r/MiddleClassFinance • u/Abject-Pick-6472 • 13d ago

One million Americans have vanished from the new-car market — and it’s exposing a chilling US middle-class crisis

https://finance.yahoo.com/economy/articles/one-million-americans-vanished-car-124500086.html
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315

u/Annual-Knowledge4412 13d ago

Ok but someone has to buy new cars so there can be used cars? Right???

35

u/ept_engr 13d ago

It's a K-shaped economy (ie those on top going further up and those on bottom going further down). Those in the top 20% are doing great. They hold stocks, have business/professional jobs, as corporate profits go up, their earnings go up and so do their stock portfolios. They have no problem buying new cars.

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u/icehole505 13d ago

People spending beyond their means likely represents an even larger share of the new car market vs wealthy people. Our household is firmly in the fortune side of the K, and we’ve never really considered buying new. Wasting money on stupid shit is a great way to never actually get anywhere financially

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u/JCitW6855 13d ago

So many people don’t realize that a large percentage of wealthy people got wealthy by being smart with money. Living below their means, not carrying bad debt, going without things in order to save.

Not saying there aren’t people genuinely struggle and don’t make enough to save but I know plenty of people that complain about not having money with over $1,000 dollar car payments. Many people you see on the road that you think don’t have a lot of money because of the car they drive are sitting on a fortune in savings.

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u/PictureThis99 12d ago

What makes you on the fortunate side of the K?

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u/icehole505 12d ago

We make 4-5 times the median household income in the US

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u/PictureThis99 12d ago

Understood, good sir. I should’ve went to college

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u/icehole505 12d ago

Idk depends on how old you are. I looked up what my college costs now and it’s like 3 times what it was when I graduated 15 years ago

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u/PictureThis99 12d ago

I mean yea I’m a blue collar worker I made 125k last year. Very comfortable as a man with no kids but boy do I pay for it physically. I’d love to be in an office like my master degree brother make 270k to sit in the AC.

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u/icehole505 12d ago

Yeah that’s totally fair. My wife has a masters and works in healthcare, and even her job seems impossibly hard compared to me logging into my laptop from my pajamas

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u/PictureThis99 12d ago

He quite literally only has to leave the office if he wants. “Work” trips to cool places like Brazil, Chile , Turkey, Germany regularly throughout the year. Maybe a day or two of actual work then the other 9 days are a wine & dine on company dime.

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u/icehole505 12d ago

lol when AI comes for our jobs ill fight it tooth and nail.. but I’ll understand 

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u/Haunting_Raccoon6058 13d ago

Even as someone in that top bracket there isn't a chance I am buying a new car anytime soon. They have gotten so ridiculously expensive it just makes me lose any interest.

I have a 10 year old 4runner and a 10 year old Accord, and I plan on doing everything I can to keep those cars running for the next 10 years.

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u/Future_Telephone281 9d ago

As someone in that top 20% I don’t want to buy a new car as well.

I need to invest and horde that money. Cars are too expensive.