Fortune magazine broke a news story that won’t shock large swaths of America: many people can’t afford a new car. We’re not talking they can’t afford a nice new car. Literally, these households couldn’t even get a new Mitsubishi Mirage. And we wonder why the industry’s seeing a drop in new vehicle sales.
Anyone in touch with what’s going on economically in the US is shaking their head. For many, the recession is ongoing and the thought of a recovery seems like a cruel joke.
Fortune found that what city people live in determines how easily they can afford a car. If you reside where the cost of living is high, public transportation, car sharing services, or a used vehicle make the most of what little you have left financially. Of course, in some areas, a private vehicle is the only viable option.
According to this Fortune article, the worst areas for vehicle affordability are San Antonio, Tampa, Orlando, Miami, Fort Lauderdale, West Palm Beach, and Detroit. I’m not sure how this works, but Fortune says San Francisco, Washington D.C., Minneapolis, and Boston are best for vehicle affordability.
One of the problems, Fortune concludes, is that new cars cost too much. Again, many people are rolling their eyes, or mumbling about out-of-touch media types. It doesn’t seem like automakers are doing much to solve this problem, but they might be forced to in the future if something doesn’t change.