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Tuesday, 31 May 2022 09:44

Cars are Going to Stay Expensive for 1 Simple Reason: Dealers and Automakers are Loving It

Written by Tim Levin, Business Insider

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If you're waiting to buy a new car until the next "December to Remember" sale, forget about it: Big discounts from auto dealers may never come back.

New cars have grown more expensive during the pandemic thanks to a computer chip shortage that has squeezed the supply of vehicles and pushed carmakers to focus on building pricier models.

 

But there's another reason entirely that car shoppers can expect the tight inventories and stubbornly high prices to stick around long term: Car companies and dealers are loving it. 

 

They've gotten used to the strong pricing power and fat profit margins that the supply crunch has afforded them and have little incentive to return to the way things were before the pandemic, when dealership lots were flush and manufacturers had to offer aggressive discounts to move cars to customers.

 

To read more, see Business Insider.