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GasBuddy News Article

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New Cars Increasingly Out of Reach for Many Americans

NBC News -- Looking to buy a new car, truck or crossover? You may find it more difficult to stretch the household budget than you expected, according to a new study that finds median-income families in only one major U.S. city actually can afford the typical new vehicle.

The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales.

According to the 2013 Car Affordability Study by Interest.com, only in Washington could the typical household swing the payments, the median income there running $86,680 a year. At the other extreme, Tampa, Fla., was at the bottom of the 25 large cities included


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Submitted Feb 27, 2013 By: WxVette
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: New Cars Increasingly Out of Reach for Many Americans Back to Topics
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MadFueler
Champion Author Winston-Salem

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Message Posted: Feb 28, 2013 5:12:06 PM

Those maximum payment figures look awful high to me - maybe they assume a paid-off house and zero credit card debt.
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Sneakers55
Champion Author Houston

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Message Posted: Feb 28, 2013 7:06:49 AM

On Feb 28, 2013 7:34:55 AM, TruthMatters wrote:

>What's wrong with pre-owned cars?

They're too politically correct... got to avoid the U-word!
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TruthMatters
Champion Author New Jersey

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Message Posted: Feb 28, 2013 6:34:55 AM

That's a good thing. Maybe now those who can't afford them won't be tempted to buy them without giving a thought to how to make the payments down the road.

What's wrong with pre-owned cars?

[Edited by: TruthMatters at 2/28/2013 8:35:57 AM EST]
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gmcgas
Champion Author Atlanta

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Message Posted: Feb 28, 2013 2:26:18 AM

well at first i agree, but after thinking a bit to price of the car has went up with the wages earned. its all the extra costs taxes ect that made the diffrence. even gas prices.
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iFueler
Champion Author Durham

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Message Posted: Feb 28, 2013 12:36:20 AM


the new reality
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ClarkSC
Champion Author South Carolina

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Message Posted: Feb 28, 2013 12:34:42 AM

No kidding.
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vulcan96
Champion Author Ohio

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Message Posted: Feb 28, 2013 12:29:22 AM

maby the boy should stop taking so many $4,000,000 vacations
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abacus44
Champion Author Toms River

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Message Posted: Feb 28, 2013 12:26:31 AM

The down side of safety and environmental regulations!
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Ron77095
Champion Author Houston

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Message Posted: Feb 28, 2013 12:18:36 AM

What?
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Lairre
Champion Author Sacramento

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Message Posted: Feb 28, 2013 12:16:16 AM

Just numbers...
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Happytalk
Champion Author Pennsylvania

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Message Posted: Feb 28, 2013 12:15:57 AM

I agree
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divebomber
Champion Author Nebraska

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Message Posted: Feb 28, 2013 12:14:52 AM

YEP!
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streetcars
Champion Author Toledo

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Message Posted: Feb 28, 2013 12:14:46 AM

Never bought a new ride in my life, current ride is 14 years old and hope to get another 10 years out of it.
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Rooster922
Champion Author Wilmington

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Message Posted: Feb 28, 2013 12:12:56 AM

Really
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MaryKayByBJ
Sophomore Author Orange County

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Message Posted: Feb 28, 2013 12:11:11 AM

Instead of getting a car this year, I have put it off for at least three more. Mostly because I don't like car payments and it will take a while for me to save up even for th emodest $17k I plan on paying. It is now $14k and I ma guessing it will be another 3 by the time I can afford it.
However, I am used to driving cars "into the ground." With the exception of a Toyota which died on the fwy after less than 80k, everything else has lasted 300k ++ and all except one was sold to someone (still running condition) else.
Since I get 16/22 to drive a very comfortable vehicle, I can't see spending money on anything that doesn't get at least 30 in the city. (I don't plan on selling my current one; the next car would just be to drive around town.)
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judgemobile
Champion Author Ohio

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Message Posted: Feb 28, 2013 12:09:49 AM

waiting for my stimulus check, NOT JUST TAX REFUND==then will not be out of reach
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KrsnaDragon
Champion Author Montreal

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Message Posted: Feb 28, 2013 12:07:27 AM

I'm glad I'm not in the market for a new vehicle at this time.
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sprocketsplines
Champion Author Washington

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Message Posted: Feb 28, 2013 12:05:50 AM

Seems silly that automakers would make products priced beyond the ability of most of their customers to afford them. This is likely what led to GM being bailed out.
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granitestater
Champion Author New Hampshire

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Message Posted: Feb 28, 2013 12:05:05 AM

There are still some cars down around 15 thousand dollars. Prices are up because of all the new safety requirements. seat belts, roll bars, safety cages, air bags, etc.
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VikingWoman
Champion Author Washington

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Message Posted: Feb 28, 2013 12:01:43 AM

When they write these articles it must be really difficult to remember to differentiate between Washington D.C. and Washington State.

I thought $86,680 was pretty high for Washington State so I found a Washington State website with the information. King County (Seattle area) in Washington has the highest projected annual median income of $68,313.

Obviously this article is using Washington D.C. for the $86+ median income.
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livewire300
Champion Author South Carolina

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Message Posted: Feb 27, 2013 11:58:34 PM

Ya, price TOO HIGH...
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BEngr
Champion Author Illinois

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Message Posted: Feb 27, 2013 11:55:30 PM

My 2001 truck has a lot of service life left, so I don't plan on buying a new vehicle this year.
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BobD2009
Champion Author Long Island

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Message Posted: Feb 27, 2013 11:53:51 PM

Welcome to the horrible Obama economy.
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goldrose1
Champion Author Cleveland

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Message Posted: Feb 27, 2013 11:53:24 PM

I see inflation here.
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SteelPenny
Champion Author Dallas

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Message Posted: Feb 27, 2013 11:52:05 PM

No way I can afford a new car. Thanks Zero'BOY.
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suicyco16
All-Star Author Phoenix

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Message Posted: Feb 27, 2013 11:51:57 PM

Just another example of inflation.
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alterman156
Champion Author New York

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Message Posted: Feb 27, 2013 11:50:37 PM

One does not need to pay the average price to get a perfectly good new vehicle. Many compact cars are good and they are often affordable.
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billy44bo
Champion Author Mobile

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Message Posted: Feb 27, 2013 11:50:01 PM

thanks barry
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Ticoman54
Champion Author Miami

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Message Posted: Feb 27, 2013 11:46:24 PM

And this is news? If anything, things have been this way for the past 4 years, especially since Nobama took office.
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bikechuck
Champion Author Indianapolis

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Message Posted: Feb 27, 2013 11:41:24 PM

Yes, and how does Obama think our national debt will ever be afforded? All this crap over $85 billion 'cut' when he had a 800 to 1 trillion spent as a 'stimulus', good gosh when are we going to have an afforable budget?
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craigsf38
Champion Author Rochester

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Message Posted: Feb 27, 2013 11:34:39 PM

Soon we will be walking
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MrPony
All-Star Author North Carolina

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Message Posted: Feb 27, 2013 11:31:09 PM

And there ain't any used cars 'cause Osama had them all crushed!
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Tigercat88
Champion Author North Carolina

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Message Posted: Feb 27, 2013 11:30:42 PM

The Food prices are almost out of reach.
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Ray_10589
Champion Author New York

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Message Posted: Feb 27, 2013 11:29:31 PM

squeeze on the middle calss
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Mowerman08
Champion Author Milwaukee

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Message Posted: Feb 27, 2013 11:29:08 PM

cnbc beating the drum
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grouch311
Champion Author Peoria

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Message Posted: Feb 27, 2013 11:25:32 PM

the heck with incentives, just drop the price to start with.
if they can put an incentive on, they can sell for that much less to start with.
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RENEGADEGAS
Champion Author Missouri

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Message Posted: Feb 27, 2013 11:25:26 PM

Ya Think!! Not only are the car prices going up, Americans just lost a chunk of their paychecks after the first of the year! Many are working lesser paying jobs and 16% of the country is unemployed. Just dont get why new cars are out of reach for most.
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liao
Champion Author Montreal

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Message Posted: Feb 27, 2013 11:24:14 PM

That is inflation for us.
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HelenT
Champion Author Buffalo

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Message Posted: Feb 27, 2013 11:22:53 PM

That's for sure!
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Jedman982
Sophomore Author Modesto

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Message Posted: Feb 27, 2013 11:21:18 PM

Ok
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BCM1
Champion Author Pennsylvania

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Message Posted: Feb 27, 2013 11:20:31 PM

Service industry jobs typically pay less than $10 per hour. We are becoming more and more a service country. Good jobs are going away. How can you buy a new car at $10 per hour and still afford food and shelter?
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mcbrownie220
Sophomore Author Toledo

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Message Posted: Feb 27, 2013 11:20:17 PM

ok
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kcboy
Champion Author Utah

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Message Posted: Feb 27, 2013 11:19:26 PM

What will they do when more people go on s.s.. We will be able to buy a new car.
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madison8359
Champion Author Cleveland

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Message Posted: Feb 27, 2013 11:19:22 PM

Thanks for sharing how poor we are.
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SBlouch
Champion Author San Antonio

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Message Posted: Feb 27, 2013 11:18:10 PM

Of course, cars are becoming more expensive as the price of owning one is also going up each year as well as the car insurance and gas.
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jetskijerry
Champion Author North Carolina

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Message Posted: Feb 27, 2013 11:17:22 PM

I'll have to keep my old van for aT LEAST 5 YEARS
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jetskijerry
Champion Author North Carolina

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Message Posted: Feb 27, 2013 11:16:56 PM

I agree.
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pinofl
Veteran Author Miami

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Message Posted: Feb 27, 2013 11:15:44 PM

ok
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probedude2
Champion Author Akron

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Message Posted: Feb 27, 2013 11:15:10 PM

Not everyone SHOULD be able to afford a new car...
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rd2000
Champion Author Florida

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Message Posted: Feb 27, 2013 11:15:04 PM

this is not good
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