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.
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.
Get the Weekly Newsletter
Our weekly feature stories, movie reviews, calendar picks and more - minus the newsprint and sent directly to your inbox.