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by gjsman-1000 743 days ago
$40K, "affordable," shows what a bubble NYTimes is living in.

Let's remember that the median income in the US is $37,585. Half of people make less. Don't spend more than you make in a year on a new vehicle.

7 comments

> $40K, "affordable," shows what a bubble NYTimes is living in.

Did we read the same article? NYTimes is claiming that "$20k" (or rather, $20k after up to $7500 in federal rebates) is affordable.

Which, it kind of is? That's a brand new fully electric for like $400/month.

And we're seeing it in the used market as well. (2019/2020 Chevy Bolts are now going for like $15k or ~$350/month which puts them well into affordability for people around a $40k/yr income.

Median income is not an accurate measure of affordability. That includes every person who isn't working - stay at home moms, retirees, etc.

The federal reserve's calculation of household income is probably more useful at $74k: https://fred.stlouisfed.org/series/MEHOINUSA672N

And I have never paid more than $5k for a car personally, but the average new car in America is ~$47k so $40k is not actually out of alignment with what most people are buying.

Most people don't buy new cars (in the US, anyway, twice as many used cars than new are sold.)
The average new car in the US is $48k.

https://www.caranddriver.com/news/a43611570/average-new-car-...

You are correct that people shouldn't spend so much on new cars, but the status quo is that they are. Reporting on prices isn't a bubble as much as just a statement of what's going on.

The average purchase price in the US in the recent years is >$40k, and you're saying that $40k is not affordable. Yours is not a majority opinion.
kind of goes against having Ford F-150 be the highest selling vehicle in the US
No, its not even close. They claim the whole "F" group is the best selling, not the F150 alone.

With that said, the Tesla Y and 3 are the best selling cars in the US.

Please check your 5 year old info before posting.

Fwiw I can't find any data to back up your claim. Looks like in 2023 numerous models outsold Tesla Y and 3 (CRV/Rav4/Ram/Silverado). While Ford doesn't seem to release individual F-150/250/350/450 data, given the huge lead I'd bet the F-150 would still beat model Y even if split out.
From the article:

> Recently, Mr. Lawrence said, customers have been snapping up used Teslas for a little over $20,000, after applying a $4,000 federal tax credit.

...

> Carmakers including Tesla, Ford, General Motors and Stellantis, the owner of Jeep, have announced plans for electric vehicles that would sell new for as little as $25,000.

absolutely. the standard of living is in decline: there are now fewer new cars sold per capita than decades past.