Automotive

When Will Prices of New and Used Cars and Trucks Go Down?

The current state of the automotive market has been fueled by numerous factors including factory closures, COVID spread, and a shortage of computer chips. Nevertheless, despite the recent spike in prices, the market is expected to return to normal soon, ideally in 2022 or early 2023. However, the future is not entirely rosy for the industry, with many analysts predicting a more gradual increase in prices.

Some analysts believe that the price of used cars and trucks will drop between 2022 and 2024. The main reason for this is that demand for used vehicles will increase, which will lead to an increase in supply. The current shortage of computer chips is a sign of a larger problem than the current shortage of new cars. However, the global economy remains fragile and the current shortages of computer chips and other items suggest that the prices of new cars and trucks will fall in the future.

The current shortage of microchips is preventing automakers from buying enough vehicles, resulting in a prolonged shortage of inventory. The shortage is expected to ease by fall, but the new car price may never return to its pre-pandemic levels. For now, a better time to buy a car is the second half of 2022. With inventory starting to rise, the second half of 2022 looks better than the first.

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