Some interesting stats from a KBB article about the state of the bottom of the automotive food chain...
Comparing the end of 2017 to the end of 2022:
- In December 2017, automakers produced 36 models priced at $25,000 or less
- Five years later, they offered just 10
- In 2017, sub-$25,000 cars made up almost 13% of new car sales
- Five years later, less than 4% of new cars fell into that price range
- Only three vehicles left on the market cost less than $20,000 once delivery charges are added: Kia Rio, Nissan Versa, and Mitsubishi Mirage.
(Source: https://www.kbb.com/car-news/america...e-pricey-ones/ )
The problem isn't even mainly the result of rising prices either; most automakers have simply chopped their entry level models out of their lineups.
As a result, buyers at the bottom of the market may have to turn more towards used cars to stay on budget.
Fortunately, used car pricing is continuing to drop from last year's highs:
UNfortunately, the cheaper end of the used car market is seeing the highest demand:The average used vehicle carried a list price of $26,510 last month — down $633 from one month before.
(Source: https://getpocket.com/explore/item/w...it-s-necessary )The Cheaper the Car, the Harder It Is to Find
As with new cars, the lower the price, the tighter the inventory.
- Days’ supply for vehicles priced under $10,000 was 35.
- Day’s supply for vehicles priced between $10,000 and $15,000 was 42;
- between $15,000 and $20,000 was 46;
- $20,000 to $35,000 around 50.
- prices above $35,000 had the highest days’ supply at 53.
All this makes me glad I was lucky to snag my current Mirage for a great price (even then) in summer 2021. I'll be keeping it for a good while.