Car ownership has long been integral to the American dream. But as automakers slash the production of inexpensive models to cater to customers who can afford oversized pickups and sport utility vehicles, buyers find themselves facing sticker shock at the same time they are already frustrated by the lingering effects of high inflation.
Consumer prices rose 3.3% in March, the biggest yearly increase since May 2024, while new car prices were up 12.6% from a year ago, the Labor Department reported Friday.
New vehicles now sell for an average of nearly $50,000, up 30% in six years, and average monthly payments — based on 10% down and a 6-year note — recently hit $775. Looking for something on the cheap end? The share of vehicles listing for less than $30,000 is about 13% — down from 40% five years ago, per the car review site CarGurus.
Smaller non-electric trucks and vans are effectively illegal in the US. Starting in 2011, fuel economy ratings started being weighted on vehicle footprint instead of vehicle classification. And as fuel economy regs become stricter, it’s easier for the manufacturers to just make the footprint larger than to make things more efficient.
It’s why the Dakota, S-10, and Ranger all stopped being made that year, and when the Ranger was relaunched years later it was the size of older F-+50s. It’s also why every compact cargo van stopped being produced between 2021 and 2022 as fuel economy standards increased.
An NV200 compact commercial cargo van has stricter fuel economy requirements than a Toyota Camry.