What Happened to the Affordable Car?
Summary
This episode explores why new cars have become unaffordable for many Americans, with average prices doubling in 25 years. Host Jessica Mendoza and automotive expert Sharon Terlip discuss how the industry’s shift toward profitable SUVs, pandemic supply shortages, and rising loan rates have driven costs up. The segment features Josiah, a carpenter relying on a 1993 Toyota, and examines new startups like Slate Auto that aim to revive the budget vehicle market.
Topics discussed
Josiah's 1993 Toyota T-100 and its utility
Why drivers are holding onto older vehicles
Show introduction and episode preview
The doubling of average car prices since 2000
Industry shift from sedans to profitable SUVs
Defining crossovers and their higher profit margins
How vehicle size and features drive up costs
Pandemic supply shortages and rising interest rates
The K-shaped economy in the auto market
New revenue streams: used cars and subscriptions
Sustainability of pricing out affordable buyers
Slate Auto: A minimalist electric truck startup
Future outlook: New cars as a luxury purchase
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