According to data from Cox Automotive, the average cost of a new car in the United States as of May 2024 was $47,433 – well out of the price range of most Americans and up more than $10,000 from just four years ago. One big reason for the jump and the sudden extinction of affordable cars is President Joe Biden’s climate policies and electric vehicle (EV) mandate.
The Biden administration has made it clear that, if it has its way, the future of personal transportation in America will be “electric or bust.” In March of this year, Biden’s Environmental Protection Agency (EPA) finalized regulations that will require two-thirds of all new car sales to be EVs or hybrids by 2032 – just eight years away. In 2023, just eight percent of new car sales were electric, even with generous government subsidies.
As The Wall Street Journal Editorial Board put it shortly after the new rule went into effect, “This is a coerced phase-out of gas-powered cars.” Though the final rule is somewhat less extreme than the original draft rule, the Editorial Board wrote, it is merely a “delay in execution” for the U.S. auto industry.
Additionally, as part of the so-called Inflation Reduction Act (IRA), Congress allocated $7.5 billion for the creation of new EV charging stations. (Notably, despite promising 500,000 charge stations, less than 10 have actually been constructed two years later.) The IRA also extended a $7,500 tax credit for “new clean electric vehicles” in the hope of making the expensive cars more appealing to consumers.
But at about $50,000 on average, EVs are still more expensive than gas cars, and 46 percent of Americans say they have no intention of ever purchasing one.
This has created an impossible situation for automakers. In pursuit of its “green revolution,” the Biden administration has essentially forced car manufacturers to invest all of their time and capital in developing electric vehicles that most Americans either can’t afford or simply don’t want.
As a result, carmakers are taking huge losses on their EV lines. Ford lost $4.7 billion on its EV business in 2023. GM lost $2.5 billion. On average, car companies lost about $6,000 on every EV they sold last year.
In order to offset these losses, manufacturers have been forced to increase prices for traditional gas-powered vehicles – essentially eliminating affordable cars. Just five years ago, consumers could choose from a half dozen new cars under $20,000. There’s now just one: the Mitsubishi Mirage. And it, too, appears headed for the scrapyard.
To put it another way, gas-powered car buyers, who are mostly lower middle- and working-class, are paying more for their vehicles to subsidize the EVs purchased by mostly upper-middle class and wealthy elites.
In an interview with AMAC Newsline, Heritage Foundation senior fellow Diana Furchtgott-Roth, director of the organization’s Center for Energy, Climate, and Environment, explained that Biden administration regulations are likely to drive up the cost of gas-powered cars even further if Biden gets another term in the White House.
One specific policy she pointed to was a proposal for a carbon credit system that would essentially force automakers to pay the government for each gas-powered car they sell. This cost would then be passed on to consumers with higher and higher sticker prices.
Furchtgott-Roth also said that stricter emissions standards have made cars more expensive by forcing manufacturers to develop entirely new engines and engine parts – more costs that consumers end up paying.
Furchtgott-Roth warned that, under a second Biden term, these policies would likely expand. “The EPA has already passed another rule requiring car plants to close by 2040 if they can’t sequester their total carbon output,” she said.
In addition, under the new “Corporate Average Fuel Economy [CAFE] rule, gasoline-powered cars are required to be more efficient, which, in turn, makes them more expensive. The end result is average Americans hold onto old cars longer.” This results in more older, less reliable cars are on the road for longer, meaning “more Americans are going to die on the roads with these standards than the old ones.”
As for the solution, Furchtgott-Roth sees only one: “the remedy is a policy change.” For that, she said, America would need a new president and new EPA leadership willing to change course.
Of course, the persistently high inflation as a result of Biden’s enormous spending packages has also driven up the price of new – and used – cars. But while the cumulative inflation rate from the start of Biden’s presidency through the end of March was 23 percent, new car prices were up 29 percent in that same time period. Used car prices, meanwhile, are up 34 percent.
No matter how the president’s defenders may try to spin it, Biden’s tenure has been a complete disaster for Americans looking to get into a new ride.
Andrew Shirley is a veteran speechwriter and AMAC Newsline columnist. His commentary can be found on X at @AA_Shirley.
China does not care a flip about pollution. They are laughing at the US for focusing on pollution as they continue to pump out huge amounts of pollution as they build a manufacturing economy.
The whole purpose of Sniffy’s plan, and the Blue Team is to destroy the middle class so there are only 2 classes…the super rich and the peasants. All the reason working class Americans need to give the Budweiser treatment to the demonic-rat party
Gasoline engine mechanics are going to be riding high as more and more used cars are sold. Eventually, a used car will be worth its weight in gold. As for me, I’ll keep my 2005 gasoline guzzling V8 crew cab pickup until the wheels fall off. The thing has been paid for since 2010. It runs like a top and I don’t feel the need to impress anyone. On second thought, the moron in the White House will be gone in Jan 2025. FJB!
This is just another scam sham part of this communist regimes disaster programs that end up costing the taxpayer not millions but billions
Good and informative article
Biden has been a complete failure period. It will take decades to correct all the intentional damage he has done.
The EV is failed technology that was abandoned over 100 years ago for the same reason it will be today, you simply can’t produce or store enough electricity safely and efficiently operate EV’s at scale.
crooked joe and his allies promote a climate change hoax which has destabilized the world
I have a 2017 Accord with 71k trouble free miles on it. It’s my last car. I’ll drive it and fix it as long as I can.
The only solution is for trump and the incoming congress to abandon the filibuster and dissolve the EPA with all its resolutions
Dont tell me argentina can do it and we cant
EV Mandates is Fascism.
This green revolution seems to be powering China. Where the parts will will also be to expensive to replace.
You can have my gas powered car.
When you pry it from my cold, dead fingers.
Actually, this is the whole idea of the collectivists in government.
They absolutely hate cars because they give the average person independence and power.
And the collectivists in our city governments will not have that.
So they’re making it as difficult as possible not only to drive in their cities but to even own one.
Climate issues are NOT the real issue behind the EV mandate!! Environmentalists and politicians don’t really care about the climate or the planet!! I believe that the environmental elite and the Washington elite have invested heavily into companies that will be set to profit from the production of EVs (and some of those are Chinese companies) and what better way to make those EVs make money than to mandate their purchase while getting rid of any other options??
Good article Mr. Shirley, from what you described it sounds like it is some racket that is going on with cars, so called standards regarding gas prices , and how much the government is involved in places where the government has no call to be involved. Rackets are not supposed be part of government policy. It is just plain and simple as that. That would be a good title for a book on government ” Rackets Are Not Supposed To Be Part Of Government Policy ” . I reckon I like it and maybe there will be a book of that title on bookshelves sometime soon. In the near future it would seem possible that car manufacturers could help the situation of replacement parts for older cars were increased – and mechanics that are specialists in repair of older vehicles could help train people with the knowledge needed to be able to keep the gears turning and the wheels turning on cars so as to buy some time and defend the right of being able to choose what sort of vehicle people want to use for the necessary transportation they need. I am 73, have not owned a car for many years now, but as a kid used to help my Dad do repairs and basic maintenance on the family car.Got to be a right good mechanic by the time I was about 14 . Did some repair work on ship engines for couple of years in the 1970’s . Lived in places most of the time from then until the present where there was train and bus service so. I just got away from the whole driving idea . The idea of electric engines is O.K. , just as long as it is not forced on people . This is an example of how the Conservative outlook of limited government becomes something of great importance – with respect for Liberty. How about steam engines ? I just remembered there was a car called the Stanley Steamer way back around 1914 or 1915 and it could use coal or wood to heat the boiler and provide the steam power to the engine. Something to think about.
Used cars are the only option unless you want to incur huge debt. And you better have a trustworthy mechanic to check before you buy.
Another example of tyranny, subjugation and oppression. When will we put a stop to this nonsense
Bidum’s EV mandates are already killing GM and Ford! Why do auto company CEO’s listen to a senile brain dead politician? That never happened in the past! Has anyone seen that GM has cancelled some of their best selling cars ever, the Chevy Cruze a couple years ago, the Chevy Volt hybrid and Chevy Impala in 2019 and the Malibu is planned to be cancelled soon. GM plans to end production of all ICE powered vehicles and manufacture only EV vehicles (that no-one wants), to comply with Bidumb’s stupid mandates! And Ford is doing the same thing! This will end in bankruptcy for both companies. Meanwhile Toyota’s CEO has said Toyota will continue making and selling their entire line of cars, both ICE, hybrid and EV powered. GM CEO Mary Barra and Ford’s CEO, should both be fired and replaced with someone with a brain!! America cannot survive economically, when we give away our manufacturing to foreign competitors.Toyota is a foreign company and it’s profits of course, go to Japan. America was the manufacturing and farming powerhouse of the world and we need to regain that or die in poverty!
The politically correct EV craze has been heading down a dead-end street since it’s inception.
Charging cars that can handle medium-or-better-distance commuting is much less than accommodating, and more buildouts of transmission infrastructure and power generating assets will take decades, at least, before even approaching demand.
Best to not believe everything we’re told… especially the ongoing blitz about “renewables”, which has been a perfectly transparent hoax for quite a few years now.
the future of personal transportation in America will be “electric or bust.” It will certainly be bust if Joke Biden gets his way. We don’t have an electric grid nor infrastructure to support electric vehicles. Besides on a long haul who wants to wait 4 hours or more for your car to charge up. Don’t get me started on big rigs either. You think food and other prices were high when they are running on diesel, you ain’t seen high until they mandate conversion to all electric big rigs. The delivery times will slow to a crawl and shortage will become the norm rather than the exception. Democrats are determined to destroy America so they can build the next communist utopia, and they will do it by any means necessary.
Until absolutely everyone is suffering substantially from this nonsense nothing will be done. So until then…
Biden:Enemy of the State. This “president” has all disrespect that I can muster. I pray that this “president” has all that he’s do for trying to ruin our country.
Democrats have made everything unaffordable. You can thank them for turning our economy into a dumpster fire. And they we are going to re-elect them for more of the same BS not a chance
We used to live in a country that we were allowed to make our own choice. If I want an electric vehicle, a gas vehicle, or a hybrid vehicle that was a choice I made and those choices were available. Now the government is actually dictating what vehicle we will drive. I, unfortunately, live in California where the legislature is dictating that all new construction will have electric appliances. The legislature is also banning gas water heater by 2027. If the people don’t wake up and start voting these imbeciles out of office, we will be living under the complete domination of the neocommunist democrats. The ironic thing is that the democrats claim that if Trump is elected, he will be a tyrant and our democracy will be lost. Meanwhile, the democrats are slowly become tyrannical and destroying our democracy and no one is mentioning it.
This article supports my point from the very beginning; to limit Americans’ mobility. In communist and Nazi countries the call has been “let me see your papers”. In America it will be “did you remember your bicycle padlock, dear”? One essence of American freedom is the ability to move about freely doing what you wish to do. Tyrants do not want you going to Gun Owners of America meetings, family gatherings, January 6 protests, and heavens forbid–to church. Only 10 charging station constructed proves my point
Assumning Trump gets in, he should do away iith the EPA. That was Carters doins ,our 2nd worst6 prez. Kyle L.
Perhaps Biden will bust!
This whole episode with EVs reads like the Soviet Union’s approach and lack of success with State mandated economic dictats-which reflects on the same collective attitudes being used by the “current administration”
EV Issues:
Range
Replace battery pack
Charging time
Lack Charging Centers
Insurance
battery fires
Lockedin /Oiut of EV
Remedy EV vendors OK
Nice article Andrew, should have mentioned the problem Hertz is having with their EV fleet of Teslas and Pulsars (Volvo). EV vehicles have ZERO resales value. For example, look what happened to Hertz with the Tesla / Volvo Pulsar fiasco. Hertz lost over $400 million in past 2 years because a used EV with 60,000 to 70,000 miles needs new batteries, so who is going to cough up $25,000 (or more) to put batteries in a used EV?
Basically, an EV is a throw away car, once the batteries are worn out, throw the car away, not worth the money to replace the battery pack.
EVs themselves are not driving the unaffordable price of new vehicles, it’s been years of unreasonable governmental demands made on gas and diesel powered cars and trucks. Another price driving element is the every increasing high tech inclusions in new vehicles. Buy a new car or truck and you have bought an advanced computer on wheels with a major distraction right in the middle of the dashboard. They have reached the point where about the only thing you can do yourself on them is pump gas and check the tires – oh wait, they monitor tire pressures for you. Taking your newer vehicle to the shop today costs more than going to the hospital.
Makes me happy I still drive my ’95 Dakota and long for the ’65 Corvair I owned.
I for one will NEVER buy/drive an EV. Biden (and Newscum) can shove those EV’s where the sun don’t shine. The electric power grid is already having problems and the idiots want everyone to drive an electric car??? Both these two and any other moron that thinks EV’s are the way to go have sh** for brains. Besides the power grid mess, a person can’t go on a long trip without stopping a dozen times to recharge….if they can find a charging station. I’ll keep my 2015 GAS powered car until it falls apart before I’ll buy one of those stupid things.
Biden or whoever they replace him with MUST not be sitting in the Oval Office in Jan.2025 or we are TOAST.
Good morning boss sorry I’m late for work I’m still waiting for my car to finish charging I’m so glad you pushed us all to vote for bidumb
EV’s manufacturing, so called carbon foot print, is a MILE LONG ! They pisss and moan about nuclear reactor uranium waste but don’t have a solution for battery and other waste making an EV. The best thing car manufacturers could do is pull themselves out of the rectum of the elite idiotic fascist government. Divorce themselves from this fanatical political correct climate hoax. Then run their fricken company by themselves the way it should be.
(smh) Joe Biden. As Bugs Bunny would say; “What a maroon.”
Mandates are not legal since they are not Constitutionally passed laws. If we are indeed a “nation of laws”, then all of the demands made of us outside of Congressional actions do not have to be obeyed. What we are being force fed is tyranny.
All this Fraud will be great for the men and women who repair / restore Automobile’s, because you sure won’t be able to afford a new one. Amen carl on the climate change HOAX! Oh for the days when common sense and a firm belief in GOD and his word which tells us that GOD will decide when the Earth ends not lowly man.
Biden can take his EV;s and put them where the sun don’t shine. I will NEVER buy/drive one of those things. They are undependable and way too expensive. And by 2032 I doubt Butthead Biden will even be around.
I like my Japanese made PHEV! Thank you for my subsidy.
Nah
you people can’t afford anything that’s more generational then a double wide lol