Look, I'm trying here. You've asked me this over and over. Again, I don't see a comment about Trump in the article.
And since you refuse to quote it so I can address it, maybe someone from the audience can quote it for you!
Posted on 07/21/2017 9:06:34 AM PDT by Lorianne
Some people say capitalism and alligators have much in common — both eat their young. While the rich get richer (and will get richer still if the #FakePresident has his way), ordinary schlubs who are working one, two, or sometimes three jobs to make ends meet are finding they can no longer afford to buy average new cars.
That’s according to a new study by Bankrate.com. It finds that people living in 24 of the 25 largest metropolitan areas in the US cannot afford the average price of new cars, which was $33,000 in May according to Kelly Blue Book. In six of those cities, people struggle to afford cars cost half that much.
Only in Washington, DC, where the median income is over $100,000, are people able to afford a new car. But the statistics for the nation’s capitol are wildly skewed by all the millionaires in Congress and the $1,000 an hour lobbyists who grease the wheels of democracy.
“Affordability” is a relative term, of course. For purposes of the Bankrate study, analysts used the so-called 20/4/10 rule. It assumes a 20 percent down payment, a 48 month loan, and a total of of insurance and loan payments that does not exceed 10 percent of a family’s gross income.
“The [average] household can’t comfortably afford to buy a new vehicle,” said Claes Bell, a Bankrate.com analyst. “That means a lot of households are overextending themselves on car costs, and that can potentially crowd out other priorities such as saving for retirement.”
“This issue of affordability isn’t just about the price of cars. It’s about the stagnation of wages,” Bell said. “Car costs are not rising all that quickly over time, but things like health care and college costs are going up and wages aren’t [keeping up]. Budgets are being stretched.”
“People should prepare for a car purchase by saving for a down payment,” Bell said. “Sometimes people impulsively go to a car lot and get sold on buying a new car. But if they don’t have a sufficient down payment saved, it will be hard to fit the payment into their budget.”
The total of auto loan indebtedness now stands at $1.2 trillion — about 10% of all consumer debt according to the Federal Reserve. Late payments on car loans is rising. Nearly 4% were delinquent at the end of March according to data compiled by the Federal Reserve Bank of New York.
“People fall in love with cars they can’t afford, and that’s how they get in trouble,” said John Gajkowski, a certified financial planner and co-founder of Money Managers Financial Group.
Capitalism assumes constant growth — a model that is inherently unsustainable. Real wages for workers have been falling slowly but surely in America for 40 years. The cost of living continues its upward climb while globalization forces American workers to compete with the low paid labor in other parts of the world.
Car makers are subsidizing sales with low interest rates and extended term loans. On some high end models, it is now possible to get loans that extend out to 96 months or more. But people seldom keep a car that long, which means they find themselves owing more than their car is worth when it comes time to go car shopping again. It’s a vicious circle that is not likely to end well for manufacturers or consumers.
Just wait and wait some more. Given that my car has needed nothing but routine maintenance since I bought it used 10 years ago I have not recently experienced a repair bill. So it may be awhile before I weigh in on auto repairs. Oops, that tips my hand on the affordability of new cars doesn’t it?
Might also explain why my orginal post in this thread talked about the affordability of safe and reliable cars being cheap.
For the 5th time, how is it food got so cheap cheap, according to you, yet most everything else has gone way up? Lets see if you can answer this without evading the question for the 6th time.
Btw, on top of your assertion that food is, “Cheap cheap”, do ya think auto repairs nowadays are cheap cheap too?
A young person starting out might not be able to afford a car. But unless they are total failures in life, they will be able to afford “average cars”. Commuter cars. Cars normal people buy when they need a car.
Not land yachts. Not expensive sports cars. Average vehicles.
And the problem with the article is that is assumes the average cost of a car sold is an “average vehicle”. If people want to buy more expensive cars, with more options, and have the money to do so, that is fine. It drives up the “average price”. So what?
But what the article is describing is people with penis envy applied to cars - they want the top of the line cars. So they go into debt. And I don’t care.
A Toyota Camry is a nicer vehicle, at 23K, than most cars available 20 years ago. Vastly more reliable and with far more features than an average car of the 80s. If it is now a “below average” vehicle, it is because people want cars that have little to do with getting from A to B while seating 2 adults and 2 kids in reasonable comfort and with outstanding reliability.
And if they do, and go deeply into debt to get them, so what?
Unless someone is a failure, they can afford a good new car by their 30s. Like always.
As you said you do not get to answer a question with a question. So let’s start by having you answer the first question asked which was mine. Then after you answer my question I will answer your question.
Once again, the article is referring to “Average Americans” not young persons..Try to keep up.
Anyone can read back. You’ve done nothing but evade my questions from the beginning..
For the 6th time, how is it food got so cheap cheap, according to you, yet most everything else has gone way up? Lets see if you can answer this without evading the question for the 7th time.
Do you agree with what was said about Trump? Help me out with some critical thinking skills. When some one starts an article with such a politically snide and offensive remark I am doubtful of their veracity in the rest of the article. Maybe that is not critical thinking skillfully exercised.
The article is rubbish. From its premise to its conclusions.
Are cars and homes not the the most expensive purchases for most people?
Can you at least provide a quote from the article so I can see what your burning question is?
How do you wish to proceed? Either we can answer questions with questions or not. I will follow your lead. Should I just ignore all of your previous posts so that I do not “read back” while you remind me that you have asked for the “7th” time? So you can read back and answer questions with questions but I am to not read back and answer your questions?
Still waiting to here if you agree with the article re. Trump.
I don't see word about Trump in the article.
Can you at least provide a quote from the article so I can see what your burning question is? ???
For the 3rd time, could you extend a bit of courtesy and post the comment about Trump from the article so I can answer it?
That might help.☺
Look, I'm trying here. You've asked me this over and over. Again, I don't see a comment about Trump in the article.
And since you refuse to quote it so I can address it, maybe someone from the audience can quote it for you!
Read back. I provided a small quotation already. Or you can read the very first line of the article for, I am guessing, the first time. The article is garbage. It’s nothing but a version,and illogical and confusing one at that, on the rich get rich and the poor get poorer theme. Or in this case the rich get richer and the poor (or just the average) cannot afford a new car.
I cannot afford a new car and I make above average income. I have a house but it is less than most people’s rent because of where I choose to live and the type house it is. I was raised on soup beans and cornbread and haven’t progressed far from that.
I won’t answer your questions because the article starts with a flawed and unacceptable premise as do most liberal/prog arguments do.
So yeah, think it is all affordable and I hope the rich do get richer.
The second line:
“While the rich get richer (and will get richer still if the #FakePresident has his way)...”
That is a reference to Trump.
If you're smart enough to get into college, you should be smart enough to learn how to wrench.
This was your burning question? Good grief! Everyone blames everything else for political reasons. Bottom line after 16 years of Bush and Obama, it’s no wonder average Americans can’t afford new cars. And the rich get rich do get richer which is certainly no secret.
Now are you going to answer my questions?
How is it food got so cheap cheap, according to you, yet most everything else has gone way up? Lets see if you can answer this without evading the question for the 8th time.
Ok, so you must be suggesting or implying average Americans have no problem purchasing new cars because they're so reasonably priced? Right?
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