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

[Kira]

And how often do we repeat mere single sentences to each other? Most of the time echoing some political or angry social clap-trap.
You can't bury much constructive conversation in headlines or bumper stickers.

 

[Jackson_Slugger]

Pickup trucks and SUVs are what the bulk of the buying public want.... Not little econobox go karts. Naturally the car makers are going to make what sells the most, and at the most profit.

They're in business to make money, not cater to broke people with lower profit products, who can only spend money they don't have. This isn't complicated.

Affordability is based on how people manage their income. When they strangle themselves by buying virtually everything they see on credit, and save little to nothing, they can afford less. Debt, which is at record highs today, keeps many families in the poor house. Not window stickers on pickups.

Right! So the people can't afford an increasingly shoddily made pickup or SUV so they have to get an "eco-box" (that would have qualified for a small luxury car a couple decades ago with the horsepower and amenities) and some Newsweak hack writes trash-journalism. Aside from the "first world problems" aspect there is the fact that this article should be printed out so a bird in a cage so a canary can poop all over it! Because in fact one can still, especially now, purchase a new reliable car for well under 30K to get their milk and bread at the corner store. I mean if they can do without all that cargo space they really need....

Does that really make any sense? Also didn't check the pub date but the article is out-of-date by at least a year as availability if climbing and even used cars are staring to fill lots again...

 

[Jackson_Slugger]

Can I finance it for 10 years?

Not sure I'll ask I think eight is now the max

 

[KrisZ]

Who here on BITOG bought the cheapest, least equipped model, the stripped down version, preferably a car and not an SUV or a pick up in the last two years?

It’s easy to blame others or the manufacturers. It’s clear that it was us, as consumers, collectively buying whatever was available at whatever price that made the market the way it is.

 

[Pew]

Ah America....not learning from its mistake(s) is why this is a trend every 7-10 years since the economy has been recorded.

 

[SC Maintenance]

Does that really make any sense? Also didn't check the pub date but the article is out-of-date by at least a year as availability if climbing and even used cars are staring to fill lots again...

The article is yesterday. Its up to date - it mentions drastically increasing prices in 2022 but only 1% increase in 2023. However its not about inventory - its about the percent of the population that can afford a new car, by using reasonably common metrics of 10% of gross income for auto costs.

Your lots are filling because presumably as not as many can afford them?

 

[billt460]

....... So the people can't afford an increasingly shoddily made pickup or SUV..................

I don't know about, "shoddily made". 2 guys at our gun club recently bought both a F-350 Diesel dually, and a really nice Suburban. Both we're $80K+ vehicles. They couldn't be happier.

 

[billt460]

And how often do we repeat mere single sentences to each other? Most of the time echoing some political or angry social clap-trap.
You can't bury much constructive conversation in headlines or bumper stickers.

That's because history repeats itself much the same as the people that caused the bulk of it. It happened in the 20's, the mid 50's, the late 70's, and again in the late 2000's.

People never seem to learn from their mistakes. Usually because they all want to believe that it's always someone else's fault. When the reality is if you break it down, most have become financial victims of their own creation.

 

[SevenBizzos]

New cars aren't for everybody. I didn't buy new until my 12th vehicle. I had numerous cars I paid less than $2000 for (yeah, I'm old) and wasn't interested in a large payment. Even my next purchase won't be new.

 

[gfh77665]

Instead of the Dave Ramsey type BS some might blurt out,

DR says people make unwise self inflicted financial decisions, and spend way too much on cars.

Just asking, what "BS" do you perceive in his statements?

 

[skyactiv]

I somewhat agree with him, just hate his southern preaching everyone should live broke yet save 3 million dollars you’ll never need because you should live broke all your life

 

[Passport1]

Dave Ramsey and Scotty Kilmer are two preachy guys, difficult to listen to but right most of the time. Americans like their advice sugarcoated.

 

[alarmguy]

Its a good observation I share. However if you go to the FRED database, you will find credit card debt at an all time high (over a trillion), auto loans at an all time high, etc. So, possibly living on credit?

Every American is living on credit, but it’s exactly what we vote for.
The economy has been in shambles for the last 16 years but it’s what we vote for.

If you can’t afford something work hard and stop wasting your money. We’re becoming a lazy nation built on excuses made by the media. A warning to Gen Z, get your act together start saving, stop borrowing, stop wasting money and work hard. That means going into the office.

Https://usdebtclock.org
Everyone is in debt and if you are, it’s your own fault

 

[AZjeff]

Just for clarity it would be nice to know what those percentages were in 2019.

 

[CourierDriver]

67 VW Beetle, 1600 bucks back in the day,,,,,,,,,,,,,,,,,,,,,, sells for about 12,000 plus if u can find one,,,

 

[shortyb]

My next car purchase will be new, however, it will be paid with cash to avoid the credit trap money suck. Have to really focus on saving for it, but will feel way better in the long run for it.

 

[jetman]

We have all lamented on the crazy prices of cars in the last few years. Seems Newsweek has made it official.

"60 percent of American households currently cannot afford to buy a new car, based on Census data. For individuals, the numbers are even worse, with 82 percent of people"

Also -

"Since 2020, new car prices have risen by 30 percent, ... Within the same timeframe, used car prices have jumped by 38 percent."

They also comment on how car makers are no longer making cheap, econo models.

Full article, for those interested. https://www.newsweek.com/americans-can-no-longer-afford-their-cars-1859929

The American consumer
Up to their eyeballs in debt
and living pay check to pay check

 

[wings&wheels]

Newsweek, the once respected magazine has really gone downhill as of late w/ almost clickbait headlines. Sad.

 

[wings&wheels]

The American consumer
Up to their eyeballs in debt
and living pay check to pay check

A part of the population always has and always will, although I expect that segment may be a bit greater now w/ too way to easy consumer credit. Basic home economics needs to be taught early and to all.

Nice fleet.

 

[alarmguy]

To counter the so called news story. This is great news that people cant afford new cars! FINALLY!
It will bring down the cost of new cars for everyone else who can afford one.
What a trash piece that story is, who cares? Work harder or buy a used car, take a bus, walk, one thing for sure. Selling cars in the USA is so easy they are packed with more features sold no place else in the world.

Car manufacturers make specific luxury vehicles loaded with option intended just for our country because Americans want all the options mankind can pack into a car. Laughable trash piece.

Want news Go buy a Trax, this IS luxury in most countries. Chevy Trax Starts at approx 20K - click here

or a Chevy Spark, the market is loaded with cheap new cars
Click here Starts at 15k

Otherwise buy an old used car, life is so easy in the USA its laughable. *LOL*