Automotive Buyers Are In For A Wait

New vehicle buyers should expect to wait six months to a year for prices to drop, according to a new report analyzing why the new-car shortage happened and when it will end.

And experts predict that new-car inventory may not return to prepandemic levels until 2023, per

With fewer new cars and high demand, the average price for new cars has increased, according to data from the National Automobile Dealers Association.

From 2020 to 2021, the average cost of new cars in the U.S. increased by 9%, to $42,379. In contrast, from 2016 to 2019, prices rose by only 6%, per

Since August 2021, cars have sold above manufacturers’ suggested retail prices on average, according to data from

Used cars don’t offer the savings they used to. A 1- to 2-year-old used car costs about  as much as as the same-model new car in a dealer’s lot.

In the past year, average prices for new cars have climbed 10%, according to The price for all used cars is 7% higher, and prices for 9-year-old used cars have spiked 21%.

In 2022 so far, the number of new vehicles sold in the U.S. has decreased by 11%, according to J.D. Power. This was true for every manufacturer, with Nissan and General Motors taking the biggest loss in the number of vehicles sold in 2021.

The upside remains for new-vehicle dealers. From 2020 to 2021, new-vehicle dealerships in the U.S. made 17% more sales for a total of $1.184 billion, despite selling 18% fewer cars.


1 comment about "Automotive Buyers Are In For A Wait".
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  1. Jonathan May from HorseTV Global, November 14, 2022 at 9:41 p.m.

    It's not that the intrinsic value of a used or new car has increased, it's the bottom feeding dealers that artificially inflate proices to screw the public over for as much as they can for a chunk of metal that by itself, has not increased in price.  Dealers add no value to the equation, and if anything will injure you when your overpriced vehicle depreciates 200 times faters than it previously did- they simply see you as a revenue enhancement opportunity.

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