But you tried to put your spin on it anyway, didn't ya Mr. Rogers? And I thought Mr. Rogers was a nice guy...You seem so angry. Cheer up Mr. Rogers! It's a wonderful day in the neighborhood!
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.
Yeah, I saw that buttwipe.
But an “Average American” out of his twenties CAN afford a new car. Just not a FANCY new car. Just like has always been true.
Average Americans can buy very good, reliable new cars at a good price. Many CHOOSE to spend more on upgraded cars, which drives the “average price” up. But so what?
Try reading posts before responding.
But you tried to put your spin on it anyway, didn't ya Mr. Rogers? And I thought Mr. Rogers was a nice guy...You seem so angry. Cheer up Mr. Rogers! It's a wonderful day in the neighborhood!
And they're not talking about "FANCY" cars as you suggested, they're talking the "average" priced cars.
It's about average Americans, and averaged priced cars. This is not complex.
Bankrate.com 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.
Please try reading a post before replying.
I did read it. You’re confused. They article is not talking about “FANCY” cars as you suggested, they’re talking the “average” priced cars.
It’s about average Americans, not being able to afford averaged priced new cars.
This is not complex.
You didn’t answer my question. Do you agree with what they said about Trump? They said it will get worse with Trump and they called him #FakePresident.
No. My burning question was my first question, the one you said you could not answer. Read back to that first question and answer it and then we ill proceed.
“Ok, so you must be suggesting or implying average Americans have no problem purchasing new cars because they’re so reasonably priced? Right?”
Wrong.
I answered your juvenile question which has zip to do with Average Americans not being able to afford average priced cars.
Once again, everything is political...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.
See, I blame Bush and Obama, not Trump. Your questions are really easy btw.
I answered your juvenile question which has zip to do with Average Americans not being able to afford average priced cars.
Once again, everything is political...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.
See, I blame Bush and Obama, not Trump. Your questions are really easy btw.
If my questions are so easy why not answer the very first one? So you think Trump will make new cars affordable to the average American?
Why keep asking this crystal ball speculative questions?What's up with that? If you know what the future holds, please share!
Why do you keep straying to main subject of the article?
How come I have no issues answering your naive questions, buy you constantly evade mine?
Food is cheap cheap in America right? You said that right?
OK, I answer your big burning question about Trump, are you going to answer my questions now?
Capitalism is freedom in business and just like personal freedom YMMV. It promises nothing except that you are free to conduct business as you see fit. Many Freepers do not like the concept and favor all sorts of government intervention.
Leeme know.
I answered your big burning question about Trump, are you going to answer my questions now?
???
“I did read it. You’re confused. They article is not talking about “FANCY” cars as you suggested, they’re talking the “average” priced cars.”
If many Americans CHOOSE to buy top-end cars, not because they are useful but because they enjoy them, what happens to the “average priced car”?
That is a comment not a question. My question to you was in my first reply to you. It requires you to read back. You answered my question with a question. I am waiting on the answer to that.
You're saying the average Americans can't buy new averaged priced cars because so many are buying new high end cars that it's driving up the cost of average priced cars?
So are low end cheap cars now considered the average priced car?
And if so, if the averaged priced cars were driven up in cost by high end cars, were the prices of the low end cheaper cars driven up by average priced cars increasing?
No, it’s your turn to answer my questions which you’ve evaded all day. That’s how it works here.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.