Car ownership in the US is becoming more expensive

Original Article ↗ Hacker News Discussion ↗

Rising US car-ownership costs are attributed less to an absolute lack of affordable vehicles and more to shifts in consumer preferences, safety regulations, and industry pricing tactics that favor larger, higher-margin models and option packages. Commenters note that while basic new and used cars still exist, insurance, repair, and energy costs are climbing, COVID-era price hikes have proven “sticky,” and quality concerns have grown. Many argue that long-term relief depends on better public transit and urban design so that owning a private car is not economically mandatory, especially for lower-income households.

Car prices, averages, and consumer choices

  • Many argue averages (~$49k new, $26k used) are misleading. Plenty of solid new cars exist in the ~$20–30k range (Corolla, Civic, Crosstrek, Versa, etc.).
  • Several posters think the main driver is preference shift toward bigger, nicer vehicles and luxury trims, not pure necessity.
  • Others note manufacturers have refined upselling: important features and even paint colors are bundled into expensive packages.

Desire for simple / “bare bones” cars vs regulation & demand

  • A strong minority want basic cars with minimal tech. Dealers make base trims scarce and push options.
  • Safety regulations (e.g., backup cameras) and consumer demand for smartphone integration push screens and complexity.
  • Some see backup cameras as clearly worth it; others suggest proximity sensors alone might suffice.
  • Base models often exist mainly to advertise a low starting price and are rare in inventory.

Used cars, longevity, and total cost of ownership

  • Several claim older, well-built cars (e.g., 80s–2000s Hondas, Volvos, Mercedes) can be extremely cheap per year if you DIY maintenance.
  • Others counter that the sub‑$3k “beater” market has thinned and rust, parts scarcity, and hidden problems are real risks.
  • Debate over whether post‑COVID new-car quality has declined; one side cites survey data on increased defects, the other notes survivorship bias and typical “new cars are worse now” media cycles.

Trucks, work needs, and alternatives

  • Work-truck owners note huge price inflation for heavy-duty pickups; some frame older purchases as “fantastic investments” in hindsight.
  • Suggestions include smaller trucks plus lightweight trailers, but others argue daily/weekly heavy hauling makes trailers impractical and hard to park.
  • Discussion that many half‑ton pickups are now luxury goods, while true work trims exist but are harder for retail buyers to access.

Insurance costs

  • Multiple posters report sharp premium increases even without claims, partly attributed to higher vehicle values and theft rates.
  • Mileage-based discounts exist but can be administratively painful to obtain.
  • Some U.S. states don’t require auto insurance, which is seen as either a benefit (lower costs) or a safety/quality concern.

EV economics and grid capacity

  • Conflicting views:
    • Some say home charging is “like running a dryer” and remains much cheaper than gas, especially where electricity is ~$0.09/kWh.
    • Others in regions with $0.14–0.36/kWh power and rising capacity costs argue EV operating costs are converging with gas, especially on fast chargers.
  • Ongoing debate about whether off‑peak “cheap windows” will persist once EV adoption is high; some think demand will erase discounts, others argue utilities can expand capacity over 10–15 years.
  • California is cited as an example where even off‑peak electricity can be expensive, making EVs more of a luxury choice.

Public transit, car dependence, and lifestyle

  • Several see rising car costs as a symptom of deeper issues: car‑centric land use, lack of robust public transit, and large vehicles making walking/biking less safe.
  • Others argue most Americans actively prefer cars, low‑density living, and flexibility, and that transit is often slow and inconvenient compared to driving.
  • Some posters describe shifting to one-car households, e‑bikes, or going car‑free with car‑sharing, but acknowledge this only works in certain cities.

COVID, pricing behavior, and dealers

  • Commenters suggest COVID supply shocks let manufacturers and dealers test higher prices; many feel prices stayed “sticky” afterward.
  • Experiences with email-only shopping show wide variation: some dealers still quote over MSRP and lean on “we used to charge even more” justifications.
  • Third-party buying services (Costco, magazines) are mentioned as ways to avoid haggling, though not always the absolute cheapest.

International and PPP comparisons

  • Posters from other countries note that U.S. cars and fuel are comparatively cheap; in places like India or New Zealand, similar cars represent far higher cost in purchasing-power terms.
  • Some speculate that high prices may inadvertently push younger people toward public transit and away from car ownership.

Environmental regulation vs “corporate greed”

  • One line of argument blames environmental policies (e.g., future ICE bans, emissions rules) for reducing ICE investment, pushing EVs, and raising costs.
  • Others lean on “corporate greed” and regulatory loopholes for SUVs as explanations.
  • Some say focusing solely on greed is unhelpful; the key is understanding why supply/demand imbalances allow high prices.