Why the Average New Car Costs $50,000

13 insights saved from this video by @money

@money· How Money & Economics Work
The F-150 generates an estimated 90% of Ford’s profit, including roughly $10,000 earned per sale.
@money· How Money & Economics Work
The PT Cruiser qualified as a light truck because removable seats and a flat floor made it a cargo van.
@money· How Money & Economics Work
Ford sells about 2,490 F-150s daily, one every 53 seconds, making it America’s best-selling vehicle for over 40 years.
@money· How Money & Economics Work
About one million annual car buyers have disappeared from the market. They did not simply choose a different dealership.
@money· How Money & Economics Work
By 2022, Ford had discontinued every model that was not an SUV, truck, crossover, or Mustang.
@money· How Money & Economics Work
A $20,000 new-car budget now yields no options, while $25,000 buys extremely limited and shrinking choices.
@money· How Money & Economics Work
The pandemic taught automakers that abandoning low-margin entry-level cars could be more profitable than serving budget buyers.
@money· How Money & Economics Work
Automakers and dealerships can earn more while selling fewer cars, weakening the incentive to restore affordability.
@money· How Money & Economics Work
Pickup prices rose 61% since 2009, while average pickup weight increased 32% between 1990 and 2021.
@money· How Money & Economics Work
Eighty percent of Americans finance new cars, and the average monthly payment has reached $777.
@money· How Money & Economics Work
Trucks now account for 84% of new cars sold in America, up from roughly half in 2011.
@money· How Money & Economics Work
Automakers earn more selling larger vehicles because their costly components barely cost more at bigger sizes.
@money· How Money & Economics Work
The economy can look strong while Americans feel shut out when everyday goods grow costlier and less welcoming.

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