Middle-Class Car Affordability Challenges: Rising Prices and Other Factors

Dec 28, 2023 10:36 PM EST

AUDI CAR ROAD STREET CURVED ROAD — (Photo : PEXELS/MarleneBitzer)

Cars, though not a basic need for survival, had established its presence as an integral part of everyday life. This significant discovery and innovation of the 20^th century becomes a necessity for many. With the convenience it offers, certainly cars are indispensable part of many households and businesses.

However, due to some factors owning a car is not easy as ABC. GoBanking Rates shared a list of cars that middle class in the current times, couldn't afford anymore. If they were able to purchase, it required more than their usual spending and enormous effort in saving money to buy one.

Top Car Models: Out of Reach Cars for Middle Class

As per a USA Today report, The Economist highlighted that in its examination of historical middle-class societies, these communities reside in a middle ground, avoiding the extremes of affluence and destitution. The term "middle-class" signifies more than just a financial category; it also encapsulates a specific set of attitudes and beliefs.

One crucial aspect is having a moderate level of disposable income. Unlike those in poverty who struggle to make ends meet regularly, middle-class individuals typically don't live paycheck to paycheck or face constant job insecurity. GoBanking Rates revealed the list of cars the middle class can't afford anymore. Later it may lead to issues or even financial crisis.

Ford Mustang

MSRP: $32,515

Ford Mustang, known for its American muscle and affordability, may no longer be an affordable sports vehicle. Although the base EcoBoost coupe could fit within the budget of some middle-class buyers, the price rises significantly for additional features. For instance, choosing a convertible version starts at over $39,000, far exceeding what's typically considered an entry-level cost.

Now, it can be included in the list of cars that middle class can't afford anymore.

Honda Odyssey

MSRP: $39,185

Among family vehicles, few represent the essence of middle-class life quite like the minivan. Despite some buyers' reluctance, these vehicles undeniably offer one of the most practical means to transport both family members and their belongings from one place to another. Although Honda's Odyssey presents a dependable and roomy choice, its starting cost of nearly $40,000 has rendered it financially out of reach for numerous middle-class households.

Nissan Pathfinder

MSRP: $37,175

The SUV's popularity has soared in America in recent decades, offering an alternative to minivans while sacrificing some seating and storage capacity. A traditional mid-level SUV such as the Nissan Pathfinder might not be the flashy choice at social gatherings, yet its price tag doesn't align with that perception. Starting near $40,000 for the base model, this vehicle doesn't come cheap. The coveted Platinum trim, commencing at just over $50,000, sits beyond the financial means of most, if not all, middle-class households.

Ford F-150

MSRP: $38,565

The Ford F-150, once considered an affordable mid-tier choice within the iconic F-Series trucks, is now priced beyond the means of numerous middle-class car buyers, altering its former reputation for affordability.

BMW 3 Series

MSRP: $45,495

Luxury car manufacturers once provided entry-level options that, while aspirational, remained attainable for average-income households. However, this has changed significantly. The BMW 3 Series, starting at over $45,000, has transitioned from being a possibility for many to a distinctly aspirational choice, increasingly distancing itself from affordability for the majority of buyers.

Audi A4

MSRP: $42,295

The Audi A4, favored by entry-level luxury car buyers for its performance and sophistication, is seen as a pricier option compared to BMW's counterpart, challenging affordability for average earners. Despite its perceived value, its cost escalation troubles households unable to afford it.

The shift of once-affordable vehicles, like the Audi A4, beyond the reach of average buyers is concerning, indicating a worrying trend. While hopes for price reductions amid cooling inflation exist, there's uncertainty if these cars will ever return to being considered middle-class vehicles.

Reason Cited: Cars the Middle Class Can't Afford Anymore

According to the same GoBanking Rate's article, information provided by the automotive platform, Edmunds, indicates a substantial surge in the average cost of new cars, escalating from $36,000 to $48,000 within the past five years-an astonishing $12,000 hike.

When these price increments outpace wage growth significantly, it leads to a scenario where individuals find themselves unable to afford these vehicles. Consequently, numerous cars previously deemed accessible to the middle class have become unattainable.

As stated on Vancouver Sun, the finance news website, Investopedia revealed that meeting the traditional benchmarks for a basic middle-class life in America requires approximately $3.4 million across a person's lifetime. However, the average lifetime earnings of a U.S. worker are estimated at around $2.3 million, falling more than a million dollars short of that standard.

The ultimate cost is determined by totaling 10 lifetime expenses, some of which may fluctuate based on a family's values and requirements. This comprehensive sum comprises various elements such as used cars at $271,330, health insurance at $934,752, retirement at $715,968, and funeral expenses estimated at $7,848.