Hottest New-Car Segment Remains Unaffordable without Maximizing Savings Throughout Car Buying Process, Advises Requisite Press

LOS ANGELES, Oct. 8, 2014 /PRNewswire/ -- Requisite Press, LLC reported today a September 2014 Auto Buyer's Affordability Index (ABAI) of 54.1, indicating that a prudent, median-income household can only afford 54.1 percent of the average new-car price. Median-income families continue to have a very limited selection of affordable models, and are completely shut out of the popular crossover SUV segment. In such an environment, it's vital for families to maximize their savings at every step of the car buying process. To provide ongoing support to buyer success, Requisite Press has launched the Auto Buyer's Weekly Edge videocast, with up-to-date news, views, and information for new-car buyers.

"The profitable crossover SUV segment is higher priced, but has some of the widest varying transaction prices," said Phil Kelton (@Phil_Kelton), president of Requisite Press. "This convenient family car can become more affordable if sales price savings are not offset by poor a trade-in value, or costly add-ons."

The affordable new-car price for September is $16,404. With this price limit, only a small percentage of the 262 models under $35,000 are affordable for median-income buyers*. However, when savings are maximized at every step of the car buying process—sales price, trade-in, financing, and add-ons—the affordable model selection is greatly increased, including a selection of crossover SUV models.

Informed, up-to-date car buyers have the best opportunity to maximizing savings on a new-car purchase. To support buyer success, Requisite Press has launched the Auto Buyer's Weekly Edge videocast, an ongoing source of the latest news, views, and information for new-car buyers.

Auto Buyer's Weekly Edge is at: http://www.powershiftcarbuying.com

The September ABAI of 54.1 is based on a median household income of $54,346, an average light-vehicle transaction price of $30,340, and adherence to the 20-4-10 auto financing rule. This equates to an affordable monthly payment of $323 and price of $16,404.

The monthly ABAI was developed to enable buyers to easily view current new-car prices in the context of sound financial advice. The 20-4-10 auto financing rule consists of a minimum 20 percent down payment, a maximum 4-year loan term, and monthly payments of no more than 10 percent of gross household income. The rule is widely recommended by personal finance experts to maintain financial security, avoid excessive interest costs, and preserve future investment opportunities.

For additional information:

http://www.requisitepress.com/ABAI

*Based on 2014 MSRP.

Requisite Press, LLC was founded in 2012 to publish select expert information with great potential for consumer quality-of-life improvement. In addition to the monthly Auto Buyer's Affordability Index and the Auto Buyer's Weekly Edge videocast, Requisite Press, LLC also provides AffordCheck (SM), a 20-4-10 auto financing rule calculator, and produces the Auto Buyer's Edge YouTube channel.

Contact:

Phil Kelton
@Phil_Kelton
Email
310-896-2302

SOURCE Requisite Press, LLC