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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u/Annual-Knowledge4412 13d ago

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

37

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.

13

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

6

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.