What Happened to the Affordable Car?
Summary
This episode explores the rising cost of new vehicles, noting that average prices have doubled in 25 years due to a shift toward profitable SUVs and trucks. Host Jessica Mendoza and automotive expert Sharon Terlip discuss how supply chain issues, high interest rates, and subscription-based features have made affordable cars scarce. The segment highlights the "K-shaped" economy, where wealthy buyers drive demand while others hold onto older vehicles, and examines new budget options like the minimalist Slate EV truck.
Topics discussed
Josiah's 1993 Toyota T-100 and its work utility
Why Josiah avoids buying a new expensive truck
Rising costs of car ownership and insurance
Show introduction and sponsor segment
Average car prices doubling over 25 years
Shift from affordable sedans to profitable SUVs
Industry consolidation and focus on large vehicles
Defining crossovers and their higher profit margins
Increasing vehicle size and feature bloat
Pandemic supply shortages driving price spikes
Impact of rising auto loan interest rates
Sponsor segment for Uber Eats
Market slowdown and the K-shaped economy
Wealth disparity in car purchasing power
New revenue streams: subscriptions and used cars
Sustainability of pricing out budget buyers
Slate Auto: A minimalist, affordable EV truck
Consumer demand for simple, unconnected vehicles
Future of car ownership and new car luxury status
Outro and McDonald's advertisement
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