Author Topic: Most Americans Can’t Afford a New Car: Report  (Read 6551 times)

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Offline endicom

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Most Americans Can’t Afford a New Car: Report
« on: June 29, 2017, 01:10:56 am »
AutoGuide
Jason Siu
June 28, 2017

A new study shows a median-income household can only afford the average-priced new car in one of the 25 largest U.S. metropolitan areas.

The study, conducted by Bankrate, reviews incomes and vehicle costs in the 25 largest metro areas in the U.S. while following the “20/4/10” rule. For those not familiar with the 20/4/10 rule, it says a car buyer should aim to put down at least 20 percent of a vehicle’s purchase price, take out a car loan no longer than four years, and devote no more than 10 percent of annual income to car payments, interest, and insurance.

More... http://www.autoguide.com/auto-news/2017/06/most-americans-can-t-afford-a-new-car-report.html

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #1 on: June 29, 2017, 01:20:57 am »
Most people should not own cars.

Offline thackney

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #2 on: June 29, 2017, 12:16:10 pm »
My income is far above median point and we don't buy new cars.
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Offline Jazzhead

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #3 on: June 29, 2017, 12:19:01 pm »
Most people should not own cars.

I almost got hit this morning by some guy on a bike.   At least you can hear a car coming.   
« Last Edit: June 29, 2017, 12:32:20 pm by Jazzhead »
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Offline Jazzhead

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #4 on: June 29, 2017, 12:29:57 pm »
The last new car I bought was a 2005 Chrysler 300C.   I bought it right off the car carrier parked in the dealer's lot!   At the time it was the newest thing on the block -  a rear-wheel drive American car with copious eight-cylinder power.  I still have it, and it still looks like it just came off the showroom floor,  although it was never my daily driver.   

Since then, I've bought used because I just haven't been inspired in quite the same way by the new iron.  I like interesting older cars,  and tend to haunt car lots looking for the holy grail.  I kept my Jeep Grand Cherokee for over 20 years until last Labor Day when I saw a first-gen Cadillac SRX at my local Chevy dealer -  perfect condition, perfect color, perfect equipment.   And over $35,000 off the original list price!   I paid cash on the spot and it's been my Caddy for Daddy ever since.   
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Offline EC

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #5 on: June 29, 2017, 12:35:57 pm »
I've never even sat in a new car, never mind owned one.  :tongue2:

We don't take out loans.
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Offline Gefn

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #6 on: June 29, 2017, 12:52:03 pm »
Before I post, please don't hate me.

I had a Honda Civic which I loved. About a month before my dad passed he was worried about my car because it started to need little things. I don't consider batteries or tires part of the car because they die. Nor do I feel that way about windshield wipers.

But there were other things and he, being a dad, was worried as all dads worry about their children.

He left me some money in his will that was specific for a new car. So with a trade in and the money he left, I got a new car two and a half weeks ago.

It should last for the next twenty years . It's a great car but it has so many computers in it it kinda freaks me out, if you get my drift.

Prior to that, the only cars I got were hand me downs from my parents or dealers demos.

The car reminds me of my dad. I named it after him
« Last Edit: June 29, 2017, 12:53:10 pm by Freya »
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Offline thackney

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #7 on: June 29, 2017, 01:02:05 pm »
Before I post, please don't hate me.

I had a Honda Civic which I loved. About a month before my dad passed he was worried about my car because it started to need little things. I don't consider batteries or tires part of the car because they die. Nor do I feel that way about windshield wipers.

But there were other things and he, being a dad, was worried as all dads worry about their children.

He left me some money in his will that was specific for a new car. So with a trade in and the money he left, I got a new car two and a half weeks ago.

It should last for the next twenty years . It's a great car but it has so many computers in it it kinda freaks me out, if you get my drift.

Prior to that, the only cars I got were hand me downs from my parents or dealers demos.

The car reminds me of my dad. I named it after him

You bought a car you can afford.  There is nothing wrong with that.

I have bought new cars in the past, intending to keep them for a couple hundred thousand miles, maintaining them to make them last.

I've found other life events have typically caused us to change vehicle needs.  So while we still drive them until they drop, we start with a good used car these days.
Life is fragile, handle with prayer

Wingnut

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #8 on: June 29, 2017, 01:03:02 pm »
I almost got hit this morning by some guy on a bike.   At least you can hear a car coming.

That was you?  I would have ran your ass over had I known.

Offline Gefn

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #9 on: June 29, 2017, 01:07:28 pm »
You bought a car you can afford.  There is nothing wrong with that.

I have bought new cars in the past, intending to keep them for a couple hundred thousand miles, maintaining them to make them last.

I've found other life events have typically caused us to change vehicle needs.  So while we still drive them until they drop, we start with a good used car these days.

thanks for understanding
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Offline driftdiver

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #10 on: June 29, 2017, 01:11:54 pm »
Before I post, please don't hate me.

I had a Honda Civic which I loved. About a month before my dad passed he was worried about my car because it started to need little things. I don't consider batteries or tires part of the car because they die. Nor do I feel that way about windshield wipers.

But there were other things and he, being a dad, was worried as all dads worry about their children.

He left me some money in his will that was specific for a new car. So with a trade in and the money he left, I got a new car two and a half weeks ago.

It should last for the next twenty years . It's a great car but it has so many computers in it it kinda freaks me out, if you get my drift.

Prior to that, the only cars I got were hand me downs from my parents or dealers demos.

The car reminds me of my dad. I named it after him

Were not liberals here, well most of us aren't.   We don't hate you for doing well enough to afford a car.  I applaud you for the judgement you demonstrated and extend my sympathies for your father.  He sounds like a good Dad.

Don't be overly optimistic about how long the car will last.  I've found that most cars start costing more to maintain at a certain point then a new car does. 
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Offline EC

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #11 on: June 29, 2017, 01:13:57 pm »
Before I post, please don't hate me.

I had a Honda Civic which I loved. About a month before my dad passed he was worried about my car because it started to need little things. I don't consider batteries or tires part of the car because they die. Nor do I feel that way about windshield wipers.

But there were other things and he, being a dad, was worried as all dads worry about their children.

He left me some money in his will that was specific for a new car. So with a trade in and the money he left, I got a new car two and a half weeks ago.

It should last for the next twenty years . It's a great car but it has so many computers in it it kinda freaks me out, if you get my drift.

Prior to that, the only cars I got were hand me downs from my parents or dealers demos.

The car reminds me of my dad. I named it after him

No hate here. You got a good dad who acted to remove one worry.  :beer:
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Offline Cripplecreek

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #12 on: June 29, 2017, 01:17:54 pm »
Ever increasing "safety" equipment is helping to drive the cost out of reach.

Offline thackney

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #13 on: June 29, 2017, 01:20:34 pm »
Ever increasing "safety" equipment is helping to drive the cost out of reach.

And government mandates such as CAFE mpg requirements.
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Offline Jazzhead

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #14 on: June 29, 2017, 01:33:20 pm »
Government CAFE mandates reduce consumer choice.   Safety technology (some mandated, some not) drives up the cost of new cars. 
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Offline goodwithagun

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #15 on: June 29, 2017, 01:34:46 pm »
Most of my coworkers can't afford new cars, yet they buy them every few years anyway. @Freya there's absolutely nothing wrong with what you did  :seeya:
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Offline Restored

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #16 on: June 29, 2017, 01:36:22 pm »
Before I post, please don't hate me.

That's it. Ruin our fun.

If you don't have the cash on hand to pay for it, you can't afford the car. That doesn't mean you have to use the cash but you need to have it. A car is a depreciating asset. You don't want to sink too much into it.
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Offline driftdiver

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #17 on: June 29, 2017, 01:40:13 pm »
That's it. Ruin our fun.

If you don't have the cash on hand to pay for it, you can't afford the car. That doesn't mean you have to use the cash but you need to have it. A car is a depreciating asset. You don't want to sink too much into it.

Sorry restored but I gotta disagree.   Its her money she can do with it as she pleases.  Perhaps it makes sense if your only goal is to spend less money on a car.   If you can make the payments then buy whatever car you want.

IMO there is not much better then not having a car payment but each to their own.
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Offline Restored

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #18 on: June 29, 2017, 01:50:06 pm »
In her case, she had the cash on hand. But I wasn't talking about her. I meant in general.

Quote
If you can make the payments then buy whatever car you want.

How do you know you will be able to make the payments? You can't predict the future. You only think you can make the next payment. Hence the problem with payments.

Example: My sister is paying $525 a month for a used truck. If she goes out of work for more than a few weeks, she can't make the payment because she spent her savings on a 5th wheel trailer.
« Last Edit: June 29, 2017, 01:54:41 pm by Restored »
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Offline Frank Cannon

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #19 on: June 29, 2017, 01:54:11 pm »
They can't afford new cars but they are taking them anyway. That is why there is a glut of lease returns and trade ins that are way underwater because people are taking out 8 year loans. Mix into that the fact that there is a glut of repos because they are doing subprime loans and only checking 8% of income verification, the whole shady auto sales system is going to implode just like the housing market did.

https://www.bloomberg.com/news/articles/2017-05-22/subprime-auto-giant-checked-income-on-just-8-of-loans-in-abs

Offline driftdiver

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #20 on: June 29, 2017, 01:54:30 pm »
In her case, she had the cash on hand. But I wasn't talking about her. I meant in general.

How do you know you will be able to make the payments? You can't predict the future. You only think you can make the next payment. Hence the problem with payments.

You don't know.  Just like you don't know that you'll wake up in the morning.   Lifes full of risks,  youze rolz the dice and youze takes your chances just like the bank when they choose to loan you the money.

One thing I do know is that there is more to life than money. 
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Offline Gefn

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #21 on: June 29, 2017, 01:56:58 pm »
That's it. Ruin our fun.

If you don't have the cash on hand to pay for it, you can't afford the car. That doesn't mean you have to use the cash but you need to have it. A car is a depreciating asset. You don't want to sink too much into it.

I paid cash. I was brought up if you can't afford ii, you don't buy it.
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Offline Restored

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #22 on: June 29, 2017, 01:58:37 pm »
You don't know.  Just like you don't know that you'll wake up in the morning.   Lifes full of risks,  youze rolz the dice and youze takes your chances just like the bank when they choose to loan you the money.

One thing I do know is that there is more to life than money.

That's why you buy the car you can afford. Because risk is only good with appreciating assets. Not only can the bank take your car, they could make you continue paying for the car you don't have anymore. 
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Offline Cripplecreek

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #23 on: June 29, 2017, 02:02:36 pm »
I paid $500 for this 03 Corolla S with 95,000 miles on it. It came with a complete record of all maintenance, fluid and oil changes. The guy even put a new set of tires and a brake job on it plus took me to the garage to pick it up.

Basically he gave me the car and I reimbursed him for the tires and brakes.


Offline Millee

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Re: Most Americans Can’t Afford a New Car: Report
« Reply #24 on: June 29, 2017, 02:04:18 pm »


The car reminds me of my dad. I named it after him

Condolences on your dad's passing.