SPRINGFIELD, Mass. (WWLP) – In many of the country’s biggest cities, the cost of a new car is out of reach for the average family.
The average new car price went up by about $1,500 last year, and that is why in 24 of the country’s 25 largest metro areas, a new car or truck simply isn’t affordable for a median-income household.
A new Interest.com analysis figures that it takes just over $32,000 in annual salary to buy a new car, and Washington, D.C. is the only major city where those average families could afford it. That means more people are signing up to borrow– even if they can’t afford that either.
Standard & Poors reported this month the number of loans with borrowers behind on their payments is at the highest rate in three years.
Liz Rappaport of Springfield told 22News that she can see how this can become a big problem for people trying to make ends meet.
“Cars are incredibly expensive and the car industry is trying to bounce back,” she said. “It’s incredibly difficult. Like the chicken and the egg: you need a car to get to work, but you need the job to afford the car.”
Don’t forget about insurance, either. In those more populated regions of the country where there are more drivers on the road, it will cost even more to insure a new car.