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The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 1 comments | 29 Jun 25 15:59 UTC | HN request time: 0.3s | source
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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.

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SoftTalker ◴[30 Jun 25 03:11 UTC] No.44418924[source]▶
Buy the best used car you can afford for cash and forget all that dealership nonsense
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1. thayne ◴[30 Jun 25 04:20 UTC] No.44419334[source]▶
Unfortunately, the decrease in supply of budget cars hurts people buying used cars as well for two reasons:

1. With less people able to afford new cars it increases demand for used cars, which pushes up the price

2. There will be less budget cars that eventually end up in the used car market, and the increased price of new cars will trickle through to used cars