Orlando, FL -- (SBWIRE) -- 04/29/2013 -- A new study shows South Floridians are among the least able to afford a new car and auto insurance.
According to the study, which analyzed the cost of buying and insuring a new car along with median income, the South Florida metropolitan area ranked second to last in new-car affordability.
“A new car is not the most affordable option for every family,” said a representative of FloridaInsurance.com, a Florida auto insurance agency. “Many people find that a better option is to purchase a lightly-used car while maintaining a comprehensive insurance policy to protect what you have.”
The average cost of a new car has risen to a record high of $31,228, according to a March report by Kiplinger's Personal Finance. That translates to a monthly payment of about $600 with financing. Some of the increase is due to more pricey electronic options being made available. There are also fewer cash rebates available.
Auto insurance costs in Florida are the 10th-highest in the country, which also increases the cost of owning an automobile. Whether personal injury protection (PIP) costs will go down in the future remains to be seen.
According to the U.S. Census Bureau, median household income for Miami-Dade has fallen to $40,552 for 2011, with a median of $48,880 in Broward and $48,953 in Palm Beach County.
Experts say that South Florida median-income households should plan to spend a maximum of about $15,000 on a vehicle, make a down payment of at least 20 percent and try to take out a loan for a term of not more than four years.
“Automobile costs are one part of the household budget that people actually have a good deal of control over,” said a FloridaInsurance.com representative. “Consumers should choose a vehicle that is affordable for them and that they can keep well-insured.”
Of the 25 largest metropolitan areas in the country, only median-income households in Washington, D.C. can afford to purchase the average new car. Those in areas like New York, San Francisco and Boston did not fall as short as South Floridians, but they were still not able to afford the average new vehicle.
To learn more call 1.888.525.2210 visit http://www.floridainsurance.com.