and their overseas rivals are notching big profits. Three years after the pandemic triggered a global shortage of semiconductor chips and crippled car manufacturing, Ford Motor Co., General Motors Co. In Europe, prices are flirting with records. Used-car prices soared in Japan last year, and in China, a rapid push to electric vehicles means consumers will have to pay more in some cities.Īt the root of the problem is automakers’ new mantra: Keep inventory lean and price tags fat. The sticker shock extends well beyond the US, where inflation is a thorny a political issue for President Joe Biden as the 2024 election looms.
That’s almost a sixth of the median after-tax income for US households. Even used models have climbed to $544 a month on average. The average monthly payment for a new car has soared to a record $777, nearly doubling from late 2019, according to Kelley Blue Book owner Cox Automotive.
