JD Vance, a Republican Senator, made headlines recently with a bold claim that owning a new car costs every American $50,000 a year. This statement was made during a rally in Byron Center, Michigan, where Vance pointed fingers at Vice President Kamala Harris for allegedly causing a significant increase in the cost of new cars. The remark sparked a wave of reactions on social media, with many questioning the validity of Vance’s assertion.
According to data from the U.S. Department of Transportation, the average annual cost of owning and operating a car in 2023 was $12,182, assuming the driver covers 15,000 miles per year. This figure is significantly lower than the $50,000 figure cited by Vance. Analysts suggest that Vance may have been referring to the average price of new cars, which was reported to be $47,010 in 2023 by Statista, rather than the annual cost of ownership.
The automotive industry faced challenges in recent years, including a global chip shortage and labor strikes, which led to a surge in vehicle prices. However, prices have started to stabilize, with the average new car price in July 2023 reported to be $48,401. Improved inventory levels and higher loan rates have contributed to this trend. Despite these fluctuations, the average auto loan interest rate in 2023 was 7.2%, the highest since 2007.
Michigan, where Vance made his statement, is a key player in the automotive industry, with 96 of the top 100 auto suppliers located in the state. Therefore, issues related to car prices are likely to resonate with Michigan voters. Vance’s spokesperson defended his comments by highlighting the overall rising costs of living under the current administration, including increases in groceries, rent, and electricity.
Vance has a history of making controversial statements, such as his claim in 2022 that „Joe Biden’s open border is killing Ohioans with more illegal drugs and more Democrat voters pouring into this country.“ Fact-checkers have debunked some of his claims in the past, emphasizing the importance of verifying information before accepting it as truth.
In conclusion, while JD Vance’s assertion about the cost of owning a new car may have raised eyebrows, it is essential to consider the broader context of the automotive industry and economic factors influencing vehicle prices. As with any statement, it is crucial to fact-check and analyze the data before drawing conclusions.