Are $10,000 cars becoming a thing of the past?

2011 Nissan Versa
2011 Nissan Versa

One thing that has certainly outpaced inflation by a decent margin since World War II is the automobile price index. As quality improves and amenities become more available, and car prices climb against stagnant wages, an important segment of economy cars seems to be on its last leg. There are currently two cars in the US market with starting price tags under $10K; the Nissan Versa and Hyundai Accent, and it seems as though that MSRP is in danger of rising.

Both models have undergone redesigning, and will be unveiled next week at the 2011 New York International Auto Show. It is unexpected that the cars will remain at their respective current price points, due to body style changes and increases in fuel-efficiency, which means there will be technological advancements that do not come at a modest price.

Both models will now be subject to electronic stability control, which isn’t required on current vehicles, but will be required on all vehicles after 2012. That technology added to the current models with no other improvements, is likely to push the price tag on each to above $10,000.

– By: Stephen Calogera

Source: Kicking Tires