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Middle-class families getting priced out of new American cars
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- čas přidán 14. 08. 2024
- Americans were paying about 38% more for a new car or truck over the summer than they were just 10 years ago. The average transaction price for some popular vehicles is up nearly 50, 60 or even 70%. Many drivers can’t afford it. Tony Dokoupil reports.
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I’m 25 and will continue buying cars $2-$5k even as a engineer. Having car payments will keep you broke.
Just work the baby steps.
New cars are full of electronic things that break after 3-5 years.
C H A L O ‘ N 👍🏻
Smart move. I’m cash flowing a car in 2020 and plan to pay no more than 10K for a good used car.
Facts. I do and will keep doing the same at least until I become multi-millionaire.
A income of 39k is hard to even pay your rent on let alone car payments and car insurance.
39,000 dollars after taxes so before taxes it's about 60-70k annual salary which is not bad.
More like 48.
@@daughteroftheking7617 idk what state u live in but in my state taxes are 40%
Lauren Bray But who is earning $39k/yr? Walmart cashiers?
i make 37,5k but 28,5k after tax....
Fact: A used Toyota will outlast all of those cars. Stop trying to impress people by buying new.
You got that right I heard that you can even buy a 2010 Honda Civic for cheap and that car can last a life time.
Na used Toyotas burn thru the oil. All cars got their particular problems.
I have a 2002 Honda CRV that was previously driven by my grandfather and my father. I absolutely LOVE that car. It’s not perfect (no car is), but it’s not costing me $34000 or forcing me to do something ridiculous like pay $150 per month for the next 25 years of my life.
I saw a Studebaker Lark on eBay under $12k.
@TheOerdin I'd prefer an Avanti, an early R1 model with the optional dealer-installed overdrive three-speed and factory air, but we must remember, we're talking about the preposterous price of new cars and good luck finding ANY of the high-performance Studebaker coupes for a price that would come in under $400 a month.
Don’t spend much money on a depreciating asset. Buy used.
Thats why they middle class
Buy new, I want them cheap when they are 2-3 years old from you :)
Even the cheapest new cars are becoming unaffordable for many Americans. And used cars are getting more expensive too.
@@StefanRemund-cd3uw SUVs and Trucks tend to retain their value more in the used market because they are popular with Americans. Sedans are the ones that depreciate in resale price faster, and that's not to say that they are crappy cars, just that sedans aren't too popular with Americans. And makes and models that are renowned to be reliable tend to hold their value as well. Bottom line, search for a used car from a mostly reliable make and model and use your best judgement to see that there's no corrosion on the undercarriage or under the hood, and that it appears that everything is in decent working order, and in the long wrong you save money.
Used......or go copart !!!
Housing is even worse than are cars.Century 21 is selling houses that won't be sold until Century 22.
Tom Dockery so true!
my rent has gone up 30% in the last 5 yrs...
LOL!
Time to hit the books Tom, that or settle into a life of extreme modesty. Life in America is tough without money, but most of America learns to be happy without it. The world is your oyster Tom, what you do with it is no one else's responsibility.
@@serenity13892007 come to California. a 1 room apartment is $3000 in some places up to $4000 . a house payment $9000
The single biggest issue almost no one in Washington is talking about:
The average American can't afford to live in America anymore.
Hmm...how's Canada looking right now??
@Andrew He's got my vote. Everyone else has sold their votes to the special interests.
@@lego4virgo Canadian goods are pretty expensive. And they don't get the same benefits the US gets from importing goods.
Average American? Not really. Maybe the stupid places like California.
@Andrew Oh look its someone plugging a candidate. Find something better to do with your time.
A salesman pushed me to finance a car when he found out I was paying cash. He was frustrated with me.
That’s because dealers are incentivized by banks to finance a loan to you. Good for you for having cash
Hopefully you made the car salesman's tears a mute point and paid the loan off in full within a few days, but you really shouldn't have let the salesman bully around like that.....stand your ground or walk out.
that's because dealerships gets tax incentives from financing
thing is, the biggest mistake when buying is saying you're paying in cash, make them believe you're needing a car but can't afford high payments, they'll drop the prices to make a sale, once the deal is made, pay it off in 3 payments
Twas ever thus. Back in 1963, a Santa Ana Ford dealer absolutely refused to sell my father an in-vogue car at the last minute when the dealer realized Dad would pay cash. Dad ended up buying the same model for cash at a dealer in Newport Beach (and the first dealer got black marks from FoMoCo when Dad reported it.).
Problem: We cant afford expensive cars
Solution: Dont buy expensive cars
hate to break this to you, but the cheap cars are now the same price as the expensive cars, bare bones packages are basically the same price as a lexus these days, the days of cars being $23,000 are over, you now have 3 choices, 30k, 45k or 65k
@@mmoarchives2542 Not if you buy it used
@@mmoarchives2542 not if you buy those korean cars
@@mmoarchives2542 Instead of a $35k Accord, I can buy a $20k Civic that isn't much smaller and still has all the safety features. Civics these days are super roomy--in fact, they're bigger than an Accord of the 1990s.
But that's not how American buyers think. They want to keep up with the bloating "Accord", and they want the increased power and new luxury features and gadgets. So their car costs went from a $25k Accord to a $35k Accord over the span of 20 years. Worse yet, they're down at the Honda dealer and they see how roomy and versatile that $40k Pilot is. And it's only a little more than the Accord!
Cubic foot for cubic foot, cars are astonishingly cheap and haven't even kept up with inflation. As long as you don't feel compelled to buy the higher models!
@@canto_v12 used maybe
The real mistake here is that there are American's paying that much for a Chevy.
And then you realize oem suppliers (Denso, Delphi, etc) supply parts to Honda much as GM. Its become a circlejerk of one upmanship thats led to alot of quality being relatively close with todays cars vs 30 years ago.
33k Impala is mind boggling.
That piece of trash will be worth half that in a year or two.
Alex F most cars made after the bailout are trash. These greedy car manufacturers took the money and are now manufacturing cheap cars with bells and whistles
@@mynameisnotimportant2854 I can't disagree unfortunately.
@Eze&Yare Dominguez The Tahoe and Yukon are great!
1950's: This is a one income country.
2000's: This is a two income country.
2020's: Your income is no good here.
2030: everybody will be priced out of existence.
2030: Proletariat revolution
And fewer and fewer Americans want marriage/partnership so more single person households than ever.. insane
@@JenX422 True. When young people whine about not being able to afford a this or that, I tell them to get married. With two incomes you can afford a this or that. They look at me like I'm crazy. They really can't figure out that is how it always worked in the past. All they know is the now.
@Durian Durian The divorce rate is where it is at due to the lack of maturity in the younger generations. They can't commit and prefer the safety of Mom's basement rather than assuming adulthood and striking out on their own.
Correction: middle class families are getting priced out of giant trucks and suv. Sedans and compacts are still affordable.
Middle Class families insisting on appearing wealthy in their $53k 2020 Tahoe should never be considered though, so it's hard for me to sympathize sometimes. Spent 2015 selling Ford's and was disheartened by the number of middle class families that 'needed'.the Explorer Sport and looked offended when I pointed out a CPO Explorer Sport $20k less. God forbid they're seen anywhere near a 2013 truck within their budget!!
which, unless you want to buy Japanese or Korean, you can't get. Ford, Chrysler, and GM are getting out of Sedans and compacts and concentrating on Trucks and SUVs.
@@sailingspark9748 Ford and gm are developing lines of electric cars to compete with Tesla
@@silver_desperado Have you seen Fords? The Crossover Mustang Mach E and the electric F150. meanwhile GM is cancelling the Chevy Volt. No sedans for you, SUVs, Crossovers, and Trucks
@@sailingspark9748 heard of the model t? Oh wait information hasn’t been released to the general public yet.
39k take home pay, “recommend” $400 car payment... no wonder everyone is living paycheck to paycheck
What is minimum salary there? 🤔🤔$2000?$3000 a month?
39,000 / 12 = 3,250
@@harlanzip that's average after taxes. Minimum is much less I assume
@@lukoradulic5340 oh you mean the minimum wage? If you are earning that, you have NO business buying a new car lol. That’s why they used average earner as example.
Exactly what I thought. $400 a month seems reasonable if you could keep it under 36 months. But that’s not what is happening, certainly not with a new car.
Dont mention that 4 million 2019 vehicles are sitting unsold on random lots all over the US
Koin King dam for real?
@@hass6390 ya they are rotting away. I see them.
Facts
look up the 2019 sales. they are not sold
and dealers not really putting any incentives towards them...
Stop buying overpriced cars and the price will go down
Its not only cars, its everything. Thats why there are so many homeless.
I agree.
I'm a college educated man working in healthcare....and I live in one of the cheapest places in the country: BFE indiana.
All anyone talks about is how cheap and great everything is in Indiana compared to places like cali, but all I can think is:
"I'm not exactly rolling in cash here, and if this place is one of the cheapest places left, and prices are rising already....where is there left to go?"
Does that make sense? People from nyc and cali can always look to moving to places like this to rescue them from not being able to afford to live...but what happens when you're already here and you realize there's no where else to go?
yeah, ppl need cars to drive to work, if you can't drive to work, you lose your job, if you can't find a job within walking distance, you lose your home
@@mmoarchives2542
Cities have great public transit systems....but we can't afford to live in alot of cities, forcing us to move to the suburbs outside of cities.
Suburbs require cars to get around for the most part.
Did you know that the average american home price, adjusted for Inflation, in 1953 was $178k?
Now it's almost $280k. Inflation has grown and our wages have stagnated.
We charge $50-$60k+ for a new truck...and people are spending that...and yet we're all getting poorer.
Where's the money going? It's clearly not going to workers.
Ive never seen eye to eye with alot of college liberals, but maybe they're right about the corporate greed. Got damn kylie jenner is worth over a billion dollars.
There's 12 nations of the world that don't make 1 billion dollars a year.
@@Faq-ubeach You know it's possible to build public transit in suburbs too, right? It's just that suburbanites tend to hate taxes, and that's what would need to be used to pay for ap ublic transit system. People in the suburbs don't want to pay for something that helps OTHER people, even if it also helps them too.
Our suburbs were literally built around the automobile, in the 1950s. They were built to MAKE you want to have 4 cars in your driveway, because you have the space, and the more cars Ford sells the richer Henry Ford's grandchildren get.
We can redesign our suburbs so that they're NOT specifically constructed to force you to own multiple cars to get anywhere. Or we could suck it up, pay a little more in taxes, and invest in things like public transit systems that will, in the long run, save you money. But god forbid you suggest that to people in the suburbs.
@@SRosenberg203
That's fair, but until they find a way to cut our already to high taxes many people can't afford to just "suck it up."
Federally, someone making 40k already has to pay a 22% tax rate (based on the released numbers for 2021)
There is no need to have a car with WiFi. Most of these bells and whistles are just that. Manufacturers are being ridiculous and greedy. We as consumers are demanding these extras and it has come with a price.
Honestly Nobody I know ever wanted all this exra garbage.
my Audi came with WiFi and it was absolutely garbage. you're much better off using cellular data because of how slow the car's data is. honestly, I never got the hype of car wifi either, but from first hand hand experience i would not recommend anyone getting it
Sure there is. I needed to play CZcams and Netflix on my screen as well as to play video games.
@@victorluke5816 that's only Tesla tho
@@aaritg4336 Sometimes I forget there are other car companies.
Bought a used car for the first time in 18 years. I’m not playing the car broke game. Just like I’m not playing the house broke game. No need to impress people I don’t even like.
Plenty of fully loaded used cars out there for way less than retail. Buying new is a scam.
Good for you!
Well said 🙌
Exactly sad so many care what ppl think worse ppl they don’t even know , I drive. 2002 accord 272k miles, bought my wife used 2015 accord that’s all we need.
... yea... because you cant impress people when you own a used car.
Yet the $400 budget doesn't include insurance.
Lol...
My insurance is actually more than my car payments. Forget the car dealerships and Car loan finance companies. The insurance companies are the real criminals.
Or sales or excise tax
Tax, tag, title, insurance, gap insurance, finance charge, warranty fees, repairs, maintenance. And on and on. It’s all mostly motivated by hormones. You don’t fit in with the neighbors, kids at school, or gain a hot GF if you don’t have the new ride. Your car defines your status and popularity. Sexual marketplace value in combination with material things sets the scene for reproduction with the best looking mate. It’s funny because a man who has saved money and doesn’t waste it on a new car is saved from the gold diggers! He may spend the difference on viagra and beer goggles to be able to breed with what he attracts.
When you get a new car ots likely that your insurance goes up too
Exactly. Insurance companies are 100% the main reason the Big 3 are falling behind.
My heart died when I heard 96 months
R.I.P.
Bought a Honda civic in 04, kept it for 13 years and then bought a camry straight cash. This allowed me to buy a house.
I'd rather have a house than a really expensive car.
People making 15/hr but driving a 40k SUV, I'll stick with my 05 Camry.
SUVs suck to drive anyways. I'd rather drive a Carolla than an F150 King Ranch any day.
I'll take a 1998 Honda Civic.
The 05 camry will still be on the road when the 40 suv is in the junk yard
Still driving my 2000 Lexus ES
Yea our 08 Camry has 208k miles very reliable car.
I remember when we bailed them all out with our tax money and now they’ve jacked the price up
SavageShiftz should have let them died.
Honestly they can’t compete anymore. The only good thing the “big 3” have produced recently is the new corvette, and that’s just one car. 1 car.
A ton of money of bailouts and the best they made is one quality car?
Money well spent.
...because you bailed them out twice : first time with your taxes and second time by paying them more in order for them to make more money and sell you crappy cars . Just buy a second hand Toyota !!!
Chrysler and GM took tax payers money to save their candy arse
you do know that they paid back the bail out with interest
What are you talking about? The people made this mess. You guys went to buy SUVs by the majority. It’s no wonder, they cut off the cars that weren’t selling. You expect to bail them out again when they go debt because of the bleeding losses?
I swear, hate how stupid people are when they blame corporations for things that happened in the Economy beyond the control of any corporations.
This is just part of the economic cycle, and how markets are adjusting to the demand. End of story. If you guys wanted cheaper american cars? You guys should’ve brought it. If not, go buy a Kia and quit whining.
Americans should learn to not buy large cars when they do not need a large car.
About 90% of cars in the videos are large cars, why?
Because they basically stopped making small cars in the US because other country's manufacturers make them better, cheaper and more reliable, the only reason they still make Trucks is because of the chicken law, meaning that all imported trucks have a 25% tariff on them so that US cars can compete
@@alexdavis-mann8513 Toyota and Nissan make trucks in Alabama and Mississippi, other companies could but they don't. So the chicken law is kinda a mute point. Simple fact is big trucks sell here and not many companies are willing to put that much R/D into a relatively small market.
I’ll tell you this. I had a 2017 Civic hatch front wheel drive and dreaded the Michigan winters because I would constantly just be spinning the wheels at traffic lights, in my apartment complex, etc. Needless to say I drive a bigger SUV now and have much more peace of mind when the snow starts falling.
@@tde2019 That's no reason to drive an SUV. I lived in Toledo for 11 years and Detroit for 2. I drove a Mitsubishi mirage and a Mazda 2. They salt roads for a reason. Even if you want all wheel drive, suburus are much better quality and get better gas mileage.
@@smitty9398 I do not need to learn, after I am into debt for the first, second and third time I will make a really expensive purchase this time
In 52 years, 36 of them driving, I have not once purchased a new car for the simple reason that I don't see the value in it, and I'm above median income. One thing I have not done in 36 years: complain about it.
It's not harder to live in America. Americans have become far more whiny.
I have not bought a car in like 16 years. I save all my money.
I am 20 and I get mad at older people trying to put themselves in my situation sometimes, but things like your comment make me bite my tongue and appreciate advice from people like you. I’m a man. I liked cars as a little kid. I think they’re cool and I like learning about them and working with them. But I don’t get it. Why do most so many 30 year old men living in the depths of the suburbs think they need brand new Ford F-150s or Teslas? Why do people think it’s a good decision to pay off a car at $125 a month for 10 years? What’s the point of getting a new Tesla when you can get a 2006 Honda Civic?
@@ericwilliams8371 depends on the stage of life. Tesla is a luxury so as a F 150. IF you're working a professional job like a programmer its not really a big deal but if you are making 30k a year its not wise.
This. Also, people are way too attached to brand names and model names. The 2020 Civic is larger than a 1997 Accord, but dag nabbit I'm trading in an Accord and I don't want to be "downgraded"!
Imagine paying $853 a month for a Ford.
Ali
I wouldn’t pay $853 for anything. Everybody needs to live within their means.
Just imagine when the warranty runs out you'll be paying that a month in repairs, it's a ford
@@CP-pb3pj Correction. People should always live BELOW their means. They should live on less money than they make and not buy things they can't afford. More money to save and invest.
Never
Ali Not in my lifetime. I wouldn't want a car loan at all.
8 years to pay off your car.
15 years to pay off your student loans.
30 years to pay off your house.
Lifetime years to pay off your taxes.
Ghana Mafia Keeping you locked in the system of endless payments 🤦🏽♂️🙄😠😡😤🤬
@@NileshR12
Lol...even when you die, you still owe the funeral home money.
8 years to pay a car off is kinda outrageous 2-4 years max it's better to get thing like that out of the way first
Born too pay bills, somethings wrong with that
@@dreamfpv7865 yep. Even when you pay everything off, they still make you pay ridiculous stuff like property taxes, inheritance tax. Basically keeping you locked in the system.
You know the SAD part about this story, The Car makers COULD CARE LESS.
Of course.
Why should they care? As long as they’re selling cars
It’s not their fault some people made bad career choices and failed.
And this is why I bought a cheap Honda CRV that will probably outlast my need for a car.
8 years at 7.99% interest is insane.
About as bad as those ballon payments on houses. I just got expensive car I came for 250 budget and now spending 450 a month.
We had to get a new car we couldn’t afford to get a $2,000-5,000 car so we had to buy a new car our payment for a KIA which is the cheapest we could find is $610.00 a month for 72 months. And the fiancés charges are out of this world almost two and a half times the percentage going rate. It’s not right. Sad and don’t even make sense that we couldn’t get a cheap car to buy out right but yet they get us where they want us and it’s all good for them.
Had a friend finance through GM financial to get $1,500 off and his interest rate was 10%. There’s people out there who get a higher rate and never refinance or don’t even know that’s an insane rate.
@@austincougars19 you're friend is an idiot lmao
@@ourcrazylife2952 Why couldn't you get a $5,000 car? Lol
Price of impressing strangers at stoplights is going up.
its a silly game people play to the point of getting their car repoed...
How so. If one needs a reliable vehicle I would hardly call that impressing anyone. Used vehicles are not reliable.
das 1988 every car is used after you drive it.
@@Anth230 Sorry but that is just one dumb statement
I’m none the less impressed by a vehicle that looks exactly like the one behind it, and the one in front of it. Want to stand out? Custom custom custom.
I used to wonder how are all of these young kids driving brand new cars. Oh, an 8 year car loan 😀
I sold Ford's between a career change and was horrified by the amount of dudes 20-27ish excited to commit 7 years @ 12.99% on $50k+ trucks with below average income. Interesting that rent was always $0 on their credit app so in all likelihood they still lived with parents. The worst part was attempting to gently suggest a less equipped model like F-150 XL Sport. Never worked, Lariat, King Ranch, Raptors, or optioned F-250. That was 5 years ago, wonder where they are in 2020?
@@DTMJR1987 It's all part of the race to the bottom, which Americans are happily practising repeatedly. Banks are happy to let clients go underwater, so it's a huge combination of poor impulse control and lax financial regulation.
@@DTMJR1987 you're absolutely correct. I almost made this mistake, except I was going for a 27k 2015 f150 xlt. I reflected upon it and decided car payments weren't a smart move. I still have my payed off 06 ranger, 190k on the odo and she runs smooth. A lot of times people get into these bad purchases because of "want" not "need"
I'd rather invest those $400 a month into funds.
I have a young friend. He's 21 yrs old with a live in pregnant girlfriend and left leaves with his 36 yr old mom and her boyfriend. He works at McDonalds. Or he was until he was fired. He was able to finance a $40,000 dollar car, some type of sports edition, 2020 model, with a cosigner. His payments are $900 a month. When I met him he was 3 months behind on his car note. He went through Ally Bank. It's an internet bank. Not sure how he was able to do it.
@@PTSulon Stories like that are exactly what is wrong with this country. He should never have been able to buy such a car, for his own good.
My parents taught me a car is only something that gets you from one place to the other. No car loans; you save for a car--you end up paying a lot less. I bought my car new back in 2007. I have my old 2007 Honda Accord. Still my favorite car to this day.
I don't understand the point of buying brand new vehicle's for thousands of dollars when you can get a used one for a fraction of the price and it works just fine.
You can get the older vehicle with all the features on it for cheaper. Or you can stick to buying brand new cars that are the lowest trim and probably end up crashing it somewhere.
I don’t understand why people buy vehicles. I lease them. I see them as a monthly expense like rent.
whats interesting is, where I live. The price of a 3-4 year old car, has a higher price than the new car. For example. 2017 camry, $23,000 2019 camry same features , $21,000 Used cars here cost more than new.
Wide open market for quality new cars for middle class
@@Eric345 Probably because car leases doesn't make financial sense to most people. You are constantly putting money in a depreciating asset with no real return except for the luxury of driving a new car. But you never own the vehicle, and that money constantly spent on a car lease is money that be used to buy or car or assist in building wealth.
Thats because the middle class is actually the working poor now.
Not the ones who aren't stupid with their money. Not the ones who choose to live within their means.
@@jeffwvu4602 exactly. Just because they cannot afford them does not mean people are not buying them... and no one buys the cheap ones! They dont sell!
Great time to buy used cars... so many good deals because their is less competition
(In America, almost everyone always has thought of themselves as, "middle class". This is an ancient phenomenon. The truth of the matter is that most of them never were "middle class" in the first place.)
You don’t know what poor is lol
@@lashlarue7924 Very true.
There is a bizillion used cars out there, you’re not required to buy new
The price for used is unbelievable too
and a bazillion nice entry model cars that are safe with good amount of tech and safety features.
Good, Americans need to stop over paying for things. Go simple, stop getting into such deep debt. Used cars are ok, be happy with the car you have.
Tell antifa that
8 years?! They're a steal all right, but not for the customers.
Banking is theft
Here’s an idea.. don’t buy new vehicles. I bet prices will go down..
It's funny how some people comment just to correct other people's spelling mistakes. Yes yes we understand you gotta feel smart
William Mason used car prices are at an all-time high. You can’t touch a truck with 100,000+ miles that’s relatively new in some cases for under $20k, depending on where you live. The prices have seen a steady increase as everything becomes more expensive.
That doesn't address the overall problem that wages have not kept pace with the rise of costs for food healthcare education cars e.t.c.
Why? A lot of us have no problem buying new so that will never happen.
I only buy used its just less pricey
And poor people still buying or leasing new $1,000 iPhones. lol
They lease phones now?
@@DioDiablo702 Yup. Every year, people need to have the latest and greatest.
@@spark20 Both of my buddies (33 years old) just got the new Samsung Galaxy Z Fold2 5G. $2,000 retail or $66.66 for 30 months or $83.33 for 24 months. They both picked the 30 month finance option.
I don't feel that I'm a middle class American anymore, since prices are going up on everything. Soon, I won't be able to afford a good steak.
Wait! You can afford a good steak? Uh oh..
We're there now, Chuck. Only took a few more months.
Is this news to anyone who's been conscious the last decade?
Look around you, we're in the world of $1,000 phones, $300 earbuds and $10,000 bicycles. What made you think a new car would be within reach of a middle class family?
My $250 earbuds and $7000 mtb are two of my favorite purchases
Well i think its not the company fault. Its the consumers fault for giving in and paying for $1000 phones and $300 earphones.
There are phones under $200 that perform close to the higher end ones...
Consumer faults.......
You really don't need that stuff that you listed. Look at cheaper alternatives like the wealthy do.
The cost of living keeps going up, while salaries still say the same. Jobs that paid 40K in 2000 still pay that now 20 years later, but a car that was 250 a month is now 400...rent which was 1100 a month is now 1600...and their response is that interest rates are low and they base their prices off of what the customer wants to pay? Talk about pissing on someone’s leg and telling them it’s raining .
Are you saying rent went from 1,100 to 1,600 in 20 years because I have a worse example. Where I lived (
@@mogotrevo its getting bad people need to riot
This is why we need a gold and silver monatary system. Prices will actaully fall not rise. czcams.com/video/iuQOyNFBOjI/video.html
That's not even remotely true. Median fulltime salary in 2011 was $39,520. Its currently $51,900. And thats 2011 - not 2000. So its increased even more since then
New car owners be lookin at their bank account like - "WILSON!"😭🌊🏐
If peoples wages don't rise, but cars and houses keep rising, the economy will likely collapse.
Don’t forget education and healthcare
That’s what they want
I disagree. It's the 1% of the wealthiest that are the driving force behind our economy. Survival of the fittest doesn't just go away because we live in the modern world. The economy won't collapse, but the ones who can't keep up will be in a tough predicament.
@@hedyeherfani5729exorbitant economic inequality causes social unrest which can cause a society to collapse.
@dachicagoan Do you genuinely believe that nature and society will allow every single individual regardless of income to thrive? Name one time in history when that occurred long term.
Buy used instead. New cars are going to lose their value anyways. Make someone else’s mistake your prize
every car loses its value...
and if everyone bought used cars there'd eventually be no used cars to buy...
The point of the article is that average Americans wealth is not increasing, in some cases it is shrinking, all while the cost of living is increasing. I would buy used because it is cheaper but we shouldn't have to settle for lowering our quality of life because no one will increase wages while CEO get fat bonus checks and tax breaks.
@Cynthia Dickerson yah Econoboxes have nearly no profit margin so they'll simply phase out cars as they are doing now..
GhostlyGhille American companies will try that. But will then loose the domestic economy car market to a company like Kia or something. Economy vs SUV is very fickle, and can turn on a dime the minute gas prices hit a high like it did 12-14 years ago.
It’s bad enough that there are unused cars of various years sitting in giant lots that companies would rather let rot away than sell at a discount.
@Ray Lat There is far more to the cost of a car than the manufacturing costs alone. Developping a car and motor from scratch costs *billions* of dollars, you gotta get your money back on that.
How are you going to get your money back by letting a vehicle sit in a lot for decades. Recuperating some money is better than letting it deteriorate and depreciate.
@@cody8754 I was talking about car manufacturing.
A lot of the cars that are making these days barely make it past the manufacture warranty before something expensive fails that needs replacing. It’s almost like they’re engineered to fail🤔
@@cody8754 And how does that change anything I've said above
Can we get Dave Ramsey in the comments.
I know right? I bet he watched this and laughed his tail off.
"A $700 per month car payment??!! That's just STUPID!" - DR
@@DJLEGION thats stupid on steroids!
I know stupid because I've done stupid, that car payment is beyond stupid if you ask me.
A Dave Ramsey mindset is a joke. Basically, he doesn’t want you to spend a dime on anything. Who wants to live a life like that?
Don’t do car payments. Drive a old car, put your money in the bank, do lots of research on the car when it’s time to buy so you get a good used one when it’s time. I only buy used and drive them until the repairs get to be a problem.
Buy a modest USED car with cash. Problem solved.
Problem is, that isn't exactly sustainable. If more people bought used than bought new, you'd eventually run out of used cars to meet demand
@@cpufreak101 Although I get that point that you are trying to make, it is more nuanced than that. Most high-cost products aren't going to be affordable for people who (a) are early in their money-earning years or (b) have not created a financial foundation which empowers them to buy new. This means that people who are older (have worked longer and saved) or who have saved more funds early on, will be able to buy new. They will eventually sell their car to people who don't have the resources to afford a new car just yet.
This article also missed a key point -- save enough money to put down a decent down payment. Several auto manufacturers have base-model cars in the 15-20k range. Someone can drive a cheaper 2-5k car while saving to put 40%+ down on a new car.
Derek Whitaker new is not always better
Ian Tetley That’s kind of the premise of my initial comment..
i bought my car in cash for 15 thousand, 7 years ago. i wish i had financed and invested the money in Facebook
Consumers are at fault too. Don’t buy a new vehicle, you can’t afford.
Jessie A lot of people need to learn this lol
For some places, it is out of necessity. Pedestrian infrastructure and mass transit is inadequate, or non existent.
Cedric John Llorente buy a 4-5 year old vehicle at a price you can afford instead of keeping up with the Jones’s
@@johnfoxcoats2722 Sometimes, that is exactly the problem: used cars price are no different or even more expensive than new cars.
Although, whenever possible, shun the car for as long as necessary.
Cedric John Llorente You dont need a new car for that!!!! 🤦♂️
It feels like that are not addressing that the 10-15% of your monthly budget is not just the car payment but it's to include insurance, gas and general maintenance (then factor in tags, State inspections and state tax in the annual budget) --- so is 400$ a month really what, those at that pay level, really have to spend?
The solution: Don't buy a new car.
Yeah, he didn't mention that the Chevy spark has about 7 different lemon law issues
And a 400lb weight limit
What's lemon law
@Youric Hunt thanks for the info
GM is terrible with small cars. Stick to Honda and Toyota, they build the best, no lemons, hardly ever.
Here's an idea: DON'T BUY A BRAND NEW CAR
To some degree your not wrong but its quite sad when used decent cars are still selling for huge sticker prices. Not everyone wants their wife or kids being hauled around in a 1992 cavalier with 400k miles.
But I'm entitled to one!! I will not buy one that's a year or two old!!! I went into mounds of debt over a gender studies college degree and I'm currently making $21,000 a year now with that degree, and I will only get a brand new car!
Dude I drive a 1999 POS and all my tenants drive brand new cars.
.... yes I've spent more fixing my car now than it's worth, but guess what, who cares!! No monthly payments! Cheap insurance! Overall I save huge
Phew first logical comment! Everyone else with the WOE is me mentality
07slowbalt facts
It's not just.. America. Its all over the world
lol nope the USA's middle class is decling faster than anywhere else... highest cost, lowest wages...
In USA salaries has not risen in decades.
Get rid of unions, and have a two party system paid by the billionaires, and Jeff Bezos is what you end up with, and the rest on minimum pay.
Sonar huh, don’t know it was a frickin boat too. No wonder it’s so expensive...
Middle class americans are getting priced out of everything
Especially food
Because they make decisions like buying brand new cars vs used ones.
There is no middle class don't let people fool you there's rich and poor
Jun hee Bae food is cheaper now than ever. Its .80 for a pound of bannanas.
My parents never owned a new car until they were almost 60...
I still never have, everytime I get enough money to buy a new car.... I buy another property instead
The depreciation on new cars is insane. It doesn’t even make sense to buy new when they lose value so fast.
You only loose the value when you sell or trade in. Buy it....keep it!
True, but if someone doesn't buy new cars then there won't be any affordable used cars for the rest of us.
@@kgill8485 unless you buy retired cars from rental companies.
@@michaelb.8953 A car is supposed to be an Asset.
True even a Subaru
Here's a better idea- if the average American family can't afford a new car every few years then perhaps they shouldn't be buying them. Crazy concept I know... I've owned three cars over the past 19 years and never paid in excess of 10% of my monthly income on payments and all three cars have been new or very slightly used.
The bigger problem is that a Chevy spark would be perfectly fine as a family car in Europe yet in the United States everybody needs a 9-seater SUV for a family of four or a giant diesel pickup to haul an ice cooler to the occasional tailgate.
it's not that Americans with reasonable salaries can't afford cars, it's that reasonable salaries should only be used to buy reasonable vehicles and that's not what we do as a country.
Yep. A Civic/Corolla/ or even a little SUV like a Trailblazer or Escape is all 90% of car users need....
agreed. 4 doors and 4 seats is ALL you need if you're on a $40,000 a year budget for a car. You really should just be buying used.
I’m sorry but I’m not about to drive a small, light, front wheel drive car in the Midwest winters. Also, the crash test rating on small vehicles is usually not good. These are also factors to consider
@@tde2019 actually, my golf GTI hatchback has an amazing crash test rating. It’s well planted, good in snow, economical, and can transport a family of 4+ luggage. Did you know a lot of SUVs actually have terrible rollover scores because in icy conditions they can lose balance and roll right into ditches? Nobody “needs” an SUV, it’s a stupid attitude to have. If Europeans don’t “need” them, is Americans don’t either
@@tde2019 lol, then you'll pay for awd. Fun facts winter tires and steel wheels are cheaper than a vehicle with awd🤣
Just what I've always wanted $500/mo for 84 months... :/
You hear the payment and think "yeah, I can do that", then you call the insurance for the monthly price on that
And the annual personal property taxes...
Yup insurance would be almost the same as the payment price
Easy fix: DO NOT BUY BRAND NEW CARS.
Or buy a new car you can actually afford. No reason to own a pickup truck you'll NEVER use for work or a big SUV you'll NEVER fill-up.
Robert NES816 another excellent point
Why would people invest in a car that will breakdown on them unless they themselves are diyers. Thats how millions of working families think.
@@BabyBoyAzzure A car isn't an investment though. It's something that's always loosing value. If you want a car at a good price them buy something off lease. Or buy something new that's been sitting around for a few years.
@@RobertNES816 oh to a woman it is. You know the human that controls things in the house? Cmon buddy this world isnt just filled with men. I wouldnt mind buying a 79 monte carlo and keeping it for the rest of my life driving my wife and kids in it but my wife would mind ninja me til it was crushed in a junkyard. Its also lose not loose.
I have never purchased a new car and I have paid very few car payments in my life. It takes a lot of research to find a “pre-owned” car that has lower mileage but is affordable. I have never had an issue with any of the cars I bought used. I also learned that a lot of the kinks are worked out whereas a brand new car can turn out to be a lemon.
After 2 car accidents and 2 fully paid off totaled cars, i will never own a vehicle again. I would rather take an uber or use public transportation. I have saved so much money these last 2 years its crazy. I can see the automotive industry is a total scam that Americans have bought into.
AWWGEE! Did these people just realize that 60% of Americans cannot ever afford a new car? Is this news ten years old?
Lou Montana that’s what I don’t understand. This has been a problem for years now. With everything
@PolSmokesPot { ولد الوجيهي }
Awesome name.
😆
@PolSmokesPot { ولد الوجيهي } It's not just that. There are people who foolishly believe that buying new is the only option.
The worry here is the new perception of what "normal" is. The pertinent part of this news story is the average household incomes he stated: $39K & $35K. I think that would shock most people. In today's social media and "lifestyle" age, the perception would be far higher than that. Unfortunately in the US people see income and living only in "monthly payments" so have no clue how "poor" they really are.
Can’t afford that house they live in either.
And this is why I don't ever care to own a brand new car
I've got a 96 Toyota T100, awesome truck 🤩
Agreed. I always buy used. Always will.
Same here. Buy pre-owned from a good dealership (getting hard to find honest dealerships these days) and you'll be fine. I don't need to own something that looses value as soon as it's driven off the lot.
Yep have a 98 Silverado got it for not even 10% what a new one would cost.
@Turbo Charged They should be happy they can even buy a spark car! Why didn't the reporter try to buy a FORD FIESTA that starts at around 14k...
Worked at credit union. Dealt with repos and late to super late payments every day. Can’t imagine big bank customers and their worse rates. Idk how this industry hasn’t collapsed again already.
It is living on borrowed time. "You can always loan yourself out of trouble." But what if those loans are the reason you ended up in trouble?
It amazes me that people can’t budget and live within their means!
It amazes me that you're still blaming people in a *failed economy.* Shut that victim blaming programmed propoganda hole up.
If everyone lived within their means you would be unemployed. We live in a debt based system
@@missyv8900 It's not victim blaming. If someone chooses to buy stuff they can't afford, that's on them. There are plenty of people who don't make a lot but don't live beyond their means, avoid debt and manage to save.
Stop with the "everyone's a victim" mentality. People with that mindset never seek to change their conditions.
@@missyv8900 a failed economy? This is the beat economy in the world. And we have like the 4th highest median income
@@missyv8900 The topic here is $45k cars, and people buying them when making $40k a year. Those people should be buying $5-10k cars. The state of the economy is really another discussion IMO.
Get yourself a gently used, well maintained Toyota or Lexus for 5-9 grand and you're good to go...
Does not exist.
I tried. 10 year old Toyota Corolla 75,000 miles. Nothing less than $9,000 on all car lots. And those get scooped fast.
MP TYMZ3 .EXACTLY!
yes but the thing with used cars is that you have to but the whole money down first day. So a lot of people dont safe up for that and rather go with a rediculous lease
Add Honda to that list and price range.
Real story is how the middle doesn't exist anymore.
@Old Man hendo middle class here family brings in $120k yr because we WORK
@@OffroadCpl thats not middle class genius your rich.... That a six figure income.... Do you know anything about economics?
Old Man hendo
Syndicalism is good
@@buddadadot7863 Six figures doesnt make a family rich. Just my mother alone makes six figures. The more money you have, the more money you spend.
Koch Brothers
Yeah, everyone. Consumers want higher prices. Stop buying new cars and they'll get the message.
Where will you get the used car to buy if everyone stops buying new?
"Poor class" getting priced out of being able to buy lemons.
people are buying these nice big trucks but for 10 year loan LOL
Benny s T F U
Benny sounds like you’re in denial and own a truck.
99% of vehicles are a depreciating asset. It’s in no way an investment.
It’s unfortunate for those who believe having a new car means you appear to be doing well in life or have money. Seen it way too many times.
Benny ummm no, trucks are more susceptible to faster depreciation because of the gas mileage.
they built the trucks to last at least 20 years now.
@@beastfromtheeast9318 Toyota Tacoma. Compare used to new
The more features you get in a car, the more repair headaches you'll get in your car's ifetime.
Daniel Zuñiga Gutierrez lol
That’s why they give you warranty on everything including any software issues or electrical . Don’t be ignorant not all people wanna drive a beat up Honda like you
So u buy the car n just get on the bus??? Dont want to risk messing up the car right
Scotty would say a 94 celica 😱😱😱😱😭😭😂😂🤣💀💀☠☠😂😂😭
Yep that's why I bought a truck with regular windows and locks.
I got a 2020 Camry for $440 a month, still a lot but I don’t see how you can get $800 a month payments. That’s wild
I'm happy with my 2018 civic. My monthly bill is around $140 and takes care of all my needs. If I could afford a more expensive car I would get a tesla.
I rather drive my 14 year old paid off car than be in debt over my head driving a new car...people are crazy the way they get in debt...i dont play the gane
Same here. I learned that WAY to late in life, but I am living it now. So if anyone wants to see ME in a NEW car, feel free to buy me one. I never will again.
Amen! My 10 year old Civic is my baby! It is paid off and saves me on gas. I get a full tank for about $20. 😁
@@youtubetears1076 same here. I bought a 2004 5 speed with blown engine for $500. Another $600 later and it's on the road getting 37mpg
Turningwrenches On old cars Wow! They are really good cars! 👍
Bought a 15 year old corolla for $1700 off Craigslist. Still gets 36 mpg and have put 20000 miles on it with no issues. I can afford a much “better” car but who cares, at the end of the day it’s just getting me from point a to point b
Best economy ever, yet my income from employment hasn't moved in ten years.
should've probably asked for a raise, or switched companies if you haven't seen an increase in 10 years, you think your boss is going to willfully hand over money to you? Take some charge in your life
godfathaofyo
I asked and got a 12% raise the same month as Trump’s inauguration and a 20% bonus three months after. My boss knew what was coming. So people who don’t see their paychecks going up are just lazy or stupid.
But income doesn’t really matter, it’s all about how wisely you invest it rather than spend it.
Sounds like you didn't acquire new skills in 10 years.
Bullion Forever No one is forcing you to stay there. The job market is booming right now and companies are scrambling to get good reliable help. Sounds like you are good reliable help that a company doesn’t appreciate. Move up the ladder or go somewhere else. Your company obviously isn’t interested in you but you have the responsibility to create yourself.
Andrew
And just like 10 years ago the only people on minimum wage are teenagers and those too stupid to get something better.
Best thing to do is to keep your car as long as you can. I have a 2013 edge and just do sched maintenance. Has most of what could be considered luxuries from the early 2010s...and that is more than enough. It runs, passes inspection, and is paid for. WINNING!.
I can imagine how high the cost is on top of paying for maintenance and the insurance there is no way I can afford a car.
I make more than double these incomes he’s talking about and I even bought a used car. Part of the responsibility is to live within your means.
True, my dad wanted a mercedes, so he bought a certified preowned 2014 e class for $22k even though he can afford an s class because the older e classes have bulletproof v6 powertrains and are used as taxis in Germany. Only vehicle my family ever bought new was a toyota truck, because they depreciate very little.
@@seanl764 Which engine is that? I'm interested in a reliable used engine like that.
I make much more than 38k and I bought new once - a 2002 mazda nicely spec'd out for 17k new. Since then I've bought 2 used priuses and 2 used F150s.
@@jennnyandjeffs idk it's a 2014 mercedes e350, they are used for taxis in europe, some have been known to run 600k+ miles.
Exactly! Used car for the win. I think spending 10% is actually too high. I love buying used cars. I love the negotiation process and can sometimes find great deals from private sellers and you don't have to pay taxes.
Never waste your money on a new car. Besides American car's quality has plummeted while the price has risen.
SERVO DESTROYER everything from cars, houses, clothes household items. You name it.
Probably the smartest comment.
I love my Kia Soul $240 a month 2016 like an idiot I opted for the lifetime warranty. Bring the price up
True so,so,so true my friend 😉
steven correa I've owned the same car for 21 years. Fully paid off in 1998. How much money have I saved? Lifetime warranty would've been nice though.
10 year loan at 5% apr. Thats how drivers are affording it. Nobody is looking at the price. Only at monthly payment
Yep, just like streaming subscriptions replacing owning DVDs & Blu-rays
What was deemed as an "Affordable Family Car Price" 20 years ago will get you a car that won't fit a family now!
If you can't afford to buy it twice, you can't afford it
Does that work with houses ?
@@caeruleusaurum1550 nope thats what they are called mortgages
@@fernandod9100 Which is why i asked. Just because you can't afford it twice doesn't mean you can't afford it.
@@caeruleusaurum1550 thats a good one
Price of EVERYTHING goes up. Paycheck stays the same. Year after year.
Yeah, I'm sick and tired of being told that wages are up when we aren't seeing any of that at all. Okay, maybe once every 5 years we 'might' get a raise... of about a whole twenty cents/hour before taxes. A fake raise. Meanwhile, rents, food, utilities, etc, keep jumping like crazy much, much higher than our fake raises.
@@astridgalactic9336 What about the billionaires? Why wont you think about the billionaires?
The car manufacturers' responses were laughable. Wages are not up. The cost of living goes up every year due to inflation and greedy corporations increasing prices but people don't get raises every year to offset those costs. Not only are your wages staying the same, inflation is continuously lowering the value of those wages.
@@bebeerin inflation is continuously lowering the value of those wages....and your savings if you have any.
Isn't late stage capitalism great? Mark my words, there will come a day when this entire system will come crashing down, who knows what will succeed it.......... you can't expect people to live this way all their lives.
You could get many good used cars on that budget.
I bought a used Accord with 59k and 5 years old and paid all cash at 9700.00. Car is still running with 137k now. Smart.
It's unbelievable that they offer a loan term of 8 years on a car. Even five years seems too long.
And it's a machine which needs constant maintenance. Also, depreciates in value and has no tax advantages. Let's not forget insurance expense.
In China they have 30 year loans. Think of the interest!
@Kevin Schmidt Which indicates a recession is here or arriving soon. Why else would they keep rates so low? To spur buying power in the low income bracket.
@Kevin Schmidt maybe as a savvy buyer that's possible, but I'm not so confident the average buyer is thinking like that. I think if a buyer is needing to borrow over 8 years to afford to buy a new car, they can't truly afford it.
The only way to fight inflation is to not consume.
dont play their games or dismantle their games
Good luck surviving.
@@KillaSin515 Food and water is necessary but buying new electronics every few months or whatever isn't good.
Consuming is the greatest American power today, what are you talking about?
If people just stop paying these high prices, they will have to do something. It is crazy!!!
It's amazing how much people are willing to pay to try to impress people they don't know and who don't care.
It’s not that, some of us just want to drive really fast, I’d buy a 2013 Audi S4 over a Honda Fit any day.
I want a small truck and not a rolling office entertainment center.
Tacoma?
Then dont get a cybertruck. But yeah, get one
I had a 2002 ranger, super reliable.
@@kingerikthegreatest.ofall.7860 2003 ranger 310k miles no problems still going strong
Toyota Hilux.
I bet there wasn't even anyone he was talking to over the phone.
There was not
The infotainment screens are the biggest rip off. It's like $100 to put the same thing your self in an old car... Vs. the $2000 your paying for the infotainment part
I've never purchased or owned a new car, and I never will. I won't poor money into depreciating assets.
The auto makers have moved from building cars on to selling finance scams.
Miss Informed this is good
True. That's where they make their money.
When I bought my first car, I got the loan at my bank. I got a better interest rate than the dealer offered, because I had three accounts. By the time I bought my second car, my credit score was so good that I got a crazy low interest rate at the dealer. But the problems that most people make is negotiating based on monthly payments. I negotiate a sales price, knowing roughly the loan amount and monthly payment.
Meanwhile, car commercials suggest that a good husband/boyfriend buys their wife/girlfriend a new car for christmas.
And guess what? She still won't be satisfied.
Hahaha!!
On top of all that, women are more demending too. That's right.
Yes ! The Lexus December to remember sales event🤣
@ltlblugrl easy to do when your car cost 900 bucks
I like how he's impressed by a tire pressure monitoring system, which is federally mandated. The most basic of cars will come with it.
The problem is every model now has “luxury” accessories. I’d definitely lose the infotainment system if it meant dropping the price a grand or two.