Article

2023-09-17 Economy

Half Of Americans Are Priced Out Of The Car Market. Here's Why

[Daily Caller] Half of Americans have been priced out of the car market as real increases in income have been outpaced by the rising cost of car loan payments due to both a decrease in supply and rising interest rates driving up costs, according to experts.

The average monthly payment as of the second quarter of 2023 for a loan on a new car was $729, up from $672 in 2022 and $582 in 2021, while the average loan payment for a used car in 2023 was $528 per month, compared to $519 in 2022 and $440 in 2021, according to Experian. In the same quarter, median monthly earnings for Americans were only $4,428, with financial experts recommending spending no more than 10% of one’s income on car loan payments, putting the recommended amount for an average American at $443 for a monthly payment, which is below the cost of the average loan payment for both new and used cars, resulting in many Americans not being able to afford a vehicle.

Posted by Besoeker 2023-09-17 03:40|| || Front Page|| [18 views ] Top

#1 Our last NEW vehicle (2019 Dodge Journey) cost us just over $17.5K with a 120K extended warranty.

The similarly equipped, 2023 Dodge Journey, has a MSRP of $28,500 w/o the extended warranty.

That works out to a 62.85+ % increase.

HOWEVER,
My company retirement check has not increased.
An according to AARP my SSA check increased about 17.5% since 2019.

So we would need 45.35% more income to purchase basically the same vehicle, and that's not counting the 14% to 31% Shrink-flation economy.

Add to that, the UAW now is striking for more Pay and Benefits?

Some say. See the trickle down effect of making minimum wage $15 p/hr for flipping an hamburger does to the economy?

Posted by NN2N1 2023-09-17 07:09|| 2023-09-17 07:09|| Front Page Top

#2 If manufacturers lose money on each sale and consumers can’t afford to buy the product anyway, there is no incentive to prevent the strike or resolve it.

Posted by Super Hose 2023-09-17 07:45|| 2023-09-17 07:45|| Front Page Top

#3 "We lose money on every sale, but we make up for it in volume"

Posted by Frank G 2023-09-17 08:02|| 2023-09-17 08:02|| Front Page Top

#4 ^^ Kinda like a Ponzi scheme.

Posted by Mullah Richard 2023-09-17 09:21|| 2023-09-17 09:21|| Front Page Top

#5 Check out the dealership interest rates for new or used car loans. The days of "zero or one percent interest" appear to be history.

Posted by Besoeker 2023-09-17 09:23|| 2023-09-17 09:23|| Front Page Top

#6 The automaker CEO's have gone green (note the thumb in the eye of the UAW with the move to EV). The green people are the reason fossil fuel autos are no longer affordable for the human race.

Posted by Enver Dingle4916 2023-09-17 10:50|| 2023-09-17 10:50|| Front Page Top

#7 ^ and mileage regulations. I can't seem to find this degree of micromanagement in the Constitution.

Posted by Procopius2k 2023-09-17 11:35|| 2023-09-17 11:35|| Front Page Top

#8 ^^^
Did you check in the "Penumbra Annex" P2K?
Its back there in Section 234.345 behind the Commerce Clause Gaslight Generation Room!

Posted by NoMoreBS 2023-09-17 11:43|| 2023-09-17 11:43|| Front Page Top

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