Is it really that the middle class can't afford cars, or is it that a lot of folks want to buy a car they really can't afford?
My much higher concern is that the reason people take a seven year auto loan, as it is the default option given to them and see a lower monthly payment. By doing that, one can think they can afford the $40k or $50k car, not realizing that the total cost of ownership (i.e. maintenance, gas bill, etc.) also just rose, and the money they are paying in interest is also much higher now.
My much higher concern is that the reason people take a seven year auto loan, as it is the default option given to them and see a lower monthly payment. By doing that, one can think they can afford the $40k or $50k car, not realizing that the total cost of ownership (i.e. maintenance, gas bill, etc.) also just rose, and the money they are paying in interest is also much higher now.