Home · Business · Oct 3 archive
Cars have become unaffordable for many Americans. Here’s what the numbers show.
Confirmed
In Short: While the focus here is on car affordability, a separate study by Knasin from the University of Pennsylvania, David Konisky from Indiana University, and Shelley Welton from the University of Pennsylvania, highlights that energy bills are also becoming unaffordable for many Americans.
According to the Consumer Federation of America, or CFA, Americans now owe a record $1.66 trillion in auto debt, highlighting the financial strain many are facing.
Tara Mikkilineni, a senior fellow at CFA, stated, “Buying a car should be a way for families to achieve economic success, but it is increasingly becoming an unaffordable burden that pushes consumers down into a debt spiral.”
Kelley Blue Book reports that Americans now spend an average of more than $800 on one round of auto repairs, further exacerbating the financial burden.
Recent data indicates that these trends are currently unfolding in the U.S., making car ownership an increasingly unaffordable luxury for many.
The study suggests that various stakeholders, from the federal government to individual consumers, have opportunities to help provide Americans with more affordable energy options.
What's confirmed
- According to the Consumer Federation of America, or CFA, Americans now owe a record $1.66 trillion in auto debt, highlighting the financial strain many are facing.
- Kelley Blue Book reports that Americans now spend an average of more than $800 on one round of auto repairs, further exacerbating the financial burden.
- Recent data indicates that these trends are currently unfolding in the U.S., making car ownership an increasingly unaffordable luxury for many.
- The study suggests that various stakeholders, from the federal government to individual consumers, have opportunities to help provide Americans with more affordable energy options.
What's still developing
- Data shows more Americans are struggling to afford their cars.
- A study from VantageScore showed car payment delinquencies have increased by 50% in the last 15 years.
- That shows car loans have gone from one of the most secure consumer credit products to one of the riskiest.
- Recent data shows that’s exactly what’s happening in the U.S. right now.
- Knasin, University of Pennsylvania ; David Konisky, Indiana University ; and Shelley Welton, University of Pennsylvania For many Americans, energy bills are becoming increasingly unaffordable.