FOR DECADES, CAR OWNERSHIP HAS BEEN a trademark of the American lifestyle, with vehicles becoming symbols of freedom, independence and even rebellion, as well as a necessity. But in 2024, the country's legendary love story with the automobile may have stalled, as cars have become unaffordable to millions.
Kate H., 37, told Newsweek that she needs a car "to be alive." But after hers was totaled in late December, she cannot afford to buy a new one because it would cost her too much and she has not been able to secure good financing.
"Having a car that is 10 percent of my income, including gas, insurance, car payments, etc. means I probably need to budget around $400 or less per month," she said. Kate is on Social Security disability due to an immune system disorder and other health problems. She cannot use ride-sharing services too often because she needs to avoid pathogens.
Kate isn't alone in finding cars too pricey these days in the aftermath of the COVID lockdown. Both new and used car prices rose to record highs during the pandemic, as the auto industry experienced supply chain disruptions and chip shortages. Since 2020, new car prices have risen by 30 percent, according to data shared with Newsweek by AI car shopping app CoPilot. Within the same time frame, used car prices have jumped by 38 percent.
In 2023-a year during which inflation increases slowed down to the point that the Federal Reserve decided to stop hiking rates-new car prices rose by 1 percent to an average of $50,364, while used car prices fell by only 2 percent to an average of $31,030.
But as things stand, cars are still really expensive for many Americans. Just 10 percent of new car listings are currently priced below $30,000, according to CoPilot. Things are not much better in the used car market, where only 28 percent of listings are currently priced below $20,000.
Denne historien er fra February 16, 2024-utgaven av Newsweek Europe.
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Denne historien er fra February 16, 2024-utgaven av Newsweek Europe.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Julia Stiles
“What’s funny is that I did everything as a director that I swore I would never do to my actors.”
'A Clarion Call to Service'
Former ambassador to China heralds Jimmy Carter’s ‘exceptional dedication to humanity and world peace’
Marianne Jean-Baptiste
\"I'm not too worried about her not being likable.\"
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'These Were Courageous Leaders'
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How the Other Half Live
Patricia Arquette returns for season 2 of Severance. Free from the corporation, she reveals her character's struggle with her newfound independence
An Iron Dome for America
Donald Trump has promised to build a missile defense system to protect the continental U.S. from a nuclear strike. A new report lays out how it might look
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Paris Hilton & Nicole Richie
PARIS HILTON AND NICOLE RICHIE ARE READY TO BRING A LITTLE “SANASA” to the world with Peacock's Paris & Nicole: The Encore, their first project together since their reality show The Simple Life ended in 2007. What's “sanasa”? It's a song and phrase the longtime friends created as kids and popularized on The Simple Life. The show, a cultural phenomenon in the early days of reality TV, followed them over a series of blue-collar jobs. Now they're bringing it back as an opera. “I know this is just going to make people laugh, have fun, be nostalgic and just celebrate our friendship,” Hilton said. While Richie acknowledged “you can't do Simple Life again,” she said now “felt like the right time.” The famous pair also revisit some old jobs in Arkansas, like fast-food chain Sonic, where they now have drinks named for them. “I think that there is a part of our friend- ship that the show ended up showing that people connect to,” Richie said. As for this new special, Hilton is glad to do something positive for their fans. “It's been such a crazy past couple years, and I just feel like the world needs more joy.”
