You Can’t Survive Without a Car in America (and That’s a Problem)
Cars are an expensive necessity, and they can put lower-income workers in serious debt. Yet, we don’t have a viable alternative.
You’ve likely heard about the national shortage of used cars, rental cars, and car parts. In many cases, this shortage has led to price hikes — the result of a disastrously low supply and exceedingly high demand.
Despite this, car ownership has continued to be a mainstay of American life amid the ongoing pandemic; in fact, research from Qualtrics on behalf of Credit Karma shows that 58% of respondents said the pandemic has made them more reliant on cars than ever before. Evidently, working from home has not alleviated our dependency on automobiles.
The study also found that 42% of Americans who responded are currently in the market for a new car, and 55% of those searching are willing to pay over budget—a significant portion planning to take out a personal loan or pay with a credit card. In nearly half of these cases, these loans amounted to nearly $15,000, a high-interest debt which could cause substantial financial difficulties down the road.
Of respondents who purchased a car within the past six to eight months—as of December 2021, that is—a…
