Mark Fields, Former Ford CEO, joined Cnbc’s ‘Closing Bell Overtime’ on September 1 and said something that seemed to fly over the hosts’ heads.
According to Mr. Fields, you need to make more that $100k USD a year to afford a new car.
The former CEO based his arguments on the following facts:
- The average new car loan this year is $760 usd per month
- New car prices are up about 30-35% year over year versus 2020.
- Used cars prices are following a similar trend
- The high demand for new cars is keeping prices high for the foreseeable future
- The average age of older cars on the road is 12 years old
The last factiod on the list is bonkers. Since the average age of a used car in the US is 12 years old then imagine how ancient the oldest vehicles are.
See the full interview below.