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The $25k car is going extinct?

(media.hubspot.com)
319 points pseudolus | 6 comments | 29 Jun 25 15:59 UTC | HN request time: 0.001s | source | bottom
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tlogan ◴[30 Jun 25 12:49 UTC] No.44422630[source]▶
This is a great example of how factually incorrect narratives - so long as they align with a preferred agenda (which is that things are not affordable any more) - it gets upvoted.

Reality check:

- In 2025, there are 12 new car models available under $25,000

- In 2005, there were around 10 new models under $15,000 (25k adjusted by inflation)

So the premise that “cars used to be much more affordable” is not true. This article is full of misleading or outdated information that distorts the real trend.

HN deserves better data-driven discussions.

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1. reliabilityguy ◴[30 Jun 25 13:16 UTC] No.44422919[source]▶
While I do agree with you, I think you have to account for income as well, and not only the car price (even if adjusted for inflation) to determine affordability.
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2. giantg2 ◴[30 Jun 25 13:27 UTC] No.44423039[source]▶
Pretty sure inflation adjusted median income has increased from 2005 to 2025. But it sure doesn't feel like it. I wonder if other costs such as housing and healthcare have gotten less affordable affecting the real affordability. Inflation adjustments should capture this, but it feels like it doesn't.
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3. km144 ◴[30 Jun 25 13:43 UTC] No.44423183[source]▶
Housing, healthcare, childcare, and education have become more expensive. These are the biggest expenses for most people and are necessities. So the percentage of income available for other expenses has definitely decreased. Not sure about real wages though.
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4. Mistletoe ◴[30 Jun 25 13:44 UTC] No.44423190[source]▶
Yes.

https://www.noahpinion.blog/p/why-do-education-health-care-a...

5. TaupeRanger ◴[30 Jun 25 16:14 UTC] No.44424980[source]▶
Yes, this measure is called "Real Wages" and has been increasing basically since 2013 (https://fred.stlouisfed.org/series/LES1252881600Q). But as you point out, that measure uses CPI, which doesn't weigh mortgage/rent and healthcare affordability as heavily it would need to match what the average family experiences.
6. giantg2 ◴[30 Jun 25 19:20 UTC] No.44426872{3}[source]▶
In theory, inflation is supposed to capture those increases. The median real wage has gone up about 10-15% from 2005-2025. In theory, it should be more affordable. It doesn't feel that way to me, but maybe there are numbers I'm missing, or the way we measure inflation and apply it to affordability is broken.