The 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

The 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.