Young Americans are giving up their cars. It's -2-

Historically, "whenever the U.S. market moved too far upmarket, a new competitor helped rebalance prices," Fiorani said. "In the 1950s, it was Volkswagen. In the 1960s, it was Toyota, followed by Honda in the 1970s. Hyundai arrived in the 1980s, followed by Kia in the 1990s."

However, protectionist regulations and tariffs are currently preventing lower-cost Chinese cars from entering the U.S. market, eliminating a potential source of entry-level vehicles, he said.

From the archives (April 2026): Americans would love this $25,000 hybrid SUV - but it's not available here yet

It's hard for car companies to "make money on vehicles" that cost less than $30,000 now, Tom Libby, director of loyalty solutions and industry analysis at Mobility Global, told MarketWatch, but recent developments show there is consumer demand for it.

The Ford Maverick, which was unveiled in 2021 at $20,000, has "done very, very, very well," he said, although it now costs $30,000.

Meanwhile, Slate Auto, the new electric-vehicle startup backed by Jeff Bezos, is taking preorders for trucks with roll-up windows that start at $25,000.

Even at lower prices, car makers will have to confront young consumers who are looking for alternatives to ownership. Dominic Berardi, a 21-year-old student in Orlando, Fla., has a car, but moved downtown and got a job as a server close by "because I was already planning to restructure my life around the transit that exists here, if at all possible."

For Berardi, independence no longer means having a car waiting outside. It means having the freedom not to rely on one.

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-Venessa Wong

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