Why it is nearly unattainable to discover a automobile for lower than $30,000

Car buyers like luxury

Well before the Covid-19 pandemic, consumer tastes increasingly began to shift from sedans to more expensive SUVs and trucks. Then car buyers piled on options like high-tech touchscreens, ambient lighting, 360-degree cameras, and heated and cooled seats.

“There’s a feature war going on,” said Ivan Drury, director of insights at Edmunds.

In response to increased demand, dealers began stocking more cars with all the trimmings, he said, and automakers upgraded their lineups with high-end packages or trim levels and reduced the range of lower-priced cars.

“It only makes sense to keep increasing the price to add more features and increase the size of the vehicle with each redesign,” Drury said.

Car prices near a record high

According to Edmunds, the median transaction price for new cars in May was $47,892, near an all-time high. Now, 10% of all vehicles sold cost more than $70,000, up from 3% five years ago.

On the other hand, fewer options are available at lower prices. Edmunds found that just 0.3% of new vehicles sold cost less than $20,000, down from 8% five years ago.

As a result, more car buyers are pulling out of the new car market, Ryan said.

This is how you get the best used car for your money

Instead of buying a new car, budget-conscious buyers are buying older cars with more mileage, which means their running costs will increase, Ryan said.

“Those who are least solvent get the car that costs the most to own.”

In an iSeeCars study, more than two million cars were analyzed to find out which used models have the lowest price and offer the longest remaining lifespan.

Here are the 10 models that performed best.

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