{"id":34681,"date":"2022-10-27T09:04:11","date_gmt":"2022-10-27T13:04:11","guid":{"rendered":"https:\/\/autosector.com\/?p=34681"},"modified":"2022-10-27T09:04:11","modified_gmt":"2022-10-27T13:04:11","slug":"common-used-cars-now-unaffordable-inflation-wages","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=34681","title":{"rendered":"Popular used cars like the Toyota RAV4 and Ford Mustang now &#8216;unaffordable&#8217;"},"content":{"rendered":"<figure><figcaption>\n   A Toyota<br \/>\n  <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-dealers\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">dealership<\/a> in Florida.<br \/>\n  <span class=\"copyright\">Joe Raedle\/Getty Images<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li>Used-car prices have increased by 52% over the last three years, far outpacing growth in American wages.\u00a0<\/li>\n<li>Popular cars like the <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/toyota\/rav4\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">Toyota RAV4<\/a> and <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/ford\/mustang\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">Ford Mustang<\/a> aren&#8217;t affordable to buy used anymore, according to a new study.\u00a0<\/li>\n<li>For example, a three-year-old <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/toyota\/prius\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">Toyota Prius<\/a> will now run you $32,000.\u00a0\u00a0<\/li>\n<\/ul>\n<p>Beloved cars like the Toyota RAV4 and Ford Mustang have become out of reach for regular Americans, according to a <a href=\"https:\/\/www.iseecars.com\/car-affordability-study#v=202210\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">new study<\/a> from the automotive search engine iSeeCars.\u00a0<\/p>\n<p>A shortage of <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/research\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">new vehicles<\/a> and other pandemic-related factors have driven <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-values\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">car prices<\/a> through the roof in recent years. iSeeCars compared skyrocketing vehicle costs to <a href=\"https:\/\/www.businessinsider.com\/what-is-quiet-fleecing-wages-pay-productivity-economy-recession-inflation-2022-9?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">relatively stagnant median American wages<\/a> and found that dozens of models that would have been affordable in 2019 are now unattainable in 2022.\u00a0<\/p>\n<p>&#8220;From August of 2019, well before the pandemic lockdowns started, to August of 2022, new car prices increased by almost 29 percent, and three-year-old <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-values\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">used car prices<\/a> increased by 52 percent, but incomes increased by only 13%,&#8221; said Karl Brauer, executive analyst at iSeeCars.<\/p>\n<figure>\n <img decoding=\"async\" class=\"grp-full lazy\" src=\"https:\/\/media.zenfs.com\/en\/insider_articles_922\/7ebf1fd97b161b34b640f32018cde17c\" alt=\"The 2022 Toyota RAV4 Prime XSE plug-in hybrid SUV.\" data-uuid=\"148ee7cd-7b81-320e-b2fe-03cb83bd161c\" loading=\"lazy\"\/><figcaption>\n   The<br \/>\n  <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/buy\/2022-Toyota-RAV4+Prime\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:9;\">2022 Toyota RAV4 Prime<\/a> XSE.<br \/>\n  <span class=\"copyright\">Tim Levin\/Insider<\/span><br \/>\n <\/figcaption><\/figure>\n<p>To calculate if something is affordable or not, the study considered today&#8217;s typical rates for <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/loans\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:10;\">car loans<\/a> and assumed that yearly payments shouldn&#8217;t exceed 10% of a household&#8217;s income. It identified 33 used models that were affordable in 2019 but aren&#8217;t anymore.\u00a0<\/p>\n<p>Here are the top 10, ranked in descending order of list price for a three-year-old model. A three-year-old <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/cars-for-sale\/vcond-Used\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:11;\">used car<\/a> needs to cost $25,542 or less to be affordable under iSeeCars&#8217; criteria.\u00a0<\/p>\n<figure>\n <img decoding=\"async\" class=\"grp-full lazy\" src=\"https:\/\/media.zenfs.com\/en\/insider_articles_922\/1c7eb850d00399941ff309b0825664e3\" alt=\"Used car affordability chart from iSeeCars.com\" data-uuid=\"1128b7b8-1f0a-38ab-a8e5-f352a3967f40\" loading=\"lazy\"\/><figcaption>\n   Used car affordability.<br \/>\n  <span class=\"copyright\">iSeeCars.com<\/span><br \/>\n <\/figcaption><\/figure>\n<p>Other popular models that made the list include the <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/honda\/cr_v\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:12;\">Honda CR-V<\/a> ($30,193), <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/subaru\/forester\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:13;\">Subaru Forester<\/a> ($29,759), and <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/toyota\/camry\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:14;\">Toyota Camry<\/a> ($27,404). High-volume models like these would typically be relatively inexpensive on the secondhand market, since there should be plenty of them available. But not in today&#8217;s upside-down car market.\u00a0<\/p>\n<p>The rising costs have forced buyers to enter longer loan terms with less money down or choose older, less desirable vehicles, iSeeCars said.\u00a0<\/p>\n<p>For much of the pandemic, carmakers around the globe have struggled with supply-chain issues (like a shortage of computer chips) that have severely limited their ability to make <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/research\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:15;\">new cars<\/a>. Although the supply of used and new vehicles at US <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/car-dealers\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:16;\">dealers<\/a> has been recovering gradually, it&#8217;s still <a href=\"https:\/\/www.coxautoinc.com\/insights\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:17;\">significantly lower than historic levels<\/a>, according to Cox Automotive.\u00a0<\/p>\n<p>Car companies have <a href=\"https:\/\/www.businessinsider.com\/will-car-prices-drop-back-to-normal-or-stay-high-2022-5?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:18;\">leaned into their pricier models<\/a> and reduced incentives, pushing the average transaction price for a new car to $48,000 in September. With new cars expensive and in short supply, buyers have flooded the used market, driving prices up there as well.\u00a0<\/p>\n<div class=\"read-original\">\n  Read the original article on<br \/>\n <a href=\"https:\/\/www.businessinsider.com\/affordable-used-cars-expensive-toyota-ford-honda-chevrolet-2022-10\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:19;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Toyota dealership in Florida. Joe Raedle\/Getty Images Used-car prices have increased by 52% over the last three years, far outpacing growth in American wages.\u00a0 Popular cars like the Toyota RAV4 and Ford Mustang aren&#8217;t affordable to buy used anymore, according to a new study.\u00a0 For example, a three-year-old Toyota Prius will now run you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-34681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/34681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34681"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/34681\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34681"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}