The Cheapest New Cars Didn’t Get Expensive, Honda And Ford Just Killed Them

Cox Automotive argues that the affordability problem in the US isn’t just about vehicle prices, but rather a complex issue involving rising costs across various aspects of daily life.

The company points out that modern vehicles offer more technology, safety, and capability than ever before, with features like automatic emergency braking and adaptive cruise control becoming commonplace.

However, the analysis overlooks the fact that the auto industry has retreated from producing truly affordable cars.

The average new vehicle transaction price is around $50,000, and the industry’s shift towards more expensive vehicles has contributed to the affordability crisis.

Cars like the Honda Fit, Chevrolet Spark, Ford Fiesta, and Nissan Versa, which were once available, have largely disappeared from the market.

Even entry-level trims are often produced in smaller numbers, making it difficult for consumers to find affordable options.

The Honda CR-V, for example, is nearly $10,000 more expensive than it was a decade ago, but it also offers more features and capabilities.

The auto industry’s role in moving the market upscale and eliminating low-cost alternatives must be acknowledged in any honest conversation about affordability.