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03-03-2013, 11:53 AM
Filed under: Car Buying (http://www.autoblog.com/category/carbuying/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)
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Interest.com (http://www.interest.com/) has taken a look at the 25 largest metropolitan areas in the US to determine which median-income households in those areas can afford to purchase a new car. As it turns out, only those living in Washington, D.C. can realistically swing the payment on an average-priced model. In 2012, new cars and light trucks carried a median MSRP of $30,550, and Interest.com used the 20/4/10 rule to examine what exactly is affordable in each area.

The rule states that a buyer should be able to offer a down payment of at least 20 percent, incur financing for no more than four years and endure a principal, interest and insurance totaling up to no more than 10 percent of household income. That works out to a monthly payment of $601. Households with an average income in Washington, D.C. can afford a payment of up to $628, while the next closest city, San Francisco, can only afford $537 per month. You can pick through the cryptic press release below (http://motorgen.com/2013/03/03/households-with-median-incomes-can-only-afford-average-new-car-p/#continued) for more information.Continue reading Households with median incomes can only afford average new car price in one of America's 25 largest cities (http://www.autoblog.com/2013/03/03/households-with-median-incomes-can-only-afford-average-new-car-p/)
Households with median incomes can only afford average new car price in one of America's 25 largest cities (http://www.autoblog.com/2013/03/03/households-with-median-incomes-can-only-afford-average-new-car-p/) originally appeared on Autoblog (http://www.autoblog.com) on Sun, 03 Mar 2013 13:00:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).


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