The Latest EDMUNDS DATA SHOCKS The Auto Industry | Episode 1097

The Honda CR-V is a mainstream compact SUV, and this segment uses it as a real-world example of how pricing can jump over time. Here, the host compares the 2016 CR-V LX to the 2026 base model and highlights what features (and omissions) changed alongside the price.

MSRP (Manufacturer’s Suggested Retail Price) is the sticker price a manufacturer sets for a vehicle before taxes, registration, dealer fees, and add-ons. In this segment, “base MSRP” is used to compare the starting price of the CR-V across different model years.

A naturally aspirated engine makes power without a turbocharger or supercharger, relying on atmospheric pressure and engine design to draw in air. The “2.4 liter” part refers to engine displacement, which is the total volume of all cylinders.

Automatic emergency braking (AEB) is a safety system that detects an imminent collision and applies the brakes automatically to reduce speed or help avoid the crash. It’s commonly paired with forward-collision warning.

Lane keep (often part of lane-keeping assist) helps keep the vehicle centered in its lane by providing steering or corrective input when the car drifts. It typically relies on cameras and lane markings.

Wireless charging in a car usually refers to a charging pad that powers compatible phones without plugging in a cable. It’s a convenience feature that became more common as infotainment and connectivity expectations rose.

Push button start replaces a traditional key turn with a button that starts the engine when the key fob is detected. It’s part of the broader shift toward keyless convenience features.

Average transaction price is the typical amount buyers actually pay for a vehicle in real sales, not just the sticker price. This segment contrasts the CR-V’s base MSRP with the broader market’s average transaction price for 2026.

Honda Sensing Suite is Honda’s package of driver-assistance features, typically including things like lane-keeping and adaptive cruise control. When it’s included on all trims, it raises the “standard equipment” level even on the cheapest versions.

Adaptive cruise control is cruise control that automatically adjusts speed to maintain a set distance from the car ahead. It’s more complex than basic cruise control and is often bundled with other driver-assist features in a safety suite.

18-inch alloy wheels are larger wheels made from an aluminum alloy, typically paired with lower-profile tires than smaller wheel sizes. Wheel size and material affect ride feel, tire cost, and how manufacturers spec “base” trims.

Automatic climate control automatically regulates cabin temperature using sensors and actuators, rather than requiring manual fan/temperature adjustments. It’s a common convenience feature that can be included on more trims, narrowing the gap between base and higher-priced models.

This refers to a market shift where very low-priced new cars are becoming scarce. The speaker ties it to Edmunds data, arguing that buyers are increasingly forced into higher-priced trims because the cheapest options are disappearing.

“Base models” are the lowest-trim versions of a vehicle, typically with fewer standard features and a lower starting price. The discussion here is about how removing base models raises the effective entry price, making it harder for lower-budget buyers to move up to newer vehicles.

In auto-industry talk, “affordability” usually refers to whether typical buyers can realistically afford a new vehicle at current prices and financing costs. The host’s point is that the industry has been discussing affordability without changing product strategy enough to actually lower entry prices.

“Decontent” means removing features/equipment from a vehicle to reduce cost and lower the selling price. In this segment, the host argues automakers could decontent (simplify) cars to bring prices down and improve affordability.

A “decontented” vehicle is a version of a model with fewer features or options than the standard trim. Automakers do this to hit a lower price point when demand is price-sensitive or when they need to protect margins.

This refers to automakers committing too much investment and production capacity toward electric vehicles before the market demand and economics were ready. The result can be financial strain when sales don’t scale as expected or when costs remain high.

Profit margin is the percentage of revenue that turns into profit after costs. In car pricing discussions, “lower profit margin cars” means the automaker earns less money per vehicle, even if it sells more units.

“Entry point” here means the lowest-priced trim that functions as the practical starting option for buyers. When the entry point moves from a base trim to something like the EX, the model’s real starting cost rises even if the vehicle name stays the same.

A freight charge is the added cost to move the vehicle from the factory to the dealership. In this segment, the host notes a nearly $1,250 freight charge that increases the effective year-over-year cost of the CR-V’s entry price.

Trimflation is when automakers effectively raise the price of a model by removing cheaper base trims and pushing buyers toward higher trims. Instead of changing the vehicle’s headline “base” price, the lineup is reorganized so the entry point becomes more expensive.

This is a shorthand concept for a widening split in the market: higher-income buyers can afford the more expensive vehicles, while lower-income buyers are squeezed out. The host ties it to the data showing more of the market shifting toward higher-priced SUVs and pickups.

The host is describing a pricing shift in the large three-row SUV segment: what used to feel “affordable” is now priced like a premium product. When most sales move above a certain price threshold, shoppers who want a large family SUV end up priced out.

“Three rows” describes seating layouts with capacity for multiple passengers across three separate seat rows (front, second, and third). It’s a key differentiator for large family SUVs because it determines how many people can ride together.

A “comeback” refers to a reversal of a prior sales decline—minivans gaining share again. The host ties it to economics: minivans are typically $10,000 to $20,000 less than comparably equipped large SUVs.

“Stow away” refers to seats that fold into the vehicle floor or otherwise disappear to create more cargo space. In minivans, this is part of the modular interior design that makes them more flexible than many SUVs.

A “market adjustment” here means consumer demand shifting between vehicle categories due to pricing and value changes. As SUVs get more expensive, buyers look for alternatives that deliver similar family utility for less money.

In automotive, “chips” usually means semiconductor components used in engine management, infotainment, driver-assistance systems, and many other electronics. Chip shortages can limit production and raise prices because automakers can’t build complete vehicles without them.

The Honda Odyssey is a minivan built around family hauling, with a focus on interior space, sliding doors, and easy access for passengers. In this segment, it’s mentioned as part of a comparison of van pricing versus SUVs, highlighting how minivans can be positioned as a more affordable alternative.

The Kia Carnival is a modern minivan that blends family practicality with a more upscale, SUV-like look and features. Here, it’s used as an example while discussing how van pricing varies and why minivans are gaining popularity compared with more expensive SUVs.

MSRP (Manufacturer’s Suggested Retail Price) is the sticker price a carmaker sets for a vehicle before taxes, registration, and dealer fees. In this segment, “original MSRP” is used to compare how different vans start at different price points.

“Monthly payment math” refers to how loan terms and interest rates translate a car’s price into a monthly payment. When rates rise, the same loan amount can produce a higher payment, which can make cars feel less affordable even if prices don’t rise as much.

“Payment shock” is the idea that monthly payments can jump quickly due to financing conditions like interest rates. It’s a different signal than price increases because payments are heavily driven by loan rate and loan structure.

A basis point (bp) is a unit used to describe interest-rate changes, where 1 bp equals 0.01%. So a 320-basis-point increase means the rate rose by 3.20 percentage points.

Auto loan rates are the interest rates charged on financing for a vehicle purchase. Even if sticker prices don’t change much, higher loan rates increase the monthly payment because you’re paying more interest over the loan’s life.

Loan term length is how long you have to repay an auto loan (for example, 36, 60, or 72 months). Longer terms can lower the monthly payment, but they often increase total interest paid over time.

The Toyota RAV4 is a compact SUV known for being practical for everyday driving and family use. In the podcast context, it’s being discussed because demand is high enough that buyers may face long waitlists to get one. That kind of availability issue often comes up when a popular model is selling faster than it can be produced.