Monday, May 7, 2018

No Cheap Cars in US


Auto companies are pricing new cars out of reach for most US consumers, but they buy them anyway. The cheapest cars available in the US range from $13.660 to $19,145.

The Ford Fiesta is $13,660. The Nissan Versa Sedan S Plus is $14,130. The Kia Accent SE Sedan is $14,745. But poor US consumers don’t buy these cars. They like the more expensive cars, even though they can’t afford them.

Before the 1960s, most families bought used cars with low mileage for about $700 and gasoline cost was 20 cents a gallon. The price of a new car in the 1960s ranged between $2000 and $4000. Now cars have been improved and will last 300,000 miles, but the cost is $20,000 to $40,000.

US consumers might do well to buy the Chinese Jiangnan TT that costs the Chinese less than $3,000. But they might not buy them even if they were available.

There are two economies in the US based on household income. The affluent market has incomes of $100,000 a year or more. They can afford to pay $20,000 to $40,000 for a car. The other market is everybody else. Income is reported in brackets. The lowest 10% is $13,488. The next 25% is $29,010. The 50% mark is $58,849.

Another website reports that US household income in tighter brackets:
11.2% earn $15,000 or less.
9.6% earn from $15,000 to $24,999
9.4% earn from $25,000 to 34,999
12.9% earn from $35,000 to $49,999
17% earn from $50,000 to $74,999
12.3% earn from $75,000 to $99,999
14.1% earn from $100,000 to $149,999
6.6% earn from $150,000 to $199,999
7% earn $200,000 and over

Those with incomes from under $15,000 to $50,000 amounts to 43.1% of all household incomes. This is a huge market for cars that cost $3,000, but they might not buy them.

Norb Leahy, Dunwoody GA Tea Party Leader


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