Select Page

Are Car Prices Really High Right Now?

Car prices are one of the biggest expenses that many people face. There are many factors that determine the cost of a vehicle. These include brand, model, year, and location. Many people are questioning whether car prices are really high right now. This is due to many factors such as supply chain issues, the COVID-19 pandemic, and an increase in demand for vehicles due to the rise in remote work.

What’s Driving the Increase in Car Prices?

The COVID-19 pandemic has led to a massive shift in the way we live and work. Many people have shifted towards remote work as companies have looked to reduce costs and increase efficiency. This has led to an increase in demand for vehicles as more people look to purchase cars to get around. This has resulted in a supply chain issue that is causing car prices to rise. The pandemic has also led to a shortage of parts and labor. This has impacted many industries, including the automotive industry. The shortage of parts is causing a delay in the production of vehicles, which is leading to a shortage of new cars.

The used car market is also experiencing a rise in prices. This is due to the shortage of new cars. As demand for used cars increases, prices go up. Many dealerships are offering higher prices for used vehicles due to the shortage of new cars. This has led to many people considering purchasing used cars instead of new ones.

How Much are Car Prices Increasing?

The increase in car prices varies depending on location, brand, and model. According to a report by Edmunds, the average transaction price of a new car in the US was $42,258 in June 2021. This is an increase of 6.5% compared to the previous year. The report also stated that the average price of a used car is $23,014, which is an increase of 30% compared to the previous year.

These increases are significant and can have a major impact on consumers’ budgets. Many people may be reconsidering purchasing a car due to the high prices. However, it’s important to note that this may not be the best option in the long run. The high prices may be temporary, and waiting for prices to decrease may not be the best option. In addition, owning a car can provide many benefits, including flexibility and independence.

What Can You Do to Save Money on Car Purchases?

There are many ways to save money on car purchases. One way is to consider purchasing a used car. Used cars are generally less expensive than new cars and can provide good value for money. Another option is to consider different brands and models. Some brands and models may be less expensive than others but still provide the desired features and benefits.

Another way to save money on car purchases is to shop around. Comparing prices from different dealerships and car sellers can help you find the best deal. This can be done online, through dealership websites, or by visiting different dealerships in person.

Finally, it’s important to do your research before making a car purchase. Understanding the market and what to expect can help you make an informed decision. This can include researching prices, understanding car features, and learning about financing options.


Car prices are currently high due to many factors, including the COVID-19 pandemic, a shortage of parts, and an increase in demand. While this may be discouraging for some, there are still ways to save money on car purchases. Consider different brands and models, shop around, and do your research to find the best deal. At the end of the day, owning a car can provide many benefits, and it may be worth the price in the long run.