UnAffordable Transportation

Finding affordable transportation is becoming an issue, possibly with similar roots to finding affordable housing – emphasis on ‘affordable’.

“According to an October report by Market Watch, Americans needed an annual income of at least $100,000 to afford a car,…” – Newsweek

“That means that more than 60 percent of American households currently cannot afford to buy a new car, based on Census data. For individuals, the numbers are even worse, with 82 percent of people below the $100,000 line.” – Newsweek

Just as in housing, manufacturers make more money from more expensive offerings. There are incentives to make things that are more expensive and dis-incentives for making things that are more accessible. From a business perspective, to make the same money, why make several small cars when one large SUV can generate the same profit?

Add in higher interest rates. Poorer people are more likely to need a loan, the loans are more expensive. The risk of default is necessarily higher than from a cash sale. Again, bigger may be better.

Affordable transportation is necessary for many working Americans. Public transit can help, but not for everyone and not everywhere.

Of course, one solution for an affordability issue, whether transportation or housing, is to fix the affordability end of things by helping working people make more money. However, that may be a much bigger issue to tackle.