Car ownership has long been integral to the American dream. But as automakers slash the production of inexpensive models to cater to customers who can afford oversized pickups and sport utility vehicles, buyers find themselves facing sticker shock at the same time they are already frustrated by the lingering effects of high inflation.
Consumer prices rose 3.3% in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday.
New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments — based on 10% down and a 6-year note — recently hit $775. Looking for something on the cheap end? The share of vehicles listing for less than $30,000 is about 13% — down from 40% five years ago, per the car review site CarGurus.
It’s fine. They’ll take away all the stalks and buttons to keep the prices from rising top fast.
In Europe physical buttons and stalks are coming back for the key interactions, even on the fully electric 20k EUR Renault, might be because without them, cars get downgraded in their safety score, as they should. But then, you also get downgraded for producing a car that is more dangerous to pedestrians than it needs to be. None of that appears to be much of an issue for US car safety organisations or regulators.