‘American Auto’: Is It Really Possible To Make a $10,000 Car?
It’s next to impossible to build a new car you can sell for $10,000, but that isn’t the only reason why it’s a bad idea to try.
Written by Andrew Koole
Reviewed by Kathleen Flear
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
new car
for $10,000. The cuts needed to make money 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.
Jerry
did a little research to help explain.The problem with the idea of a $10,000 car
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.What are the cheapest new cars available?
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
Kia Rio
, Hyundai Accent, and Nissan Versa. 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
You might assume that buying a cheap new car will help you save on
car insurance
, 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
Jerry
. 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.
4.7
