Covering the Co$t: The Necessity and Luxury of Buying a Car

WASHINGTON (Gray DC) - With affordability a main issue ahead of the 2026 midterm elections, politicians and economists alike are weighing the factors leading to the high cost of living. One often-overlooked piece is the cost of transportation.Cars, once considered a luxury, are now described as a necessity. Most Americans need a vehicle of some kind to get from point A to point B, at a typical cost of thousands of dollars.The price of buying a new vehicle continues to rise. Dr. David Bieri, an economist at Virginia Tech, said the average cost is now around $50,000.“In terms of median income, that’s close to about eight months’ worth of pay,” Bieri said.Bieri said new car sales remain healthy, but the cost and method of purchasing a vehicle point to a complicated market, with increasing insurance premiums, inflation, and lingering tariffs adding to the mix. He also said “pay as you go” payment plans are becoming more popular: a sometimes dangerous method that could lead some buyers to s