Calculations are a little off.
Average price of a new car in 1996 was $18,777.
Over the past 28 years, inflation has averaged 2.52% year-over-year, leading to a cumulative cost increase of almost exactly 100%.
Based on the actual rate of inflation, using the $18,777 average cost in 1996, the calculated average cost of a new car would be $37,983.
Current average new vehicle cost in 2024 is $47,244, so the average cost of a new vehicle is outpacing inflation. Considering the significant increase in safety, features, comfort, and fuel economy, you could easily make an argument that these are the real reasons for the cost increase, not simply inflation.
But I digress.
To hit the $65,000 new vehicle price the ad predicts, inflation would have had to average 4.25%.
Actual inflation is 60% less than the dire inflation predicted by the ad.