Ford exits U.S. budget segment; cheapest non-truck costs $33,840
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Ford has stepped out of the U.S. entry-level vehicle business, with its least expensive non-truck model now priced at $33,840. The move comes as vehicle prices and financing costs hit record highs. Nearly a quarter of buyers are stretching loans to 84 months or longer.
Key Facts
- Ford's least expensive non-truck now runs $33,840, while Chevrolet's entry-level model starts at $21,700.
- The average new vehicle sold in the United States went for $49,855 in July, the highest mark of 2026 and just short of the record $50,612 set last December.
- The average monthly payment on a financed new vehicle hit a record $777 in the second quarter.
- One in five buyers, 20.3%, signed up for payments of $1,000 or more, and nearly a quarter stretched loans to 84 months or longer.
- Buyers put an average of $5,815 down in the second quarter, just 11.6% of the purchase price and the smallest share since 2020.
Ford's Exit
Ford has stepped out of the entry-level vehicle business in the United States, retiring the category rather than a single model. The company's least expensive non-truck now runs $33,840, while Chevrolet's cheapest starts at $21,700. For most of the past century, Ford built its reputation on affordable models such as the Model T, Falcon, Escort, Focus, and Fiesta.
Transaction Prices
The average new vehicle sold in the United States reached $49,855 in July, the highest mark of 2026. The July average was up 1.9% from a year earlier and just short of the record $50,612 set last December. Erin Keating, executive analyst at Cox Automotive, said consumers continue to gravitate toward more affordable segments.
Financing Strain
The average monthly payment on a financed new vehicle hit a record $777 in the second quarter. One in five buyers, 20.3%, signed up for payments of $1,000 or more. Nearly a quarter of buyers stretched their loans to 84 months or longer, another record, and the typical borrower will pay $9,811 in interest before the title clears. Buyers put an average of $5,815 down in the second quarter, just 11.6% of the purchase price and the smallest share since 2020.
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Ford exits U.S. budget segment; cheapest non-truck costs $33,840
