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.
That relativism is just false. There are very meaningful differences between tall oversized SUVs and non-oversized regular cars. First of all, sight is significantly worse, seeing pedestrians, especially children is harder and when an accident occurs the likelihood of the victim being pushed below the car instead of landing on the hood is much higher. All of that leads to significantly higher lethality rates with SUVs, not because people in there are more distracted but because SUVs are more deadly in case of accidents and make it harder for drivers to avoid accidents.