The one market where a median-paid family can truly afford an average-priced new car is Washington, D.C.
The area where a car was least affordable? Miami/Fort Lauderdale/West Palm Beach. There, a median-income household can afford to buy a car worth just $13,577. The main point of this research is to illustrate how Americans are having to overextend themselves to pay for a new car at today's prices," says Bankrate analyst Claes Bell. "Low- and middle-income households are having to stretch loan terms to six or more years and/or spend huge percentages of their paychecks to afford reliable transportation, and it's very difficult to get off that hamster wheel of debt once you're on it."
Even today's average used-car price of around $19,200 would be hard for households in eight of the biggest metro areas.
In the past 35 years, the cost of a new car has gone up 35 percent, a used car is up 25 percent, and at the same time, the median household income is only up 3 percent,
New car prices remain high, but are starting to weaken
New vehicle sales are likely to level off 4% in June compared to the same month last year, according to one estimate.
But prices remain high.
With manufacturers continuing to announce production cuts at their plants following weaker consumer demand, it all but solidifies 2017 as a down year," said Tim Fleming, an analyst for Kelley Blue Book, in a statement.
Even though automakers are offering discounts on some models, prices have been on the rise.
The most affordable city to buy a car this year is Washington, D.C., with an 11.91 percent margin between affordable price ($37,223.41) and average price. Surprisingly, San Francisco, California comes in second with an affordable price of $32,286.08, 2.93 percent under the average price.
The car companies make FANTASTIC television commercials.
I guess a LOT of people love that "new car smell".
And they are "not bothered" by the payment book.😂😂🤣
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Cars used to be somewhat affordable people but they now continue to climb in price nd many people are opting to get a good quality second hand car.
One should never buy a new car anyway. You loose too much value in the first year, buy rather a car which is 1-2 years old.