Folks, I almost spilled my coffee reading this one. The days of affordable cars seem to be behind us, and I’m not sure what to make of it. According to car salesman Bob Kain, the cheapest car on his lot, a small SUV, starts at around $36,000. That’s just wild. I remember when you could buy a decent car for under $20,000. Now, it seems like those days are long gone.
I was reading about how Kain recalled the first time he saw a luxury car with a $25,000 sticker price at his family dealership back in 1989. It was a Ford Crown Victoria, and he thought it would be hard to sell. Fast forward to today, and the average sticker price on his lot is $54,000. That’s a significant jump, and it’s not just Kain’s dealership. According to Edmunds, car prices have risen 49% since 2015, outpacing overall inflation.
It’s not just the prices that are shocking; it’s also the fact that automakers are giving up on the lower end of the market. They’re focusing on more expensive models with fancy features, and it’s leaving a lot of buyers out in the cold. Ivan Drury, director of insights at Edmunds, said that about 16 million new cars are sold on average per year, but that’s down from the 17 million annual sales the industry used to see. It’s clear that the market is changing, and it’s not just about the prices.
I have to wonder, though, what’s driving this shift. Is it really just about profits, or is there something more going on? Drury said that people are willing to pay more for cars with more features, but that doesn’t explain why the lower-end models are disappearing. It’s almost as if the automakers are trying to push people towards the more expensive models.
The used car market isn’t much help either. The prices are still high, and the interest rates are even higher. It’s a tough time to be a car buyer, that’s for sure. But hey, at least there are some upstart automakers trying to fill the gap. Slate Auto, for example, is working on an electric pickup truck that will start at just $24,950. That’s more like it, but it’s still not the same as having a variety of affordable options from the major manufacturers.
As I finish my coffee, I’m left thinking that the car market is in a bit of a mess. The prices are too high, the options are limited, and it’s hard to see a way out. But hey, at least there are some people trying to make a change. And who knows, maybe one day we’ll see a return to affordable cars. A guy can dream, right? The future of the car market will be interesting to watch, and I’m willing to bet that it’ll be a wild ride.
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
