←back to thread

The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 1 comments | 29 Jun 25 15:59 UTC | HN request time: 0s | source
Show context
aorloff ◴[30 Jun 25 01:46 UTC] No.44418386[source]▶
Nobody else has said it so I guess I will.

The reason the US car industry does not want a $25k car is that the financing opportunities are crap for a car of this low cost.

In the same way that airlines exist to offer you a miles based credit card, the US car dealerships survive by offering you a loan for the car. Or perhaps, a car to go with your structured finance opportunity.

replies(6): >>44418699 #>>44418860 #>>44418924 #>>44420030 #>>44420850 #>>44422993 #
1. BLKNSLVR ◴[30 Jun 25 03:02 UTC] No.44418860[source]▶
Could this be stated as perverse incentives as a result of attempts to differentiate from cookie-cutter-identical competitors?

Whereby the profit shifts from the product itself to the differentiating value-add.