By Craig Erwin, Ph.D.
TRIED TO BUY A CAR LATELY?
When I bought a used car last year, I was shocked at how much prices have climbed. According to Autoweek, prices have soared because demand has increased but supply has not.
During the pandemic, car sales stumbled as supply chain hiccups made it difficult for automakers to make cars. According to Autoweek, following the pandemic, car prices rose as demand grew and manufacturers struggled to fill showrooms with cars.
In February car sales rose 16% according to Microsoft News. And as demand bounces back and supply chain headaches dissipate, car sales should continue to be strong. Fortune says Ford is off to a strong start this year after slow sales last year; Ford is increasing production on six models because it is seeing strong demand for new models, including electric models. And Bloomberg reports that Tesla’s sales should increase because it has already cut prices twice this year. Still, not all is rosy. Ford may find it difficult to ramp up production because the strong job market may make it challenging to hire new workers. Of course, a recession could cause all hell to break loose.
After struggling with various problems the past few years, the automobile industry is bouncing back. But whether you’re buying, selling, or just driving, the automobile industry may well continue to surprise. Will more Americans embrace electric cars, self-driving cars and ride sharing? Better stay tuned.
Have you tried to buy a car recently? If so, was it difficult to find one?
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