Americans can no longer afford their cars
Americans can no longer afford their cars
www.newsweek.com
Americans can no longer afford their cars
72 comments
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According to an October report by Market Watch, Americans needed an annual income of at least $100,000 to afford a car, at least if they're following standard budgeting advice, which says you shouldn't spend more than 10 percent of your monthly income on car-related expenses.
This is a dumb way to determine whether someone can "afford" a car.
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What's a better metric?
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Can you expand?
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Monthly payments depend on loan term and interest rates as well as principal. I don't think that is a good way to determine whether you can afford something.
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They didn't list out every factor of the standard advice. The standard advice also includes 20% down and no longer than a 48 month payback period. So it more or less locks it in, other than rate.
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72 comments