Posted on 07/04/2023 2:10:20 PM PDT by Libloather
Cars costing under $30,000 make up just 8 percent of the market - down from 38 percent before the pandemic.
According to data from car shopping app CoPilot, cited by CNBC, expensive SUVs and trucks are in high demand, prompting carmakers to continue to upgrade their lineups and scale back on more affordable models.
Not only are new vehicle prices near an all-time high, but the interest rate to finance a purchase is also soaring.
'It’s the least affordable car market in modern history,' CoPilot CEO Pat Ryan told the outlet.
The average cost of a new car in May, according to Edmunds, was $47,892 - up from around $37,000 in 2019.
According to the car shopping website, 10 percent of all vehicles sold now cost more than $70,000 - up 3 percent from five years ago.
And just 0.3 percent of new vehicles cost less than $20,000, compared with 8 percent five years ago.
Ivan Drury, director of insights at Edmunds, told the outlet how consumer tastes have shifted towards more luxury vehicles with high-tech features such as touch screens, heated and cooled seats and 360-degree cameras.
In response to this demand, dealers began stocking up with more expensive cars, and carmakers scaled back on cheaper models.
'It only makes sense to continue to ratchet up the price to offer more features and increase the size of the vehicle with each redesign,' he said.
Elevated interest rates also continue to drive up costs for those financing a car purchase.
Despite the Federal Reserve pressing pause last month on its consecutive interest rate hikes, the cost of financing a vehicle remains at an all-time high.
According to Edmunds, average monthly payments reached a record-breaking $733 in the second quarter of this year.
(Excerpt) Read more at dailymail.co.uk ...
Let em rot.
Cheapest New Cars
1. 2023 Mitsubishi Mirage ES: $17,650
2. 2023 Kia Rio LX: $17,875
3. 2023 Nissan Versa S: $18,595
4. 2023 Kia Forte LX: $20,815
5. 2023 Hyundai Venue SE: $20,985
6. 2023 Nissan Sentra S: $21,145
7. 2023 Kia Soul LX: $21,215
8. 2024 Chevrolet Trax LS: $21,495
9. 2023 Hyundai Elantra SE: $22,065
10. 2023 Subaru Impreza: $22,115
https://www.cars.com/articles/here-are-the-10-cheapest-new-cars-you-can-buy-right-now-421309/
Bidenomics
Does anyone know of a pickup truck — small or full-sized — for under $30,000 new? Does such a thing even exist? I remember when you could get a basic small no-frills Japanese truck for a very reasonable price. Now they all seem to have backseats, backup cameras, GPS computers, etc.
Last November I bought new 2022 Chevy Trax AWD for 26k and change, fully loaded. And I like driving this SUV wannabe.
I checked out used trucks. 120k miles? Close to new prices.
> Does anyone know of a pickup truck — small or full-sized — for under $30,000 new? <
Take a look at the Ford Maverick. My local Ford dealership just got three in. One of them was the base model, and the MSRP was $24,000.
Now here’s the problem. Those small trucks are in great demand, and they sell fast. I wouldn’t be surprised if they are going for the sticker price.
Side note: I’ve read that Ford’s quality is slipping as they move more and more production to Mexico. So be sure to do your own due diligence.
Price gouging, even though manufacturing costs have gone up. In before the FReepers who will say businesses have a perfect right to make a profit.
consider a hatchback. I have moved some pretty large items in hatchbacks. Or a used Dodge conversion van. Those are gas guzzlers but we moved lots of stuff, 2 kids, a dog and wife from Illinois to CA in that vehicle. It gobbles up lots of stuff.
Ford Mavericks start at 24.5 k and go up from there.
I am keeping my old cars for much longer than I ever have. Planning to take both well over 200K which is not the norm for me.
I’ve never purchased a used car in my life. My last 3 purchases were new cars, and besides that it’s been family hand-me-downs.
But I might have to seriously consider the “preowned” market next time around, e.g., ex-rental cars, lease returns, etc. Auto prices have suddenly become absurd. A $47k average for “new” is ridiculous.
Barring a lottery win I will never be able to afford a new vehicle,;and late model used are also out of the picture.
Far cry from the affordable vehicles of the 70s.
I have 20+ year old cars and I’m headed for 300K.
Absolute price gouging and price fixing... And any fool that tries to say anything different owns stock or has vested interest.
Fuel costs nation wide are still $2 a gallon under the Obama years, but yet... Everything is 50% to 100% more? There is absolutely no way except for price gouging. I see it in my own industry and hate the crooked greed without justification for it...
Everyone has jumped on the price gouging/fixing wagon...
And in mass everyone is stupid enough to keep paying it...
Stop... Just say No and the prices will come down.
“Price gouging, even though manufacturing costs have gone up. In before the FReepers who will say businesses have a perfect right to make a profit.”
Absolutely, and the prices have NOT increased by the same percentage as they are now gouging us for.
And it is everything, Gouging and price fixing is out of control. And the idiots just keep paying it so they keep doing it.
You can’t fix mass stupidity...
The Impreza RS, with a properly sized 2.5 liter engine, is $32,000. That will be my next (and hopefully last) car.
The maverick??
It’s a guess but I think the base is around that.
Know why they got so big?
Cafe standards. It’s based on size. The bigger it is the lower mpg requirement. A Ford ranger from the 90s would have to get 50 mpg for cafe standards today. Trump suspended Obama’s crazy cafe standards and biteme put um back.
Rear view cameras are mandatory. Same with airbags. Biteme wants to make emergency braking mandatory too. Almost everyone wants tech plus it’s a huge profit center for automakers
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