It’s Not Just Gas: Monthly Car Payments Are Breaking Records, Too

Patrick Taylor | June 21, 2022
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Inflation has soared in innumerable ways under the Biden administration, particularly for motorists. The price of gas has jumped to an all-time-high at over $5 per gallon, and now even monthly payments for vehicles are shattering records.

The average monthly car payment rate rose to $712 for the first time ever in May, up 1.7 percent from a month earlier. These high prices aren’t limited to the category of monthly payments, however. The price of the average new car reached $47,418 the same month, a price hike that, as the Washington Examiner pointed out, vastly outpaced wage growth.

Vehicle price hikes have occurred across the board.

Used car prices are up 16.1 percent in the last year, and new car prices are up 12.6 percent. Luxury cars now cost about $1,030 above sticker price on average, and non-luxury models will run you even more, up $1,071 above sticker price.

Related: 'Don't Make Things Up': Biden Snaps At Reporter For Asking About a Recession

One would have to imagine that these numbers put a damper on certain Democrats’ advice that people should buy electric vehicles to avoid high gas prices.

In the face of these price hikes, several state governments are looking for ways to lighten motorists’ burden. Virginia Gov. Glenn Youngkin (R) proposed a gas tax holiday for his state’s residents, before his endorsed bill was tabled by state Senate Democrats.

As of Monday, state legislatures in Maryland, Georgia, Connecticut, New York and Florida have adopted gas tax holidays in some capacity. President Joe Biden said Monday that he’s looking into creating one federally.

Though these measures may create a modicum of temporary relief, it is extremely unlikely that they will be enough to put much of a dent into the high costs American drivers now face–especially now that we know gas is only the beginning.

 

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