American Auto is NBC’s new sitcom following the everyday life of employees at a car company, but it actually tackles some tough questions. In a recent episode, it followed the Ford-like Payne Motors in their quest to build a
off the Pika were hilariously unrealistic, but the point still holds: the cost to manufacture a car today makes it next to impossible to build one you can sell for $10,000.
But the story doesn’t end there. Because, at the end of the day, the problem isn’t whether making a $10,000 car is possible but whether there’s a point in building one in the first place.
Today’s cars are looking less and less like the machines we called cars 20 years ago. Tech advancements are now hugely integrated into vehicles, from the entertainment we consume while driving to the way the car keeps us safe. It all makes cars more expensive to make.
This would be all well and good if drivers could opt out to save money, but safety regulations have kept up pretty well with the available features. Even gadgets like backup cameras, which were rare in the ’00s, are now legally required in all vehicles.
But even if car companies could bring their manufacturing costs down enough to sell a car for $10,000, there likely wouldn’t be much of a market for one. Indian automaker Tata Motors’ failure with its Nano shows that most people would rather buy a nicer, used model for that price.
MORE: AAA Says Annual Cost of Car Ownership Is Heading Toward $10,000
If you’re one of those people who are sold on buying new but want to spend as little as possible, your price range will have to be between $15,000 and $20,000 rather than $10,000—and even that segment is small.
The Chevy Spark and Mitsubishi Mirage are the cheapest two models available, followed by the
Of all these options, the Rio is probably your best bet, as it outperforms anything cheaper than it on fuel efficiency while managing a starting price under $18,000.
But remember—you get what you pay for. Every model under $20,000 comes with a significant downside, whether that be dull steering, slow acceleration, or bare-bones standard features.
Insurance coverage for cheap new cars
MORE: A Cheaper Car Doesn't Always Mean Cheaper Car Insurance Rates
You might assume that buying a cheap new car will help you save on
, and in some cases, you’d be right. But it’s not a hard and fast rule because cheap cars often cut out safety features. Fewer safety features can mean higher premiums.
The best way to make sure you’re getting the best deal on car insurance is to shop for a policy with
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.