The newest addition to the full-sized all-electric pickup market from Detroit’s Big Three automakers is the 2025 Ram 1500 REV.
Combining rugged exterior aesthetics with a luxurious interior, it boasts capabilities such as towing up to 14,000 pounds and powering a home during a blackout.
Officially revealed at last month’s New York International Auto Show, the REV is marketed as a no-compromise electric option for the traditional American consumer who might scoff at the idea of plant-based alternatives like Beyond Burgers.
However, this powerhouse comes with a starting price of $58,000—a figure exceeding the average annual income in many U.S. states.
For those seeking top-tier features, the price of the REV climbs to $100,000 a sum that could secure a three-bedroom home in cities like Milwaukee or Cleveland.
This pricing trend appears poised to continue as more vehicles debut at the North American International Auto Show in Detroit this fall.
Gone are the days when major city auto shows enticed potential buyers with high-end dream cars while offering more affordable options. Today, even the so-called “reasonable” vehicles are priced high enough to make budgets stretch thin.
Data from Edmunds, a prominent car consumer guide, shows that the average transaction price for a new vehicle has reached $47,713—a 33% increase from five years ago.
“We’ve come to this point where there are so few truly affordable options,” says Jessica Caldwell. “In discussions with my team, I asked, ‘Can you even buy a new car for $20,000 anymore?’”
The answer is slim pickings. On display at the New York show, the subcompact category offered a few remaining options. Entry-level models like Toyota’s Corolla and Honda’s Civic can still be found at that price point, along with a fully-loaded Kia Rio.
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A four-wheel-drive Subaru Impreza costs about $5,000 more, and the Nissan Versa rounds out the options.
With American automakers having abandoned small sedan production three years ago to focus on higher-margin SUVs and trucks, Asian manufacturers dominate this shrinking segment.
“And let’s be honest,” says Tom McParland, a seasoned car-buying consultant, “people only bought those small cars because of the heavy rebates and discounts that made them cheaper than imports. Automakers were losing money on every one they sold.”
According to Edmunds, vehicles priced under $20,000 now make up just 0.3% of the market, down from 8% five years ago.
Similarly, vehicles under $30,000 have shrunk to 17% of the market, compared to 44% five years ago.
These cars are mostly purchased for fleet use or rideshare services rather than personal use, Caldwell notes. “Individuals aren’t saving up to buy these cars anymore.”
Demand for trucks and SUVs has fueled record profits for automakers since 2020, despite the pandemic-induced supply chain disruptions and the rise of remote work.
The advent of electric vehicles (EVs) has further complicated affordability. Automakers often retrofit affordable cars with costly battery technology, prompting government intervention through tax credits.
Even so, Chevrolet announced plans to end production of its Bolt EV, one of the most affordable electric options, despite a price ceiling of $25,000.
Nowadays, $60,000 is a standard asking price for new vehicles. Half of all full-sized trucks and 94% of large SUVs—today’s family cars—are sold at this price point.
Stable fuel prices, improved efficiency, and expanding electric options have only bolstered enthusiasm for these pricier vehicles. They also tend to offer better safety features compared to smaller cars.
Among subcompacts, only the Subaru Crosstrek earned passing marks for rear passenger protection from the Insurance Institute for Highway Safety.
Popular attractions at the New York Auto Show included the Volkswagen ID.Buzz retro van (starting at $45,000), the Jeep Wrangler 4xe ($55,000), and the 2025 Genesis GV80 Coupe ($70,000).
“Frankly, people with disposable income, established careers, and good credit aren’t buying a Honda Civic,” McParland explains. “They’re buying family vehicles.” He adds that these buyers have largely accepted the additional fees dealerships introduced during the pandemic to maintain profitability.
The rising cost of vehicles has significantly contributed to U.S. household debt. Auto loans now resemble mortgages, with terms extending up to 10 years.
According to the Federal Reserve, Americans hold $1.55 trillion in auto loan debt, taking out $62.2 billion in new loans monthly. This makes auto loans the third-largest component of consumer debt, behind mortgages and student loans.
The average monthly car payment has reached a record $716, and with ongoing bank instability, this liability could grow.
Relief is scarce in the used car market, where three-year-old vehicles averaged $27,768 in 2022, with monthly payments at $526.
Interest rates for used car loans hover around 10.26%, two percentage points higher than those for new cars. These figures exclude additional expenses like registration, insurance, maintenance, and repairs.
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For many young, urban residents with lower incomes, using rideshare services like Uber makes more financial sense than committing to a costly auto loan.
As automakers invest in driverless technology, personal car ownership could soon become as unattainable as homeownership in today’s economy.
“Cars remain an emotional purchase,” Caldwell notes. “Seeing a car and imagining your life with it can seal the deal.
But as we shift toward autonomous technology and remove the driving experience, how strong will that emotional pull remain? Especially for younger generations already accustomed to not owning a car.”
While fully autonomous vehicles are still on the horizon, the decline of affordable, entry-level cars signals a significant shift in the automotive landscape.