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Americans can no longer afford their cars (www.newsweek.com)

submitted 10 months ago by jack@hexbear.net to c/urbanism@hexbear.net

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But as things stand, cars are still really expensive for many Americans. Just 10 percent of new car listings are currently priced below $30,000, according to CoPilot. Things are not much better in the used car market, where only 28 percent of listings are currently priced below $20,000.

According to an October report by Market Watch, Americans needed an annual income of at least $100,000 to afford a car, at least if they're following standard budgeting advice, which says you shouldn't spend more than 10 percent of your monthly income on car-related expenses.

That means that more than 60 percent of American households currently cannot afford to buy a new car, based on Census data. For individuals, the numbers are even worse, with 82 percent of people below the $100,000 line.

$100k to afford a car! Wtf.

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[-] OgdenTO@hexbear.net 25 points 10 months ago

I love these deranged financial rules of thumb developed in a tiny slice of time in america that everyone is supposed to live by.

30% to housing, 10% to cars

These were made in the 70s and 80s I guess? Not only is today so different that these guidelines are fucking stupid, but even in the 70s the world was still recovering from post war boom. Prior to WW2 the economy was completely different! People didn't save, there were widespread recessions, from nance didn't have the stranglehold that it did moving into the 70s and 80s too.

I bet someone looked at their finances in like August 1976 and made up rules that persist to this day and are absolute fantasy

[-] 7bicycles@hexbear.net 19 points 10 months ago

It's not really bad advice just because it's unrealistic advice

[-] frogbellyratbone_@hexbear.net 13 points 10 months ago

i think the guidelines are probably still accurate it's just that you have to sell your firstborn child to a witch in order to live securely by them in our hellscape society

[-] OgdenTO@hexbear.net 14 points 10 months ago

I feel like all financial advice (uttered by the deranged to make people feel guilty about not living up to their personal responsibility) is delivered as if it is mystical knowledge passed down through the ages. When in fact, economies change so often that it wasn't even relevant 20 years before it was created, and is no longer relevant today. Like, were people using government savings plans and putting aside 10% of cheques in 1850? We're they creating education savings plans in 1900? Heck, banks did most of the work for people in managing finances in the 1950's - work thats now downloaded onto every individual to try to scam them through making The Wrong Choice.

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