Posted on 1/3/2022
As you’d probably guess, the high vehicle prices over the last two or so years have been caused by low supply and high demand. Here is the sequence of events that the experts say are behind the current conditions: Reduced production of vehicles due to lockdowns, starting early in 2020 The micro chip shortage began around the same time, also due to COVID. This shortage is hampering auto production Global shipping issues beginning in 2020 have made it hard to ship whatever inventory is available Increasing demand over the course of 2021, due to multiple reasons, Reduced production of vehicles due to lockdowns, starting early in 2020 such as people moving out of cities, people avoiding public transport because of COVID concerns, and unusually low interest rates on auto loans. The shortage start ... read more