Are these really the problem? I feel like new cars are obscenely expensive right now. Even a basic car can easily run you 30-40k, the same thing a few years used will be The difference between a brand new car and a 10 year old car is almost nil in terms of featureset nowadays (if anything, you get more because you can buy a higher end older model for less), every car has all the basics. Cars just got so good over the…
Why there are no $3k-$4k cars? I am sure most people need cheaper cars, not electric cars, or AI cars, or cars with mobile app and telemetry. Those are toys for the rich.
In the first world, I'd say:
- the usual Big Government stuff (industry-specific regulatory, bureaucratic, & legal moats)
- brutal economies of scale for highly complex large manufactured goods
- public-good-doesn't-count-for-shit capitalism
That last one is especially brutal. If you could make $20K by selling one $80k SUV, vs. $20K by selling 100 $3k cars (each with a $200 profit) - then it's damned obvious which way you'd want to go. From marketing, to staffing your showrooms, to sales paperwork, to customer complaints, to the long-term legal and forced-recall liabilities - trying to sell the 100 affordable little cars is a 100X worse choice for you.