Manufacturing plants in key countries such as China and Taiwan – where long COVID-19 lockdowns stopped production – lead to a microchip shortage for new cars, which then caused low inventory across the world. This pushed buyers, who were looking for anything, to snatch up used cars. The entire vehicle market was thrown into flux.
– told NBC 5 in a statement they've seen better consistency in the supply chain this year compared to last. But experts say other supply chain issues with parts like seats, paint resin and tires are still just enough to hurt supply. With demand for vehicles still very much strong among a consumer base coming out of the pandemic, prices have remained elevated.
However, Edmunds.com is reporting an overall drop in new vehicle price tags. The car inventory website claims new vehicles averaged around $700 over sticker price in the first six months of this year. In the past month, that number dropped to $230.