Why car prices are still so high — and why they are unlikely to fall anytime soon

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2023-03-18 21:30:05

Yet between the pandemic, an acute shortage of semiconductors and other supply chain snarls, vehicle production has never really returned to normal.

But the average new-vehicle transaction price is still $48,763, according to Kelley Blue Book. Before the pandemic, the average new vehicle sold for $37,876.

At an auto show this year, Noah and India Grabisch of Laurel, Md., were looking at new SUVs, which they liked. But an $86,000 price tag for a Chevrolet Suburban?

And after falling last year, closely watched wholesale prices, a key indicator of where markets are headed, are actually rising again.

The semiconductor shortage has gotten much better since 2021, but it hasn't gone away entirely, and other supply chain snarls continue to periodically disrupt output.

Because of these supply chain problems, the global automotive industry has produced millions fewer vehicles than it would have otherwise.

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