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return2ozma@lemmy.world to News@lemmy.world · 1 month ago

Here’s why there are so few new cars for under $30,000

arstechnica.com

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Here’s why there are so few new cars for under $30,000

arstechnica.com

return2ozma@lemmy.world to News@lemmy.world · 1 month ago
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Five years ago it was a lot easier to buy a car for less than $30,000.
  • jordanlund@lemmy.worldM
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    1 month ago

    It’s complicated.

    As someone who got to see this from the inside:

    1. When constructing a car, one of the key components is the wiring harness that bundles together all the wiring for the vehicle.

    Surprisingly most wiring harnesses used to come from Ukraine of all places. So when Russia invaded Ukraine, that completely disrupted the wiring harness supply.

    https://www.reuters.com/business/autos-transportation/ukraine-invasion-hurts-flow-wire-harnesses-carmakers-2022-03-02/

    To work around that, manufacturers had to come up with either new, stable suppliers or invest in their own production lines.

    1. Covid. As mentioned in the article, but there were multiple impacts on that. For example, it made it incredibly difficult to do lease returns. If people leasing their cars can’t return them, then they can’t get into new vehicles. Similar, re-sellers of lease returns and fleet vehicles have no stock because nobody is returning their lease.

    https://www.carscoops.com/2024/07/dealers-brace-for-the-next-pandemic-related-supply-issue-fewer-lease-returns/

    1. Tariffs. Also as noted in the article.

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