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US median household income is 63k. So for a two income house, that would mean two cars costing a total of 31.5k max. A 2020 yaris starts at 15,650. With fees,
by brianwawok 7y ago
US median household income is 63k. So for a two income house, that would mean two cars costing a total of 31.5k max.
A 2020 yaris starts at 15,650. With fees, should be around that mark.
The problem is, the median US household does not buy a Yaris. They spend more like double that. So 30-40k PER car, two cars per household.
- perl4ever 7y agoFor a coherent analysis, you should use the median income of two earner households. Two people where one makes $75K and the other makes $50K equals a household of $125K. And it seems obviously extravagant to me for a middle class family to have two new cars. One maybe, but two? But even so, by the formula, the family can afford two $30K cars.
- syshum 7y agoin 2005, the last actual data I could find that lists 2 income households, the median income was $75,293, assuming that income kept pace with inflation that would be $98,562 today not 125K, Such a family would not want to spend more than 49K total on their cars. so that is 1 car for 49K or 2 for 24K and that IMO should be the extreme absolute limit