Why there are now only 3 new cars priced under $20,000

Published

2 years ago

May 2, 2023

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New vehicle sale prices fell below MSRP in March for the first time in nearly two years as supply chain issues continue to ease up, but cars and trucks are still far from cheap.

The average price paid for a new vehicle was $48,008 in March, according to Kelley Blue Book, a drop of $550 from the prior month.

"We’ve been anticipating transaction price declines, as inventory has been steadily improving and choice has expanded. More vehicles on dealer lots — and on their competitors’ lots — means dealers simply don’t have the pricing power they did six months ago," said Rebecca Rydzewski, Cox Automotive research manager of economic and industry insights.

Prices are expected to continue their downward trend, but are unlikely to reach the $37,736 average they were at in March 2020 anytime soon, if ever again.

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The average new car transaction price was over $48,000 in March. (Brandon Bell/Getty Images)

That is partly due to inflation, but also because many automakers have been focusing on building more of the most profitable high-end trims and discontinuing their lowest-priced models altogether.

The most inexpensive vehicle offered by an American brand is the new 2024 Chevrolet Trax SUV, which is $21,495, following the end of production for the $14,595 Chevrolet Spark hatchback last year.

Along with cuts by other brands, there are only three vehicles left on sale with starting prices including delivery fees below $20,000.KIA RIO/RIO5

The Kia Rio is the brand’s smallest sedan. (Kia)

The Kia Rio subcompact sedan starts at $17,875 and the Rio5 hatchback at $18,515.

Both front-wheel-drive models come standard with a 120 hp four-cylinder engine, automatic transmission, air conditioning and a highway fuel economy rating of 41 mpg.MITSUBISHI MIRAGE/MIRAGE G4

The Mitsubishi Mirage is the most fuel-efficient car that is not a hybrid. (Mitsubishi)

The Mitsubishi Mirage hatchback starts at $17,340 and the Mirage G4 sedan is just $1,000 more.

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The Mirage's claims to fame are that it is the least-powerful new car on sale in the USA — its three-cylinder engine rated at just 76 horsepower — and the most-efficient non-hybrid vehicle, with the hatchback getting an EPA combined rating of 39 mpg.NISSAN VERSA

The Nissan Versa is the cheapest new car on sale today. (Nissan)

The Nissan Versa sedan is priced at $16,925. It is roomy for the price and has a relatively potent 122 hp four-cylinder under the hood, a standard 5-speed manual transmission, automatic emergency brakes and a five-star NHTSA crash test rating.

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Models equipped with an automatic transmission start at $18,595 and have a 40 mpg highway fuel economy rating. A fully-loaded version with adaptive cruise control, heated seats and a wireless charging pad tops out at $20,215.

Technology

Tesla starts sales of revamped Model Y in U.S. for about $60,000

Published

3 hours ago

January 24, 2025

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Tesla starts sales of revamped Model Y in U.S. for about ,000

Dado Ruvic | Reuters

Tesla will start deliveries of a revamped version of its Model Y SUV in the U.S. in March, according to new listings on the company’s website.

The Model Y Juniper has a price tag of $59,990, not including a federal tax credit of $7,500 for new electric vehicle purchases. It features a redesigned fascia, front and rear light bars and an upgraded interior with ventilated seats, reclining second-row seats and faster Wi-Fi, the website shows.

Tesla began taking orders for the new Model Y variant from customers in Canada and Europe on Thursday, and started sales in China about two weeks ago. CEO Elon Musk shared a video from the Tesla account on X Thursday night showing off the new Model Y.

Tesla is looking to revitalize its core automotive business, which faces increased competition across the globe. Executives are expected to discuss Tesla’s fourth-quarter and year-end results on Wednesday after markets close.

Tesla’s last new model, the angular steel Cybertruck, began rolling out to customers at the end of 2023. While it became the best-selling electric truck in the U.S. last year, sales didn’t make up for a decline in overall deliveries, which fell for the first time in 2024.

Musk, who also runs SpaceX and owns social media site X, has been at the center of attention in recent months because of his hefty financing of President Donald Trump’s 2024 campaign and his position in the newly elected president’s inner circle.

After his inauguration on Monday to begin his second White House term, President Trump signed an executive order indicating he will likely repeal the federal electric vehicle tax credit, which was approved by Congress during the Biden administration as part of the Inflation Reduction Act. Tesla has long benefited from the government-supported incentives, but ending the credits will likely have a more harmful impact on competitors in the EV market.

Prior to the release of the new Model Y variant, Musk’s political rhetoric, along with Tesla’s aging lineup, had led to a decline in the company’s reputation according to research from Brand Finance.

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Sports

Filly Thorpedo Anna wins Horse of the Year

Published

3 hours ago

January 24, 2025

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Filly Thorpedo Anna wins Horse of the Year

Associated Press

Jan 23, 2025, 11:18 PM ET

PALM BEACH, Fla. — Thorpedo Anna won Horse of the Year honors at the Eclipse Awards on Thursday night, becoming only the second 3-year-old filly to beat male competition for the top trophy.

Trained by Ken McPeek, she earned six Grade 1 victories last year, including the Kentucky Oaks, and finished second in the Travers to Fierceness. She also claimed 3-year-old filly honors in the 54th annual ceremony at The Breakers Palm Beach.

Thorpedo Anna received 193 out of a possible 240 first-place votes. Sierra Leone finished second with 10 votes and Fierceness received five.

Filly Rachel Alexandra was the 2009 Horse of the Year.

Sierra Leone, winner of the Breeders’ Cup Classic in November, won 3-year-old male honors.

Chad Brown won his fifth career Eclipse as Trainer of the Year. He trains Sierra Leone, who lost a dramatic three-way photo finish to the McPeek-trained Mystik Dan in the Kentucky Derby and finished third in the Belmont Stakes. Brown was the leading money earner among North American trainers with over $30 million in purses.

“I finally beat Ken McPeek in a photo,” Brown joked. “If you want to trade photos, I’ll take the Derby.”

Flavien Prat, who won two Breeders’ Cup races last year including the Classic, was voted top jockey. The 32-year-old Frenchman broke Jerry Bailey’s record with 56 graded stakes victories in the year.

“It’s a lot of hard work, dedication and it couldn’t have been done without the support of all the owners, the trainers, their dedicated staff and horses, of course,” Prat said.

Erik Asmussen, the youngest son of North America’s all-time leading trainer, Steve Asmussen, earned apprentice jockey honors. The 22-year-old, who is based in Texas, rode his first career winner last January at Sam Houston Park. Asmussen’s uncle, Cash, won the same award in 1979.

“This game means everything to me,” an emotional Asmussen said. “Thank you to my family. I got the best group around me. Most importantly, just thank you to the horses. They’re special.”

Godolphin LLC was honored as outstanding owner for the fifth consecutive year, while Godolphin was voted as top breeder.

Citizen Bull was named the 2-year-old male champion, while 2-year-old filly honors went to Immersive.

Other winners were: National Treasure as older dirt male; Idiomatic as older dirt female; Straight No Chaser as male sprinter; Soul of an Angel as female sprinter; Ireland-bred Rebel’s Romance as male turf horse; Moira as female turf horse; and Snap Decision as steeplechase horse.

The awards are voted on by the National Thoroughbred Racing Association, Daily Racing Form and the National Turf Writers and Broadcasters.

Politics

Elizabeth Warren joins call for probe of Trump over crypto tokens

Published

4 hours ago

January 24, 2025

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Elizabeth Warren joins call for probe of Trump over crypto tokens

Senator Elizabeth Warren said Donald Trump’s memecoin could raise “the specter of uninhibited and untraceable foreign influence over the US president.”