When I was 9 years old I remember my parents surprising us and driving home in what appeared to be a large metal box with 4 bicycle tires attached. We couldn't believe our eyes as they pulled up in the driveway with a $3990 sales sticker still on the window. What was even more shocking was that this large metal box wasn't a box at all it was actually a brand new car called the Yugo. At that time the Yugo was just being introduced to the United States and they were marketing it as the world's most affordable car. We immediately hopped inside to take a look at the simple interior and went for a ride around the block. I immediately compared the ride to that of a roller coaster because from start to finish it just felt very unsafe due to the poor cheap quality of the car.
All it took was one ride to realize that $3990 was actually over priced for this hunk of garbage. The Yugo became quite the phenomenon for a few months, but very soon later most people started to realize that when it comes to quality and safety with an automobile, $3,990 wasn't going to get you very far. Within a year, the seats on the car both fell out, the clutch went bad, the heating system broke, and the engine was shot. At first we thought maybe we just got a lemon, but soon realized that this was common with almost every Yugo. The Yugo only lasted for a few years after becoming more of joke than anything else, as dealerships couldn't give that car away.
Now it's the year 2009 and similar to the Yugo, India is releasing the "Tata Nano" which is being advertised as the world's cheapest new car at roughly $2500. The Tata Nano is a small, rear-engined, four-passenger car aimed primarily at the Indian market and yet to be released to the United States. Newsweek identifies the Nano as a part of a "new breed of 21st-century cars" that embody "a contrarian philosophy of smaller, lighter, cheaper" and portend a new era in inexpensive personal transportation - and potentially, "global gridlock" . The Wall Street Journal confirms a global trend toward small cars, which includes the Nano. Now I don't know if the quality of the Nano will be as poor as the Yugo, but in my opinion $2500 for a brand new car sounds a little sketchy. As a comparison, here is a breakdown of some of cheapest new cars sold in America at the moment:
1. Nissan Versa: $9,990
2. Hyundai Accent: $11,070
3. Kia Rio: $11,495
4. Chevrolet Aveo: $11,965
5. Smart fortwo: $11,990
6. Toyota Yaris: $12,205
7. Kia Spectra: $13,550
8. Suzuki Reno: $13,839
9. Hyundai Elantra: $14,120
10. Pontiac G3: $14,335
Now, I'm not sure if the Tata Nano will ever make its way to the United States or if it is a quality automobile. However just from past experience with the Yugo, I will not be one of its guinea pigs lured in by the ridiculous cheap price!
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