The withering dream of a cheap American electric car

There are inexpensive EVs in the US. A local dealer has new Nissan Leafs available for $24.5k (after rebates) all day, every day.

There are also inexpensive cars. A local dealer has new Mitsubishi Mirage Hatchbacks available for $17k all day, every day.

People don't want them.

They're not being tricked, cajoled, strong-armed, forced, pressured, misguided, or hoodwinked.

American consumers WANT and CAN AFFORD gigantic $65k SUVs with heated and cooled seats and wifi and huge screens that take up the entire dashboard.

"Oh but they're prioritizing higher-marg..." yeah no shit Sherlock literally all a consumer has to do is not buy one of those.

But Toyota can slap a limited edition retro paint job on an SUV, mark it up $5k and the dealer can mark it up $10k and people will walk past the cheap cars to sign up for a waiting list to get a chance to earn an opportunity to put down a non-refundable deposit to maybe, potentially, pay $75k for an middling SUV with a limited edition retro paint job.

People don't want Leafs because they come with too many compromises.

Small battery, slow, weird and phased-out charging port; list goes on. It's a first-gen EV through and through.

However, Nissan's second EV, the Ariya, is selling much better! Crossover CUV (which America wants), bigger battery, fast, stylish, starts at $39.5k.

We also now have sub-$30k used Tesla's out in the market too.

> We also now have sub-$30k used Tesla's out in the market too.

I purchased a 2023 Model 3 from Hertz over the summer for $23k, which I've been very happy with. I'm not eligible for either tax rebate (used or new), so 1 year ago I would have paid north of $40k for it.

There are definitely some good deals out there.

These are cheap "city" EVs with small batteries and slow charging. They have all the compromises and annoyances that people don't like about EVs.

The desirable EVs have 2x-3x more range and charge 3x-4x faster. That completely changes the equation, because that makes them good enough to be the primary/only car. Even for people who don't have a charger at home, even for people who need to drive long distances.

All true, and there is still a viable used car market. Even cars that may require a bit more maintenance are a win by a large margin. Some things are just expensive. Ever price out a replacement 8" entertainment console in a vehicle? Probably ~$2,500 and up. Replacement LED headlights? Over $1,000. (Third party is your friend there). Regular maintenance like water pumps, brakes, serpentine belts are economical by comparison.

People not wanting a Leaf is how I got mine for dirt cheap. I also happen to live in a state with an extraordinary EV tax credit.

The annoyances of the Leaf are overstated, and the benefits are way better than people give credit for.

If people do what’s popular, they have to accept a popularity tax for the “keeping up with the Joneses” lifestyle

Here's the thing: in a market where almost all the new car buyers are affluent and can afford "wealthy country luxury," it's no wonder that small, economic penalty boxes like the Chevy Spark and Ford Fiesta get discontinued left and right when you think about how depreciation and the used market works.

I think you'd have to be batshit insane to buy a brand new Mitsubishi Mirage for $17k when the used market is flooded with much better cars that are barely used for the same price.

You can get a 2021 Hyundai Sonata with under 30,000 miles for that kind of money. Basically, a brand new car, one that's far larger, more refined, faster, more features, etc.

Those economy boxes make a lot of sense in countries where buying something higher end is less attainable. But in a world where someone leases a $40,000 car for 3 years, dumps it back to the dealership, a $20,000 new car can't compete with an originally-$40,000 3-year-old car with 30,000 miles.