FOX Wheels: Car Affordability
Can you really afford that new car? And… When “wash me” becomes “costly”.
FOX News Radio’s Jennifer Keiper with our weekly look at things with wheels… “FOX Wheels“:
It’s FOX Wheels.
Seeing the $32,000 average transaction price on new cars and trucks had Mike Santee at interest.com wondering…
(Santee) “Gee, can the median income family in the 25 largest cities really afford to pay that kind of money?”
Santee says their survey finds only those in Washington, D.C. can. Folks in San Francisco can afford $28,000, Milwaukee $20,000, and Tampa comes in last — only able to shell out $14,000.
Santee says judge affordability by using the 20/4/10 rule:
- A down payment of at least 20%.
- Financing under 4 years.
- And principal, interest, and insurance not exceeding 10% of your household’s gross income.
(Santee) “You can save thousands of dollars a year on things like payments or insurance.”
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Think twice the next time you take a finger to a car covered in road salt.
Bruce Kohn owns a Chicago car wash…
(Kohn) “When the car is washed you’re going to see part of that ’cause that is a grit that is going to scratch through the clear coat and through the paint.”
Way to turn that smiley face… Upside down.
With FOX Wheels, I’m Jennifer Keiper, FOX News Radio.
Follow Jennifer on Twitter: @JenniferKeiper
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