Cars have become unaffordable for many Americans. Here's what the numbers show.

American drivers are feeling affordability pressure as higher car prices and borrowing costs collide. The average new car now sells for more than $50,000, while the average used vehicle costs about $27,000. Interest rates are also up sharply: new-car loan rates reached 6.35% (from 4.09% in 2021) and used-car loans climbed to 11.19% (from 8.59%). With financing harder to obtain within affordability guidelines, many households are pushed toward larger down payments or cheaper vehicles. The article cites a “20/3/8” rule—20% down, payoff within three years, and keeping the car payment under 8% of gross income—designed to prevent car-poor budgets.