119

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

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

90 comments fedilink hide all child comments

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.

you are viewing a single comment's thread
view the rest of the comments

[-] Greenleaf@hexbear.net 4 points 10 months ago* (last edited 10 months ago)

It used to be the case you could get a new car and take out a loan with the car company for 0-1%, or buy a used car and get a loan with the bank for 5-6%. I don’t think the car companies are offering those deals now but when they did, for the same monthly payment you could get like a $20k new car or a $13k used car. Given the risk of inheriting someone else’s mechanical problems + you don’t know how well they took care of it, in that specific case new could be the better use of money in the long run.

I’ve helped a couple friends buy a car. I usually say either go with the very low end of new cars, or buy some 15 year old Honda or Toyota that will run reliably for a while longer for like $5k