Americans can no longer afford vehicles

[CitizenVectron]

Americans can no longer afford their cars

WWW.NEWSWEEK.COM

---

Just 10% of new car listings are currently priced below the $30,000 mark, after years of price increases have made vehicles unaffordable to millions.

 

Quote

Both new and used car prices rose to record highs during the pandemic, as the car industry was experiencing supply chain disruptions and chip shortages. Since 2020, new car prices have risen by 30 percent, according to data shared by AI car shopping app CoPilot with Newsweek. Within the same timeframe, used car prices have jumped by 38 percent.

 

Quote

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.

 

Quote

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.

 

Obviously the $100,000 line is weird (because "traditional" %-based budgeting advice is always weird), but the reality is that vehicles are becoming unaffordable for many people.

 

Quote

"In November 2019, the average transaction price for a new vehicle was $38,500. In November of 2023, that figure jumped to $47,939."

 

[TUFKAK]

I make well into the 6 figures and I’ll never buy a new car again, so maybe don’t do that.

[Keyser_Soze]

Wow stealing content from @Remarkableriots now

 

 

[Ricofoley]

Surely a huge part of this is the fact that fuckin' everything is a truck or an SUV now, through a combination of drivers thinking those are the only safe cars and manufacturers using the fact that SUVs count as light trucks to game their CAFE numbers

[Commissar SFLUFAN]

"Americans can no longer afford [fill-in-the-blank]" might as well be an evergreen topic at this point.

[skillzdadirecta]

11 minutes ago, TUFKAK said:

I make well into the 6 figures and I’ll never buy a new car again, so maybe don’t do that.

Same here... I haven't owned a car since I was 17 and I LIVE in los Angeles 

[ort]

I kinda need a new (bigger) car and while technically I could afford a new car... every time I crunch the numbers I just can't justify it. I'm holding on to my car for as long as possible. The contrast between a new big car payment and the actual added benefit to my life simply do not add up.

 

It doesn't hurt that I honestly give zero shits about cars... I'm just not a car guy at all. I'll make my car work for a few more years and re-evaluate.

[Jason]

I totaled a Chevy Bolt in March 2020 (ridiculous experience, it was totaled because of ballooning labor costs from repeated cycles of the dealer's body shop tearing the thing down, putting it back together, and putting it on a truck from Long Beach to the Culver City dealership every time they hit an electric car system they weren't comfortable with), and now I'm basically stuck in the Elantra I went with because car prices have gone insane. I actually bought it out at lease end because of how expensive getting into another new car would have been. It's fine on the whole but I'd like something a little smaller and that's a hatchback, the trunk is a pain in the ass. The gas mileage is kinda shitty for local driving but I've also only put 6000 miles on it in nearly 4 years so it's not a huge deal other than it being annoying to have to go to the gas station once a month after getting used to charging at work when I had electrics. 

 

48 minutes ago, Ricofoley said:

Surely a huge part of this is the fact that fuckin' everything is a truck or an SUV now, through a combination of drivers thinking those are the only safe cars and manufacturers using the fact that SUVs count as light trucks to game their CAFE numbers

 

It's reasonably legit to want something bigger as a reaction to all the absurdly enormous vehicles on the road. People don't want to be in a Smart Car when they get plowed into by a F2500 Child Crusher. One of my exes wanted a Mini like she'd had in London, her dad made her get a Nissan Rogue because of all the huge vehicles on the road in the US. She didn't go all the way to an F2500 Child Crushers but she went up to something that an F2500 Child Crushers couldn't ride up on top of in a collision. 

[elbobo]

2 hours ago, TUFKAK said:

I make well into the 6 figures and I’ll never buy a new car again, so maybe don’t do that.

 

my wife got in an accident last year and her car was totaled, she was fine thankfully. I work from home so we did the one car thing for months while I searched and searched for a decent used car deal. I couldn't find a good deal to save my life, she really wanted another Subaru to replace what she had, 4 year old ones with 50k+ miles on them were going for 70-75% the price of a new one, it was absurd, we finally broke down an ordered a new one last month and got it for a few grand below sticker

[Bacon]

2 hours ago, Commissar SFLUFAN said:

"Americans can no longer afford [fill-in-the-blank]" might as well be an evergreen topic at this point.

you stole my post!

[TheLeon]

There’s a reason I bought an e-bike: my car is old and bad and I can’t afford to replace it! Sure, I can say it’s about “the environment” or “keeping cars out of cities” or whatever.

[silentbob]

My first car was Chrysler Cirrus and was a car that guzzled gas, low to the ground and bought used. I had issues with the car and spent the same amount in repairs as the car itself. From there I always went new because I’m covered for 5 years. Last car actually paid me money because the trade ins were huge. So I’ve gone Ford Escape ‘13, ‘16, ‘20 and currently in a Bronco Sport ‘22. I don’t think I could go a car again because I’ve been rear ended 2-3 time in my past cars. One hit probably would have gone over me if I were in my first car, but all happened in my Escapes . .  . sadly different Escapes. 

[stepee]

I could buy tons of cars if I wanted to so the topic is false. I don’t want any though since I don’t drive.

[GeneticBlueprint]

Most Americans can afford bikes which are vehicles checkmate libz

[unogueen]

45 minutes ago, GeneticBlueprint said:

Most Americans can afford bikes which are vehicles checkmate libz

The next American dream will be a rickshaw

[CastlevaniaNut18]

I could afford a new truck, but I like not having any debt and my truck is just about to hit 50k miles, so why spend a bunch of money?

[Slug]

My truck is paid for and I figure it's got a good 10 years left on it if I take care of it.  The Woman just bought an electric car so that's fun, but was expensive, including having a level 2 charger installed at my house so she doesn't have to go wait in line to charge it at a commercial station.

 

My kids are who I worry about.  They're both trapped in the whole "buying a shitty beater and running it until it dies then buying another because they can't afford anything that doesn't have problems" cycle.  But even beaters are getting too expensive for them at this point.

[Ghost_MH]

44 minutes ago, Slug said:

My kids are who I worry about.  They're both trapped in the whole "buying a shitty beater and running it until it dies then buying another because they can't afford anything that doesn't have problems" cycle.  But even beaters are getting too expensive for them at this point.

 

And people wonder why younger generations are getting their licenses later and later in life. Can't afford a car. Can't afford to go to any of the places it can take you.

[Littleronin]

I look at this and just think of brands like Jeep, who now price themselves as a luxury brand. They killed the Renegade after they priced it to the point that the next level up (the Compass I believe) was just $50 more expensive on MSRP. The Wrangler line had so many price hikes that it is no longer worth buying the base model and kitting it out to your spec in after-market parts.  

[marioandsonic]

I got a used 2020 Honda Insight  around Thanksgiving 2022 as my old car finally died on me.  I've still got about 5 years of monthly payments left.  I mean, it's a great car, but... ugh...

[TUFKAK]

8 hours ago, elbobo said:

 

my wife got in an accident last year and her car was totaled, she was fine thankfully. I work from home so we did the one car thing for months while I searched and searched for a decent used car deal. I couldn't find a good deal to save my life, she really wanted another Subaru to replace what she had, 4 year old ones with 50k+ miles on them were going for 70-75% the price of a new one, it was absurd, we finally broke down an ordered a new one last month and got it for a few grand below sticker

Subarus tend to hold their value well that’s probably the reason for that. Cause my car drops value like a rock within two years.
 

I plan to drive my car into the ground and replace with the car I want towards the bottom of the depreciation curve. Or just buy a Toyota and run that for 15 years.

[Link200]

On 1/16/2024 at 2:32 PM, Ricofoley said:

Surely a huge part of this is the fact that fuckin' everything is a truck or an SUV now, through a combination of drivers thinking those are the only safe cars and manufacturers using the fact that SUVs count as light trucks to game their CAFE numbers

You are correct. Ford doesn't even sell cars anymore beyond the mustang and expensive track cars in the US.

[Link200]

15 hours ago, TUFKAK said:

Subarus tend to hold their value well that’s probably the reason for that. Cause my car drops value like a rock within two years.
 

I plan to drive my car into the ground and replace with the car I want towards the bottom of the depreciation curve. Or just buy a Toyota and run that for 15 years.

My WRX is still worth around $24k. It originally was a tad over $30k. That said, it is a 2016 with only 35,000 miles. The low mileage helps a lot. It also makes it hard to get a new car. I would love to have all the new crap cars have these days but as long as phones connect via Bluetooth to my car I can't justify buying a new car.

 

I am thinking about getting a new radio for the car so I can have android auto. That may work

[Nokra]

35 minutes ago, Link200 said:

My WRX is still worth around $24k. It originally was a tad over $30k. That said, it is a 2016 with only 35,000 miles. The low mileage helps a lot. It also makes it hard to get a new car. I would love to have all the new crap cars have these days but as long as phones connect via Bluetooth to my car I can't justify buying a new car.

 

I am thinking about getting a new radio for the car so I can have android auto. That may work

Not to get us too far off topic, but I've heard good things about this adapter, though I haven't used it myself. 

[Joe]

Americans can no longer afford cars and yet, 15.5 million new cars were sold in 2023. Fascinating!

[Ghost_MH]

25 minutes ago, Joe said:

Americans can no longer afford cars and yet, 15.5 million new cars were sold in 2023. Fascinating!

 

There's are 130-something million households in the US and the numbers there say 40% of them can afford a new car. That includes the 37m individuals that can afford a new car with their income, alone. Obviously, there are still people buying new cars. It's just that the vast majority of Americans can no longer afford to.

[Link200]

14 minutes ago, Ghost_MH said:

 

There's are 130-something million households in the US and the numbers there say 40% of them can afford a new car. That includes the 37m individuals that can afford a new car with their income, alone. Obviously, there are still people buying new cars. It's just that the vast majority of Americans can no longer afford to.

 

I was going to say this is a good thing except many people don't understand what they can afford so they buy new anyway and get themselves into a hole full of depreciation hell.

[Ghost_MH]

22 minutes ago, Link200 said:

 

I was going to say this is a good thing except many people don't understand what they can afford so they buy new anyway and get themselves into a hole full of depreciation hell.

 

I mean, yes. The numbers cited are you need to make a minimum of $100k to buy new these days, but if that's the minimum then I've got you assume that also means the cheapest new car model. Neither of those is happening right now. 1.5m repossessed cars last year? That obviously di6dn't include only new cars, but it certainly means millions of people that are buying are buying more car than they can afford.

[Joe]

1 hour ago, Ghost_MH said:

 

There's are 130-something million households in the US and the numbers there say 40% of them can afford a new car. That includes the 37m individuals that can afford a new car with their income, alone. Obviously, there are still people buying new cars. It's just that the vast majority of Americans can no longer afford to.

But if so many Americans can no longer afford to buy new cars , why are so many being sold still? Wouldn’t we expect the number to drop?

[Ghost_MH]

33 minutes ago, Joe said:

But if so many Americans can no longer afford to buy new cars , why are so many being sold still? Wouldn’t we expect the number to drop?

 

If you haven't noticed, the car market in the US has been slowly but surely focusing more on larger vehicles for families and larger vehicles for those with more disposable income. Seems the industry has just pivoted to higher margin vehicles that better appeal to the $100k+ households and individuals.

 

Still, even if 60% of households can't afford a new car, that's still 50m+ households that can.

[Spork3245]

6 hours ago, Joe said:

But if so many Americans can no longer afford to buy new cars , why are so many being sold still? Wouldn’t we expect the number to drop?

Being able to “afford” something =/= purchasing it anyway. IT’S THE AMERICAN WAY

[TUFKAK]

15 minutes ago, Spork3245 said:

Being able to “afford” something =/= purchasing it anyway. IT’S THE AMERICAN WAY

That’s what credit is for!

[Mr.Vic20]

All of my cars are paid off, so for now this has no immediate impact on me and mine, but my son is 5 years away from being a driver so fairly soon it will be an issue. Yay... 

[elbobo]

8 hours ago, Joe said:

But if so many Americans can no longer afford to buy new cars , why are so many being sold still? Wouldn’t we expect the number to drop?

 

Welcome to the world of 96 month loans and being horrifically underwater on your loan

[Uaarkson]

I owe $2860 in late payments on my car, and it’s currently hiding in my brother’s garage. I’ve been dodging the bank for months 😂 I’m too afraid to answer the phone. Getting laid off + depression sucks.