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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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[-] AnarchoAnarchist@hexbear.net 23 points 10 months ago

Not only have cars gotten much more expensive, but the cost to finance the car has gone up dramatically.

A car that should be worth $20k now costs $35k. A few years ago that 20K would have had a 4% interest rate, now it's closer to 8%.