Mar 9, 2023
The auto industry is facing a pricing crisis, with skyrocketing costs affecting both new and used cars. Since automakers are focusing on larger, more profitable vehicles, the market for affordable vehicles has shrunk.
The pricing crisis in the auto industry is due in part to pandemic-induced inventory challenges and the chip shortage, which has led automakers to focus on increasing profits. Scott Kunes, our COO, explained to Business Insider, “The more economical vehicle market they’re exiting as they find that profits are much greater on these higher dollar heavier units.” This trend has created a void in the market for more affordable vehicles, including the used ones, with high transaction prices putting pressure on the lower-end market. This has resulted in many people holding on to their vehicles for longer, as the cost dynamics price them out of the car-buying market entirely.
To read more about what’s going on in the car-buying market, read the rest of Business Insider’s article here.