"Just because you don't manage the monthly payment means that you have a drive with $30,000 or consume such a huge percentage of your salary, $40,000 should be", said Mike Sante, editor-in-Chief of Interest.com. "Many people give money for a car payment that could save her."
For the second year in a row, Interest.com calculates how much the average household in America's largest metro areas could issue monthly car payments and afford car insurance.
Once again leader: in Washington, D.C. with the median budget will bring a maximum monthly payment of $641.
The study showed that Tampa and Miami are the only two cities where car affordability decreased in the past year.
The biggest jump has been in San Antonio, where affordability by 7 per cent to the previous year compared.
Interest.com makes 20 percent down assuming their calculations of the buyer and take a 48-month car loan.
Top 5 metro areas for car affordability
1 Washington, D.C.
($32.531 affordable purchase price / $641 maximum monthly payment)
(2) San Francisco
($28.009 affordable purchase price / $563 maximum monthly payment)
3. Boston
($26.669 affordable purchase price / $520 maximum monthly payment)
4. Minneapolis
($24.846 affordable purchase price / $494 maximum monthly payment)
(5) Baltimore
($24.591 affordable purchase price / $479 maximum monthly payment)
Buyers overwhelmed
With the average price at the dealers for a new car now topping $32,000 paid says Interest.com, that many households in America cannot afford major metropolitan areas, to as much as they spend on new cars and trucks.
"I'm worried that the average purchase price is so much higher than the average income of the families," said Sante. "Clearly, not many people have a plan for how much they can spend and can afford."
The truth is only a few car buyers, the 20 percent down when they buy a new vehicle, and according to Experian Automotive only 4.7 percent of all new cars car were loans in the fourth quarter of last year, 37-48 months. A record 20.1 percent of car loans could be compared between six and seven years according to Experian.
The rising popularity of longer car loans is due to new car buyers who are looking to keep their monthly payments as low as possible.
"You should borrow no more than 48 months or you end up going to pay for a new car for ever," said Sante.
Cities with the lowest affordability
21 Phoenix
($18.199 affordable purchase price / $364 maximum monthly payment)
22 Pittsburgh
($17.965 affordable purchase price / $354 maximum monthly payment)
23 Detroit
($17.352 affordable purchase price / $338 maximum monthly payment)
24 Miami
($15.174 affordable purchase price / $299 maximum monthly payment)
25 Tampa
($14.209 affordable purchase price / $280 maximum monthly payment)
20.04.10 rule
Sante believes more American households would need to save more money or something else to spend, if they the "20.04.10 rule" followed
20 percent down.
Take a car loan no longer than 4 years.
Make sure that you spend no more than 10 percent your monthly gross salary for a car payment and auto insurance.
"She really a battle plan should, when starting a new car or truck, to buy" Sante said. "If you could you not spending more than you can afford really can be found."
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