Cox Automotive says the affordability crisis is about more than car prices. Housing, insurance, and groceries have all surged, squeezing household budgets.
But the analysis misses a key point: automakers have abandoned truly cheap cars.
The Vanishing Entry-Level Segment
In 2016, buyers could choose from the Honda Fit, Chevrolet Spark, Ford Fiesta, and Nissan Versa. Today, those models are mostly gone.
Even when entry-level trims remain, dealers stock fewer of them.
Erin Keating, Cox Automotive executive analyst, notes that modern vehicles offer far more value. Features like automatic emergency braking and adaptive cruise control were once premium options.
Now they're common.
The Honda CR-V costs nearly $10,000 more than a decade ago, but it's also dramatically improved. Consumers get more car for more money.
However, the industry's retreat from low-cost models has limited choices. Buyers may choose pricier vehicles, but they have fewer affordable alternatives.
The affordability conversation must include automakers' role in moving the market upscale.
