What features budget shoppers are and aren’t seeking
A survey from AutoPacific has found that car buyers seeking a new vehicle priced under $35,000 are more willing to sacrifice upgrades such as nicer upholstery, exterior styling enhancements, and immersive cabin technology to meet their budget. Still, the typical budget buyer wants certain modern features, such as wireless smartphone charging pads, active safety features, heated and ventilated front seats, driver profile settings, and outlets.
AutoPacific’s study was sourced from surveying over 14,000 new vehicle intenders about their interest in more than 160 features and technologies. Non-budget shoppers in this study were labeled as willing to spend over $35,000. The survey found that head-up displays had some of the most significant differences in demand, with 23% of non-budget drivers prioritizing the features compared to 15% of budget shoppers. Leather upholstery, a panoramic or all-glass sunroof, and selectable vehicle drive modes each showed a 7% difference in demand among these buyers, with non-budget drivers expressing interest in these features at 18%, 27%, and 33%, respectively. Reconfigurable digital gauge clusters, interior/exterior welcome lighting, and premium audio systems were cited as having a 6% demand gap between budget and non-budget shoppers, with the latter group wanting the first two features at rates of 27% and branded audio at 21%.
A Hyundai dealership in Richmond, California
Conversely, budget and non-budget drivers had more overlap in desired features like memory for the driver’s seat position, all-wheel drive, a heated steering wheel, and wireless Apple CarPlay or Android Auto. While demand for active and passive safety systems between these two groups is comparable, more significant differences exist in the types of features. For example, passive front and rear parking sensors were prioritized by budget and non-budget shoppers at 29% and 32%, respectively. However, budget drivers were 7% less interested in features like adaptive cruise control with active lane centering, with or without automatic stop capability.
Robby DeGraff, AutoPacific’s manager of product and consumer insights, said: “Base stereos, cloth seats with various manual adjustment, and analog gauges are ‘in’ for these more frugal shoppers, so the array of standard equipment found on entry- and mid-level trims of today’s popular vehicles within the $25,000 to $35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty.
Tesla ‘stripped-down’ strategy could appeal to budget buyers
Tesla is an automaker that appears to be mirroring budget driver preferences by developing stripped-down versions of its Model 3 and Model Y vehicles. Alongside today’s release of its Q2 financial results, Tesla confirmed that it manufactured the first builds of one of these stripped-down models in June. In its release, Tesla stated: “We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025.”
A Kia Sportage vehicle on display at a Kia dealership in Richmond, California
Final thoughts
Cox Automotive reports that the average transaction price of a new vehicle in June was $48,907, and budget buyers looking to spend $35,000 or less understand they’ll need to make some sacrifices. In turn, automakers can benefit from studying which features budget shoppers prioritize so they can rearrange their base offerings, as some less-desired features among this demographic are commonly found in entry-level grades, like head-up displays.
