A report shows that under-$30,000 new cars and late-model affordable used vehicles are becoming ...
[+] harder to find. A year ago, we reported that the sub-$20,000 vehicle, whether new or used, was fast becoming extinct, with only three new models remaining with base prices below that mark. That number is expected to drop to zero shortly, with the Mitsubishi Mirage and G4 and the Nissan Versa expected to be dropped from their respective lines moving forward.
On top of that, a recent report suggests sub-$30,000 vehicles may likewise be headed to the salvage yard in the not-too-distant future. The latest industry Insights Report conducted by Cars Commerce shows a marked increase in models on dealers’ lots that are breaking the $30K barrier, as the average transaction price for all new vehicles stands at around $49,000. According to Rebecca Lindland, the company’s senior director of industry data and insights, even with production having bounced back from pandemic-era shortages, dealers are instead concentrating their efforts on selling higher-profit mid- and high-priced models, stocking about two-thirds fewer new vehicles priced under $30,000 today than they were back in July 2019.
Perhaps not surprisingly, automakers are helping salve rising prices with more-generous cash rebates, cut-rate financing and discounted leasing offers. Kelly Blue Book reports that incentives recently rose to around 7.0% of the average transaction price, which is the highest level recorded in ov.