The Struggle to Afford New Cars: A Reality for Majority of Americans
More than 80 percent of Americans cannot afford new cars due to rising costs, including interest rates, dealer markups, and supply chain issues. According to a report, the average American should not spend more than 10 percent of their annual income on monthly car payments. However, buying an average-priced car would require an income of over $96,000 to comfortably afford the payments. Only 18 percent of individuals in America earn $100,000 or more, while the average salary is $59,428. Although 34.4 percent of U.S. households make over $100,000 annually, many people are still paying more than they can afford for their cars.