Soaring costs of gas and cars

Gas prices are up 19% since the US initiated strikes in Iran, the latest cost surge hitting American drivers. The cost of buying a car is up 30% in less than a decade, as the price of insurance, maintenance and other auto-related fees have skyrocketed.

Fueling the increase is both post-pandemic inflationary cost drivers and an industry emphasis on larger vehicles with more luxury features.But what then accounts for this paradox of more Americans struggling to afford cars while consumers seem to continue to demand pricier options?

All of this comes amid a major shift in global auto trends, as more consumers are opting for electric vehicles and Chinese EV giant BYD has become the world-wide leader in the market.

As President Donald Trump’s regulatory rollbacks, tariffs, and disdain for green infrastructure have given the auto industry less incentive to prioritize EVs, critics say these moves will hurt both American consumers and manufacturers in the long run.

Today on Studio 2, unpacking the affordability crisis for the American driver.

GUESTS: 

Jessica Caldwell, head of insights at Edmunds

Andrew Hawkins, transportation editor at The Verge