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The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 2 comments | | HN request time: 0.462s | source
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puzzlingcaptcha ◴[] No.44420041[source]
You can still buy a new subcompact car (like a Renault Clio or Skoda Fabia) in Europe for under 20k EUR.

The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-road vehicles are classified as non-passenger automobiles with everything that entails, notably much less stringent emission standards) and made the small cars unprofitable to make in comparison.

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whatevaa ◴[] No.44420619[source]
They are disappearing in europe too. Emissions and other required by law equipment costs just as much on cheap car as it does on expensive one. At some point, cheap cars stop beinf cheap, just a bit cheaper but with way worse quality, so they stop making sense.
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A_D_E_P_T ◴[] No.44420750[source]
It's true that affordable European models are disappearing. The average mid-range offering from, say, Volkswagen, has become quite surprisingly expensive.

But this is why Chinese cars are taking over in Europe. Half the new cars I see are from Geely, BYD, Chery, etc. These average about 20,000-25,000 EUR new.

My own opinion, having looked into the matter a bit, is that you'd have to be insane to buy a Volkswagen or BMW at 2-3x the price. If I were in the market for a new car, I wouldn't consider anything but a Chinese car.

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mxfh ◴[] No.44421194[source]
Just because they are not heavily advertised, doesnt mean they don't exist.

Dacia Sandero/Duster/Spring exist. (Renault)

Citroen C1, Toyota Aygo, Peugeot 108, (VW up!.)

Considering Volkswagen Group:

With a choice of Skoda Fabia/Seat Ibiza/VW Polo you would go for Skoda or Seat, not the VW brand itself if you dont care about marque but price.

But prestige is a huge factor still, so people would still go for an overpriced Golf for no apparent other reason

Also 20k-equivalent from 2015-2019 is already above 25k just by inflation. Car manufactures have strong unions so that stuff comes around fast.

So you simply can't expect the old sub 20k cars anymore, that's 25k now.

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1. benjiro ◴[] No.44421465[source]
> so 20k-equivalent from 2015-2019 is already above 25k just by inflation.

Its not inflation alone ... The same brand/car type, tends to have seen a 75% price increase over the mentioned periode.

Something that used to cost 20k euro in the 2015 periode, is now around 35k euro. That is not "inflation". An we are talking same trim, same electronics, same gasoline engines.

Cars beyond a few items (as long as we do not talk about jump from gas to electric) have really not changed that much. There was a big jump from the 90's to the 2000, in terms of electronics (and sensors that are the bane for most car mechanics).

Prices have gone up so much, that it resulted in my 15 year old second hand car, being sold now for more, then when i bought it (and that inc the increased km's driven and age). That is not a normal market and is not explained by simple "inflation".

Its part inflation, a large part greed, and do not forget the consolidation / lack of competition over the year. People overlook how many car brands are now part of the same group. This resulted in less competition because multiple "brands" increased prices over the same period, when its really the same company, using parts in between each other, and your mostly paying for a different shell and "brand name / past reputation".

That is why Chinese car makers are able to enter the EU market so easily, despite the market protection with import taxations.

If you can offer a true hybrid with all the trims like solar roof, full electronics, the works at 36k, and the next EU competitor for the same options is 48k (and a less efficient hybrid aka, electronic boost only)... And that included the import taxation.

Its ironic that we need to do market protection because our own brands got caught sleeping at the wheel.

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2. BlueTemplar ◴[] No.44445956[source]
Cars are a large enough part of the budget that they might just drive a significant part of inflation by themselves.

Are we sure that inflation numbers have not been underreported ?