Boyden Gray PLLC Partner Michael Buschbacher discusses concerns about electric vehicle mandates on “The Bottom Line.”
With more affordable cars on the U.S. market and inflation still on the rise, average U.S. car prices appear to be out of reach for most consumers.
The average price of a car sold in America before 2020 was about 20% lower than the current 2024 average of $47,000.
American consumers are turning away from luxury models to more affordable cars while other living costs like groceries and rent remain painfully high.
Honda recalls more than 720,000 vehicles due to possible cracks in fuel pumps, posing a fire risk
Republican vice presidential candidate and Ohio senator J.D. Vance blamed inflation for the price hikes during a campaign rally in Michigan over the summer, saying, “Thanks to Kamala Harris’ spending policies, new cars are becoming cheaper.” The average price is now close to $50,000 a year.”
Data recently released by Edmunds paints a different picture. Among new car buyers surveyed, 48% want their car to cost less than $35,000, and an additional 14% say their car purchase budget is at the upper end of $20,000. .
The all-new 2024 Chevrolet Trucks on display at the 2022 Los Angeles Auto Show on November 17, 2022 in Los Angeles, California. (Frederick J. Brown/AFP via Getty Images/Getty Images)
Below-market-average models like the Chevrolet Trax start at about $20,300, according to Chevrolet’s website, and sales are at an all-time high, according to GM Authority.
AAA’s September release revealed that the average cost of owning a car in the U.S. has jumped $115 per month, with the organization’s “cost of driving” (YDC) now at $12,297 per month, or $1,024.71 per month. It is said that
Stellantis recalls more than 21,000 plug-in hybrid SUVs due to possible brake pedal defect
Insurance costs are also rising. Auto insurance premiums are currently on track for a total annual increase of 22.2% in 2024, according to a Reuters report using data from the Bureau of Labor Statistics. December 1976 was the only month when auto insurance rates were higher in the United States. , when it was 22.4%.
Auto insurance rates have increased by 50% since the beginning of 2021 as inflation accelerated under the Biden administration.
“Many shoppers tell us they can afford a car but are refusing to buy or return it because they can’t get insurance,” Kelley Blue Book senior editor Sean Tucker told Reuters. I’m listening to it,” he said.
Kia Motors’ EV3 electric vehicle during a media preview in Seoul, South Korea, Wednesday, May 22, 2024. Kia Motors’ new electric compact sport utility vehicle EV3 will go on sale in South Korea starting in July, followed by Europe in the second half of 2024. (SeongJoon Cho/Bloomberg via Getty Images / Getty Images)
Kelley Blue Book says electric vehicles, or EVs, are “closing” the cost gap with modern traditional oil-fueled vehicles, with Tesla leading the market as the most popular brand. In September, Kelley Blue Book reported that the average price for an EV was $56,351, compared to $48,397 for a gas-powered vehicle. However, this number is even more inflated as the average cost of the popular Tesla Cybertruck model is $116,706.
According to Electrek, Kia plans to launch its “most affordable EV yet” next year to meet market demand for more affordable vehicles. Kia plans to launch the EV3 SUV in 2025, with prices ranging from $30,000 to $35,000.
The House of Representatives recently voted to repeal EPA regulations that reduce tailpipe emissions from 2027 to 2032, with 207 Republicans voting in favor of repeal.
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Kelley Blue Book did not immediately respond to FOX Business’ request for comment.
