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You can get a brand new car for under $20K (e.g. Honda Civic or Honda Fit)

People buy $35K cars because they can.

Look at sales of something like the SmartCar. They were very low despite the car being $12K-15K as people were willing to pay more.




I think the SmartCar didn't sell in the US because the mileage was shockingly bad. You'd expect 100mpg for something that small and light. It didn't seem 'smart' to American buyers at all.


33 city, 41 hwy ?

Yeah it’s not amazing but people are buying trucks and SUVs with much worse MPG for more $$$.

People want the additional capabilities, safety, or even just the status symbol of having a nice truck or expensive car.


Yeah they improved it (double?) because it wasn't selling as it was?

Few were going to sacrifice comfort, room, performance for a tiny car with bad mileage. Just because its manufacture was 'eco-friendly'




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