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Posts Tagged ‘New vehicle affordability’

Gap Between What Buyers Want and Can Afford Widens

New affordability measure suggests most buyers in over their heads.

by on Dec.15, 2016

New crossovers and trucks are flying off dealer lots. While most people are springing for vehicles like the one above ...

The good news for automakers is that the average transaction price, i.e. what folks pay for a new vehicle accounting for rebates and other incentives, continues to rise. However, car buyers are seeing that they can afford less and less when it comes to a new vehicle.

A median-income household can afford 58.9% of the light-vehicle average transaction price, according to the November 2016 Auto Buyer’s Affordability Index, which translates to less than $20,000, and this is leaving some consumers less than optimistic.

Financial News!

In a recent survey, Requisite Press found that three out of four U.S. consumers – 74.6% – believe that new vehicles are unaffordable. (more…)

New Cars Becoming Unaffordable, Study Claims

Living in a major city can make vehicle ownership tough.

by on Jun.30, 2016

A new study says that today's families cannot afford the vehicles designed specifically for them, such as the Chrysler Pacifica.

If you live in one of the top 50 U.S. cities, it’s unlikely you can afford to buy a new vehicle, according to a new research study.

Bankrate.com believes that a median-income household cannot afford the average priced new car or light truck in any of the 50 largest cities in the country. The average price of a new car or light truck in 2016 was $33,865, according to Kelley Blue Book.

In the Know!

“People are spending far too much money on their cars,” said Steve Pounds, personal finance analyst at Bankrate.com. “There are many safe, affordable and stylish options on the market for people to choose from that won’t cut into more important budget items; such as college funds and retirement savings.” (more…)