Its official - 60% of households and 82% of singles can't afford a new car.

[SC Maintenance]

Can’t wait for Gen Z to take over after Gen Y pays their bills
After that will come the “end of days”

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The oldest Gen Z is at most 27 - depending on who's cut off dates your using. Some its 25. So if they have mortgage debt by 27 there probably doing pretty well on their path to success and avoiding renter serfdom.

And they have less non-mortgage debt than people over 50. Non Mortgage debt is likely student loan debt for them, so investing in ones future. What is a 50, 60 or 70 year old doing with non-mortgage debt anyway?

Seems to me the posted charts make the younger generation look like there doing fairly well?

 

[Dave Hess]

Youngins today need some hand holding to get them on the right financial path.

Its harder today for young adults with crazy inflation affecting everything.

Young adults look at me like I’m an alien with green skin and antennas on my head when I tell them my company pension after 35 years of service is $5500 a month…..


<—- Gen Z crying

 

[wtd]

I'm a single retired government employee with a pension of less than $3,000 a month. I'm debt free but buying a new car would leave me with not much money to do anything else if I just relied on my pension to pay for it. I would have to take it out of my TSP for it not to affect my day to day living or go back to work which I'm not going to do just to buy a new overpriced vehicle. This is why I continue to drive older vehicles and it's highly unlikely I will ever buy a new vehicle again. The prices have gone higher than I'm willing to pay.

 

[Kurtatron]

I read these reports and listen to the doom and gloom on the news and things just don't add up. I don't see any old vehicles on the road, the stock market is at record highs, the restaurants are packed on a Friday night, and the cruise lines are doing record business.

There is money somewhere and people in this country seem to live like there is no tomorrow. Of the working people that I know, the ones who struggle with finances do so not because of an income problem but rather because of a spending problem. I suspect that if vehicle ownership were a higher priority then people would find a way to make it happen.

My ex-coworker was 34. Never married, no children, no girlfriend and had no savings. Here’s the relevant point. He’s an engineer making good salary. While I was there, he just bought a $22k car while having 20k student debt. His excuse to poor spending habit was his large inheritance from his aging parents.
News flash, your spending habits won’t change once you get that massive inheritance.

 

[SC Maintenance]

When I was young, I spent most of my money on fast cars, fast women, and cheep beer.

If any was left over I just wasted it.

 

[BLND1]

Of course they can. Maybe not Ford Raptor with lifted suspension and “brotha” wheels.
Desires over reality.

Median household income in the US is ~$75k.

They really can’t afford new cars.

We’ve been foisted into an era in which both parents need to work, often necessitating 2 vehicles and child care. Even two 25k econo-boxes is going to be stretching the budget for most households in the US.

Ignoring Blue state expats moving to low COL areas; lots of people are struggling with rampant inflation, have given up on seeking employment, and wages are no where near “rising” in any meaningful way. Folks can parrot whatever administration talking points they want but it’s hard out there.

 

[eljefino]

He just bought a $22k car while having 20k student debt. His excuse to poor spending habit was his large inheritance from his aging parents.
News flash, your spending habits won’t change once you get that massive inheritance.

Getting something now for something that will happen later is called a "preward" and is the dumbest trap anyone can fall into.

 

[edyvw]

Median household income in the US is ~$75k.

They really can’t afford new cars.

We’ve been foisted into an era in which both parents need to work, often necessitating 2 vehicles and child care. Even two 25k econo-boxes is going to be stretching the budget for most households in the US.

Ignoring Blue state expats moving to low COL areas; lots of people are struggling with rampant inflation, have given up on seeking employment, and wages are no where near “rising” in any meaningful way. Folks can parrot whatever administration talking points they want but it’s hard out there.

Man, you do know that most of went from eating Wal Mart pasta 24/7 to something?
We do live on this planet too.

 

[daves87rs]

Cars, like everything else, will be rented- Fact. I’d wouldn’t laugh too hard and the younger generation- where profit is king-everyone will be doing it. That, and more and more folks will only have the “public” track to go on…

I’m being careful on spending now- Wall Street is more interested in building that profit margin. So expect the excuses to be vague, and ways to have you not own (like House rent, Pay for operation in your car, Streaming stuff you can’t keep)

It’s all they can do since their customers continue to get poorer, and poorer. And since people can afford less, companies will charge more on what they can.

The car at this point should be the least of folks worries. Better start saving, and fast!

 

[Vercingetorix]

So much doom and gloom. Even a broken clock is right twice a day.

 

[Kurtatron]

I like doom with a side of gloom. It helps keep my immune system in tip top condition. Vitamin D with some Mineral Gloom, does a body good.

 

[Jetronic]

Steps are so easy to become wealthy or at least comfortable in USA, however human behavior stifles folks :

* spend less then you make
* build an emergent fund
* avoid any and all consumer debt(including auto loans)

Thankful for grandfather in early 1980s embedded this into me along with immigrant parent.

I would agree, except if a 0% loan is offered, use that (or even loans that are cheaper than interest on savings). But only if you could afford to buy it outright.

 

[dlundblad]

Youngins today need some hand holding to get them on the right financial path.

Its harder today for young adults with crazy inflation affecting everything.

Young adults look at me like I’m an alien with green skin and antennas on my head when I tell them my company pension after 35 years of service is $5500 a month…..

$5500 isn’t bad at all. That is awesome.

 

[skyactiv]

-

 

[hrv]

So much doom and gloom. Even a broken clock is right twice a day.

but some a wrong twice a day too

 

[SC Maintenance]

Cars, like everything else, will be rented- Fact. I’d wouldn’t laugh too hard and the younger generation- where profit is king-everyone will be doing it. That, and more and more folks will only have the “public” track to go on…

That is certainly the model - what Uber is trying to do ultimately, or Elon Musk's self driving technology. You don't own a car, you hale one.

But I don't think this has been thought through - on a pure technical basis. Because everyone needs to go at the same time, so you still need as many cars. Everyone goes to work and comes back at around the same time. The ball game is at a specific time. So you still need lots of cars. Maybe ride sharing solves some of that, but there are 283M cars now. The argument was that the typical car sits 99% of the time so you only need 1% of the cars, but I think its probably 25% at least. Are corporate's going to pay for 75M Ubers? Maybe - but I just don't see this working.

I think they thought work from home and such would negate a lot of need - but no one actually works from home - they goof off.

I do agree with saving all you can the worst is yet to come - but that has almost always been the case. For the last century there has been a major cataclysmic type event every 10 or 15 years. WW1, great depression, WW2, Cold War, Oil Embargo, 70's inflation, .com bust, 9/11, Great financial crisis, pandemic. We get through all of them and come out better on the other side, but having some acorns in the tree is a good thing.

 

[hrv]

A lot of people are getting suckered into a lease because of the lower payment...and once in they get stuck into a lease for years and years....

 

[Pew]

I do agree with saving all you can the worst is yet to come - but that has almost always been the case. For the last century there has been a major cataclysmic type event every 10 or 15 years. WW1, great depression, WW2, Cold War, Oil Embargo, 70's inflation, .com bust, 9/11, Great financial crisis, pandemic. We get through all of them and come out better on the other side, but having some acorns in the tree is a good thing.

And to add: America so invested in a 20 year war in two third world countries that we had no business being in and ignoring it's own issues at home.

 

[eljefino]

Cars, like everything else, will be rented- Fact. I’d wouldn’t laugh too hard and the younger generation- where profit is king-everyone will be doing it. That, and more and more folks will only have the “public” track to go on…

I’m being careful on spending now- Wall Street is more interested in building that profit margin. So expect the excuses to be vague, and ways to have you not own (like House rent, Pay for operation in your car, Streaming stuff you can’t keep)

It’s all they can do since their customers continue to get poorer, and poorer. And since people can afford less, companies will charge more on what they can.

The car at this point should be the least of folks worries. Better start saving, and fast!

I own my house. It's worth more now, and would be harder to replace. I locked it in in a "buyers market." Whatever happens to the dollar, or real estate prices, I can choose not to participate and just keep on living here.

I own my cars. My Prius is connected to Toyota through the cell network but I can cripple that, and my bluetooth microphone, by pulling one fuse. All its features, like heated seats and radar cruise control, I also own. I can drive my cars until they rust out, and I'm pushing that point as far in the future as I can.

Yes big business is looking to milk the working class even more... there are guys working 50-60 hours a week looking to put the squeeze on, and there needs to be an organized counteraction to that. The non-profit "Consumers Union" started 90 years ago; they print "Consumer Reports" magazine. I can't think of any other particular examples. There are various governmental agencies that were formed with good intentions but many get made toothless as time goes on. I personally had a GREAT experience with the CFPB, hope that one sticks around.

 

[Paco Pena]

The most expensive thing you can buy is a car you don't need.

Paco