JD Vance Shocks With Claim That Owning A New Car Costs Every American $50,000 A Year
Republican Sen. JD Vance doesn’t pull punches with his criticism, but he opened up a new can of worms during a rally in Byron Center, Michigan. Speaking before an audience in Kent County, Vance blamed Vice President Kamala Harris for what he described as a shocking increase in the cost of owning a new car.
Don't Miss:
Can you guess how much the average retirement account balance is? Here’s a hint — it’s only slightly more than a year’s worth of expenses.
Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
“Thanks to Kamala Harris’ spending policies, the average price of a new car costs nearly $50,000 a year,” Vance said, eliciting mixed reactions. The statement quickly became a trending topic, drawing attention on social media.
It certainly didn’t stop many from challenging Vance’s claim, with some questioning how a car could cost $50,000 annually. “What kind of car is Vance talking about? A luxury fleet?” was one Twitter user’s reaction – which pretty much summed up the sentiment of many others who found the number hard to swallow.
Trending: Founder of Personal Capital and ex-CEO of PayPal re-engineers traditional banking with this new high-yield account — start saving better today.
Data from the U.S. Department of Transportation offers a different perspective. In 2023, the average annual cost of owning and operating a car was $12,182, assuming the driver covers 15,000 miles yearly. That is a lot lower than what Vance said. Analysts believe Vance may be referring to the average price of new cars, which, according to Statista, stood at $47,010 as of 2023 – not the annual cost of owning a car.
The comment triggered a flurry of reactions online, with one post humorously noting, “Vance says a new car costs $50k a year? Must be nice to live in his reality.”
See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
Industry analysts have pointed out that car prices rose sharply after the COVID-19 pandemic. This was mainly due to a worldwide shortage of chips that led to production problems. The United Auto Workers’ strikes in 2023 worsened the situation, further limiting new vehicle availability.
Despite these challenges, vehicle prices have started to ease. Kelley Blue Book said that the average new-car price in July 2023 was $48,401, which marked the 10th month of year-over-year declines due to improved inventory levels and higher loan rates. According to the Department of Transportation, the average auto loan interest rate 2023 was 7.2%, its highest since 2007.
Trending: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
With the car industry holding such a central position in the state, Vance’s words were likely intended to resonate with Michigan voters. Michigan is home to 96 of the country’s top 100 auto suppliers; therefore, car prices are likely a core concern to its people.
Responding to those comments, Vance’s spokesperson told Newsweek, “The media is failing the American people by not showing the out-of-control costs of living under Kamala Harris’s leadership. New cars cost $50,000, groceries are up 21%, rent jumped 22%, electricity costs 32% higher, and so on. American families cannot take another four years of Kamala Harris.”
Vance has a history of ruffling feathers with his bold statements. In 2022, he ran a TV ad in which he said, “Joe Biden’s open border is killing Ohioans with more illegal drugs and more Democrat voters pouring into this country.” PolitiFact fact-checked the statement as false, saying that, upon arrival in the United States, immigrants could not vote immediately and the U.S. border was not “open,” as Vance claimed.
Read Next:
Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today?
The number of ‘401(k)' Millionaires is up 43% from last year — Here are three ways to join the club.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article JD Vance Shocks With Claim That Owning A New Car Costs Every American $50,000 A Year originally appeared on Benzinga.com
? 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.