Automobile Affordability Continues to Decline

The state of automobile manufacturing and automobile buying trends is more tedious than ever as gasoline prices fluctuate between all-time highs and still-too-steep averages and automakers strive to make up for a recent decline in consumer respect and demand by jacking up prices on every car lot. The public’s basic need for transportation is at the mercy of an auto industry that has turned its production mindset from providing to prospering.

According to a report in Autospectator, the price tag on new vehicles is only getting substantially higher every year, requiring households to fork over amounts they can’t afford in order to get the family from point A to point B.

The purchase of an average- priced new vehicle took 26.2 weeks of median family income in the fourth quarter, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. That 2.2 rise in the number of weeks of work required to purchase a new vehicle was the biggest one-quarter deterioration in affordability ever recorded by the index.

While automakers argue that as automobile prices rise, so do family incomes, the affordability rate is what financial analysts consider the telltale sign of who’s taking advantage of whom. Fortunately, consumers have options in combating price gauging – whether at the gas pump or the car dealership. Extended warranties can prolong the life of an expensive vehicle and allow buyers to get the most from the thousands put toward reliable transportation.

See Also

• Auto Warranties and Extended Warranties
  Auto Warranties