In my experience, at least in the US, most people aren’t getting rid of their car because a new car is cheaper, they do it because the cost to repair the old car exceeds the current car’s value. This is actually a very poor justification for buying a new car but it happens all the time. People get scared when they get a high repair bill and jump into a multi year auto loan costing 250+/month.
Cars are expensive here though so you’re unlikely to buy new for much less than 20k and the reality is most consumers aren’t buying base model cheap compact cars.
Of course you may be able to buy used cheaper but people who are afraid of repair bills aren’t usually rushing out to replace one old car with another.
In my experience, at least in the US, most people aren’t getting rid of their car because a new car is cheaper, they do it because the cost to repair the old car exceeds the current car’s value. This is actually a very poor justification for buying a new car but it happens all the time. People get scared when they get a high repair bill and jump into a multi year auto loan costing 250+/month.
Cars are expensive here though so you’re unlikely to buy new for much less than 20k and the reality is most consumers aren’t buying base model cheap compact cars.
Of course you may be able to buy used cheaper but people who are afraid of repair bills aren’t usually rushing out to replace one old car with another.