Cars that normal people can afford have thin margins.
The fat pandemic days of product scarcity and low interest rates are gone. Cheap cars will be back, but not without a lot of kicking and screaming first.
You’d think they could make a decent profit on a bare bones electric car once they go more mainstream. Just an electric motor, stereo and power windows and the basic safety features. Don’t need all the other fancy stuff.
Nobody buys bare bones cars, at least in the states. The value proposition just isn’t there. Most people will go used as the feature set is better for your money.
“bare bones cars” is one of the memes on this subreddit, along with “le manuel wagon”. Nobody wants them, that’s why they don’t make them.
Yeah for petrol cars. Electric is new and soon to take over and probably has lots of people who can’t afford expensive new electric cars that would take a bare bones electric one that was comfortable and offered cheap running cost over a second hand petrol/diesel car instead. It just has to be priced appropriately
But that would undercut their argument that no one wants them and that regulators should give them a break. Don’t worry, the Chinese will find a way into the market eventually and offer them.
If the MSRP is 20k, Ford is probably making $800/unit and the dealer is making $400. Unless the dealer can sell it for 25k…
Unfortunately, this is true.
Cars that normal people can afford have thin margins.
The fat pandemic days of product scarcity and low interest rates are gone. Cheap cars will be back, but not without a lot of kicking and screaming first.
You’d think they could make a decent profit on a bare bones electric car once they go more mainstream. Just an electric motor, stereo and power windows and the basic safety features. Don’t need all the other fancy stuff.
Nobody buys bare bones cars, at least in the states. The value proposition just isn’t there. Most people will go used as the feature set is better for your money.
“bare bones cars” is one of the memes on this subreddit, along with “le manuel wagon”. Nobody wants them, that’s why they don’t make them.
Yeah for petrol cars. Electric is new and soon to take over and probably has lots of people who can’t afford expensive new electric cars that would take a bare bones electric one that was comfortable and offered cheap running cost over a second hand petrol/diesel car instead. It just has to be priced appropriately
That will not sell. People buying new cars are not people on a super budget who will be continuing to buy used economy cars.
But that would undercut their argument that no one wants them and that regulators should give them a break. Don’t worry, the Chinese will find a way into the market eventually and offer them.
Yes, but they make their money on financing and service.
Oh, I agree. I can only afford cheap cars myself. (Happy Honda Fit owner).
But I also understand how low interest rates and fat pandemic-era profits gave automakers an excuse to chop the affordable products off their lineups.