Could be part of it, but the US just doesn't have cheap cars anymore. The days of the Geo Metro and the Dodge Neon with a 5 speed and crank windows is over. Car companies have decided to relegate people (in the USA) with either low income, or who cant stomach the type of depreciation every car suffers from, to the used market.

My (admittedly very, very limited) personal experience owning cars actually suggests cars are getting cheaper over the past couple decades. Specifically, my data looks like this:

- A new Honda Accord LX in 2003 was ~$19k

- A new Honda Accord LX in 2020 was ~$23k

In today's dollars, that's roughly $33k and $29k, respectively. These numbers are very approximate, but it means the same car model in 2020 was about 12% less expensive than the one in 2003. And the new version has a whole lot of improvements and features the old one didn't. (They cheaped out and removed the lock from the glove compartment though!)

Stepping back and thinking about the complexities that go into manufacturing a modern automobile, it's wild to me that they can cost so little compared to what you get. It's a machine that can travel 200+ thousand miles and last for decades with barely any maintenance.

Commercial-scale vehicles (semi trucks, busses) cost an order of magnitude more than personal vehicles, yet share many of the same complexities. Like, how are cars so cheap for what they are? Manufacturing volume, I guess.

The reality is that there's no margin in cheap cars. You need to look at numbers instead of vibes.

The difference between 4 crank-up window regulators and 4 power window regulators is less than $100. 4 power lock actuators cost less than $20. Switches for all the above are, what, maybe $10?

The same math applies to power mirrors, auto climate control, heated seats, cruise control, and all the rest.

The production cost of a car with "power everything" vs. "manual everything" is a few hundred dollars at most. But consumers expect a much bigger discount for the inconvenience of missing those features (or, conversely, are willing to pay a much larger premium to add those features to a baseline car).

That the US doesn't have cheap cars is simply the reality of what the market demands. Cheap (new) cars don't sell (for more than what it costs to produce them).

2026 Corolla is $25k.

I saw a manual transmission Nissan Versa for $17k.

How much cheaper can they get?