YA THINK? Car Prices Might Be Unsustainable for Buyers.

For the average American, paying off a new car at current prices demands 42 weeks of income, according to data from Cox Automotive, up from around 33 before the pandemic.

Bargains have been hard to come by on the used-car lot as well, where the average vehicle listed for about $27,000—up more than 30% from prepandemic levels, according to Cox’s data.

Higher interest rates have made the situation more difficult for buyers. Today’s average new car loan has a monthly payment north of $750, with an interest rate of 9.5%. For used cars, the average rate is above 13.7%, according to Cox.

High interest rates are temporary, at least one hopes. But thanks to regulation, mandates, and decoupling (necessary but uncomfortable), high prices are here to stay — just like the housing market.

It’s almost as though someone wants to turn us into a nation of renters and bus-riders.