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 US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 16, 2024-utgaven av Newsweek US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Terry Crews
FOR TERRY CREWS, THERE ARE NO RULES.
Carrie Coon
CARRIE COON IS HAVING A MOMENT, EVEN THOUGH YOU MAY NOT RECognize her.
Still Doin' It Well
Ahead of the release of his new album, The FORCE, LL Cool J told Newsweek of his strong desire to keep contributing to the hip-hop culture he helped create
WORLD'S MOST TRUSTWORTHY COMPANIES 2024
TRUST IS AN ESSENTIAL PART OF ANY RELATIONSHIP-FROM PERsonal relationships to ties between businesses and consumers.
HOPE and HEALING on HORSEBACK
IT'S BEEN A DECADE SINCE ISIS COMMITTED GENOCIDE AGAINST IRAQ'S YAZIDI POPULATION. MORE THAN 100,000 YAZIDIS REMAIN DISPLACED BUT WORKERS AND ANIMALS AT AN EQUINE THERAPY CENTER ARE PROVIDING RELIEF
Is College Worth It?
AMERICANS are LOSING FAITH in HIGHER EDUCATION amid RISING TUITION FEES, UNCERTAIN PAYOFF and CULTURE WARS on CAMPUS
An integrated model for water management
Alkhorayef Water and Power Technologies has deep expertise and synergistic capabilities across the full water and wastewater value chain
Investments that are transforming life in Saudi Arabia
Abdullah Al Othaim Investment Company is creating distinctive destinations and experiences that encompass multiple sectors
A Kinder and Gentler Nick Cave
After a period of personal upheaval, the famed Bad Seeds singer returns with the vibrant and optimistic 'Wild God'
Fleeing War and Scams
Newsweek spoke to three Ukrainians who have been targeted by \"sponsors\" trying to profit from applicants seeking refuge in the U.S. via a humanitarian scheme
