A new study shows that customers choose expensive cars, overburdening with payments they cannot afford.
The study was made by Interest.com, an offshoot of Bankrate.com, and shows that the median income in the metro areas of 25 major cities in the US was $57,391 in 2012. This means that American families should limit the new vehicle payment to $410 per month, which would be enough to purchase a new vehicle for up to $20,806.
But, as the average price in 2012 was $30,550, this means that many customers overburdened themselves with payments they cannot really afford, as they will have to pay $601 per month on a typical loan to pay it off.
“What this research indicates, more than anything, is that a lot of Americans are spending too much money on their cars,” said Mike Sante, managing editor of Interest.com, in a statement.
The study also shows that new cars are only a dream for families that pay attention to their spending, as the majority of midsize family sedans cost more than $20,000. This means that in cities with lower median incomes, families are forced to purchase a car which does not fir their needs, but which they can afford.