Budget car buyers aren't driving the market - especially not the market for new cars. In the US income inequality has gotten to the point where most new cars are bought by upper income customers. And they want fancy SUVs. Budget car buyers purchase their cars in the used market. For them it would in fact make sense to purchase less expensive more efficient vehicles. But they don't get a vote (in theory a lower depreciation for such vehicles should flow up, but I don't think that signal really gets anywhere now.)
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