Why cheap cars disappear from the market

Off-road vehicles are preferred, and among the reasons to buy one of these vehicles are comfort, space and safety.

Although there are still very cheap options in the car market, American buyers are increasingly choosing to invest in vehicles with a higher value, which is causing the slow extinction of economic vehicles.

This was the conclusion reached by a report by the television network CNBC, which attributed the trend of buyers to the comfort, safety and even space that a car with a higher price can offer.

According to the report, sales of cars worth less than $20,000 have been on the decline since 2014. In fact, 2020 is set to be the year with the lowest cheap car sales in almost a decade.

This also means that commercial vehicles are getting more expensive. However, car consumers are more than willing to pay for them.

There are two main reasons behind the increase in sales of more expensive cars.

One of them is related to the profit that a car manufacturer can make. If the car is more expensive, the manufacturer earns more.

The second has to do with the advent of SUVs, a type of car that has monopolized most of the sales in the market in just a decade. From 30% to 51% between 2009 and 2020.

Manufacturers have been focusing on SUVs in recent years because American buyers are buying more of them, and comfort, space and safety are among the reasons to buy one of these vehicles.

Thus, it can be said that the added value of the most expensive cars exceeds the low price that a car costing less than $20,000 can offer, the report says.

Here is a video that explains how car sales have evolved over the years.