Here’s why there are so few new cars for under $30,000

The article discusses the declining availability of new cars priced under $30,000 in the United States. It cites that five years ago, it was much easier to find such affordable vehicles, but the situation has changed significantly. The primary reasons outlined are the rising costs of materials, supply chain disruptions, and increased demand for more feature-rich and technologically advanced vehicles. As a result, automakers have been compelled to focus on producing higher-priced models to maintain profitability. The article notes that the average transaction price for a new car in the U.S. has risen to around $45,000, making it increasingly challenging for consumers to find affordable options. This trend is particularly concerning for lower-income households, who may struggle to access reliable transportation due to the limited availability of budget-friendly new car choices. The article suggests that the situation is likely to persist in the near future, as the automotive industry continues to grapple with the various factors driving up vehicle prices.