The economic concept of opportunity cost is very prevelent in the video even though it is not directly stated. The economic impact that higher priced new vehicles forces middle and lower income households to wiegh the options of settling for a used car at a lower price, financing a new car at a term longer than the life of the car, or spending in essence a years worth of earnings on one new car. These are not the only options available to the consumer but I would argue that these three are the most common. If the consumer decides to opt for the more economic option of buying a used car the opportunity cost, or the next best option they give up may be buying a new car and financing it over a longer term.
That is true: going budget has an opportunity cost of whatever features your next most favorable option may have had. Having said that, what is the opportunity cost incurred by some Americans when the government mandates certain standards, say, safety standards?
It's a good point that most people in the US are left with these three options to decide what value looks like in these vehicles.
I agree. There are often three options available for the average American when looking to buy a new to you vehicle. It can definitely be hard in the modern day due to cost and salary.