Rising Costs Make Car Ownership a Luxury for Many Americans
Has Car Ownership Become So Expensive It's Basically A Luxury Now?
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A recent survey reveals that 39% of Americans view car ownership as a luxury they can no longer afford due to soaring costs of vehicles, insurance, and maintenance. The average car loan payment is $606.25 monthly, with many drivers spending over 15% of their income on car-related expenses.
- 0139% of survey respondents consider car ownership a luxury they cannot afford.
- 02The average annual cost of car loan payments is $7,275, equating to $606.25 per month.
- 03Car insurance costs have surged by 37.5% since 2021, contributing to overall inflation.
- 04Many drivers are spending over 15% of their income on car-related expenses, which the U.S. Department of Transportation classifies as a 'transportation cost burden.'
- 05Rising gas prices have compounded the financial strain, with average prices reaching $4.56 per gallon.
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Car ownership in the United States has become increasingly unaffordable, with 39% of respondents in a LendingTree survey stating that owning a car is now a luxury. The average car loan payment stands at $606.25 per month, while nearly 20% of loans exceed $1,000 monthly. Insurance costs have risen sharply, increasing by 37.5% since 2021, which has significantly impacted overall affordability. Many drivers are now spending over 15% of their income on car-related expenses, a threshold identified by the U.S. Department of Transportation as a 'transportation cost burden.' The rising prices of gas, which recently reached an average of $4.56 per gallon, further complicate the financial landscape for car owners. As maintenance costs also rise, individuals are finding it increasingly difficult to manage the financial demands of owning a vehicle, prompting some to consider alternative forms of transportation.
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The financial burden of car ownership affects many Americans, leading to changes in transportation habits.
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