Jaspreet Singh: All the Ways New Cars Are Killing the Middle Class

5 comments

1. Is the issue higher profit margins or the money being devalued due to inflationary monetary policies?

2. Cars are actually cheaper now then they ever have been. Cars from 20 to 30 years ago you were lucky if they lasted 100k miles. Today’s modern day cars should last 200k miles. Have a lot more tech, safety and fuel economy features. The value you get in a modern day car is certainly better.

   The reason cars feel more expensive is due to inflation, more expensive tech and safety features. All those things make the car a better value.

3. Champagne taste on a beer budget is what’s killing the middle class. You can still buy a Honda Accord for $30k.

   If you want a BMW 540i with all options, you only make $50k/year and you use funny math to buy it knowing you can’t afford it, that’s on you.

   Insurance can be reasonable if you just raise your deductible. I know people don’t want to hear that, but it’s a great way to save $$$. People go years on end without at fault accidents and overpay because their deductibles are way too low. With the money you save with a higher deductible, you can easily put the savings away for a rainy day if you have an at fault accident.

   New cars can be affordable if you stay within your budget. You don’t need to make $100k to buy a new car.

4. If you look at [percentage of income spent on transportation](https://www.bts.gov/data-spotlight/household-cost-transportation-it-affordable), there hasn’t really been a big change in the amount spent at any income level in the past 20 years. The lowest income earners have spent between 28 and 38% of their income on transportation over that time. Right now it’s 30%. So, even for the poorest people, it is not a uniquely expensive time to own a car,

5. They don’t sell economy cars anymore.