Why the $25,000 car is going extinct

21 pseudolus 33 6/29/2025, 3:59:56 PM media.hubspot.com ↗

Comments (33)

999900000999 · 3h ago
We don't want affordable Chinese EVs.

That's the answer here. They can build cars better, cheaper, faster than we can.

Instead Ford wants to sell a 80k SUPER F-250 BIG MANN TRUCK. All for what, you to drive 10 minutes to Walmart, buy groceries and drive back.

The best car is the one you don't own. No payments, insurance, parking tickets.

Unfortunately most American cities are centered around driving. So much money , and space wasted on these multi ton metal boxes. In many places most(much) of the city is literally just parking spaces.

iancmceachern · 14m ago
We drive an F250, and live in San Francisco.

We hardly put any miles on it (maybe 15k a year). To get around locally we ride our bikes mostly here in the city.

We do use it for our small business (essential) and also to to a large RV trailer which we use to live in 2-4 months a year visiting loved ones and just decompressing.

The things people don't usually talk about is the total cost of ownership.

One can buy a new F250 diesel for $80k, drive it for 6 years towing heavy loads and working hard. And sellnit for more than half what they paid for it. During that time the only costs are routine maintenance, no major repair bills.

One can also buy a luxury car or SUV, say a BMW, for the same price and 6 years later it is most certainly not worth half what they paid for it, and they typically paid tens of thousands in repair costs.

The next argument people make is that a big truck is inefficient. The simple fact is my F250 diesel gets the same as your BMW M3. But it can be used for work, and is.

Financially, I would argue that it makes no sense to buy a new vehicle above $50k that isn't a diesel pickup.

paxys · 2h ago
We do want affordable Chinese EVs, the same way we want Honda, Toyota, Nissan, Kia, Hyundai, Subaru (all among the best selling auto manufacturers in the USA every year). You can't buy them because the government and domestic car companies don't want you to.
eitally · 1h ago
You're not wrong, but I think there's another factor, too. (And I drive a 2017 F150)

I would love to sell my truck and get something smaller. But I just got a repair estimate of almost $2500 to replace the from facing camera in my wife's Odyssey, and the Bluetooth stack in my truck has never really worked properly for phone calls. With cars becoming increasingly. "Software defined vehicles" I don't feel comfortable purchasing a $50k+ car that might have software bugs, or may not be supported for over 5-10yrs. I'm currently thinking very seriously that the best options are either to buy used or to lease.

Moreover, I'm thinking the overall percentage of private vehicles that are leased is going to continue to increase as time moves on, until the big mfrs are essentially acting as huge rental fleet operators.

paulryanrogers · 3h ago
Cars are a reflection of ones personality here in the Midwest. Some grow out of it or never subscribe to the mentality. It's certainly cheaper to bicycle, weather and health permitting.

Though car driving and ownership are a big cultural phenomenon, especially among men 18-50.

999900000999 · 2h ago
Depends on the man, I’ll admit in my early twenties I meet a few partners by being car free.

I legit took a girl home after I asked her if she knew why the train was late.

In Amsterdam at least one of the train stations has a piano. It becomes a 3rd place were people can make friends and socialize.

We don’t have many 3rd places in the US where you can exist without spending money.

paulryanrogers · 1h ago
Public transportation is seen as only a thing for children and/or the poor, at least in too many of my circles.

Politicians and the public don't seem willing to invest to overcome the chicken and egg problem. Doesn't help that the legacy transport we do have is neglected, further harming it's reputation.

dzhiurgis · 42m ago
Do you have example of places with density similar to US where public transport works well? Australia has some in urban centres, but otherwise car centric. Same in NZ. Elecric bus to my place costs 8x more than driving EV (before it was taxed)
blharr · 57m ago
>Weather and health permitting

Environment as well. In terms of "safety" it is unfortunately very risky to bike (or even walk) in my area due to the sprawling roads everywhere. Drivers don't look out for anything other than large boxes, and I've quickly had way too many close calls to consider it useful.

clickety_clack · 2h ago
I make pretty good tech money and I can’t imagine spending that much on a car. It would be cheaper to uber everywhere I went.
marssaxman · 1h ago
Likewise - it's funny to me that $25,000 is cited as an "affordable" price for a car, when that's almost double what I spent on the most expensive car I've ever owned (a Land Rover Discovery II, which was a lovely machine). I cannot imagine what it would feel like to look at a $60,000 price tag and think, "yes, this would be a sensible use of money".
msgodel · 1h ago
Man I felt bad spending $5k to swap out my used corolla for a used highlander.
interloxia · 1h ago
Weren't they almost 60k in 2025 dollars when they were new?
marssaxman · 1h ago
I suppose they were, but mine was a 2001 model and I bought it in 2007.
msgodel · 1h ago
I'm always a little surprised anyone buys American cars at all. For a while they used to make larger trucks than anyone else did but even that's not really the case anymore, it's all just overpriced garbage with a popular brand.
burnt-resistor · 3h ago
F-450 King Ranch Super Deluxe.. all made from plastic and guaranteed not to last longer than 8 years. Most engines of new vehicles are sleeved and cannot be rebuilt in the spirit of designed for manufacturing and profits > designed for durability.
vovavili · 1h ago
I do want cheap Chinese EVs. I can't buy them because of government regulation.
willcipriano · 1h ago
> We don't want affordable Chinese EVs.

If that was true it wouldn't be illegal to sell them.

tengbretson · 2h ago
> comment about how a non-american country has a better approach

> male ego/phalus comment

> car-centric cities

> "N-ton metal box"

I'm 1 square away from a Strong Towns reader bingo. Do you happen to know who invented the concept of jaywalking?

No comments yet

snovymgodym · 3h ago
It's pretty simple (in the US, can't speak for elsewhere).

There are 2 big factors at play:

1. Margins. Manufacturers make huge margins on expensive vehicles and very slim margins on cheap vehicles. The numbers differ, but I think even in the lead up to the 2008 crisis automakers had to sell 5-10 "econobox" cars to make the profit they made on one luxury car, SUV, or truck.

2. Normalization of debt. For many Americans, having a monthly car payment in perpetuity is considered acceptable. Car loans have their place and can be used responsibly, but due to marketing, sales tactics, and cultural sensibilities what often ends up happening is that people start from a monthly dollar amount and then work forwards to buy the most expensive vehicle they can, even if it means taking the loan term out to 72 or 84 months. It's also very normal for people to never pay off their car, instead trading in the vehicle after 3-5 years and rolling equity in the loan over to their next car. Obviously, this consumer habit is great for dealers, manufacturers, creditors and buyers of consumer debt, as well as the US Government and investors -- it's just not ideal for the consumers themselves if they're trying to preserve wealth and build savings.

These two factors create an environment increasingly hostile to the cheap entry level car. Consumer demand is low since most don't spend responsibly, and automakers don't really want to make or sell them because the margins are so slim.

msgodel · 1h ago
>having a monthly car payment in perpetuity is considered acceptable.

I think that really depends on what part of America. At least where I grew up around a bunch of middle class conservatives listening to eg Dave Ramsey (who has other problems IMO) most people think of you as reckless/irresponsible for doing that sort of thing.

autobodie · 2h ago
the interest on those loans is maddening
AlotOfReading · 38m ago
Everything in here matches with my experience in the auto industry, but I don't think it gets the whole truth. Car companies, particularly the American and German brands, make the vast majority of their money from new car buyers and leasers, not the used car market. Over the past few decades, OEMs have focused almost exclusively on serving those customers, to the detriment of virtually everyone else. Those are very different customers than the people who want to buy $25k cars. Worse, even if you do sell that kind of vehicle, it depreciates and goes right back into circulation on the used market competing against the new cars because the customers are ultimately very utilitarian and lack brand loyalty, unlike the higher end customers. You can't even count on those higher end customers to reliably purchase the higher trim models because of the "status" aspects of a cheap car.

It's a tough market that OEMs don't want to be in, so they cede it almost entirely to foreign OEMs that haven't moved upmarket yet. Foreign OEMs are structurally incapable of selling cars at those prices (by design), so the bottom end of the market gets hollowed out to nothing but a few "loss leader" vehicles.

al_borland · 10m ago
The Subaru Impreza starts just under $25k, and comes standard with their EyeSight system for adaptive cruise control, automatic braking, etc.
BatFastard · 3h ago
https://www.slate.auto/

With rebates a 20,000 truck. Who knows what it will cost when it actually comes out. But I love the concept.

mlsu · 2h ago
A car like this in China would cost $12k

No rebates

US automakers are so ridiculously far behind

blacksmith_tb · 2h ago
Also, not a gigantic truck, and no infotainment (or even powered windows!) It'd be a manual transmission if it wasn't an EV.
fwip · 53m ago
Note that those rebates would be entirely killed under the current Trump budget bill [1], so we'll see what happens.

I also love the concept, it's a bunch of things I've been looking for but unable to find in the US market. The final price/availability as well as repairability are going to be the dealmakers.

[1] https://electrek.co/2025/06/28/republicans-are-trying-kill-7...

Glawen · 1h ago
Aka how to shoot yourself in the foot and hand over the market to Chinese manufacturer. In Europe, only Renault created a low cost brand (Dacia).

Once chinese brands become commonplace everywhere, tradional carmakers will have a hard time taking back market share. In Europe they closed or are closing the last HCOL factories, killing any remaining brand loyalty.

bell-cot · 4h ago
Daydream: For types of cars/trucks which are generally unavailable on the American market, tariffs and import restrictions are keep rather modest.
HarHarVeryFunny · 4h ago
Would make sense - why protect a market that no US manufacturer seems to want to support!

Of course the US manufacturers are hoping that you'll just take out a loan, preferably with them (this is how they make their profit - financing and servicing) and buy something far more expensive than you want/need.

mouse_ · 3h ago
Dealership near me has got some 2024-25 model Mitsubishis for like 19k new. They look pretty sweet.
stn8188 · 1h ago
I'm assuming this is the Mirage, which is one of the cars we own for the family (the other is an old Odyssey to fit all the kids). The Mirage is an absolute joy to own: its simple 3cyl engine gets 50mpg if I'm careful. We live in a very rural area (i.e. walking and biking for a big family is impossible and dangerous), so having something economical to drive is a huge help. We drive it any time we aren't taking the whole family somewhere!

Of course in the article, I see the Mirage is noted as discontinued. How frustrating.