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Fast Company
7 hours ago
- Automotive
- Fast Company
The cheapest new car on the market is about to go extinct
Just like the dodo and passenger pigeon before it, the affordable new car is about to go extinct as a species. The last new Mitsubishi Mirage model is expected to be sold by the end of this summer—and after that, there will be no new cars available for sale in the U.S. for less than $20,000. The Mirage is a fuel-efficient compact hatchback, and until it sells out, it is the cheapest new car on the market. In June it sold for an average transaction price of $18,484. [Photo: Mitsubishi] The Mirage was able to stay so cheap by offering the bare minimum. It's tiny. And while it has now-standard features like a touchscreen and rearview camera system, it doesn't have much else. In Car and Driver's review of the final 2024 Mitsubishi Mirage G4, the publication gave the car a 3/10 rating, noting that it was cheap to buy but cheaply made, with a puny engine and drab driving demeanor. 'Cheap? Yes. Cheerful? Not so much,' it said. This is a car that gets you from point A to point B. If you want to get there quickly, that's extra. You get what you pay for. Subscribe to the Design newsletter. The latest innovations in design brought to you every weekday Privacy Policy | Fast Company Newsletters [Photo: Mitsubishi] Mitsubishi said last year that it was ending production of the Mirage, and now there are only some 1,700 left, according to data from the car-services firm Cox Automotive. Based on the current sales pace, the firm predicts the last Mirage will be sold by summer's end. Buyers looking for the cheapest new car will then have to turn to the 2025 Nissan Versa S ($20,130) or 2025 Hyundai Venue SE ($21,695), per Inflation since the pandemic has hit the automotive industry especially hard, with the average transaction price for a new vehicle rising from about $40,000 in 2020 to nearly $49,000 in 2025, per Kelley Blue Book data. Tariffs imposed by the Trump administration have led to increased production costs, and while major automakers have yet to announce consumer-side price increases in response to new import duties, Doug Ostermann, CFO of Stellantis, said during a call on July 21 that he believes 'we're coming to the end of that period.' While the Mirage is no-frills, it offered buyers an ultracheap option for when cost was the most important decision-making factor. Without it, the average price of new cars will only continue to climb.
Auto Blog
16 hours ago
- Automotive
- Auto Blog
Tariffs Are Making New Cars Even More Unaffordable, Says Study
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. New cars are expensive New cars are expensive, but the latest data indicates that they aren't slowing down any time soon. According to data from Cox Automotive and Kelley Blue Book, the average transaction price for a new car reached $48,907 in June 2025, a 1.2% increase from the same period last year. Though it seems like a high amount, a quick glance at car-buying platforms and automakers' websites shows that there are many models on the market with MSRPs far below that threshold. However, a new study from the research department at Cars Commerce, the company behind , shows that a few key factors will keep cars unaffordable. Previous Pause Next Unmute 0:00 / 0:10 Full screen Automakers brace for uncertain future amid Trump's tariff pause Watch More Source: Getty Images Where did all the cheap cars go? According to new data from Cars Commerce's Industry Insights Report for the first half of 2025, the impact of the Trump administration's tariffs on imported cars, as well as the threat arising from the end of Federal EV Tax Credits, would fuel an affordability crisis that can greatly impact the U.S. car industry. 'With price hikes on many imports starting to emerge, the $7,500 federal EV tax credit set to expire in September, and the entry-priced segment now shrinking for three consecutive months, affordability remains the biggest challenge to continued growth,' said David Greene, industry analyst at Cars Commerce. 'How automakers respond in the second half — through pricing, production, and incentives — will shape the road ahead.' Most notably, Cars Commerce found that the inventory of cars priced under $30,000 saw a massive dip. Per their data, cars under $30K made up just 13.6% of new car inventory in the first half of 2025. That number is a considerable loss compared to 2019, when such vehicles made up 38% of the market. Source:In terms of dealer inventory, the segment saw 3.9% growth year over year (YoY); however, it lags behind the 5.6% overall increase for new-car inventory. The segment is the most exposed to tariffs, as about 92% of the cars sold under $30K are actually imported from overseas. Just two cars in that segment, the Honda Civic and Toyota Corolla, are built in the US, though some models are produced in Japan. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. At the same time, the segment that defined as the 'mid-range new car segment;' which consists of cars costing between $30,000 and $49,000, accounted for nearly half of all inventory, though 50% of the vehicles in this price bracket are imported. The data suggests that automakers are adjusting to tariffs, as the share of imported cars within the $70,000-plus price segment increased from 40% in May to 41% in June. The study also shows that dealers increased their inventory by 5.6% during the first half of 2025, as they stocked up before tariffs were imposed in April. Additionally, there was a surge in sales as consumers rushed to secure pre-tariff pricing in March and April, leading to a 3.9% increase in new car sales compared to the first half of 2024. The increase in new vehicle purchases raised the supply of used cars, as many customers traded in their vehicles before the tariffs took effect. Consequently, used car prices dipped slightly in the first quarter of 2025 but rebounded with a 1.6% increase in the second quarter. Source: Getty Images According to data from , more than half of consumers said that the tariffs have influenced their decision to buy American-made cars. Additionally, over 73% of respondents would consider purchasing U.S.-built cars to avoid extra costs. Currently, the supply of pre-tariff new cars is depleting, and as a result, the study predicts that we should expect price increases in the near future. So far this year, the average price of new cars has risen by only $97; however, vehicles from the United Kingdom have become over $10,000 more expensive. In contrast, EU-built cars have seen an average increase of nearly $2,500. Meanwhile, the prices of vehicles from China, Canada, and Korea, as well as American-built cars, have decreased by an average of $200. In addition, Cars Commerce also found that EV buyers will be affected in the latter half of the year, as the federal $7,500 tax credit for new EVs is set to expire after September. In its survey of electric vehicle (EV) buyers, 53% said that the federal tax credits were a primary reason for their purchases, adding that it may be 'difficult' to maintain the momentum of 28 consecutive months of new EV inventory growth once the calendar hits October. Final thoughts The Trump administration and some lawmakers say they're trying to make cars more affordable by imposing tariffs, but according to the consulting firm AlixPartners, these tariffs could cost the auto industry about $30 billion by 2026. Although manufacturers like Nissan and Volvo are taking localization concerns seriously with their recent plans to consolidate factories, trim the U.S. lineup, and move production of their top-selling vehicles to factories in the U.S., it should be reiterated that this isn't a simple flip of the switch; Volvo, for instance expects to make the first XC60s in South Carolina by 2026. Until then, those on the buyers' side have all the tools to find out which specific vehicles are 'American-made,' including the NHTSA's Part 583 American Automobile Labeling Act Reports, which are publicly available on their website. About the Author James Ochoa View Profile
Miami Herald
17 hours ago
- Automotive
- Miami Herald
Tariffs Are Making New Cars Even More Unaffordable, Says Study
New cars are expensive, but the latest data indicates that they aren't slowing down any time soon. According to data from Cox Automotive and Kelley Blue Book, the average transaction price for a new car reached $48,907 in June 2025, a 1.2% increase from the same period last year. Though it seems like a high amount, a quick glance at car-buying platforms and automakers' websites shows that there are many models on the market with MSRPs far below that threshold. However, a new study from the research department at Cars Commerce, the company behind shows that a few key factors will keep cars unaffordable. According to new data from Cars Commerce's Industry Insights Report for the first half of 2025, the impact of the Trump administration's tariffs on imported cars, as well as the threat arising from the end of Federal EV Tax Credits, would fuel an affordability crisis that can greatly impact the U.S. car industry. "With price hikes on many imports starting to emerge, the $7,500 federal EV tax credit set to expire in September, and the entry-priced segment now shrinking for three consecutive months, affordability remains the biggest challenge to continued growth," said David Greene, industry analyst at Cars Commerce. "How automakers respond in the second half - through pricing, production, and incentives - will shape the road ahead." Most notably, Cars Commerce found that the inventory of cars priced under $30,000 saw a massive dip. Per their data, cars under $30K made up just 13.6% of new car inventory in the first half of 2025. That number is a considerable loss compared to 2019, when such vehicles made up 38% of the market. In terms of dealer inventory, the segment saw 3.9% growth year over year (YoY); however, it lags behind the 5.6% overall increase for new-car inventory. The segment is the most exposed to tariffs, as about 92% of the cars sold under $30K are actually imported from overseas. Just two cars in that segment, the Honda Civic and Toyota Corolla, are built in the US, though some models are produced in Japan. At the same time, the segment that defined as the "mid-range new car segment;" which consists of cars costing between $30,000 and $49,000, accounted for nearly half of all inventory, though 50% of the vehicles in this price bracket are imported. The data suggests that automakers are adjusting to tariffs, as the share of imported cars within the $70,000-plus price segment increased from 40% in May to 41% in June. The study also shows that dealers increased their inventory by 5.6% during the first half of 2025, as they stocked up before tariffs were imposed in April. Additionally, there was a surge in sales as consumers rushed to secure pre-tariff pricing in March and April, leading to a 3.9% increase in new car sales compared to the first half of 2024. The increase in new vehicle purchases raised the supply of used cars, as many customers traded in their vehicles before the tariffs took effect. Consequently, used car prices dipped slightly in the first quarter of 2025 but rebounded with a 1.6% increase in the second quarter. According to data from more than half of consumers said that the tariffs have influenced their decision to buy American-made cars. Additionally, over 73% of respondents would consider purchasing U.S.-built cars to avoid extra costs. Currently, the supply of pre-tariff new cars is depleting, and as a result, the study predicts that we should expect price increases in the near future. So far this year, the average price of new cars has risen by only $97; however, vehicles from the United Kingdom have become over $10,000 more expensive. In contrast, EU-built cars have seen an average increase of nearly $2,500. Meanwhile, the prices of vehicles from China, Canada, and Korea, as well as American-built cars, have decreased by an average of $200. In addition, Cars Commerce also found that EV buyers will be affected in the latter half of the year, as the federal $7,500 tax credit for new EVs is set to expire after September. In its survey of electric vehicle (EV) buyers, 53% said that the federal tax credits were a primary reason for their purchases, adding that it may be "difficult" to maintain the momentum of 28 consecutive months of new EV inventory growth once the calendar hits October. The Trump administration and some lawmakers say they're trying to make cars more affordable by imposing tariffs, but according to the consulting firm AlixPartners, these tariffs could cost the auto industry about $30 billion by 2026. Although manufacturers like Nissan and Volvo are taking localization concerns seriously with their recent plans to consolidate factories, trim the U.S. lineup, and move production of their top-selling vehicles to factories in the U.S., it should be reiterated that this isn't a simple flip of the switch; Volvo, for instance expects to make the first XC60s in South Carolina by 2026. Until then, those on the buyers' side have all the tools to find out which specific vehicles are "American-made," including the NHTSA's Part 583 American Automobile Labeling Act Reports, which are publicly available on their website. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
CNBC
a day ago
- Automotive
- CNBC
GM says EVs are its 'North Star' as legacy automaker chases Tesla
The Chevrolet display is seen at the New York International Auto Show on April 16, 2025. While Tesla remains the No. 1 electric vehicle manufacturer in the U.S. by a wide margin, General Motors said on Tuesday it has secured the No. 2 position and believes it has an "inherent advantage" when it comes to EVs. Executives on GM's quarterly earnings call on Tuesday said the company is focused on reaching and improving profitability for its EVs. When asked on the call about how GM aims to do that when Tesla is facing the same uphill climb, GM CFO Paul Jacobson said the company's advantage lies in the diversity of its lineup across gas and electric vehicles, as EV demand fluctuates. "A lot is made about Tesla's simplicity and their scale," Jacobson said. "And clearly, within a couple of narrow segments, they do have that, and they've realized some good advantages. And hats off to them. It also leaves them overexposed to a demand set that has been highly volatile." GM currently has 12 EVs in its lineup, while Tesla has five models. Tesla does not break out sales by model, but lumps them together in groups. Jacobson's comments come as automakers are faced with changing demand for EVs, heightened by President Donald Trump's new tax-and-spending bill, which is set to end the $7,500 tax credit for new electric vehicles and $4,000 credit for used EVs after Sept. 30. Sales of new EVs in the second quarter of 2025 were down 6.3% year over year, which marks only the third decline on record, according to the auto industry forecaster Cox Automotive. Those sales amounted to a 4.9% uptick from the first quarter of 2025, according to Cox Automotive, which Cox Senior Analyst Stephanie Valdez said may represent the start of a rush to buy EVs before the tax credit ends. Valdez predicted there will be record new EV sales in the third quarter of 2025, followed by a collapse in the fourth quarter as the EV market adjusts to its "new reality" without EV tax credits. GM CEO Mary Barra acknowledged that EV growth has been slower than expected, but said on the earnings call Tuesday that "we believe the long-term future is profitable electric vehicle production, and this continues to be our North Star." Amid this fluctuating demand, a July 17 Barclays note said Tesla's demand and fundamentals remain weak, while its autonomous vehicle and robotaxi narratives have been front and center. In the second quarter, Tesla reported around 384,000 vehicle deliveries, a 14% year-over-year decline and its second straight quarterly decrease. Deliveries are the closest approximation of vehicle sales reported by Tesla but are not precisely defined in the company's shareholder communications. But Tesla is still the vast EV leader by far. GM's electric vehicle sales totaled 46,300 for the quarter, more than double the 21,900 a year ago. That's a relatively small portion of the Detroit automaker's total vehicle sales in the second quarter of 974,000. Cox Automotive noted that GM's 78,000 EVs in the first half of 2025 amount to more than twice the volume posted in 2024. Jacobson said on Tuesday's call that GM is prepared for changing EV demand because it has built flexibility into its manufacturing plants by investing in both EVs and internal combustion engine cars. "That built-in flexibility for us to switch between EV and ICE and make sure that we meet customers where they are is an inherent advantage that we have because we can absorb some of the costs of that manufacturing facility with more ICE production if EV demand goes down," Jacobson said. He highlighted GM's new investments in its Spring Hill plant in Tennessee and Fairfax plant in Kansas as an example of this diversification. GM announced last month that it was investing $4 billion in several American plants and is set to increase U.S. production of both gas and electric vehicles. GM said on Tuesday that Chevrolet holds the No. 2 spot and Cadillac sits at No. 5 in EV brand rankings. — CNBC's Lora Kolodny contributed to this report.
Yahoo
4 days ago
- Automotive
- Yahoo
Cybertruck Sales Are Dead in the Water
Just when you thought things couldn't get any worse for Tesla's Cybertruck, sales for the controversial pickup truck are circling the drain after dropping off a cliff. In numbers, the Elon Musk-owned automaker sold just 4,306 Cybertrucks in the second quarter of 2025, according to the latest data from Cox Automotive's Kelley Blue Book — a stunning 50.8 percent nosedive from the same period last year. Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You It's also a big dip from the quarter before, when Tesla eked out a barely more respectable 6,406 Cybertrucks (another estimate nudges the number up to around 7,100). In total, Tesla has sold a measly 10,712 Cybertrucks this year, meaning it's nowhere near matching the 39,900 units it delivered in 2024. And it's not even in the same hemisphere as Musk's characteristically ambitious prediction that the automaker would somehow sell up to half a million of the EV trucks per year. Unfulfilled promises sum up the Cybertruck's woes, whose bold styling and stainless steel exterior, once a unique selling point, have now singled out the vehicles for instant ridicule. Musk originally told his fans that it would sell for an affordable price tag of around $40,000. But the first Cybertrucks were sold for no less than an eyewatering $100,000. This year, Tesla started offering a stripped down rear wheel drive version for $70,000 to inspire sales, but the gambit appears to have failed. Promises that the truck would be "apocalypse-proof" have also turned out to be a bust. The Cybertruck has been hit with eight recalls so far, for reasons ranging from its accelerator pedal getting stuck in the down position to losing power while driving, to its glued-on body panels flying off. Drivers have reported their rides getting bricked after taking them through a car wash — remember when Musk teased they could double as a boat? — and even brand new ones straight off the dealership lot have ended up on the back of a tow truck. It's also horrendous at off-roading and driving through shallow puddles, making it a horrible pick for a doomsday scenario. Tesla is also suffering a crisis of reputation, as Musk drags its name through the mud with his chaotic dalliance with the Trump administration and his ceaseless spewing of far-right politics. Overall, the Cybertruck is quickly losing ground in the electric truck space, where pricetags are often north of $100,000. It's being outsold by the GMC EV Hummer, of which 4,306 were sold in the second quarter, a promising 53.9 percent bump from last year, per Cox's latest numbers. A more conventional EV truck, the Chevrolet Silverado, is also trending upward with a 39.2 percent boost, though it remains behind with 3,056 sales. Meanwhile, the Ford F-150 Lightning, the best-seller in this category, saw its sales fall by 26.1 percent, down to 5,842 units sold. Making the Cybertruck look good, however, is the Rivian R1T, which is clinging on to a paltry total of 1,752 units sold, which is barely more than half the sales from Q2 2024. So congratulations to the Cybertruck: it's not the absolute least desirable of its ilk in the market right now — but it's almost certainly the most polarizing. More on Tesla: Top Execs Fleeing Tesla as Dark Clouds Grow Sign in to access your portfolio
