What Happened to the Affordable Car?
Summary
The Journal explores why new cars have become increasingly unaffordable, with average prices doubling in 25 years due to a shift toward larger, more profitable SUVs and trucks. Host Jessica Mendoza and automotive reporter Sharon Terlip discuss how supply chain issues and rising interest rates have driven costs up, forcing consumers to hold onto older vehicles longer. The episode also highlights the rise of subscription-based features and the emergence of budget-friendly electric trucks like the Slate Auto, which aims to revive the affordable vehicle market.
Topics discussed
Josiah's 1993 Toyota T100 and its work uses
Features of the old truck and comparison to modern models
Why Josiah avoids buying a new truck due to cost
Trend of holding onto older cars and rising prices
Show introduction and sponsor segment
Doubling of average car prices over 25 years
Shift from sedans to trucks and SUVs post-2008
Industry focus on profitable larger vehicles
Defining crossovers and their higher profit margins
Vehicles getting bigger and more feature-rich
Impact of pandemic supply shortages on prices
Rising auto loan interest rates
Sponsor segment for Uber Eats
Market slowdown and continued profitability
The K-shaped economy in the auto market
New revenue streams like subscriptions and used cars
Sustainability of pricing out budget buyers
Slate Auto's minimalist electric truck concept
Consumer demand for simple, unconnected vehicles
Future of car ownership and closing remarks
Outro and McDonald's advertisement
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