Why Cheap Cars Are Disappearing

by MOINSBD

There are about 40 different car brands in the United States, but one kind of car that appears to be disappearing is the cheap car. Historically, about 20 percent of vehicle sales would have transacted below $20,000; however, they have completely dried up in the last few years. New cars are becoming more expensive, and it is unlikely those cheap cars will ever be back.

» Subscribe to CNBC:
» Subscribe to CNBC TV:
» Subscribe to CNBC Classic:

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:

#CNBC

Why Cheap Cars Are Disappearing

43 comments

iwan August 29, 2021 - 9:41 AM

I have an old volkswagen golf 4. Got it for free it has 180 000 miles on it. But still running strong

Reply
Jomh August 29, 2021 - 3:58 PM

Because companies are very greedy

Reply
TheCoolDave August 30, 2021 - 12:35 AM

It's why I buy used…never found the appeal of owning a NEW car. I'll buy something 3-4 years old, fair miles but, a higher end car than I could of afforded new but, a very dependable brand. As it's higher end car, I get all the nice safety features everyone wants… and I pay less than $20K for them. I'd hate to be paying $90K plus a NEW one of these cars…

Reply
GoinManta August 30, 2021 - 2:42 PM

Its why the Used car market is so hot now. Just wait in a few years the Chinese will start taking over the US car market like they have the Australian and European markets.

Reply
Sanford Fahy August 30, 2021 - 10:35 PM

Solar energy -> sunlight from the Sun +=+=> Fresnel Lens *=*=-> molten salt ****> molten metal (recycle soft-drink can -> Aluminum metal molten / recycle food cans -> Tin metal molten) == hybrid molten metals thermal energy storage.
Car industry needs to build these small molten metal storage and distribute them to customers as energy storage; then when they need metal, they can buy those metals from customers. Who are these customers? They are in the power grid.

Reply
Oie White August 31, 2021 - 1:52 PM

There always use car are junker not pretty but get to point A to B

Reply
William Wingo August 31, 2021 - 6:40 PM

In 1967, I bought a brand-new Dodge Dart with the 225 slant-six for about $1,800. In 1972, I bought a brand-new Plymouth Satellite with the 318 V-8 for about $3,500. Neither had air conditioning. I'll leave it as an exercise to calculate the equivalent prices today.

Reply
Herman Rogers September 1, 2021 - 4:00 AM

All new cars become old cars after 2 or 3 years and the value is rock bottom

Reply
Adam Ammar September 1, 2021 - 4:37 AM

Wow 20,000 dollars cars is cheap in america! the lowest new cheap cars in my country is about 5,000 dollars……. But as wages here are lower i think its reasonable enough

Reply
minoxidous September 2, 2021 - 1:14 AM

China has a 4.7k electric car. They will get sold here eventually 😛

Reply
David Baise September 2, 2021 - 2:25 AM

Cheap cars are not disappearing. GM and Ford and Fiat Chrysler make them all the time. And they are the worst cheap examples of what was once great.
Now it’s junk that won’t go over 100 thousand miles, made cheaply as dictated by the shareholders and bean counters.

Reply
feedthesnake September 2, 2021 - 7:59 AM

the static 20,000 metric is broken. even standard inflation would impact this ratio

Reply
The Tech Loop September 2, 2021 - 8:21 AM

Because my generation is dumb as hell with their money. I put a $300 Pioneer radio in my shitbox Camry that I only paid 6500 for. Boom, new car! All the new tech features there that I'd want.

Reply
sigit raharjo September 2, 2021 - 2:09 PM

This month the best selling car in Indonesia is the cheap car "low cost green car" Honda Brio with the price starts from around $ 9,000. So different world maybe.

Reply
Richie Wellock September 2, 2021 - 2:18 PM

How wrong CNBC was with this video and title, more and more the pricedown and expectations are to be brought up. GMC electric cars new from 8k , with some makers 4k for new electric cars ( yeah stay clear of them models )

Reply
Sylfix September 2, 2021 - 2:42 PM

me who bought a used 2012 mazda 3 from a dealership for 3000 CAD and put 1500$ into her and she's amazing.

Reply
Master Stacker September 3, 2021 - 1:04 AM

$100 is the new $20.

Reply
Ashish Ravi September 3, 2021 - 1:51 AM

In 2011 my dads '98 car got totaled and we looked at the versa and fit but we got the prius because it saves gas. Not everyone can afford a hybrid e.g. my friends parents got a Corolla and the defunct echo because they take money very seriously.

Reply
Ashish Ravi September 3, 2021 - 2:00 AM

The sienna and odyssey were redesigned for 2011 and we were shopping for them in 2010.

Reply
Gari Worzalla September 3, 2021 - 1:22 PM

why aren't rech companies having a shortage, and did it ever occur to carmakers to make "old fasioned " ignition and pollution control systems?

Reply
ltlwatcher September 3, 2021 - 7:49 PM

The more features a car has, the more things to break and they might be expensive to fix.

Reply
Michael September 4, 2021 - 5:14 AM

1. you overpay for cheap cars
2. cheap money. They really fked a whole generation global because of their greed.

Reply
minecraft is 234 September 4, 2021 - 9:21 AM

Hoh

Reply
tim priddy September 4, 2021 - 7:51 PM

Greed baby………cocksuckers who make waaaaay too much money

Reply
RJ Youngling September 4, 2021 - 8:23 PM

My first car was. <1K. Who has 20K+ for their first car? (Except if parents buy ofc.)

Reply
Solid_Snake September 5, 2021 - 4:19 AM

That's why tesla will dominate. They have the best tech

Reply
GyZo September 5, 2021 - 7:40 AM

uh, hello, the used market is more popular now because of jdm bump of fame.

Reply
jamesdagmond September 5, 2021 - 8:57 AM

The government mandates every new piece of safety technology that comes out for cars. They say it's for your safety, but it's to disenfranchise the poor. Simple as that. No one needs mandated backup cameras or half of the other stuff they are trying to pass right now.

Reply
Rob P. September 5, 2021 - 2:07 PM

If average salary is 80,000 – you shouldn’t pay more than 28K for a car or 35% of your salary – unfortunately 28K doesn’t leave too many new cars – don’t let a car payment drag you down.

Reply
Dodener September 5, 2021 - 6:21 PM

People arent not interested in buying cheap cars, the auto industry is canceling production of their cheap models forcing people to buy more expensive cars

Reply
Aretha Franklynn September 6, 2021 - 1:11 PM

GREED

Reply
Spartaculus Jones September 8, 2021 - 5:48 AM

1:43 You can't sell a car to someone who is unemployed or gets paid subsistence wages,

Reply
Calvin September 8, 2021 - 8:01 AM

I was lucky to get a brand new Chevy spark fully loaded 14k end of year clearance yes it’s underpowered but I’m. Not paying 500 dollars plus a month. And I can afford to buy any car I want, but I am not paying that much for an deprecating asset.

Reply
Ugur Akpinar September 8, 2021 - 10:29 AM

Save you 11 minutes, Car makers wants to make more profit so they pushing for more expensive cars.

Reply
Karvast September 8, 2021 - 9:01 PM

So to spare you elevn minutes of your life the whole video basicaly says "because they make more money"

Reply
Billy Jones September 8, 2021 - 9:07 PM

They're making cars more expensive because "they" don't want you to own them anymore. Leasing is the future, like it or not. The quote goes something like this , correct me if I'm wrong, "you won't own anything but you will be happier".

Reply
flyinboat lau September 9, 2021 - 2:28 PM

Just 10 plus minutes film don't have to start from 120 years ago. Make your point.

Reply
Brendan Forde September 9, 2021 - 10:34 PM

Notice the capitalist mindset of "consumer". You arent a person, you are a consumer.

Reply
Brendan Forde September 9, 2021 - 10:37 PM

They are so upset about one of the number one polluting industries starting to slow down. It's almost like they hate the planet or something.🤷🏽

Reply
Mihnet Halilovic September 9, 2021 - 10:53 PM

So no more KIA and HYUNDAI

Reply
Arion September 9, 2021 - 11:55 PM

cough Nissan Versa

Reply
FAIRLADY ZEE September 12, 2021 - 1:36 AM

you whole family is cheap. Lol.

Reply
Guillermo Rodriguez September 13, 2021 - 4:27 PM

buy used/

Reply

Leave a Reply

Related Posts