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319 points pseudolus | 1 comments | 29 Jun 25 15:59 UTC | HN request time: 0.209s | 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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1. snarf21 ◴[30 Jun 25 13:23 UTC] No.44422993[source]▶

>>44418386 #

This is exactly true. Dealership profit centers are loan origination and extended warranty origination. Parts/Service is designed to pay the bills. (Source: My dad has been selling new cars for 40+ years)

(This is kinda like the Costco model where they aim to break even on all sales with profit only being the membership fees).

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The $25k car is going extinct?