Latest Findings Says Cars More Affordable Now Than They Were 30 Years Ago »
Posted By TimALoftis 7 months, 3 weeks ago in Business & FinanceWhile tanking auto sales are bad for automakers, the customers buying cars and trucks are paying less for them than any time in the past 30 years. Comerica Bank's Auto Affordability Index shows that a vehicle with a $26,000 MSRP takes the average family 21.5 weeks of median income to buy. That's 1.3 weeks less than in December of 2008, as incentives have grown by an average of $1,700 per vehicle purchase in only five months. Lower interest rates and deep discounts are being assisted by looser credit requirements as well. In April, industry incentives averaged out to $2,931 per vehicle, and domestics were at $3,412.
Read Full Story at autoblog.com »
181 Views Share Story 3 Comments Report
Submitted By:
TimALoftis
Wishing All My Friends Here At Propeller The Very Best During This Holiday Season.
HAPPY NEW YEAR!
Who Also Submitted: All »
RSS Join the Discussion
+ Add CommentComments So Far: 3 (view all)
-
Neutral
TimALoftis7 months, 3 weeks ago
This comment is below the standard viewing threshold View It »
and the good news is that in the short term they will even become less expensive for most. The cash for clunkers program (when it passes Congress) will allow many to qualify for up to a $4,500 voucher to trade in a older car for one that is more gas efficient. A vehicle with a $25,000 MSRP could actually be sold for $16,000 once one figures in the voucher, the manufacturer incentive and then the discounts at the individual dealer.
Reply
Make no mistake about it...if you have been thinking of buying a new car, this is your time.-
Neutral
nostalgia7 months, 3 weeks ago
This comment is below the standard viewing threshold View It »
Realistically, how many people who have an older car are going to run out and buy a new one given the current economy?
Reply
How many people are afraid to go further into debt if they fear being laid off?
How many people can even get a loan?
This program is only going to last one year
Of course the new car parts dealers complained so a provision was placed in the bill that cars traded in would have to be destroyed - no used parts to be saved
As the Automotive Aftermarket Industry Association pointed out:
AAIA strongly opposes the use of Cash for Clunkers programs, which threaten jobs in the independent aftermarket industry by removing repair opportunities for vehicles and raising the cost of used cars and parts.
"It seems arrogant to destroy perfectly good vehicles with many more years of useful life just to entice consumers to purchase a car that they might not be able to afford," said Kathleen Schmatz, AAIA president and CEO. "This is hauntingly reminiscent to the home mortgage debacle when consumers purchased homes they could not afford."
Cash for Clunkers would prematurely destroy vehicles and their valuable parts and components, denying more affordable used vehicles and parts to millions of low and middle income families who cannot afford to purchase a new car even with a government voucher.
-
-
robtyreeComment removed: Hard Banned
Add a Comment
Sign In With Your Propeller Account
Please keep your comments relevant to this story.
To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.