Affordability of new cars under $20,000 becoming increasingly rare in the US
In the ever-evolving landscape of the automotive industry, the affordability of new cars under $20,000 has become a rare occurrence in the United States. Automakers, recognizing the limited profit potential in the small-car market, have shifted their focus towards more lucrative segments like SUVs and trucks.
A prime example of this trend can be seen in the limited options available to budget-conscious car buyers. Currently, the compact Mitsubishi Mirage stands as the only new car with an average selling price below $20,000. However, even this modest offering may soon disappear from the market, according to recent reports suggesting its possible discontinuation by Mitsubishi.
Cox Automotive, a leading automotive research and consulting firm, has compiled a list of the top five new vehicles with the lowest average selling prices in the US. Topping the list is the Mitsubishi Mirage, with an average selling price of $19,205. Despite its affordability, the Mirage’s future remains uncertain, raising concerns for consumers seeking economical transportation options.
Close on the heels of the Mirage are several other models that offer value for money without breaking the bank. The Kia Rio comes in second on the list, with an average selling price of $20,157, followed by the Nissan Versa at $20,763. Rounding out the top five are the Hyundai Venue, which has an average selling price of $23,971, and the Nissan Sentra, priced at $23,994.
The dwindling availability of new cars under $20,000 underscores the changing dynamics of the automotive market and the shifting preferences of both automakers and consumers. Rising production costs, coupled with increased demand for larger vehicles, have influenced automakers to allocate their resources towards SUVs and trucks, which offer greater profit margins.
This shift towards larger vehicles has left budget-conscious car shoppers with limited options and potential price hikes. The potential discontinuation of the Mitsubishi Mirage further underscores the challenges faced by those seeking the most affordable new cars in the market.
As the automotive industry continues to evolve, it remains to be seen whether automakers will prioritize the production of small and affordable cars once again. In the meantime, consumers may need to adapt to a changing landscape and explore alternative options to find the most cost-effective transportation solutions.
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