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Why Is The Price Of Cars So High After 2020?

Why has the price of cars, trucks, and SUVs been so high since the 2020 pandemic? We believe the price of cars and other vehicles are high because of the pandemic, a slow down in production, not enough employees to support production, supply chain issues with parts, and people not returning to work (The great resignation).

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We want this to be an ongoing discussion thread on this topic using the no registration comment form below. Tell us whether you agree with the information in this article, whether we missed other factors, or where we’re flat wrong about the information in this article.

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We hope readers will share this thread on the popular social media sites so that others can join the conversation and give us their insights. We’re specifically interested in hearing your thoughts on whether prices will come back down, stay the same, or possibly even get higher.

Other information we’re interested in hearing reader’s comments on include whether the current market and cost of vehicles is the new normal.

2020 Pandemic, Manufacturing, And The Great Resignation Impacts On The Prices Of Cars

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Production And Manufacturing

Workers showing up to work at manufacturing plants, parts stores, and service centers has led to a shortage of production for cars, trucks, and SUVs. Even if you can find a vehicle to buy, getting that vehicle serviced can be a burden which remains in 2022.

Ride by any dealership and you will see only half of their inventory intact. Less availability has clearly raised prices. Additionally, less availability of parts and people to service vehicles has raised prices.

Workers, Employment, And The Great Resignation

Skilled labor which worked at manufacturing plants and production areas during the pandemic have not returned to work, or have found other jobs. Many younger workers have opted to start their own businesses and income using the Internet and social media. Traditional work was clearly impacted in 2020, 2021, and 2022 as people re-defined the idea of income.

Used Vehicles and Buy Here Pay Here Dealerships

While clearly the cost of a new vehicle remains almost shocking and only available to those with considerable financial resources, credit scores, and employment which was not impacted by the pandemic, used vehicles are also being impacted.

However, we believe that used vehicles are being considered over newer models, although financing remains a problem for higher mileage older models.

This conflict has allowed the buy here, pay here dealerships to flourish.

Buy Here New Bern NC

With credit scores and decreased income, many buyers are being forced in to purchasing a vehicle with a dealership that can get people in to vehicles without credit and only moderate income. Or, for people that are 1099 employees and business owners which has always been an issue for traditional lenders.

Pay Here Jacksonville NC

If the cost and prices of cars, trucks, and SUVs remain high, then we believe older model vehicles that can be financed away from traditional lenders will become the new normal. It will be interesting to watch the subprime buy here, pay here market.

Will Cost Remain High?

Using the discussion thread below, and considering the above information, do you believe the current prices of cars in 2022 will continue? What is your reasoning for your answer?

How will the costs impact domestic manufactured vehicles versus foreign produced automobiles?

External Opinion On Manufacturing

Michael Sharp

Native of Carteret County NC, Father to Makayla and Savannah. You can add me on Facebook. Interest include web development, encryption, and other technologies.

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