Study Says Most Americans Can't Afford To Buy A New Car

Increased safety, more complex infotainment systems, higher quality materials - they all add to the complexity of modern vehicles, which in turn increases their costs. Nobody asked us whether we wanted all this, but since we continued to buy them, the manufacturers simply assumed.

And it worked - at least so far. We even managed to go through a financial crisis without too many casualties in the automotive department, and now the market is on a high. And yet a new study by Bankrate (via AutoGuide) discovered that a U.S. median-income household can only afford the average-priced new car in one of the 25 largest metropolitan areas.

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MDarringer - 6/29/2017 8:56:31 AM

-1 Boost

They CAN afford to buy a car. They just can't all buy the car of their dreams and visions. Ask anyone in the sales industry and you'll hear then say that people have champagne dreams and beer income. That why 84 month financing exists.

Vette71 - 6/29/2017 9:54:51 AM

+1 Boost

Considering the projected trend toward not owning a car but only paying when you use one these numbers support that option as a very viable market.

TheSteve - 6/29/2017 10:39:37 AM

+1 Boost

My guess is that you don't know any people who take the bus for 2 hours to get to their 10-hour job that pays just barely enough to get by. It's hard to make a case for them and a "pay as you go" car rental plan.

MDarringer - 6/29/2017 4:07:53 PM

-3 Boost

Of course, if you're taking a 2-hour bus ride to get to a 10 hour job you (1) are an anomaly and/or (2) have made stunningly stupid life choices.

Vette71 - 6/29/2017 11:13:45 PM

+1 Boost

Steve. Any business such as pay as you go use of a car has to be affordable to the user to make a market. The lack of NEW CAR affordability applies to even middle class millennials, college grads where buying, insuring, maintaining, etc. something that sits idle 80% to 90% of the time in reality costs more than using a vehicle when you need it. Services such as these are already popular in cities like Seattle and Boston. If these folks buy a vehicle it is a used one. New doesn't fit their budget. Your bus rider cannot afford any car, new or used.

TheSteve - 6/29/2017 3:07:13 PM

+5 Boost

BobM: Racism and bigotry is ugly, no matter how your dress it up :-(

TheSteve - 6/29/2017 10:36:18 AM

+5 Boost

Most Americans are having a much harder time, financially speaking, than readers here might suspect. Most politicians are completely out of touch with that, due to their millionaire and billionaire pedigrees. They just can't relate to the common man.

countguy - 6/29/2017 12:23:50 PM

+3 Boost

Exactly!

MDarringer - 6/29/2017 4:10:03 PM

0 Boost

And we have the punitive taxation and job destruction by the Democrats to thank for that.

And Steve, you are a hypocrite because you are far from a "common man" so stop acting like somehow you have an understanding of their plight.

You're Mr. "I drive an Audi but I'm planning to buy a $100K Porsche".

TheSteve - 6/30/2017 11:26:38 AM

+3 Boost

^^^
MDarringer: Hmmmm. I guess the only person who could write about illiteracy, and not have you view them as a hypocrite, would have to be illiterate. That's some curious thinking you've got there, Matt.