Stagnant wages are strangling American economic growth. By historical standards, the unemployment rate is low and people are carrying less debt. Yet, the economy is growing at no better than a modest pace, the average age of a vehicle on U.S. roads has risen to 11.5 years, and nearly a third of adults under the age of 34 still live at home with their parents.  What’s going on? According to an April 2015 report in The Economist, “inflation-adjusted wages for typical workers…have barely grown in the past five years.” Sentier Research data shows that the median U.S. household income in June 2015 was $55,132, remaining below pre-recession levels.  By all indications, you aren’t making enough money, your car is getting older, and you need a new set of wheels that can fit into a tight budget. The eight vehicles listed below will cost you less than $400 per month*, each one gets top crash-test ratings from the Insurance Institute for Highway Safety, and they’ve all got enough room inside for hauling kids and cargo.  Though it tucks into Chevy’s lineup beneath the Cruze, the Sonic is both larger and heavier than most people assume. Available in sedan and hatchback body styles, this safe and affordable car deserves serious consideration by consumers on tight budgets.  For $400 per month, you can get a Chevy Sonic LTZ Hatchback with the Advanced Safety Package for $21,465. A Sonic LTZ Sedan is even more affordable. Plus, Chevy is almost always offering a rebate on this zippy, turbocharged car.  Learn more about the 2015 Chevrolet Sonic  Based on the same platform as the Sonic, the new Chevrolet Trax is a 5-door hatchback designed to look like a small crossover SUV. For this reason, it is more expensive than the Sonic, and the only Trax you can get for $400 per month is the base LS model with front-wheel drive, which costs $20,995.  Honestly, you’ll get far more for your money by choosing the Sonic.  Learn more about the 2015 Chevrolet Trax  Safe, dependable, and equipped with just about everything you think you’d want aside from leather seats, a Honda Civic EX Sedan costs $22,010, with an equivalent Civic EX Coupe running a few hundred less than that.  Granted, a Civic is not a very exciting choice. It seems like everybody has one, and this car isn’t particularly stylish. As the summer of 2015 draws to a close, though, dealers are dealing in advance of the arrival of the redesigned 2016 Civic, so you might actually find a way of getting into the racy Civic Si or leather-lined Civic EX-L for less than $400 per month.  Learn more about the 2015 Honda Civic  Loaded with personality, equipped with a tall driving position and a great view out, delivering plenty of utility and flexibility, and engineered to provide exceptional levels of safety, we frequently recommend the funky Kia Soul.  A mid-grade model equipped with a sophisticated Your Voice (UVO) eServices infotainment system, a premium sound system, a navigation system, and dual-zone automatic climate control with a Clean Air ionization system runs $21,635, with floor mats. That’s easily less than $400 per month, and you’re unlikely to regret this purchase.  Learn more about the 2015 Kia Soul  No matter which version of the Nissan Sentra you choose, it will cost less than $400 per month. That means that if you can live without the optional premium sound system and a power sunroof, a leather-lined Sentra SL with navigation and floor mats will come to $22,395.  A Sentra might not be very exciting, but we speak from experience in telling you that it is comfortable, has a huge back seat, and is equipped with a giant trunk. You could buy a Sentra and live with it for a very long time. Just plan to hit up the coffee shop on a regular basis, because the driving dynamics will put you to sleep.  Learn more about the 2015 Nissan Sentra  Lately, winters have delivered roundhouse punches to many Americans. All-wheel drive helps, and the Subaru Impreza has it as standard equipment. A sedan and a hatchback are available, the latter model commanding a premium for its greater flexibility.  In Premium 2.0i trim, the Impreza 5-Door costs $22,290. You can save $500 by selecting the Impreza Sedan, instead. Both include heated front seats, heated side mirrors, wiper de-icing systems, and Subaru’s Starlink smartphone integration technology.  Learn more about the 2015 Subaru Impreza  If you believe that getting to your destination is as enjoyable as the destination itself, consider the Volkswagen Golf S. A 3-door or 5-door hatchback, the Golf S costs no more than $21,815, and is lots of fun to drive.  Here’s fun fact about the Golf: it shares its engine and platform with the much more expensive Audi A3. Here’s another fun fact: this version of the Golf includes Volkswagen’s CarNet connected car services technology.  Learn more about the 2015 Volkswagen Golf  Volkswagen has another safe, roomy, practical, and affordable vehicle in its stable, and it’s called the Jetta.  As large inside as some midsize sedans, yet boasting fuel efficiency on par with compact cars, the turbocharged Jetta SE will cost just over $21,000, including the optional automatic transmission. Standard equipment includes heated front seats, heated washer jet nozzles, Bluetooth, and aluminum wheels.  Learn more about the 2015 Volkswagen Jetta  * Monthly payment of $400 is based on a vehicle MSRP of $22,425, including the destination charge. Rebates, incentives, and negotiation will reduce the price and payment. The payment assumes you will put 10% down, pay no more than 8% of the vehicle price in sales tax and dealer fees, and that you will finance for 60 months at an interest rate of no more than 4%. Changes in these variables affect how much car you can actually afford.
Fewer people are buying new every year, but these 8 all stars pack everything the average buyer needs for less than $400 a month.