LOS ANGELES -

A recent report from Requisite Press showed that used cars are still most often the fiscally responsible way to go for the majority of American families.

According to the October 2014 Auto Buyer’s Affordability Index (ABAI), which is currently at 54.1, a "prudent, median-income household" can only afford 54.1 percent of the new-car average price.

That said, transaction prices have recently begun to weaken — and the company expects that new-car prices may be headed more into the realm of affordability for the majority of households if the rate of income continues to grow.

But recent trends also come with some drawbacks. According to Requisite Press, auto loan interest rates can be expected to increase as the continued financing risk continues to rise, which will tighten credit as the post-recession limits are reached. Consequently, consumer spending will most likely be reduced.

That said, Requisite Press forecasts the possibility that income growth may begin, for the first time in 35 years, to outpace new-car price growth.

“New-car affordability is likely to improve in the coming days if we can avoid an income slowdown,” Phil Kelton, president of Requisite Press, said. “The selection of affordable models is best increased by competition, but a sustained improvement in affordability will certainly give it a boost.”

While, according to Requisite Press’ numbers, the average responsible family cannot afford the premium associated with a new vehicle, that does not seem to have much effect on the more than 16 million new cars projected to be sold by the end of this year. And with 2015 expected to outpace that and reach maybe even 17 million units, it may lead one to wonder what the long term effects will be on both the new- and used-car industries.

What do you think of the increasing numbers of new cars being injected into the system? Do you think they will invigorate or encumber the used-vehicle industry? Let us know in the comments or tweet us @autoremkting.