Only One New Car In America Actually Sold For Under $20k Last Month

[defensivetackle99]

Not my words. Copied and pasted article below.

Link: https://www.theautopian.com/only-one...00-last-month/

I’m thinking a lot about vehicle affordability lately and when, if ever, cars will become affordable again. The numbers are improving, but for various reasons it’s becoming harder and harder to get a good new car at a reasonable price. A few years ago there were numerous cars you could buy under $20,000. Today, there’s only one.

While we’re at it, we’ll take a look at EV demand and why it’s so much more geographic. Plus, we’ll talk about how Lotus is doing way better and Lyft is doing, well, not way better.

God Bless The Mitsubishi Mirage

Mitsubishi Mirage Ralliart 3The little Mitsubishi Mirage is not the nicest new car on the market. It may, in fact, be the least nice. But it is reliable, reasonably efficient, and reasonably safe, with more than two doors and a five-year bumper-to-bumper warranty. Are there better used cars for the same $16,245 starting price? Absolutely. Do some people desire the lack-of-worry that comes with a new car? Yes. [Ed Note: And there can be financing-related reasons to also go new vs used. -DT]. If you’re one of those people and you have less than $20,000 to spend on a car, well, check out the Mitsubishi Mirage.

The massive marketplace site Kelly Blue Book has its monthly market insights report out and there’s a little good news there, with the average transaction price (ATP) down about 0.7% month-over-month to $48,334 and only up 0.4% year-over-year. For reference, the ATP is the price someone actually pays for a vehicle, not what it’s listed for. These numbers are not that surprising given that inventories are rising and we’re into the summer selling months. Here’s the paragraph that knocked me on my seat-warmer this morning, with all the bold my doing:

“[U]nlike five years ago, only one model transacted below $20,000 in July. The Mitsubishi Mirage’s average transaction price in July is reported as $19,205. In July 2018, there were a dozen vehicles with ATPs below the $20,000 barrier. In comparison, many of today’s smallest vehicles, including the Hyundai Venue, Kia Rio, Nissan Versa and Toyota Corolla, are all transacting well over $20,000. Notably, and in stark contrast to the under $20,000 category, there were 32 vehicles in the Kelley Blue Book database transacting on average over $100,000 in July, which excludes super exotics from Ferrari, Lamborghini, Rolls-Royce and the like. In comparison, five years ago in the summer of 2018, there were only 12 vehicles in the over $100,000 category.“

Yikes. Like I said in yesterday’s trimflation article, production has quite clearly shifted towards the higher margin end of the market and this will continue to have impacts on what shows up on dealership lots (and what stays there). My sense is that there’s an opportunity for vehicles like the new Trax and Maverick to continue to pick up market share.

There’s a small indication of this trend in more of the data:

The high-end luxury car segment had the highest incentives in July 2023 at 9.6% of ATP, followed by luxury cars at 8.4%, hybrid vehicles at 7.7%, entry-level luxury cars at 6.9% and electric vehicles at 6.7%. Full-size luxury SUVs, high-performance cars and sports cars had some of the lowest incentives in July.

Unsurprisingly, over the last year Tesla has seen the biggest drop in ATP (-19.9%) and Mercedes had the biggest increase (18.8%).

(Paragraph cut short here)

[Top_Fuel]

Fake news misleading headline:

Only One New Car In America Actually Sold For Under $20,000 Last Month


Translation:

Only One New Vehicle Model In America had an Average Transaction Price Under $20,000 Last Month

The Mitsubishi Mirage’s average transaction price in July is reported as $19,205.

So the average new Mirage sold for $19,205 last month...which is pretty amazing.

[jonesboro]

“...In July 2018, there were a dozen vehicles with ATPs below the $20,000 barrier. In comparison, many of today’s smallest vehicles, including the Hyundai Venue, Kia Rio, Nissan Versa and Toyota Corolla, are all transacting well over $20,000. Notably, and in stark contrast to the under $20,000 category, there were 32 vehicles in the Kelley Blue Book database transacting on average over $100,000 in July, which excludes super exotics from Ferrari, Lamborghini, Rolls-Royce and the like. In comparison, five years ago in the summer of 2018, there were only 12 vehicles in the over $100,000 category.“

The rich got richer? Wow I can't believe it.

[Top_Fuel]

For some perspective...

Average transaction price for new vehicle sales in the US (by vehicle type)
December 2021 vs December 2022

[Mark]

If I had to replace my Mirage today, I would be looking for a

2017+
Manual transmission
under 60,000 miles
under $10,000

Choices are slim, & I would have to fly to Utah for the one that looks the most appealing to me. Plus, it's blue, & that would make 7milesout happy!

2018 ES manual (approximately 57,000 miles) for $7995 below -

https://www.cars.com/vehicledetail/8...-20880f260674/

It would have to be something quite special for me to pay over $10,000 for one, but I look at a Mirage as being a secondary vehicle (beater car/daily driver).

[mohammad]

Fake news misleading headline:

Only One New Car In America Actually Sold For Under $20,000 Last Month


Translation:

Only One New Vehicle Model In America had an Average Transaction Price Under $20,000 Last Month


So the average new Mirage sold for $19,205 last month...which is pretty amazing.

Is this across all trims? I feel the number would be much more reasonable if we only consider the base trim.

[7milesout]

It is a nice looking racecar. But, no cruise control, deals off. And why is the friggin jack flopping around loose in the hatch area? It's a sign that the owner / user is/was a dolt, or too impatient to figure out how to put it back in the right place, or something else that I'm sure I would think is ridiculous.

Better rule that one out Mark, no cruise.

[Mark]

It is a nice looking racecar. But, no cruise control, deals off. And why is the friggin jack flopping around loose in the hatch area? It's a sign that the owner / user is/was a dolt, or too impatient to figure out how to put it back in the right place, or something else that I'm sure I would think is ridiculous.

Better rule that one out Mark, no cruise.

You can add cruise control to any car. I don't currently have cruise control on my 2017. Cruise became standard for all trim levels in 2019.

You may not understand how price alone would drive my purchase of a Mirage. I would want a manual, & I could care less about anything else. I wouldn't care if it didn't come with a radio or speakers. I can add a radio, & I have done that to a base level car (had to add the antenna, radio, & 4 speakers). A/C & cruise control, however are nice features I do place some value on those. It wouldn't drive my purchase, however.

I would buy whatever low mileage 2017-2022 Mirage manual seems the best deal to me. I place zero value on extra features! You can't add features to a cheap economy car & change my opinion about it.

I could easily rattle off 10+ features a base model Mirage would have over my former base level 1990 Ford Festiva ($5,300 brand new after $1,000 Ford rebate offer) -

power windows
power locks
remote entry
tachometer
intermittent wipers
A/C
visor mirror
passenger side mirror
rear wiper
rear washer fluid.
air bags
radio/speakers/antenna - did add those later however
traction/stability control
ABS brake
hill start assist
4-doors

My Mirage has all those things & more! 14" Mirage wheels would make the 12" Festiva wheels seem small!

I really liked my Festiva (daily driver). It was never my primary vehicle for my family, however. I value cars like those. It was cheap, paid for, and helped me earn two graduate degrees without taking out any loans. I didn't have car payments, & I had money for school even though we went to one income when my daughters were young.

Times have changed. I attended UW-Stevens Point in the 1980s. A semester cost about $1,500-1,600 in those days. That amount of money covered tuition, textbook rentals, dorm room, and a 20 meals/week meal plan. A year of college was approximately $3,100-3,200 per year (that's room board, & tuition). When I became a dorm resident assistant my junior & senior year, my room & board were covered. My tuiition would have been about $600-700/semester. I bought my first car when i became a resident assistant, because I felt I could finally afford one.

Keep in mind - my first factory (wood working plant) summer job paid $4/hour. I got a raise the 2nd summer, and I made $4.25/hour. I worked 10 hour days & Saturday mornings to get $6/hour for overtime paid. Times have changed!!!!

I feel like a dinosaur at age 60! If I was independently wealthy, I wouldn't pay more than $10,000 for a Mirage or $20,000 for anything else. I'd rather replace my tractor!

I rode in someone's brand new Polaris Ranger the other day. It has more features than my Mirage. My guess is he paid at least 3 times more, too! A fully loaded 1,500 cc Polaris Ranger is approaching $50,000. He bought last year's 1,000 cc model, & I am sure he paid less. It had A/C, touchscreen on the dash, power windows, etc...... I kid you not, it was very well equipped. A Ford Maverick would be cheaper!

Enough babble from Mark today!

I do this when I come home from a long day/week of driving lessons! Sorry!

[Fummins]

You can add cruise control to any car. I don't currently have cruise control on my 2017. Cruise became standard for all trim levels in 2019.

You may not understand how price alone would drive my purchase of a Mirage. I would want a manual, & I could care less about anything else. I wouldn't care if it didn't come with a radio or speakers. I can add a radio, & I have done that to a base level car (had to add the antenna, radio, & 4 speakers). A/C & cruise control, however are nice features I do place some value on those. It wouldn't drive my purchase, however.

I would buy whatever low mileage 2017-2022 Mirage manual seems the best deal to me. I place zero value on extra features! You can't add features to a cheap economy car & change my opinion about it.

I could easily rattle off 10+ features a base model Mirage would have over my former base level 1990 Ford Festiva ($5,300 brand new after $1,000 Ford rebate offer) -

power windows
power locks
remote entry
tachometer
intermittent wipers
A/C
visor mirror
passenger side mirror
rear wiper
rear washer fluid.
air bags
radio/speakers/antenna - did add those later however
traction/stability control
ABS brake
hill start assist
4-doors

My Mirage has all those things & more! 14" Mirage wheels would make the 12" Festiva wheels seem small!

I really liked my Festiva (daily driver). It was never my primary vehicle for my family, however. I value cars like those. It was cheap, paid for, and helped me earn two graduate degrees without taking out any loans. I didn't have car payments, & I had money for school even though we went to one income when my daughters were young.

Times have changed. I attended UW-Stevens Point in the 1980s. A semester cost about $1,500-1,600 in those days. That amount of money covered tuition, textbook rentals, dorm room, and a 20 meals/week meal plan. A year of college was approximately $3,100-3,200 per year (that's room board, & tuition). When I became a dorm resident assistant my junior & senior year, my room & board were covered. My tuiition would have been about $600-700/semester. I bought my first car when i became a resident assistant, because I felt I could finally afford one.

Keep in mind - my first factory (wood working plant) summer job paid $4/hour. I got a raise the 2nd summer, and I made $4.25/hour. I worked 10 hour days & Saturday mornings to get $6/hour for overtime paid. Times have changed!!!!

I feel like a dinosaur at age 60! If I was independently wealthy, I wouldn't pay more than $10,000 for a Mirage or $20,000 for anything else. I'd rather replace my tractor!

I rode in someone's brand new Polaris Ranger the other day. It has more features than my Mirage. My guess is he paid at least 3 times more, too! A fully loaded 1,500 cc Polaris Ranger is approaching $50,000. He bought last year's 1,000 cc model, & I am sure he paid less. It had A/C, touchscreen on the dash, power windows, etc...... I kid you not, it was very well equipped. A Ford Maverick would be cheaper!

Enough babble from Mark today!

I do this when I come home from a long day/week of driving lessons! Sorry!

Funny, for the last 2 days I've been bsing with a couple of friends about new Polaris side by sides. I didn't know til just now they have a 1.5L engine in them!!!!!! Hopefully, that's not too offensive...

The prices they're asking for new toys are crazy. I don't think I even have $60k tied up in my old diesel 1 ton truck, used toy hauler, new(in 2020) Kawi Teryx4, and Mirage combined. But, I always said I'd never spend xxx on xxx but then I bought a new side by side... Never say never I guess. I have zero regrets, it's one of the "best" purchases I made over the years. $50k+ for a toy though....Check out the Polaris expedition or whatever the suv looking thing is called. It'd be cheaper to buy a jeep and go bag on it, then you can drive it on the street.
Nmv...you can say the same thing about any side by side...

[Mark]

Funny, for the last 2 days I've been bsing with a couple of friends about new Polaris side by sides. I didn't know til just now they have a 1.5L engine in them!!!!!! Hopefully, that's not too offensive...

The prices they're asking for new toys are crazy. I don't think I even have $60k tied up in my old diesel 1 ton truck, used toy hauler, new(in 2020) Kawi Teryx4, and Mirage combined. But, I always said I'd never spend xxx on xxx but then I bought a new side by side... Never say never I guess. I have zero regrets, it's one of the "best" purchases I made over the years. $50k+ for a toy though....Check out the Polaris expedition or whatever the suv looking thing is called. It'd be cheaper to buy a jeep and go bag on it, then you can drive it on the street.
Nmv...you can say the same thing about any side by side...

"While the price of everything has increased exponentially in the past couple of years, we were still a bit shocked at the starting price of the new Polaris Ranger XD. The most basic Premium trimmed three-seat model starts at $29,999. A top-tier Northstar Ultimate crew-cab Ranger XD starts at a staggering $49,499. At more than 50-grand after accounting for destination and delivery charges, the Ranger XD 1500 costs nearly twice as much as the comparable 2024 Ford Maverick at $27,960."

Taken from -

https://www.motortrend.com/news/2024...t-look-review/

I couldn't spend that much money on a toy & enjoy it.

I paid $6,700 for my 2006 Kawasaki Mule 610 4x4. I traded an old used boat I no longer wanted for it. I also sold my 1986 Honda Fourtrax 250 (had a 1985 & 1986 at the time) to my best friend at the time to help pay for the Mule. I have always been cheap. It goes way beyond my Mirage!

I use my Mule almost every day! Lately I have been putting up tree stands for bow season with it. I would be lost with it. The expensive Ranger would not serve my needs. It's not stable enough. It would be easy to roll over where we were the other day. The owner was freaking out! Brand new machine & he didn't want any scratches, too. It would have been nothing for my old clunker. I wouldn't race him, however, on the road. I might make 25 mph with a back wind & slight downgrade! It never stops chugging up hills with a full load, and that's all I care about!