High demand, limited supplies lead to historic car prices

car prices

(CNN) — If you’re in the market for a car, be prepared to open your wallet a little wider.

Car lots across the country are dealing with limited inventories, forcing prices for high-demand cars to skyrocket.

Dealerships say they working with only a fraction of their typical inventory, both new and used.

In the first quarter, the average new car price was $37,000. According to Industry Analysts at JD Power, that’s up 8.4% from last year.

JD Power says wholesale prices for used cars sold at auction are up a whopping 26% since the start of this year.

The need for cars is great news for the auto industry. But, the demand is spiking at a difficult time as computer chip shortages shut down production at auto plants across the globe.

According to Cox Automotive, new car production in North America is down about 3.4 million vehicles in the first few months of 2021.

Categories: Consumer News, US & World