Are We Witnessing The Demise Of The Affordable Car?

[AzScorpion]

I know in many threads we've discussed the rising prices and how out of control they are. This article really shows how (in percentages) much they've gone up and the lack of affordable vehicles. There really isn't much (that's good) in the sub $30K range and the prices of vehicles over $60K have soared 163%.

https://www.morningstar.com/news/marketwatch/20230228113/are-we-witnessing-the-demise-of-the-affordable-car-automobile-makers-have-all-but-abandoned-the-budget-market#:~:text=Sub-$25,000 cars made up almost 13% of new,for several years, left the market in 2022.

In December 2017, automobile makers produced 36 models priced at $25,000 or less. Five years later, they built just 10.

Sub-$25,000 cars made up almost 13% of new car sales at the end of 2017. Less than 4% of new cars sold last December fell into that price range.

Manufacturers have all but abandoned the cheap-and-cheerful market. The Chevy Spark, America's least-expensive new car for several years, left the market in 2022. So did the Hyundai Accent.

The move leaves just three subcompact cars available to American car shoppers: the Kia Rio , Nissan Versa (7201.TO) and Mitsubishi Mirage . They are also the only three vehicles left on the market that cost less than $20,000 once delivery charges are added.

Meanwhile, sales of new cars priced over $60,000 have soared, rising 163% in the same period.

In December 2017, automobile manufacturers offered 61 models for sale with sticker prices of $60,000 or higher. Last December, they offered 90. Over-$60,000 cars made up more than a quarter of sales in December 2022. Five years earlier, they constituted less than 8%.

Others wear the emblems of affordable manufacturers but are hardly affordable for most Americans. All three of America's best-selling trucks, the Ford (F) F-150, Chevrolet Silverado and Ram 1500, offer multiple trim levels with starting prices over the $60,000 line, and some can reach six figures with added options.

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[IdahoRanger]

For many people, yes. ?

 

[Grumpaw]

All those 5-6-7 year old used compacts are looking pretty good now.......

 

[AzScorpion]

All those 5-6-7 year old used compacts are looking pretty good now.......

That and keeping either your existing one or fixing any older ones you might have. This is really getting out of hand and these numbers really show it. And it's not just slanted towards Ford. ?

 

[Grumpaw]

At my age, my Ranger is probably the last new vehicle I'll buy...maybe a used suv when we give up camping.
Wife has her 2018 Subi Outback Touring that she only puts around 5-6000 miles on yearly. It's probably the last vehicle she'll want as it's still new inside and out.
Both are paid for, so no reason to buy just for the sake of "buying new".

 

[Mellow]

Mazda CX-5 - great AWD affordable car and you can get a NA engine with more than enough power and a nice 6 speed tranny that is bullet proof. Very nicely equipped in the 36-37 range, not cheap but lower trims certainly are in the low 30s.

 

[Friday yet?]

I know in many threads we've discussed the rising prices and how out of control they are. This article really shows how (in percentages) much they've gone up and the lack of affordable vehicles. There really isn't much (that's good) in the sub $30K range and the prices of vehicles over $60K have soared 163%.

https://www.morningstar.com/news/marketwatch/20230228113/are-we-witnessing-the-demise-of-the-affordable-car-automobile-makers-have-all-but-abandoned-the-budget-market#:~:text=Sub-$25,000 cars made up almost 13% of new,for several years, left the market in 2022.

Love my new truck. Ridiculously so. Like a kid at Christmas. And at my age no less! But... the fact that it cost $48K just blows my mind.

Not picking on anyone!!!!!!! But, I look at all of the new(er) F150's running around (especially the Platinums!) and cannot help but think "Dude, what the hell are you doing?" Also, ever pay attention sometimes when you see a new F150 in a driveway? And the house... well let's just say the house could use a bit of work. Seriously? You live in those conditions but you seriously bought a new F150? Don't even get me started on some people's priorities.

I debated the F150 vs. Ranger for quite some time. Final decision was (a) I much prefer midsized and (b) I can't justify the cost of an F150 (c) the warden really wanted me to get the Ranger. She did NOT want an F150. Also, I really like the looks of the 5G's!

I was trying to price the 150's cheaply. Certainly not looking at higher trim levels. I spec'd it XL, super cab, 5.0L, with the max cargo and max trailer tow. But I just could not convince myself, much less the warden, that they are worth it. And... to me if you look at an F150 it's a very easy argument to move on to an F350 from a value for the dollar perspective.

Those Super Duty comments did NOT make the Warden happy. She always responded with something like "Too big! I don't want to drive that! So wasteful! How do you park it downtown?" and so forth. And she makes a good point(s).

Car pricing now is just nuts. And trucks take it to a whole other level.

 

[Dr_Strangelove]

I suppose I'll open up this ol' can of worms. Would you purchase a car that costs considerably less than "the cheapest car on the market" knowing full well that you are buying a sub-standard product in terms of longevity and in terms of safety? I'm talking like if we were able to buy a $10,000 - $12,000 Mahindra. (For this game let's ignore environmental factors although we know full well those also prevent vehicles like this from being sold here.)

On one hand you've got the argument of; every person should be allowed to assess their own level of risk. On the other; should a person in a "safe car" have to live with the burden of taking a life for a simple mistake that could have easily ended in a brief hospital visit at worst?

There's a lot to blame for the inflation of basic car prices, but it's the safety barriers that keep manufacturers like Mahindra (India) or other Chinese manufacturers from selling here. And again, we've got CAFE so...


Edit: I realize I didn't answer my own question. I would not living in a big city like I am now. Perhaps if I lived in a more rural area where traffic incidents are more of a personal liability due to lack of traffic I would consider it..

 

[AzScorpion]

At my age, my Ranger is probably the last new vehicle I'll buy...maybe a used suv when we give up camping.
Wife has her 2018 Subi Outback Touring that she only puts around 5-6000 miles on yearly. It's probably the last vehicle she'll want as it's still new inside and out.
Both are paid for, so no reason to buy just for the sake of "buying new".

While I'm still fairly young (Ahem ) my vice is I still love getting new vehicles. I've always bought a new truck every 3 years so my Ranger has been the longest one I've kept in almost 30 years. But with all these constraints, issues and deletions it does have me thinking more about that Raptor. IF the price doesn't come out to crazy and IF the dealer (s) hold true to their MSRP agreement I'll most likely go through with it. But having this much time to really think about it makes me second guess it as it's a lot of money and I really don't "need" it. But the dumb side of my brain keeps telling me to buy it and you only live once. lol

I've been calling around all the local Ford dealers trying to get on a backup list. I'd rather not travel back to MA if I don't have to and I did find one local dealer (talked to the sales manager) who said he didn't have anyone on their list so he added me to it and all their customer orders are for MSRP even Raptors. I called another one and he said they never sell any "specialty" vehicles at MSRP add $30K to every Raptor. Needless to say I laughed at him and hung up. Someone will hand over that much but it won't be me!

 

[DeathRanger]

https://www.ksn.com/news/business/tesla-plans-to-cut-costs-of-next-generation-cars-in-half

 

[AzScorpion]

Love my new truck. Ridiculously so. Like a kid at Christmas. And at my age no less! But... the fact that it cost $48K just blows my mind.

Not picking on anyone!!!!!!! But, I look at all of the new(er) F150's running around (especially the Platinums!) and cannot help but think "Dude, what the hell are you doing?" Also, ever pay attention sometimes when you see a new F150 in a driveway? And the house... well let's just say the house could use a bit of work. Seriously? You live in those conditions but you seriously bought a new F150? Don't even get me started on some people's priorities.

I debated the F150 vs. Ranger for quite some time. Final decision was (a) I much prefer midsized and (b) I can't justify the cost of an F150 (c) the warden really wanted me to get the Ranger. She did NOT want an F150. Also, I really like the looks of the 5G's!

I was trying to price the 150's cheaply. Certainly not looking at higher trim levels. I spec'd it XL, super cab, 5.0L, with the max cargo and max trailer tow. But I just could not convince myself, much less the warden, that they are worth it. And... to me if you look at an F150 it's a very easy argument to move on to an F350 from a value for the dollar perspective.

Those Super Duty comments did NOT make the Warden happy. She always responded with something like "Too big! I don't want to drive that! So wasteful! How do you park it downtown?" and so forth. And she makes a good point(s).

Car pricing now is just nuts. And trucks take it to a whole other level.

I've always had F150s but now I have no need for a large full size truck. I found some of my old window stickers and they were all around $30K-$33K and that's MSRP which I never paid. Now they're so expensive and you'll have what use to be a mortgage payment for one truck.

My buddy back east just ordered a stripped down base model F150 and it came to $42k. He has 3 other vehicles and is using it for deliveries for his maple syrup business so at least he can write it off but it's still a lot of cash for a base model truck.

 

[JohnnyO]

Justin Trudeau and Klaus Schwab have both said that by 2030 you will own nothing and be happy.
High cost is mostly due to government regulations forcing cars to be equipped with more and more stuff that costs money.

 

[Blmpkn]

Unaffordable single family homes and vehicles just help save the environment yall

 

[FusedLogic]

What bothers me the most about new cars/trucks hitting the 60K+ "average" price point is that the vehicles aren't any better than they were 10 years ago in terms of build quality and materials! I've been buying nothing but GM and Ford all my life with a few exceptions. I'm 66 so that's a lot of cars and I can safely say I've never had a lemon. All those Chevy's, Pointiacs and Fords were good vehicles. Yes, I could have spent quite a bit more and bought a Mercedes or BMW but for what, the smell of high quality leather?

The automobile has always been part of the American dream in my mind and that seems to be going away. If left to Ford and GM, new cars will be for a very small percentage of the population from here on. What I expect will happen is the Chinese brands eventually will find a way to meet all the legal requirements at a fraction of the price. The market share of our domestics will continue to shrink. Maybe even to the point that they won't be "too big to fail" and they'll eventually go out of business or bought out by a foreign brand.

 

[9zero1790]

I know in many threads we've discussed the rising prices and how out of control they are. This article really shows how (in percentages) much they've gone up and the lack of affordable vehicles. There really isn't much (that's good) in the sub $30K range and the prices of vehicles over $60K have soared 163%.

https://www.morningstar.com/news/marketwatch/20230228113/are-we-witnessing-the-demise-of-the-affordable-car-automobile-makers-have-all-but-abandoned-the-budget-market#:~:text=Sub-$25,000 cars made up almost 13% of new,for several years, left the market in 2022.

yep. already gone. thats the plan.

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