While America has been getting poorer, Washington D.C. has been getting richer. Some of the wealthiest counties in America are D.C.’s bedroom communities. And D.C. is apparently about the only place in the country where families can afford to shell out money for that new government motors car.
The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales.
According to the 2013 Car Affordability Study by Interest.com, only in Washington could the typical household swing the payments, the median income there running $86,680 a year.
Washington D.C.’s average household income is a startling $15,000 higher than the next city on the list San Francisco. The gap between Obama’s Imperial City and even prosperous cities is rather shocking.
Meanwhile Cash for Clunkers had a severe impact on the availability of used cars, so that under Obama’s Depression, people are unable to afford new cars or find used cars.
The shortage of used cars stems from the deep plunge in new-car sales between 2008 and 2010, and the virtual disappearance of new-car leases during the financial crisis. As a result, three-year-old cars are now hard to find and even older models are holding their value.
Cash-for-clunkers rebates also took many older vehicles off the road. The scarcity has pushed up used car prices, often to the point that consumers who finance a purchase with subsidized interest rates can get brand new vehicles for about the same as a monthly payment required for a late-model used car.
Nearly every car traded today has more than 100,000 miles on it, and finding decent used cars means cold-calling owners, even when they aren’t thinking of selling.
This is what an economic recovery looks like… in Somalia.