5 ms·
For anyone who doesn't have a sub I'll summarize a few salient points people are missing. Most importantly new car sales and prices are at all-time high. The dr
by tootie 5y ago
For anyone who doesn't have a sub I'll summarize a few salient points people are missing. Most importantly new car sales and prices are at all-time high. The driver of growing car age is the higher quality and durability of cars in the last 20 years and people owning more cars per household. So people are not holding on to old cars and foregoing new purchases but rather doing both. Used car prices are also at all-time high.
- rsj_hn 5y agoThe high prices are driven by the chip shortage decreasing supply. In 2019 there were 17 million light vehicles sold, and in 2020, there were only 14.5 million sold. The chip shortage/covid prevented 3 million cars from being manufactured, which drove up prices. It will be a couple of years before this supply effect works through the system. It has nothing to do with consumer behavior choosing to purchase more new cars and driving up the price as a result of increased demand.