New car prices have been rising rapidly in recent years, various studies showing that Average Transaction Prices – what buyers actually pay after factoring in incentives and options – have hit record levels. And that means that more and more American motorists are being priced out of the market.
The average median-income household can no longer afford to purchase the “average-priced” new car or truck in 24 of the country’s 25 largest metro areas, according to a new study by the financial website Interest.com. The exception is Washington, D.C., according to the study, which also found that in 16 cities, median family incomes fell at least $10,000 short of what it would take to buy the typical new vehicle.
“Too many families are spending way too much on new cars and trucks,” said Mike Sante, managing editor of Interest.com. “Just because you can manage the monthly payment doesn’t mean you should let a $30,000 or $40,000 ride gobble up such a huge share of your paycheck.”