{"id":3689,"date":"2026-07-03T22:38:37","date_gmt":"2026-07-03T22:38:37","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=3689"},"modified":"2026-07-03T22:38:37","modified_gmt":"2026-07-03T22:38:37","slug":"the-25000-new-car-or-truck-is-an-endangered-species-heres-why","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=3689","title":{"rendered":"The $25,000 new car or truck is an endangered species. Here\u2019s why"},"content":{"rendered":"
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The car market has a pricing problem, and a new report from Edmunds.com says it\u2019s not going away soon.<\/p>\n

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The automotive website crunched the data and found the average transaction price for a new car and truck in the U.S. topped $48,000 last year.<\/p>\n

Further digging showed that the average for a new vehicle in California came to $49,611 in 2025. That\u2019s $10,000 more, or 26.7% higher, than 2019.<\/p>\n

RELATED: Tesla suffers No. 1 used-car price drop, by this math<\/strong><\/p>\n

Whatever happened to the new car you could buy for $25,000?<\/p>\n

\u201cIt doesn\u2019t exist,\u201d said Ivan Drury, senior manager of auto insights at Edmunds, who co-authored the report that came out last week.<\/p>\n

He\u2019s only slightly exaggerating. Seven years ago, one-fifth of new vehicles sold for $25,000 or under. But in 2025, the report said that figure dropped to 4.7% nationally.<\/p>\n

What\u2019s more, the sub-$35,000 segment that once represented 54% of the U.S. market now accounts for fewer than three in 10 sales.<\/p>\n

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The Edmunds report pointed out that many carmakers have discontinued low-priced subcompacts, such as the Toyota Yaris, the Nissan Versa and the Honda Fit. For years, consumers have flocked to SUVs and pickup trucks rather than sedans.<\/p>\n

\u201cYou look at it through two different perspectives,\u201d Drury said. \u201cDid these (subcompacts) even sell in volumes from the get-go? Or were they sitting on the lot, taking up space that could go to something that was more expensive that somebody actually wanted to buy? \u2026 It was kind of like self-selection.\u201d<\/p>\n

Another factor, Drury believes, is the proliferation of features \u2014 known as \u201ctrims\u201d in the parlance of the auto industry \u2014 at various price points that buyers are attracted to and often become increasingly reliant on.<\/p>\n

Options include the latest tech upgrades involving infotainment, leather interiors, 360-degree cameras and self-parking.<\/p>\n

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\u201cIf you\u2019ve had ventilated seats in the past, you are not going to go and buy (a vehicle) that doesn\u2019t have it,\u201d Drury said. \u201cThese things that were \u2018wants\u2019 back in the day are now \u2018needs.\u2019 I honestly think a lot of people would not be able to park their car without their backup camera. They wouldn\u2019t know that you\u2019re supposed to put your hand behind the passenger seat and turn your head. It\u2019s kind of crazy, but that\u2019s where we are.\u201d<\/p>\n

One would think consumers would find some financial refuge in the used-car market. But prices in that segment have risen at an even higher rate.<\/p>\n

A 3-year-old used car in California had an average transaction price in 2019 of $23,554. In 2025, the average price zoomed to $33,397 \u2014 almost $10,000 more, or a 41.8% increase, according to Edmunds data.<\/p>\n