Sep 10, 2026 · 20 min
Automakers turned new cars into luxury purchases
What Happened to the Affordable Car?
Rising vehicle prices, financing costs, insurance, and repairs are reshaping who can afford a new car and how long others keep older ones.
- 1Automakers prioritized profitable trucks and SUVs, shrinking the market for simpler, lower-priced cars.
- 2Pandemic-era price increases and higher interest rates pushed monthly payments beyond reach for many buyers.
- 3A widening divide lets automakers profit from wealthy buyers while others turn to older or modestly newer used vehicles.
Don't miss
Josiah’s attachment to his 30-year-old Toyota T100 makes the affordability crisis tangible: the truck remains useful precisely because newer alternatives cost so much.
The brief
A carpenter’s 1993 Toyota T100, Chachi, still does the job because replacing a practical work truck with a costly new vehicle makes little sense.
Sharon Terlep explains how purchase prices, interest rates, insurance, and repair bills are keeping Americans in older cars longer.
After the financial crisis, automakers shifted toward profitable trucks, SUVs, and crossovers, leaving fewer affordable sedans and hatchbacks behind.
Pandemic shortages lifted vehicle prices, and higher borrowing costs kept them elevated, turning monthly payments into a barrier for many buyers.
The market has become K-shaped: automakers sell expensive vehicles to wealthier consumers while others seek used cars or hope simpler models return.
Featuring
Sharon Terlep
Toyota T100
Ford MotorsListen to the full episode and explore every guest, topic, and moment on PodLume.