NYTimes Auto Affordability Article

[jghall00]

The NYTimes [dead link removed] examining the underlying reasons for the dearth of affordable vehicles in the U.S. I thought it was interesting, but the recommended solution might be a challenge given the state of our international trade relationships. Some key points below:

(1) Manufacturers are catering to the higher ends of the market to improve margins
(2) Lower cost vehicles from China are barred from entry through tariffs
(3) Lack of transit in many regions makes life without a vehicle very difficult
(4) The lack of affordability has become very burdensome for lower income consumers, not just due to initial acquisition, but also maintenance, upkeep, and inflation in the used car market.

I think inexpensive EVs could help with this affordability challenge if public charging was more widely accessible at a reasonable cost. Those of us with EVs know that public charging also rivals gas, but there are also maintenance benefits associated with EV ownership. I'm very curious to see whether the entry of Chinese vehicles into the Canadian market affects perception in Canada and the U.S. Chinese EVs have already made inroads into the Mexican market.

 

[PWMDMD]

(4) The lack of affordability has become very burdensome for lower income consumers, not just due to initial acquisition, but also maintenance, upkeep, and inflation in the used car market.

Then on top of this, manufacturers want to start charging monthly fees for everything, even after you've already spent $70K. I can afford most higher-end luxury vehicles, but I don't want them, because they're simply not worth the cost of ownership for all the reasons you mentioned. Our only hope is that low, middle, and high income earners all stop effectively voting for this nonsense by continuing to purchase these vehicles and their monthly fees.

 

[alarmguy]

I think its over exaggerated (with some merit)
The automakers are producing cars Americans want. Simple as that. People are willing to sign small mortgages on an Autoloan to get into the last feature filled vehicle that they can.

Automakers DO produce cheap cars but only a small percentage buy them.
$25,000 for new car so what is the problem? There is no problem, name brand cars, Chevy, Toyota, Mazda, Subaru and Nissan! All recommended by Consumer Reports no less. A two wheeled motorcycle cost more.
How much cheaper does one think that they should be? Serious question, how much and at what price does someone call a car affordable? Does the New York Times say? Of course not, then they wouldn't have a fake news story.
I would suggest if you cant afford one of these cars you are really doing something wrong and its not our job to give you one>
(not directed at anyone, just a statement, does anyone disagree?) Check this Consumer Reports link

https://www.consumerreports.org/cars/cheap-cars-recommended-by-consumer-reports-a1059266229/

Bottom line is why social media and the media in general is killing us. There is NEVER a good day in America because people buy into misery and the media could not exist if they didn't make up news stories all day.

Here are more, besides the ones in the link above

https://www.cars.com/articles/here-are-the-10-cheapest-new-cars-you-can-buy-right-now-421309/

 

[4wd]

I think its over exaggerated (with some merit)
The automakers are producing cars Americans want. Simple as that. People are willing to sign small mortgages on an Autoloan to get into the last feature filled vehicle that they can.

Automakers DO produce cheap cars but only a small percentage buy them.
$25,000 for new car so what is the problem? There is none, name brand cars, Chevy, Toyota, Mazda, Subaru and Nissan! All recommended by Consumer Reports no less. A two wheeled motorcycle cost more.
How much cheaper does one think that they should be? Serious question, how much and at what price does someone call a car affordable? Does the New York Times say? Of course not, then they wouldn't have a fake news story.
I would suggest if you cant afford one of these cars you are really doing something wrong and its not our job to give you one>
(not directed at anyone, just a statement, does anyone disagree?) Check this Consumer Reports link

https://www.consumerreports.org/cars/cheap-cars-recommended-by-consumer-reports-a1059266229/

Bottom line is why social media and the media in general is killing us. There is NEVER a good day in America because people buy into misery and the media could not exist if they didn't make up news stories all day.

Here are more, besides the ones in the link above
Screenshot 2026-04-13 at 12.51.50 PM.webp

https://www.cars.com/articles/here-are-the-10-cheapest-new-cars-you-can-buy-right-now-421309/

The line between cars and SUV’s is fairly blurred now - but with folks grocery shopping without getting out of the vehicle?
The small/mid SUV’s are here to stay …

 

[iahawk]

I think its over exaggerated (with some merit)
The automakers are producing cars Americans want. Simple as that. People are willing to sign small mortgages on an Autoloan to get into the last feature filled vehicle that they can.

Automakers DO produce cheap cars but only a small percentage buy them.
$25,000 for new car so what is the problem? There is none, name brand cars, Chevy, Toyota, Mazda, Subaru and Nissan! All recommended by Consumer Reports no less. A two wheeled motorcycle cost more.
How much cheaper does one think that they should be? Serious question, how much and at what price does someone call a car affordable? Does the New York Slimes say? Of course not, then they wouldnt have a fake news story.
I would suggest if you cant afford one of these cars you are really doing something wrong and its not our job to give you one>
(not directed at anyone, just a statement, does anyone disagree?) Check this Consumer Reports link

https://www.consumerreports.org/cars/cheap-cars-recommended-by-consumer-reports-a1059266229/?EXTKEY=SM72C02&utm_source=bing&utm_medium=cpc&utm_campaign=NB_CON_XXXXX_CARSXXXXXXXXX_EVG_WTRP_DYN_COUCN_EN_EN_A_CNSR_BN_SE_DSA_XXXXXXXXXX&utm_term=https://www.consumerreports.org/cars/cheap-cars-recommended-by-consumer-reports-a1059266229/&utm_content=NB_NA_Cars_Cars&gclsrc=ds

Bottom line is why social media and the media in general is killing us. There is NEVER a good day in America because people buy into misery and the media could not exist if they didnt make up news stories all day.

Here are more, besides the ones in the link above
View attachment 332788
https://www.cars.com/articles/here-are-the-10-cheapest-new-cars-you-can-buy-right-now-421309/

sorry, I keep forgetting the economy is doing great, prices are down and affordability is rising every day!

 

[BHopkins]

I think its over exaggerated (with some merit)
The automakers are producing cars Americans want. Simple as that. People are willing to sign small mortgages on an Autoloan to get into the last feature filled vehicle that they can.

Automakers DO produce cheap cars but only a small percentage buy them.
$25,000 for new car so what is the problem? There is none, name brand cars, Chevy, Toyota, Mazda, Subaru and Nissan! All recommended by Consumer Reports no less. A two wheeled motorcycle cost more.
How much cheaper does one think that they should be? Serious question, how much and at what price does someone call a car affordable? Does the New York Times say? Of course not, then they wouldn't have a fake news story.
I would suggest if you cant afford one of these cars you are really doing something wrong and its not our job to give you one>
(not directed at anyone, just a statement, does anyone disagree?) Check this Consumer Reports link

https://www.consumerreports.org/cars/cheap-cars-recommended-by-consumer-reports-a1059266229/

Bottom line is why social media and the media in general is killing us. There is NEVER a good day in America because people buy into misery and the media could not exist if they didn't make up news stories all day.

Here are more, besides the ones in the link above
Screenshot 2026-04-13 at 12.51.50 PM.webp

https://www.cars.com/articles/here-are-the-10-cheapest-new-cars-you-can-buy-right-now-421309/

Absolutely agree.

After reading through the OP, I did a quick search for entry level cars. There are plenty. In addition to those listed by alarmguy, a new Kia Soul starts just over $20k. The Bolt starts at $27k, so it is clearly affordable to get into an EV, and enjoy the benefit of lower cost/mile, which would help offset the expense of a new car.

Then there is the added benefit of the recently added tax credit for buying a new American built car. There are plenty of ways to make a car affordable today.

 

[wings&wheels]

sorry, I keep forgetting the economy is doing great, prices are down and affordability is rising every day!

By the legitimate indicators, it is still good. Not great and the higher fuel prices are impactful, but no cause for doom and gloom....yet.

Interesting that increased regulatory requirements such as "safety", emissions and fuel economy standards that are well, well beyond the point of diminishing returns weren't given more attention by the NYT.

 

[alarmguy]

sorry, I keep forgetting the economy is doing great, prices are down and affordability is rising every day!

Agree, don’t let the media tell tell you anything different

 

[Owen Lucas]

I think its over exaggerated (with some merit)
The automakers are producing cars Americans want. Simple as that. People are willing to sign small mortgages on an Autoloan to get into the last feature filled vehicle that they can.

Agree, don’t let the media tell tell you anything different

Yes, this is a personal responsibility issue.

Get into a Chevy Aveo or some econobox and stop complaining about not having level II+ autonomous driving, massaging seats, and brand name flex.

Plenty of Camrys and Corollas available under $20k that will last years without major maintenance.

I suspect there might be some Chinese/dark money behind this article...some kind of influence peddling going on.

 

[PWMDMD]

By the legitimate indicators, it is still good. Not great and the higher fuel prices are impactful, but no cause for doom and gloom....yet.

Interesting that increased regulatory requirements such as "safety", emissions and fuel economy standards that are well, well beyond the point of diminishing returns weren't given more attention by the NYT.

The M2 money supply has been steadily increasing this entire year and at a slightly greater velocity - usually means more inflation ahead because broad liquidity is increasing again, which can support more spending and higher asset prices, and can add inflation pressure if it outpaces the economy’s production and velocity stays firm.

 

[BHopkins]

By the legitimate indicators, it is still good. Not great and the higher fuel prices are impactful, but no cause for doom and gloom....yet.

Interesting that increased regulatory requirements such as "safety", emissions and fuel economy standards that are well, well beyond the point of diminishing returns weren't given more attention by the NYT.

Absolutely! We keep regulating more and more content into our cars, such as backup camera systems, TPMS monitors, passive and active restraint systems. And then the consumer wants connectivity and touch screens.

I find it amazing that cars are as affordable as they are, considering all this.

 

[wings&wheels]

The M2 money supply has been steadily increasing this entire year and at a slightly greater velocity - usually means more inflation ahead because broad liquidity is increasing again, which can support more spending and higher asset prices, and can add inflation pressure if it outpaces the economy’s production and velocity stays firm. View attachment 332796

I enjoyed macro!

Hence, "not great" and "yet", but I believe we can avoid a hard landing or worse and any recovery will probably be increasingly K shaped which is another long term issue. Job creation and spending are OK, but the foreign investment and a few other numbers are concerning.

 

[dogememe]

Absolutely! We keep regulating more and more content into our cars, such as backup camera systems, TPMS monitors, passive and active restraint systems. And then the consumer wants connectivity and touch screens.

I find it amazing that cars are as affordable as they are, considering all this.

One thing I think there should be no compromise on is safety.

Backup cameras, TPMS, more airbags, all are proven to increase safety.

Automatic emergency braking, blind spot warning, lane departure warning, etc all reduce accidents and incidents.

And that benefits everyone. Would you rather someone fall asleep while driving in a 2004 Chevy Tahoe that will happy destroy your family or a 2025 Tesla Model 3 that will drive itself for a while and then realize the driver is incapacitated and pull over and stop safely?

But if we set aside self driving features, even a new Chevy for like $25K has all the safety stuff. And I'm sure they make money on that car. So I don’t think we should set aside safety when it’s reasonable.

 

[robbobster]

Domestic carmakers can and have made small, affordable cars…generating a profit from them is the problem.

Margins are slim on small, affordable cars, so they have to be produced and ultimately sold in massive quantities, and the US market can’t support the volume.

 

[alarmguy]

Domestic carmakers can and have made small, affordable cars…generating a profit from them is the problem.

Margins are slim on small, affordable cars, so they have to be produced and ultimately sold in massive quantities, and the US market can’t support the volume.

I agree but it just shows that the New York Times story is false.

It’s not only domestic car makers that make affordable cars, but also Toyota, Subaru, Mazda and Nissan mentioned as the top 10 affordable published by consumer reports in post number three of this thread

 

[JeffKeryk]

Domestic carmakers can and have made small, affordable cars…generating a profit from them is the problem.

Margins are slim on small, affordable cars, so they have to be produced and ultimately sold in massive quantities, and the US market can’t support the volume.

Yep. The Bolt is a perfect example. The very popular Bolt has lost Billion$, but has helped GM gain experience with EV technologies.

 

[IndyIan]

I think there is a few factors at play, but this is my wild speculation.

CAFE, NHTSA, and EPA regulations got bent(Big 3 lobbyists I assume) to favor larger pickup/SUV's, and automatic transmissions, and to make any car almost as complex as a luxury vehicle.

Income inequality is getting bigger, so there is a relatively bigger market for big expensive vehicles, and high housing costs makes sure there are fewer people able to afford even a simple car.

These expensive vehicles aren't a significant expense to the buyers, and also are part "status symbol" for some owners and they don't want to have the "old one", so they are fine with very high depreciation and poor repairability. They just eat the $8-10k/year of depreciation, or write off the lease, and they tend to own them mostly for the time covered by warranty.

So we end up with a $25k economy car that has almost all the systems and features that an expensive car has. Also people cross shop and see you can get a nice looking used luxury SUV/status symbol for the same price, and maybe don't think about the running costs?

Also with large pickups and SUV being more common, more people spend more just to get an SUV so they can see, or feel safer, which has reduced the car/wagon/hatchback buyers even more.

In Europe they still have and sell inexpensive family vehicles that aren't huge, as bigger vehicles aren't as common, because their regulations incentivize actually fuel efficient smaller vehicles, and they have a much more competitive market with many many manufacturers. Also their roads and parking lots are still mostly sized for a mid size car, so having a 18' long DD is just a pain to live with.

 

[jghall00]

I have mixed feelings on affordability. My recollection is that no more than 10% of household income should go towards transportation. So for a 25k car at 5% interest and 60 months, that's ~471. Add $75 for insurance and $100 (40 daily x 4.00 gallon @ 30 mpg) for gas and you're at $600.

Average household income is $84,000 . It seems like many households will exceed that 10%. By this measure a $25,000 car isn't even affordable for the average US household. But, having said that, there are reliable vehicles available under $15,000. So maybe expectations regarding new vehicles should be tempered.

 

[JeffKeryk]

I have mixed feelings on affordability. My recollection is that no more than 10% of household income should go towards transportation. So for a 25k car at 5% interest and 60 months, that's ~471. Add $75 for insurance and $100 (40 daily x 4.00 gallon @ 30 mpg) for gas and you're at $600.

Average household income is $84,000 . It seems like many households will exceed that 10%. By this measure a $25,000 car isn't even affordable for the average US household. But, having said that, there are reliable vehicles available under $15,000. So maybe expectations regarding new vehicles should be tempered.

Agreed. Cars cost too much. I drove strippie Toyletta PUs, etc until my house was paid off. Plus maxed out 401K and held onto my stock options until I got close on the house, then helped finish the mortgage.

There is an old finance rule; don't put $$ into depreciating assets.
Nowadays, if I can't pay cash for something I can't afford it. I never wanna be broke again!

 

[PandaBear]

I'll say nobody owes you a $25000 SUV with luxury packages. If you want an affordable vehicle you can always buy a Corolla or the any other brands' including domestic equivalent if they didn't stop selling it.

Also the fact that today's car last 15 years 200k miles (if you shop correctly) means that there should be plenty of used cars that you can buy and you are not forced to buy new cars. It is like saying construction cost is high so new house is 1M each minimum and it is a crime, when there are plenty of homes half the price except they are not brand new.

If you don't want to pay for subscription don't sign up for luxury features. You can pay more if you can afford to, but not anyone's fault if you want to keep up with the Jones or enjoy now then complain later. Keep driving your Corolla until you can afford the one you want later.

EV or not won't solve any of that problem.