Study: Miamians Can't Afford Nice Cars
It shouldn't come as much of a surprise in a city where people often live above their means, but a new study show that Miamians simply can't afford all those flashy cars they're driving around town.
Need a new car? Hope you're small.
A new study by Interest.com found that Miamians living on the median income level can only afford a car worth $15,174 with a monthly payment of no more than $299. Miami has the single lowest average car purchasing power of the top 25 metro areas, except for Tampa.
Interest.com used the 20/4/10 rule to determine car pushing power. The takes into account "a down payment of at least 20 percent; a financing term of no more than 48 months; and principal, interest and insurance not exceeding 10 percent of a household's gross income."
"Too many families are spending way too much on new cars and trucks," said Mike Sante, managing editor of Interest.com in a statement. "Just because you can manage the monthly payment doesn't mean you should let a $30,000 or $40,000 ride gobble up such a huge share of your paycheck."
Tampians meanwhile can only afford, on average, a car worth $14,209 with $280-a-month payment.
Cities where the average citizen can afford a decent ride: Washington, D.C.: ($32,531; $641 a month) and San Francisco ($28,009; $563 a month). Well, good for them!
So what exactly can you get for under $15,000? Mostly tiny hatchbacks like a Chevy Sonic, Ford Fiesta, Nissan Versa Note or a Smart Fourtwo. So, if you're tall we just hope you're making more than the city's median income.
Send your story tips to the author, Kyle Munzenrieder.