https://www.caranddriver.com/news/a43611570/average-new-car-...
You are correct that people shouldn't spend so much on new cars, but the status quo is that they are. Reporting on prices isn't a bubble as much as just a statement of what's going on.
The federal reserve's calculation of household income is probably more useful at $74k: https://fred.stlouisfed.org/series/MEHOINUSA672N
And I have never paid more than $5k for a car personally, but the average new car in America is ~$47k so $40k is not actually out of alignment with what most people are buying.
Did we read the same article? NYTimes is claiming that "$20k" (or rather, $20k after up to $7500 in federal rebates) is affordable.
Which, it kind of is? That's a brand new fully electric for like $400/month.
And we're seeing it in the used market as well. (2019/2020 Chevy Bolts are now going for like $15k or ~$350/month which puts them well into affordability for people around a $40k/yr income.
> Recently, Mr. Lawrence said, customers have been snapping up used Teslas for a little over $20,000, after applying a $4,000 federal tax credit.
...
> Carmakers including Tesla, Ford, General Motors and Stellantis, the owner of Jeep, have announced plans for electric vehicles that would sell new for as little as $25,000.
With that said, the Tesla Y and 3 are the best selling cars in the US.
Please check your 5 year old info before posting.
Let's remember that the median income in the US is $37,585. Half of people make less. Don't spend more than you make in a year on a new vehicle.