Tuesday, June 11, 2019

Demand for Cheaper Cars


Developing countries need to establish their own automotive companies and offer cheap basic cars and trucks that get good mileage, but don’t have all the expensive, nonessential electronics. These cars and trucks should be designed to serve their own citizens. If these cars are well designed and reasonably priced, other poor countries will also buy them and may start their own automotive companies.

Developed countries are concentrating on maximum electronics at maximum cost. These cars feature sensors, cameras, GPS, software for automatic breaking, conference phones, radios, music playing devices and other add-ons. They are selling new cars to wealthy individuals and failing to produce cars at prices average consumers can afford.

Poor citizens should have the option to buy cars and trucks without automatic windows and air conditioners. Cars made by low wage countries should use automation to ensure quality and ease of assembly and modern design tools to achieve good easy to manufacture designs with few parts and laser inspection of 3-D parts.

Henry Ford designed his assembly lines to lower the price of his Model T from over $1000 to under $400 to increase the number of potential buyers. Farmers were able to buy their own trucks and used them to deliver produce and pick up supplies.

The average price of a new car in 2019 is $35,000. Kelly Bluebook lists averages for type of car:
Small Cars $20,000
Midsize Cars $25,000
Small SUVs $26,000
Minivans $32,000
Midsize SUVs $33,000
Small Luxury Cars $39,000
Pickup Trucks $41,000
Small Luxury SUVs $42,000
Midsize Luxury SUVs $51,000
Midsize Luxury Cars $55,000


All Electric cars range from $31,000 to a Tesla 3 Loaded for $58,000 and higher.

There are small cheaper cars, light weight with small engines. They range in MSRP prices between $15,195 and $17,885. Highway mpg is higher than city mpg.

The Cheapest New Cars in 2019 are:
Chevy Spark $15,195 30 city 38 hwy mpg
Mitsubushi Mirage $15,585 36 city 43 hwy mpg
Nissan Versa $15,890 31 city 39 hwy mpg
Fiat 500 $15,990 24 city 32 hwy mpg
Kia Rio $16,195 28 city 37 hwy mpg
Ford Fiesta $16,330 27 city 37 hwy mpg
Hyundai Accent $16,880 28 city 38 hwy mpg
Toyota Yaris $17,470 32 city 40 hwy mpg
Chevy Sonic $17,595 24 city 34 hwy mpg
Honda Fit $17,885 33 city 40 hwy mpg

A 4 year Auto loan at 4% interest for a $15.000 car costs $339 per month. Total payments would be $16,257 and the interest cost would be $1.257.

Many people buy used cars that can last well over 10 years and get 300,000 miles. These cost from $3,000 to $12,000.

I like the 2019 Toyota Prius Hybrid with 54 city 50 hwy mpg priced at $23,770. Hybrids conserve gasoline in city traffic. The engine shuts off when you stop and becomes battery powered. Your battery is recharged when your gasoline engine is on.  We traded our Cadillacs in on Prius in 2005.
I have a 2005 Prius and a 2012 Prius.

Norb Leahy, Dunwoody GA Tea Party Leader

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