Why it's hard to find an inexpensive new car these days — just one model has an average price below $20,000
It's getting harder to find new, cheap cars, according to auto experts.
Consider this: In July, just one car model — the Mitsubishi Mirage — had an average new-vehicle transaction price below $20,000, according to Kelley Blue Book data. By comparison, there were a dozen vehicles that met that pricing criteria five years ago.
The $20,000-or-below barometer is a sort of unofficial price threshold for an affordable new car, said Brian Moody, executive editor for Kelley Blue Book.
«There aren't as many inexpensive new cars as there used to be,» Moody said.
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Transaction price doesn't tell the full story, of course, experts said. That price records what the average buyer pays — a variable that depends on factors like markups and promotions by car dealers and any add-ons selected by buyers at the time of purchase.
Manufacturers like Kia, Hyundai and Nissan — in addition to Mitsubishi — currently sell cars whose base models carry a sticker price below $20,000, Moody said.
But this list has gotten smaller down over the past five or so years, said Tom McParland, owner of Automatch Consulting, a car-buying service for consumers.
«Whether you're buying new or used, that kind of affordable segment — sub-$20,000 — is challenging,» he said.
Consumers were able to find entry-level vehicles with a $15,000 starting price as recently as a few years ago, said Paul Waatti, an industry analyst at market-research firm AutoPacific.
The dearth of options today is due to a multitude of factors, experts said.
Among them is consumer preferences: People tend to want models with more features, Waatti said.
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