Rising Car Prices Drive Consumers Toward Affordable Models
With new car prices reaching record highs, buyers are increasingly opting for more economical choices. Recently, Mitsubishi and Nissan, which form a significant partnership in the automotive industry, released their U.S. sales figures for the second quarter of 2024. Both manufacturers are seeing impressive sales for their budget-friendly models, particularly the Mitsubishi Mirage, which has surged by 85.5% year-to-date compared to the same period last year.
During the second quarter of 2023, Mitsubishi sold only 1,974 Mirages, which includes both the hatchback and the G4 sedan. This year, that number has risen to 4,859 over the same timeframe. The base price of the Mirage stands at $17,840, although a sportier trim with a Ralliart appearance package costs about $2,200 more. While it may not enhance performance, it certainly offers an appealing look.
The Nissan Versa also maintains its place as an affordable option. Having tested it myself five years ago during its launch, I found it to be a dependable vehicle priced at $17,820. The Versa’s sales have risen significantly, with a year-over-year increase of 45.3% reported in the second quarter. In total, Nissan has sold 17,812 units in the first half of 2024, an increase of 6,798 cars compared to the same period last year.
The Kia Rio, which has long competed alongside the Mirage and Versa in the budget subcompact market, is no longer available as Kia discontinued it following the 2023 model year. Kia is preparing to introduce the new K4, which looks promising but is expected to be priced higher than the budget-friendly Mirage and Versa.
Given the recent trends, the K4 may not encounter the same market competition as the Rio did, especially as speculation grows about the future of the Mirage. Mitsubishi has already stopped selling the Mirage in Japan, and it is believed that this may be the second-to-last model year for the vehicle. This indicates a potential push from Mitsubishi to sell off remaining inventory quickly, perhaps even suggesting that they could benefit from adding Ralliart decals to every hatchback still in stock.
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