Have you gone to check out car prices recently and found yourself surprised by the universally high prices? You wouldn’t be the only one! The fact of the matter is that cars today tend to be more expensive than before – even accounting for market fluctuations.
Supply Chain Issues
In the wake of the pandemic, the globe found itself in the middle of newfound shortages. This ranged from silicon to cotton to dozens of other things – including labor itself, which is a problem that persists today. The biggest initial upset was actually that of computer chips. Modern cars do, in fact, require computer chips, and a jump in demand for both electronics and cars in a post-pandemic world resulted in chip manufacturers not being able to keep up. Whole lots of hundreds of nearly completed cars were left waiting for chips before they could be sold. Thus, completed cars became more scarce, and thus, the price rose.
The car you drive is more advanced than the Apollo 11 rocket. Smart technology in cars has taken leaps and bounds over the past few years, not the least of which was the commonality of such tech in a car. It used to be just a few years ago that only luxury vehicles had voice command, touchscreens, and the like – but now such features are basically the standard. Cars operate almost like a smartphone in a lot of cases. That high standard of technology, as well as the engineering required to synthesize it all into a functional, stylish vehicle, is naturally going to cost you a lot more than your average car from back in the day.
Market Trends and Inflation
As previously mentioned, the post-pandemic economy has not been looking so good. This is especially the case for working-class, blue-collar individuals. Prices on gas, food, and other everyday items have begun to rise. Inflation has begun to kick in little by little. Because of this trend, even the price of old, used cars has started to creep higher and higher. Finding a car that is dependable, doesn’t have too many miles, and is not in serious need of expensive repair will run you several thousand dollars more than it would have just a few years ago.
Luckily, the economy will inevitably improve at some point. The question remains as to exactly how the car market will respond. While it is possible that eventually everything will be exactly as it used to be, it is also possible that the advancing technology will usher in an entirely new era of automobiles that you’re going to want to be prepared for.
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