Study: Phoenix median-income families can't afford new car - WSFA.com Montgomery Alabama news.

Study: Phoenix median-income families can't afford new car

CBS 5 CBS 5
PHOENIX (CBS5) -

The Phoenix metro area ranks 21st out of 25 major cities in a new car affordability study conducted by Interest.com.

Accounting for the region's median income and car insurance costs, Interest.com determined that typical Phoenix area households can afford to spend up to $17,243 on a car. The average new car, however, costs $30,550.

"What this research indicates, more than anything, is that a lot of Americans are spending too much money on their cars," Interest.com Managing Editor Mike Sante.

When calculating how much a household can afford to spend on a car or light truck, Interest.com considered three key factors that are commonly referred to as the "20/4/10" rule. That is: a down payment of at least 20 percent; financing lasting no longer than four years; and principal, interest and insurance not exceeding 10 percent of a household's gross income.

Interest.com recommends that median-income households spend no more than the following amounts on vehicle payments (principal and interest) in total and each month.

The average price of a new car or light truck in 2012 was $30,550, according to TrueCar. That equates to a monthly payment of about $601.

1. Washington, D.C.
Affordable Purchase Price: $31,940
Maximum Monthly Payment: $628

2. San Francisco
Affordable Purchase Price: $26,786
Maximum Monthly Payment: $537

3. Boston
Affordable Purchase Price: $26,025
Maximum Monthly Payment: $507

4. Baltimore
Affordable Purchase Price: $24,079
Maximum Monthly Payment: $468

5. Minneapolis
Affordable Purchase Price: $24,042
Maximum Monthly Payment: $470

6. Seattle
Affordable Purchase Price: $22,963
Maximum Monthly Payment: $466

7. Portland, Ore.
Affordable Purchase Price: $21,985
Maximum Monthly Payment: $397

8. Denver
Affordable Purchase Price: $21,835
Maximum Monthly Payment: $432

9. San Diego
Affordable Purchase Price: $21,781
Maximum Monthly Payment: $433

10. New York City
Affordable Purchase Price: $21,464
Maximum Monthly Payment: $431

11. Philadelphia
Affordable Purchase Price: $21,069
Maximum Monthly Payment: $419

12. Chicago
Affordable Purchase Price: $20,616
Maximum Monthly Payment: $417

13. Los Angeles
Affordable Purchase Price: $20,385
Maximum Monthly Payment: $410

14. Sacramento
Affordable Purchase Price: $19,965
Maximum Monthly Payment: $397

15. Dallas
Affordable Purchase Price: $19,959
Maximum Monthly Payment: $389

16. Houston
Affordable Purchase Price: $19,811
Maximum Monthly Payment: $386

17. Milwaukee
Affordable Purchase Price: $19,297
Maximum Monthly Payment: $373

18. Atlanta
Affordable Purchase Price: $19,122
Maximum Monthly Payment: $376

19. St. Louis
Affordable Purchase Price: $18,550
Maximum Monthly Payment: $371

20. Pittsburgh
Affordable Purchase Price: $17,298
Maximum Monthly Payment: $340

21. Phoenix
Affordable Purchase Price: $17,243
Maximum Monthly Payment: $348

22. San Antonio
Affordable Purchase Price: $17,137
Maximum Monthly Payment: $334

23. Detroit
Affordable Purchase Price: $17,093
Maximum Monthly Payment: $332

24. Miami
Affordable Purchase Price: $15,188
Maximum Monthly Payment: $295

25. Tampa
Affordable Purchase Price: $14,516
Maximum Monthly Payment: $282

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

  • Trending StoriesTrending StoriesMore>>

  • Police: 8 dead in truck, 20 dire in immigrant smuggling case

    Police: 8 dead in truck, 20 dire in immigrant smuggling case

    Sunday, July 23 2017 5:50 AM EDT2017-07-23 09:50:46 GMT
    Sunday, July 23 2017 10:52 AM EDT2017-07-23 14:52:34 GMT

    Eight people have been found dead in a tractor-trailer outside a Walmart in Texas in what police are calling a tragic human trafficking case.

    More >>

    Eight people have been found dead in a tractor-trailer outside a Walmart in Texas in what police are calling a tragic human trafficking case.

    More >>
  • After Craigslist scam, man can't enter his own home

    After Craigslist scam, man can't enter his own home

    Saturday, July 22 2017 8:29 PM EDT2017-07-23 00:29:14 GMT
    Saturday, July 22 2017 8:29 PM EDT2017-07-23 00:29:14 GMT

    The people inside rented the home from a mystery person on Craiglist. As the law stands, because they refuse to leave, Keith Mills now has to go to court to prove he’s the rightful owner.

    More >>

    The people inside rented the home from a mystery person on Craiglist while owner Keith Mills was on vacation.. As the law stands, because the renters refuse to leave, Mills now has to go to court to prove he’s the rightful owner.

    More >>
  • NASA issues warning: You may have a bad pair of eclipse glasses

    NASA issues warning: You may have a bad pair of eclipse glasses

    Friday, July 21 2017 11:22 AM EDT2017-07-21 15:22:03 GMT
    The path of the total solar eciipse on August 21, 2017 crosses directly over Columbia and the Midlands. (Source: NASA)The path of the total solar eciipse on August 21, 2017 crosses directly over Columbia and the Midlands. (Source: NASA)

    As the world, the United States, and South Carolina prepared for arguably the coolest celestial event in decades, our old friends at NASA want you to know that pairs of unsafe solar eclipse glasses are being distributed. 

    More >>

    As the world, the United States, and South Carolina prepared for arguably the coolest celestial event in decades, our old friends at NASA want you to know that pairs of unsafe solar eclipse glasses are being distributed. 

    More >>
Powered by Frankly