Ward's Auto
Since this is more financial than automotive I put it into off-topic.
Quote:
U.S. median-income car buyers can reasonably afford only about half the current $30,339 average transaction price for a new vehicle, according to Requisite Press, a financial-data tracker.
meaning the maximum affordable price for a prudent consumer is $15,795, based on a median income of $53,043.
Quote:
The index is predicated on a prudent buyer following the so-called 20-4-10 auto-financing rule. That calls for a minimum 20% down payment, maximum 4-year loan term and monthly payments of no more than 10% of gross household income.
Something I thought was interesting, but I'm not sure it's actually true--I'm sure most of these buyers will still trade just as often.
Quote:
Some lenders worry about extending loans to the likes of 84 months because it increases the chances of some borrowers defaulting. Dealers dislike stretched-term loans, saying they take consumers out of the market too long.
Since this is more financial than automotive I put it into off-topic.
Quote:
U.S. median-income car buyers can reasonably afford only about half the current $30,339 average transaction price for a new vehicle, according to Requisite Press, a financial-data tracker.
meaning the maximum affordable price for a prudent consumer is $15,795, based on a median income of $53,043.
Quote:
The index is predicated on a prudent buyer following the so-called 20-4-10 auto-financing rule. That calls for a minimum 20% down payment, maximum 4-year loan term and monthly payments of no more than 10% of gross household income.
Something I thought was interesting, but I'm not sure it's actually true--I'm sure most of these buyers will still trade just as often.
Quote:
Some lenders worry about extending loans to the likes of 84 months because it increases the chances of some borrowers defaulting. Dealers dislike stretched-term loans, saying they take consumers out of the market too long.
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