Record-high car prices won’t be dropping anytime soon

Even with the coronavirus pandemic, the market has seen an increase in car prices, whether of consumer goods, as other items, which include the purchase of real estate and vehicles. And the consumer found himself in a situation where if you need something, you will have to pay more.

In the case of vehicles, the record-high car prices won’t be dropping anytime soon. But do you know why? This has to do with the lack of production of parts and the search for a new vehicle, since many people stopped using public transport to avoid the contagion of the disease, opting for a car that gave comfort and freedom to come and go. . And these values ​​have been felt in the pocket.

Record-high car prices won’t be dropping anytime soon
Record-high car prices won’t be dropping anytime soon (Image: Internet)

The average price of a new car in the US hit $47,077 in December. This represents a 14% increase from 2020 and a 1.7% to 1.7% increase from the previous month.

The increase comes as the US ends 2021 at an impressive level — a 39-year high of 7% — and gasoline prices top the list with a 49.6% year-over-year gain. Rising prices for things like cars, food and clothing reflect the pain of the economy reopening.

Luxury car and lack of cars price have driven this price rise

Automakers faced parts shortages and consumer demand soared as vehicle prices rose last year. That is, the more people search for a product, the more expensive it gets. It is the law of supply and demand. And the trend is that these prices will not fall anytime soon, where the option will be to look for used vehicles or keep that car you already have at home, you wanted to exchange, but for now the amount applied by companies does not fit in the budget.

Luxury cars in particular contributed to the general rise in prices. The average price of a luxury car reached US$64,864 (just under 1 million reais) in December, well above the average of US$43,072 for a new car.

In December 2021 alone, they sold for a record $1,300, or $20,000, above their sticker price. As early as December 2020, they were sold for $3,000 below the Manufacturer’s Suggested Retail Price (MSRP). But why?

We’re back on the same topic! Chip shortages, increased holiday spending and the spread of the Covid-19 Omicron variant have been the biggest contributors to the parts gap, labor shortage and additional costs that companies have had in recent months.

However, even with this increase in vehicle prices, unlike the medical class consumer, the rich are not discouraged from buying and have remained active in the luxury car purchase market.

This is seen when, brands such as Audi, BMW, Mercedes-Benz and Porsche accounted for 15.5% of the US market in December 2016, according to KBB, where in December 2020, this number reached 18.4%, an increase of almost 3%, even with the economic crisis that the world went through.

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That is, as long as the rich continue to consume, the record-high car prices won’t be dropping and anytime soon has everything to stay active.