Americans take 11 months of income to buy a new car
On average, consumers in the US need to spend the equivalent of 10.75 months, or 43.2 weeks of income, to buy a new car.
In February, the price of new cars became more comfortable than in January but still cost consumers a significant amount of budget to own. According to Carscoops, New research by Cox Automotive and Moody’s shows car prices have fallen slightly over the past month.
Factors contributing to the cooling of new car prices include increased support levels, improved income, and a slight decrease in loan interest rates. As a result, the average number of weeks of income needed to buy a new car in February was 43.2 compared to 44.2 weeks in January.
Kelley Blue Book – one of the largest auto valuation firms in the US – notes that the average transaction price of a new car in February was $48,763, down 1.4% from the previous month, and that in addition to Average income increased by 0.3% in February, so did the level of support from auto manufacturers. As a result, the second month of this year ended with the monthly payment on a car loan also falling, from $781 in January to $765 in February.
But despite the positives mentioned above, buying a new car in the US still accounts for a large portion of the average annual salary. From February 2012 to February 2021, the average number of weeks of income needed to buy a new car was between 32-36 weeks, and still significantly less than today’s figure.
“As car prices fell slightly and support levels increased, new car prices became more affordable earlier this year. However, a typical American household can afford to pay around $400 a month. At that rate. With a monthly average of nearly doubling, the new car market is still heavily skewed towards well-to-do customers,” said Jonathan Smoke, chief economist at Cox Automotive.
In Vietnam, an A-size car on the market costs about VND 400 million, while the per capita income is only 6.7 million/month, according to the General Statistics Office in 2022. That is, For a person with an average living standard, it takes 60 months (nearly 5 years) without eating or spending to have enough money to buy a car.
America – England