Question of the Day: What Kind of Cheap Car Do We Need?
Affordability. It’s a word used so often in automotive circles it almost conjures up the anger we all feel about this time about political ads.
Automakers, analysts, and journalists all think they’ve got an idea of what that means. More precisely, they all think they’ve got an actual “less than” number. Currently, that’s less than $30,000. I could swamp you with statistics about how many new cars for less than $20,000 were available a decade ago compared to right — today it’s zero.
But what is an “affordable” new car … or vehicle more precisely. Does it cost less than $30K? $25K? $20K? Is it a car at all? In the 1970s, dirt cheap compact pickups were all the rage. The current “cheapest” car in the U.S. is the 2026 Hyundai Venue, which is a subcompact crossover.
So we want to know: What is the ideal “affordable” vehicle? How much does it cost? What does it come with? Where is it made? Tell us if it’s a small hatchback starting at $17,000 with only an AM radio — gotta obey the law and Congress says new vehicles MUST come with AM Radios.
Tell us what you think and we’ll pass it along to every automotive executive we talk to. Who knows? Maybe one will show up.
[Images: Ford, Hyundai]
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Michael Strong has spent more than 25 years writing about the automotive industry. A Detroit-area native, he’s written about everything from local car shows to product reviews to financial news. Currently he writes and edits for a variety of national and local publications. He’s also a longtime member of the Automotive Press Association and the International Motor Press Association, and a graduate of Georgia Southern University. Hail Southern! Despite a love for ’70s land yachts and BMWs from the late ’80s and early ’90s, his personal vehicle is neither of those.
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KBB says that the ATP of new vehicles was $50,526 in September. As a group, buyers afforded that much, but we know that some (up to 6%) will default. Deducting 6% from that ATP, we get $47,494.
So anything lower than that is 'more affordable', and anything higher than that is 'less affordable'.
If the new REO actually happens, and it happens roughly where their target price sits, but at least below $30k, I think that is a great inexpensive truck that would solve the truck needs of the vast majority of current truck buyers.
As for cars...we need CARS. Not stupid SUVs. Not ugly crossover blobs. CARS. Coupes, sedans, wagons. Start building something midsized, and make the price point in the mid 30s or lower. AWD optional. And yes, I know Toyota, Honda, and Hyundai/Kia still make sedans. But GM, Ford, and Chrysler/Stellantis need to get on the ball and bring out some competition.