Average used car affordability requires $120,000 annual income
The 20-4-10 rule, a traditional test for car affordability, now demands a six-figure income.
A 20% down payment, four-year financing, and total costs under 10% of gross income are the rule’s requirements.
The average used vehicle listed for $26,342 in April, up 3% from a year earlier, contributing to the increased income requirement.
The median U.S. household earned $83,730 in 2024, making the average used car unaffordable for most