are ultimately very utilitarian and lack brand loyalty, unlike the higher end customers. You can't even count on those higher end customers to reliably purchase the higher trim models because of the "status" aspects of a cheap car.
It's a tough market that OEMs don't want to be in, so they cede it almost entirely to foreign OEMs that haven't moved upmarket yet. Foreign OEMs are structurally incapable of selling cars at those prices (by design), so the bottom end of the market gets hollowed out to nothing but a few "loss leader" vehicles.
In 2014 I got a very nice and very basic brand new sedan for about $14k. That's not so long ago, but the car market in the US seems to get worse every year. (cost, newer models are bloated and overly-expensive, etc.) My only advice would be to buy now (ideally something used) since I can only imagine things will be even worse in a few years.
I am pretty sure these cars still exist in Japan at roughly the same price point. I'm not talking about kei cars, either.
The article compares 2025 prices to 2019 prices. We've had high inflation building upon high inflation for the past several years, so I'm not shocked that prices are higher. We might as well ask where the $1 menu went at fast food restaurants. Yesterday's prices are long gone.
The US seems insulated from the downward pricing pressure of Chinese cars. In most of the rest of the world, you can get a Chinese car ~30% (by my estimate) cheaper than a European or American one. It'll probably have more options and additions, too. I'm not sure how they'd do on reliability or safety, but it's generally hard to compete with them. Some of them offer 1M kilometer 10-year warranties.
Infiniti is on the list of highest price increases. The reality is that nobody is actually buying any of their newer models. They dropped the ball in 2010s and playing catch up in 2020s. Nobody is going to pay $100k for QX80 when you can get an GX550/Escalade/Yukon for similar money.
The Honda Fit was discontinued because they're so reliable there are now enough of them to last until the end of humanity. ;-)
I'm not about this whole discussion - go to your favorite car sales website and filter for new cars and, say, 20,000 Euros. I see roughly 7000 cars for sale in Germany on mobile.de - of course, a lot of them will be instances of the same type of car, but there is variety and offers from multiple brands, both international and European.
Dont know if this is available in US and Europe markets but I would consider Mahindra XEV 9e, BE 6E and BE 9E to be in the $25k segment and afaik, they are the best in the class for that price point ( in terms of looks and maybe even features ). I dont know if these are being exported out of India right now, but they definitely should be hitting the US and UK markets sometime soon.
The car-dependent culture create a problem that you can't even go to work if you cannot afford a car.
This is all part of the continuing trend toward luxury - brands are abandoning the middle class and below, focusing on higher margins and lower volume - brands make more money, engage with easier buyers and have to work less. I don’t know how all this works in the end but it does seem to be a real trend.
I'm personally super upset with basically all non-Chinese brands. They used the post-covid inflation to drive prices up and like many people are saying here, now the 12k entry-level car is a 25k car. I bought a brand new VW T-Cross in 2021 for 19k and now the entry price is 27k, for the same exact car. It's insane. I understand people want bigger cars and even price conscious costumers are now going for compact suv (VW T-Cross instead of a Polo) so makers are definitely cashin in on this.
But there is also a Greed side to this story. Automakers have hiked prices, customers have kept buying and we finally (i hope) reached a breaking point. Jeep prices were apparently too high and sales plunged.
All of this makes me actually quite happy for the arrival of Chinese manufacturers. The price/quality ratio is extremely good and when i see the price i finally feel that it's a good deal. It makes me want to buy that car, while with most European manufacturers i'm just thinking of being scammed!
Is anyone else thinking of buying a used panel van instead of a pickup now that they’re so tall you need a ladder to climb into the bed?
In 2004 my parents bought a brand new Skoda Fabia with 40kW engine (around 50hp). The car was pretty basic (no AC, no display etc.) and small, but it served our family of 4 for long time (still does!). The cost was 12.000 Euros. Nowadays the same car starts at 20.000 Euros.
Problem is a 40k car interior feels worse than a 15k Chinese car. The Koreans are trying, but like Samsung, not too hard.
$25k ?!
The last car I bought cost just less than $12k USD new ( on the road including all taxes and fees) around 5 years ago.
I know inflation's been high, but not it's not been that high.
You guys get cars for under six figures? Haha nice, cries in Singapore
Regulations have made simple cars unlawful, as simple as that. Tons of electronics are needed to respect arbitrary constraints.
Because of it, poor people, like me, use motorcycles. Because it is the only affordable option.
I suppose in the same way that the five dollar footlong has gone extinct. Inflation.
Daydream: For types of cars/trucks which are generally unavailable on the American market, tariffs and import restrictions are keep rather modest.
Americans like to upgrade their cars, not unlike their cell phones, and they often have a monthly car payment (or two) that never permanently goes away.
That makes some sense to me, but if the goal is to always have a nice car, doesn't it makes much more sense to lease? The monthly payments will be a few hundred bucks less and you can upgrade every 2-3 years. And from what I understand, leasing agents like to give incentives after your first lease to keep you in the cycle.
Personally, if I were aiming for the most economical option, I'd lease a Nissan Leaf for ~$300/mo.
It’s mass affluence. People are just willing to pay $30k+ new now - something that was a lot rarer even 10 years ago.
10 years ago wasn't this "the $20k car is going extinct?"
It's hard to compete with the used car market. Aptera's Solar EV start at $26,800 (allegedly).
I cannot reply to each comment which mention "EU" or "Europe", so I write this one.
Why do you speak about EU/Europe as a whole? There is no such thing. I thought it is, but, now, when I moved to "Europe", I see that ti was illusion.
Prices are different across countries. Do you think Poland, Portugal and the Netherlands have same prices? HA! Compare prices in the Netherlands and its neighbor Belgium. I didn't compare prices for (new) cars, but I did for new motorcycles. Difference can be up to 20%. And it is two of three countries which are known as "Benelux", not two countries on different edges of EU.
Choice is difference between countries too, there are models which are present in one country and not in the orthers. Heck, even selection of a food is drastically different in two Lidls (two supermarkets of same chain) on different sides of Netherlands/Germany border in 10km vicinity!
Many people say that they see that almost all new cars they see are BYD & others — there is no BYD in Netherlands, for example. There is Lynk & Co (which is Volvo / Geely / Zeekr), and it's all of Chinese brands.
There is no such single entity as "Europe" or "EU". Different countries are very different in available goods, prices, taxes and regulations. Yes, there are global things, like GDPR or emission regulations (Euro 5/Euro 6), but still there are a plenty room for difference.
And even "single economic area" is illusion: you cannot simply register car or motorcycle bought in Portugal or Belgium in the Netherlands, you need to pay local VAT, local ecological taxes, etc. So no, there is no "lifehack to buy car or motorcycle in Belgium and save 20%.
The Subaru Impreza starts just under $25k, and comes standard with their EyeSight system for adaptive cruise control, automatic braking, etc.
IIRC, at one point Ford priced the Model T (which ultimately became the Ford Taurus decades later) to be at or near the US individual average annual income and maintained this price structure throughout.
With last year's lowest (by state) average annual income being Mississippi at $45k, there is little reason for any car manufacturer to produce a $25k MSRP vehicle.
$25k? What about when Honda Civics were $15k???
I don't know if it's due to social media distraction, very effective advertising business models, or lack of financial literacy but I have noticed that over the last 10 years, most people have been willing to pay literally any price for the things they want.
It wasn't always like this. It used to be that price hikes were met with consumer backlash, media attention, and people simply not buying that thing which forced companies to correct their pricing.
The fact that most people will happily pay any price they can afford (on credit, when) seems to be the main thing contributing to high food, car, and housing prices, which negatively impacts the poor and those who bust their ass to be frugal.
But hey, I guess it's a great time to be a VC.
Last time I bought a car, my family kept pushing me to buy new, avoid used.
All new cars were crap and expensive. People wanted me to buy a Hyundai HB20 with a crappy engine that couldn't climb the hill where my house was located.
I ended buying a used Mitsubishi Lancer GT, the thing had same engine as Evo (minus the turbo), leather seats, roof window, rear camera and so on. For half of the price of the HB20.
Sadly Mitsubishi discontinued those and went on to join the SUVmania where your cheapest car is a big as a SUV externally, but that has cramped interior and none of SUV features.
$25k car is a used car. It’s not even endangered.
Not in the US but there are some great electric cars available for less than that.
In this modern age, the new vehicle markup at dealerships is completely unnecessary in the USA. Besides inflation, I would say this is a top contributor to the loss of <$25K vehicle.
The crappy experience I had with my last vehicle (~8 years ago):
1. Shop for rates on auto loans
2. Shop for particular brand/model of vehicle (online)
3. Once decided on brand/model, go to local "{{ random entity }} of {{ manufacture }}" dealership
4. Test drive the model you are interested in
5. Once decided you will continue with purchase, then you "start talking numbers"
6. Initial sales guy will always say something like "oh, this is the lowest we can go" (it was something like $5000 over MSRP for the model + options)
7. Then counter with some offer ("$500 + MSRP")
8. Sales guy does some pitch and tries to get you to budge. If you stand your ground here, he/she will "begrudgingly" go back to their manager to get approval
9. You may get approved, or not. But occasionally they will counter. Repeat 6-8 until settled on sales price (including tax, title fees). Known as the "out the door" price. One time I did have to "walk out" when sales person wouldn’t agree on price. Also they will employ as many high pressure sales tactics here as possible. Also best to keep your cards close to your chest, they will try to get you to use their in-house finance (big kickbacks for them). Have had success getting near MSRP by leading them on to thinking I would use their in-house financing.
10. They will now refer you to their finance guy to finish and finalize the paperwork. But it doesn’t stop there. That finance guy will try to load you up on as many unneeded services to pump the sales price. I’m talking extended warranty, gap insurance, paint protectors at significant dealership markup. Usually the GAP insurance isn’t too bad but have to go through process of hearing the pitch and declining each service. Then there is the junk fees such as "document fees" that range from $100-300.
11. Finally, after declining and accepting additional services. You come to the actual payment decision : in house or external financing? Usually, the sales guy would have already run your information through their financing backend to determine creditworthiness prior to financing guy so they have an idea where they can lose out on initial purchase price and recoup on kickback. Occasionally, the rates are better than what you can secure from your bank or credit union. But it’s very rare. It’s in their interest to get you to agree to an higher APR than what you really deserve. At this point, pop out the preapproval letter and compare the offers.
12. On rare occasion, they will try to pull back the deal but at this point it’s better to close and increase sales for month rather than dwell about one barely profitable transaction. Finally, the paperwork is signed.
All of this unnecessary back and forth when it can just be boiled down to a few steps at most.
1. Go to showroom (or online)
2. Browse basic models
3. Decide on options and put downpayment on car
4. (In 3-4 weeks) Deliver vehicle to home or preferred destination. Have it quickly inspected for any defects in transportation. Then deliver final payment and get your new car
Emissions, mileage, crash safety standards in the USA punish smaller more fuel efficient cars. The larger the wheel base or "shadow" of the vehicle the easier for it is to meet Federal standards.
This is why nobody sells small pickup trucks here. It is a lot easier for Ford to produce F150s that get 25-30ish mpg then it is to produce small trucks that get 40-50.
The Maverick is the only exception and it isn't really that small and it is also a hybrid.
Essentially the Federal government made selling small cheap cars infeasible in this country.
Also because vehicles last a lot longer thrifty Americans avoid buying new vehicles. They would rather buy a used one and let somebody else absorb the depreciation hit.
And when buying a used car most people are going to want a used mid-ranger or higher end car then buying a used economy car.
Regulation is regularly increasing the cost of a car by demanding more. For example, if you demand all new cars have a rear-backup-camera, then you added a cost.
Govt is intentionally trying to cause at least 2% inflation. If you assume only 2% average over 50 years. A $25,000 car then is only about $9000 today; an untenable proposition. Lets be realistic, do you genuinely think no government in 50 years will exceed 2%?
The $25k car is extinct.
Spending $25,000 for a car sounds insane to me.
But cars now have way more features in them than several years before.
Dealership near me has got some 2024-25 model Mitsubishis for like 19k new. They look pretty sweet.
277+ comment on this thread when we all know the answer - cars are deliberately over priced, at full price level, so the monthly finance payments relative to depreciation forecasts look good to the buyers (renters) and there is a room for negotiations and offers.
Its HubSpot Marketing that is the winner here.
In 2080, Apple introduced the Macbook Air. The first version was a mixed bag. The 2010 revision was a game-changer. Competitors just couldn't compete with the hardware you got for $1200 (13"). It was an excellentcompromise between power, weight, efficiency and price. This lasted years. After awhile, 4GB of RAM was light and a non-Retina display was somewhat lacking but it was still good. A $1000 laptop is almost disposable compared to a $3000+ laptop.
But this created a problem for Apple: it was too cheap. About a decade ago, the cult of thinness took over. The Air was replaced by the 12" Macbook that was too underpowered. It only had 1 port, which doubled as a power connector. We got the (awful) butterfly keyboard. And of course we got the Touch Bar. Rumor has it that this all happened because Johnny Ive no longer had Steve Jobs pushing back against him.
All of these things only existed to increase the ASP (average selling price) of Macbooks. There's no other reason.
My point here is that companies don't want to produce cheap, quality, commoditized goods. They want high prices (because that means high profits). Apple didn't want cheap Macbooks. Car manufacturers don't want cheap cars. This is how capitalism works.
Worse though is that these high prices are used as a weapon to drive down wages. These auto makers will say "our labor costs are too high" and try and reduce wages and/or remove benefits, often under the threat of moving jobs overseas. Then you dig a little deeper and find out that about 5% of a car's sticker price is labor costs.
The chase for ever-increasing profits ultimately means cutting costs and increasing prices. Always.
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There are few cars I would want to buy in today's market. Cost cutting and price engineering is pervasive, even in extremely high-end cars.
People like cars that can go 80-90 mph for hundreds and hundreds of miles while carrying 4 people. With crash protection.
Add electrics with thousand lbs of batteries, and you've got today's 4000-6000 lb SUVs, all costing an arm and a leg.
I work on my own cars now (as a hobby really) and one of the reasons the new cars are so expensive is they are much more complicated. A lot of this seems to be over-engineering IMO. This is alluded to in the article, but not explicitly stated.
The cars I work on are from the early 90s and everything is very simple to understand.
e.g. Electronics are normally simple circuits that aren't much more complicated than what you would find in a door bell and finding faults is normally just tracing wires and using a multi-meter. I had issues with the brake lights / reverse lights not working, the issue turned out that the spade like connector in the fuse box was pushed through and was making partial contact. Price to fix this was £0.
EDIT: Just remembered this isn't accurate. I had to buy a new reverse light. The entire reverse light assembly was ~£20. So the price to fix was about £20. The light assembly itself was like a big bicycle light.
My newer car needs a OB-II scanner to diagnose anything with a phone app. While this is arguably quicker it can be misleading. Sometimes it will be telling you that something is malfunctioning but it is really the sensor itself. These sensors are £200-£300 a piece. Replacing 4 glow plug sensors cost me £800. I was paying essentially to make the "you must service your engine" light to go away. There was nothing wrong with engine itself.