2013 Car Affordability Study
Median-income families in only one major city can afford the average price Americans are paying for new cars and trucks these days.
When calculating how much a household can afford to spend on a car or light truck, we considered three key factors that are commonly referred to as the “20/4/10” rule. That is: a down payment of at least 20%; auto financing lasting no longer than four years; and principal, interest and insurance not exceeding 10% of a household’s gross income.
Here is the affordable purchase price for median-income households in each city and how much higher or lower that is from the average cost of a new car or truck — $30,550 in 2012.
| Cites | Purchase Price | Nat’l Avg. Difference |
Rank
|
|---|---|---|---|
| Washington | $31,940 | 4.55% | 1 |
| San Francisco | $26,786 | -12.32% | 2 |
| Boston | $26,025 | -14.81% | 3 |
| Baltimore | $24,079 | -21.18% | 4 |
| Minneapolis | $24,042 | -21.30% | 5 |
| Seattle | $22,963 | -24.83% | 6 |
| Portland | $21,985 | -28.04% | 7 |
| Denver | $21,835 | -28.53% | 8 |
| San Diego | $21,781 | -28.70% | 9 |
| New York | $21,464 | -29.74% | 10 |
| Philadelphia | $21,069 | -31.03% | 11 |
| Chicago | $20,616 | -32.52% | 12 |
| Los Angeles | $20,385 | -33.27% | 13 |
| Sacramento | $19,965 | -34.65% | 14 |
| Dallas | $19,959 | -34.67% | 15 |
| Houston | $19,811 | -35.15% | 16 |
| Milwaukee | $19,297 | -36.83% | 17 |
| Atlanta | $19,122 | -37.41% | 18 |
| St. Louis | $18,550 | -39.28% | 19 |
| Pittsburgh | $17,298 | -43.38% | 20 |
| Phoenix | $17,243 | -43.56% | 21 |
| San Antonio | $17,137 | -43.91% | 22 |
| Detroit | $17,093 | -44.05% | 23 |
| Miami | $15,188 | -50.28% | 24 |
| Tampa | $14,516 | -52.48% | 25 |
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2012 National average transaction prices for new cars & light trucks provided by TRUECar.
Auto insurance data provided by the National Association of Insurance Commissioners.
