Automobile Affordability
Obtaining cash for wrecked cars is sometimes the best option considering the prices of body repair. When you junk cars for cash with Cleveland Scrap Cars you are actually making an environmentally sound decision. The old car removal process is included when we buy scrap vehicles in Cuyahoga, Lake and Geauga County. Those looking to have a salvage car taken off their hands should contact our office today. We are an established junk car purchasing organization and scrap car hauler. We take the environmental concerns associated with our recycling process seriously; after all, it can be illegal and hazardous to discharge used auto fluids into our water, land and such critical resources.
In the July 6, 2016 edition of Automotive News an article titled ‘Cars aren’t affordable’ by Jack Walsworth informed us of the following: “The average cost of a new car is too high for mid-income households in all of the 50 largest U.S. cities. Bankrate.com ranked the 50 largest U.S. cities on how much a mid-income household could pay for a new car, and calculated the typical maximum monthly vehicle payment. Even in the relatively wealthy city of San Jose, CA in the median income isn’t large enough to really afford most average new vehicles — if consumers follow mainstream budgeting rules.
Steve Pounds, finance analyst at Bankrate says that people spend too much for cars currently. People are sacrificing college funds and retirement savings for more expensive vehicles then they should. When calculating how much a household can spend on a new vehicle, they recommend following the “20-4-10 rule.” This means a down payment of at least 20%, financing of no longer than (4) years and principal, interest & insurance not exceeding a total of 10% of household gross income.
In fact, consumers continue to buy cars trucks, often in violation of several aspects in that rule. Most common, they have been taking out loans for too many years. To find the maximum monthly payment that a median-income household should spend on a car payment, Bankrate calculated 10% of the monthly median gross household income per city and subtracted the average monthly vehicle insurance cost in each city. When they completed the study, the average new vehicle price was $33,865. Also factored into the national average rate for a 48-month vehicle loan, was 4.24% at the time. According to their recommendations on how much mid-income households should spend on vehicle payments, including principal & interest, San Jose residents could spend the most — but still not enough to cover the cost of a new vehicle. With a median income of $87K, San Jose residents could afford a $32K vehicle with a max payment of $662. Residents living in Detroit, which has a median income of $25,769, could afford to spend the least of the fifty cities examined on a new car–$6K, with a top monthly payment of $120.” The complete article is available here.
This is simply another example of our US cultural dynamic that accepts borrowing as the norm. US consumers spend too much of their income and save too little. New vehicle loans that stretch to 72 or 84 months terms are far too common and trade-in and down payments are far too low. Credit cards, rather than savings, are often the “emergency fund” in most cases.
Selling junk cars for cash
Are you seeking cash for wrecked cars or other unwanted cars, trucks or SUVs? If deciding to junk cars for cash, give us a quick call for a scrap car quote. When we provide you a quick price quote over the phone, the old car removal is included. Our salvage car buyer is here 6 days a week to give you fast cash for cars. The work of a scrap car hauler certainly isn’t the most exciting work, but we strive to deliver fast results with friendly service.