Edward Snowden Questions Soaring Car Prices Amid Inflation Concerns: 'Are Used Cars No Longer A Thing?'

Whistleblower Edward Snowden expressed bewilderment over reports of individuals paying $3,000 monthly for cars. Snowden reminisced about purchasing his last car for a total of $3,000, questioning the current state of the used car market and inflation’s impact.

What Happened: On Tuesday, he reacted to a post highlighting the exorbitant cost of car payments, equivalent to a mortgage for two vehicles. Snowden later clarified that the original figure pertained to two cars, which still seemed excessive to him at $1,500 per car, per month.

“I’m seeing tweets that say people are paying $3k/month for a car now, which I struggle to understand. Are used cars no longer a thing? I know inflation is bad, but $3k is *total* I paid for my last car in the States (maybe 12 years ago?). It even had all four wheels,” he wrote.

See Also: US Manufacturing Activity Hits Highest Growth In 18 Months: ‘Clear Signs Of Improving Conditions’

Why It Matters: Inflation has been a hot topic, with the headline annual inflation rate climbing to 2.5% in February, as reported by personal consumption expenditures (PCE). This uptick from January’s 2.4% reflects higher personal spending, which was unexpected. Analysts have weighed in on the persistence of sticky inflation and its implications for the economy.

With inflation on the rise, the Federal Reserve’s potential interest rate adjustments are in focus. An upward revision to January’s core price index suggests that a May interest rate cut might be less likely. The situation underscores the challenges consumers face, including the rising costs of essentials like transportation. February’s inflation data highlights the broader economic pressures that may be contributing to the high costs Snowden is questioning.

Read Next: Fed May Slash Rates More Aggressively Amid Jobs Market Concerns, Says Expert: ‘Our Focus Now Is Those Rate Cuts Are What You Need’

Image via Shutterstock