What Happened to the Affordable Car?
Summary
The Journal explores why new cars have become increasingly expensive, with average prices doubling over the last 25 years. Host Jessica Mendoza and automotive reporter Sharon Terlip discuss how manufacturers have shifted focus to profitable SUVs and trucks, while supply chain issues and higher interest rates have further driven up costs. The episode features carpenter Josiah Johnson, who drives a 1993 Toyota T100, illustrating how many Americans are holding onto older vehicles due to affordability. It also highlights the rise of subscription-based features and the launch of Slate Auto, a st…
Topics discussed
Josiah's 1993 Toyota T-100 and its work uses
Features of the old truck and why he keeps it
The high cost of new trucks and vehicles
Trends in car ownership and average vehicle age
Show introduction and sponsor segment
Rising average car prices over the last 25 years
Shift from affordable sedans to profitable SUVs
Industry consolidation and focus on larger vehicles
Defining crossovers and their higher profit margins
Increasing vehicle size and feature bloat
Pandemic supply shortages and price escalation
Impact of rising interest rates on car loans
Sponsor segment for Gatorade
Market slowdown and the K-shaped economy
Profitability of selling fewer, more expensive cars
New revenue streams like subscriptions and used cars
Sustainability of pricing out budget buyers
Slate Auto's minimalist electric truck concept
Consumer demand for simple, unconnected vehicles
Future of car ownership and new cars as luxury
Outro and Verizon NFL sponsorship
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