They’re all about that base, ’bout that base—all models. “Lower-priced cars are coming” was the automaker consensus during last week’s NADA (National Automobile Dealers Association) Show, which is good news for consumers on the affordability front. Just don’t expect the cheaper vehicles to be anything exciting.
According to Automotive News, the likes of Ford, Mini, Mitsubishi, and Ram will be bringing down the starting MSRPs of their existing crossovers and trucks by introducing new base or lower-end trims. Even Tesla is “on the cusp” of new affordable models, likely variants of the Model 3 and Model Y, reports Autocar. Right, and the cost of eggs will be, like, two bucks any day now.
For their efforts, General Motors and Volkswagen have already reaped the benefits of their bottom-of-the-barrel models, while Stellantis recently reintroduced a bargain minivan. Ah, notice a pattern?
If you were looking for news that the sub-$20K Mitsubishi Mirage or Nissan Versa were being brought back from the dead or that any current non-CUV would cost less than 20 grand (stick shift base Mazda 3, anyone?), you’d be searching for a very long time. Just because automakers de-content models or bring prices down doesn’t mean they’re going to do it with low profit-margin vehicles (i.e. cars).
The crossover is king. The Encore GX and Envista, both subcompact crossovers, had a gangbusters year as Buick‘s best-selling vehicles of 2024. The redesigned Chevrolet Trax had the brand’s best year-over-year sales increase and was the third-best-selling model overall. The small CUV starts at $21,495 (LS) and tops out at $25,395 (Activ), all of which cost less than the still-in-inventory base Malibu LS at $26,995. Other sub-$30,000 vehicles from Chevy are the Trailblazer and Equinox.
There could be cheap Chevy trucks in the future, too, if the Bowtie brand were to follow its Southeast Michigan frenemies. AN said Ram is planning lower-priced 1500 trims (after dropping the 1500 Classic), and Ford has a midsize electric truck due in 2027, but not before giving dealers more of the F-150 STX, a trim that costs nearly 40% less than the fancy Platinum.
On Background
If the SEMA Show is the industry convention for glitz and what-ifs, the more subdued NADA Show is where gonna-happen automaker plans are shared. The convention’s been around since 1917.
Rob Kaffl, Ford’s U.S. sales director, noted that the lower-priced trims could also be region-specific based on need. For example, hybrid trucks for Florida and 4×2 models with high tow ratings for Texas. The base Bronco also returns for 2025, and Ford has plans for cheaper versions of the Bronco Sport and Maverick.
“More than just customer behavior, dealers have told us there’s opportunity there where we might not have been aware,” Kaffl told AN.
Still, new vehicles remain too damn big and too damn expensive. The new vehicle average transaction price (ATP) was $49,740 in December, according to Kelley Blue Book‘s latest findings. KBB said the ATP increased in Q4 last year to nearly match the all-time high set in December 2022. Not only that, but J.D. Power said monthly loan payments hit an average of $756 that same month. However, the average dropped to $734 in January. I guess, yay? If only the NADA could help with those eggs.
