Cheap Cars are being slowly pushed off the market in the last few years. You might have noticed that it is unlikely to find a cheap and decent car in this era. Who is responsible for this and why is this happening?

The market of Cheap Cars and What’s Changed

When the invention of the car took off, the first vehicles on the road were very expensive. However, with the development of industry, production was faster and cheaper, making cars more available to the general public. Ford Model T was one of the early vehicles available to the masses.

Volkswagen was focused precisely on this cause, creating cheaper vehicles for people. Volkswagen also translates literally to ‘People’s car’. Cars like the beetle and ford mustang were beloved vehicles of that time, marking the era. Over time, cars have become available to almost anyone and the market has become unimaginably large.

However, today the things seem to be moving backwards as cars are getting more expensive. There are some vehicles which are cheaper but there’s an obvious problem with them – they don’t result in profit for automakers.

Relying on selling more cheap vehicles will result in a difficult position for the automaker. The costs are usually the same, whether they are making cheaper or more expensive vehicle. Only the cost of materials will rise, while they still have to pay for employees, marketing about affiliate media buying, product developing and operating costs.

Many cheap cars share parts with very expensive vehicles. Only that can tell you that by buying expensive cars, you are not necessarily getting better quality. Still, manufacturers are keen on making few exceptions and make cheaper cars which might not result in large profits. This will lure younger people who are usually first-time buyers – which might result in brand loyalty.

We all know someone who only drives a Ford, Mercedes or some particular brand of car, don’t we? Well, that’s exactly what manufacturers want. Even luxury car makers like BMW are making cheaper versions to lure younger customers.

The main reason cheaper cars are pushed away from the market is because of the buyers themselves. They are asking for more features and more equipment. At the same time, loans are more flexible, so people will rather spend a bit more and get what they want on a loan.