In an expensive age, automakers should make cheaper vehicles.
The average cost of a used vehicle as of October increased to nearly $26,000, according to Kelley Blue Book. Many people who finance vehicles pays over $1,000 monthly for up to nine years. The price of new cars and trucks has increased 33 percent since 2020, the Wall Street Journal reported.
The price of new cars and trucks in the U.S. has increased 33% since 2020, and consumers are piling on interest as they stretch out loan terms to eight, nine and nearly 10 years. 🔗 https://t.co/x4OIHhsowf pic.twitter.com/eaVVSCVFdo
— The Wall Street Journal (@WSJ) December 25, 2025
Americans are getting locked into decade-long car loans as new vehicle prices skyrocket https://t.co/q4cSqe7TBP pic.twitter.com/h9t8NXgJpD
— New York Post (@nypost) December 23, 2025
We hear a lot about the problem of housing affordability. We don’t hear enough about the affordability of cars. The average new car price is now over $50k. How is that sustainable? It only works because so many people are willing to borrow money to buy what is surely going to be…
— Pastor Rich Lusk (@Vicar1973) November 19, 2025
In 2013, I bought my last vehicle for $8,000. It’s lasted me 12 years. But now, buying a base-level SUV will cost me about triple.
An automaker that created a $20,000 SUV or car would provide an affordable option for those who don’t want to spend $50,000 on a depreciating asset.
It’s no surprise that Ford Motor Company killed the Ford Lightning F-150 - a supposed “work truck” that cost over $100,000 and couldn’t tow long distance. Electric vehicles, especially the Lightning F-150, were a $30 billion mistake.
Recommended
Automakers, including Ford, Stellantis, and General Motors, should go back to basics. Craft vehicles that regular people can repair and maintain. An automaker that wants to win should create affordable, durable, and simple vehicles like the early Ford Escapes, Toyota Rav 4s, and Chevrolet Geo Trackers.
There seems to be an endless supply of luxury vehicles: Mercedes-Benzes, BMWs, Teslas, Range Rovers, Bugattis, Ferraris, McLarens, Porsches, Jaguars, and Audis. But who makes vehicles for $20,000 for people in college, young families, or someone who just needs to get from A to B?
Even non-luxury car brands like Volkswagen, Toyota, Subaru, Mazda, Hyundai, Honda, and Ford are selling high volumes of vehicles that cost between $40,000 and $70,000.
Average new car prices surpass $50,000 for the first time in history.
— Spencer Hakimian (@SpencerHakimian) October 19, 2025
Perfect inflation. pic.twitter.com/KxBtGZrxp1
Other than friends, family, Facebook marketplace, and Craigslist, there aren’t many ways to get a cheap car under $10,000.
Young people often make one of four financial mistakes that prevent them from buying a home or starting a family. 1) taking insane college debt for a useless degree, 2) having tons of medical debt, 3) abusing credit cards and carrying debt, or 4) buying or leasing a depreciating asset that totals over half your annual income. Instead of forcing vehicles to be electric, automakers should provide more reliable options.
Car lots around the country are stuffed with new vehicles, many of which cost between $30,000 and $80,000. Those vehicles are nice, but are not realistic for everyone. When you add the costs of financing, insuring and maintaining a car to other costs, many people can’t afford even a used vehicle.
Automakers spend billions of dollars every year on advertising. The best advertisement is making a quality, affordable product that'll stay on the road for years to come.
