6 Cars the Middle Class Can’t Afford Anymore
Unless you’ve been living on a mountaintop for the last few years, you know that the price of just about everything has been going up like a rocket.
Rachel Cruze: 10 Used Cars Under $10K That Are Worth Buying
See How: Pocket an Extra $400 a Month With This Simple Hack
While it seems that the rate hikes carried out by the Federal Reserve have finally started to cool inflation, that doesn’t mean that prices are coming down — just that they aren’t going up as quickly as they were. Rising prices may be purely the result of macroeconomic factors, or of businesses seizing the opportunity for price increases, but whatever the case, the end result is that the purchasing power of the average person has fallen dramatically over the last few years.
This is especially true of automobiles. In fact, data from the US Bureau of Labor Statistics shows that vehicle prices for both new and used cars have risen higher and faster since 2020 than at any other time in nearly four decades. Data from auto website, Edmunds shows that the average price of a new car has risen from $36,000 to $48,000 over the last five years, a staggering $12,000 increase.
When prices rise so much faster than wages, people start to get priced out of the market, and many cars that were considered attainable for the middle class have climbed out of reach.
Ford Mustang
MSRP: $32,515
The Ford Mustang, an emblem of American muscle and performance, has long been a symbol of affordable sports cars, but maybe not for much longer. The base model EcoBoost coupe is probably within the grasp of at least some middle-class buyers, but it goes up very quickly from there. If you want a convertible, for example, that base jumps up to a just over $39,000 starting price, which is hardly entry-level.
Honda Odyssey
MSRP: $39,185
Perhaps no vehicle screams middle-class quite so much as the family minivan. While many buyers still cringe at the thought of owning one, there’s no arguing that they’re one of the best ways to get your family — and all your stuff — from point A to point B. While Honda’s Odyssey is a reliable and spacious option, with a starting price of nearly $40,000 it has become unaffordable for many middle-class households.
Check Out: These 20 Cars Will Last You Twice as Long as Any Regular Vehicle
Nissan Pathfinder
MSRP: $37,175
The SUV has become incredibly popular in America over the last couple of decades, freeing buyers from the lameness factor of minivans, albeit at the cost of some of the seating and cargo space. A classic mid-range SUV like the Nissan Pathfinder isn’t exactly the sort of vehicle you’d brag about owning at a party, but its price doesn’t reflect that, once again starting close to $40,000 for the very base model. The popular Platinum trim level starts at just over $50,000 — out of reach for most if not all middle-class households.
Ford F-150
MSRP: $38,565
Ford’s F-Series of pickup trucks has been the country’s top-selling vehicle for over four decades, making it a truly iconic American truck. The F-150 has long been seen as the affordable, mid-range option of the F-Series, which also includes the heavier duty F-250 through F-450 models. However, today’s starting price puts it solidly out of the picture for many middle-class car shoppers.
BMW 3 Series
MSRP: $45,495
While the higher-end luxury vehicles have rightly never been viewed as middle-class, a number of luxury automakers have long produced what you might consider an entry-level option — while the price made it aspirational for many buyers, it was still within the realm of possibility for average income households. That’s not the case anymore. With a starting price over $45,000, the 3 Series is less in the realm of possibility and much more aspirational.
Audi A4
MSRP: $42,295
Another popular option for first-time luxury buyers, the Audi A4 is celebrated for its blend of performance and sophistication. It’s slightly more affordable than BMW’s equivalent, but still very spendy for average earners. The A4 is generally considered to be reasonably priced for all that it offers, but that’s small consolation to the many households that have watched this vehicle float out of their price range.
While there are obviously still plenty of budget cars out there available for purchase, it’s alarming to see that many of the vehicles once considered modest (or at least not over-the-top) have become unattainable to the average buyer. With inflation finally cooling off, it’s possible that prices may come down over the next year or two, but it’s just as likely that most, if not all, of these vehicles may never be considered middle-class again.
All price data sourced from Edmunds.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Cars the Middle Class Can’t Afford Anymore
