President Joe Biden describes himself as a “car guy” but thanks to Bidenflation cars are increasingly unaffordable for many Americans.
The consumer price index for new vehicles increased by more than 19.4 percent from March 2021 through March 2023, data from the Department of Labor show.
The Kelly Blue Book shows that the average price of a new car in the U.S. has hit $48,008, up 18.6 percent from March of 2021.
Compared with March of 2020, when much of the economy was in the pandemic lockdown, prices are up 30 percent.
The Washington Post reports that (according to the most recent data from the 2021 Consumer Expenditure Survey) this has created a car-gap
- Spending on new cars by the lowest 20 percent of earners has fallen to its lowest level in 11 years.
- Spending on new cars by the top 20 percent has risen its highest level on record, going back to 1984.
Shopping for a used car will not help. Since March of 2021, used car prices are up 20.3 percent, according to the consumer price index.