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Think from KERA

American cars used to be affordable. What happened?

Think from KERA

KERA

Kera, 071003, Think, Society & Culture, Krysboyd

4.7911 Ratings

🗓️ 6 May 2026

⏱️ 46 minutes

🧾️ Download transcript

Summary

 The average new car in America costs $50,000, but how many people can actually afford one? Clifford Winston is an economist who specializes in transportation and microeconomic policy. He joins host Krys Boyd to discuss where the low-priced cars have gone, how all the new bells and whistles are squeezing those on a budget, and why even repair bills are now sky high. His article for The New York Times is “The Death of the Basic American Car.”   

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Transcript

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0:00.0

People in other countries can scoff at how much we Americans love our cars, but we know that

0:15.0

in many parts of this country, driving is the only viable option for getting where we need to go.

0:20.7

The fact that the average price of a new car in the United States is around $50,000 is stunning.

0:27.6

But the fact that you almost can't find a new vehicle for under 20,000, that is downright alarming.

0:33.6

From KERA in Dallas, this is think. I'm Chris Boyd. Sure, people who can't or don't want to pay for a brand

0:41.3

new car or truck or SUV can look to the secondhand market, but prices at used car lots are rising

0:47.6

just about as fast, and if we need to take them to the shop, the average bill there is now north

0:53.0

of $800. So why the mismatch? If many millions of

0:57.4

Americans need cars at budget prices, why are automakers not cranking them out? For the answers,

1:03.6

we have invited an economist who specializes in transportation and microeconomic policy. Clifford

1:09.5

Winston recently wrote an article for The New York Times

1:12.3

headlined the death of the basic American car.

1:15.8

Cliff, welcome to think.

1:17.1

Good to talk with you.

1:18.3

You remind us of the term in the 1970s for a certain kind of automobile.

1:23.5

What sort of car was considered an econobox?

1:33.3

Well, you know, Piotas, certainly GEOs. You know, there were many, you know, little cars that people drove in those days that weren't that expensive.

1:39.3

That's for sure.

1:41.3

And besides size, how were they different from the more premium models at the time?

1:47.0

Obviously, the prices were lower and they certainly did not have the attractive features.

1:55.0

Some of them certainly in terms of safety and other features that current cars have now. So certainly in terms of quality, you could argue that the cars have gotten better over time.

2:07.6

No question about that.

...

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