One-third of U.S. households earn more than $100,000 annually.1
According to a recent report published by research firm IBISWorld, 34% of American households surpass that income level each year. And according to another study by data firm YouGov.com, many Americans consider someone at that income level “rich.”2 Yet, nearly half of consumers earning more than $100,000 annually were living paycheck to paycheck in January 2022.3
The latest report issued by PYMNTS.com and LendingClub paints a startling picture of who’s just getting by economically in America. Not surprisingly, three-quarters (77%) of consumers earning less than $50,000 a year live paycheck to paycheck. The number improves to two-thirds (67%) of people in the $50,000-100,000 income bracket. And even half (48%) of consumers who have reached that magical six-figure income number still find themselves unable to miss a single paycheck without facing financial difficulty or uncertainty.
The study found that higher-income individuals have 5-6 times more savings on average than people who earn less than $50,000 annually. So, they’re often able to rely on their own bank accounts for extra cash when they need it. However, slightly more than half of consumers who make over $100,000 annually said they would have to borrow funds if an unexpected, unplanned expense arose during any given month. That includes using credit cards, borrowing from a bank or friend, or taking a payday loan or deposit advance.
Our primary takeaway is that most Americans are living from one paycheck to the next – no matter their income level. The PYMNTS.com and LendingClub study found the overall total to be 64% of consumers living that way. This reinforces for us the need for credit to be available to everyone -- no matter their income level or credit score – especially when they need to make an important purchase like a vehicle.
We’ve made vehicle ownership a reality for more than one million consumers since 2006, and we’re happy to have been able to help so many Americans obtain the vehicles they need to take care of their families. Today, we’re helping an even larger cross-section of America by considering credit applications from qualified customers with FICO scores up to 700, including zero FICOs.
No matter a customer’s income level or credit score (up to 700), we may be able to help. Send their credit applications to us, and we’ll let you know within seconds* what we can do for you. We don’t know how far you can go on $100,000 any longer. But we do know when you submit credit apps to Exeter, we can take you further.
If you ever have questions, concerns or comments, chat with us directly through the DealerPortal or call our Dealer Operations Group at 1-855-4EXETER (855-439-3837).
1 IBISWorld. (Feb. 10, 2022). Households earning more than $100,000. IBISWorld.com. Retrieved from: https://www.ibisworld.com/us/bed/households-earning-more-than-100-000/35/.
2 Elkins, K. (Jan. 23, 2019). Here’s how much money Americans think you need to make to be considered ‘rich’. CNBC.com. Retrieved from: https://www.cnbc.com/2019/01/23/how-much-money-americans-think-you-need-to-make-to-be-rich.html.
3 PYMTS.com, & LendingClub Corp. (March 2022). New Reality Check: The Paycheck-to-Paycheck Report. Retrieved from: https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-consumer-planning-financial-emergency.
*On most qualifying files, where no additional information is required
Exeter Finance LLC is a non-prime auto finance company headquartered in Irving, Texas. The company partners with franchised and independent auto dealers throughout the country to make car ownership a reality for consumers. For more information, call our Dealer Operations Group at 1-855-4EXETER (855-439-3837).