Have car prices gone up?

You’re not imagining things, both new and used vehicle prices have indeed spiked over the past two years.

And there’s no one particular reason for the increase. In fact, there are several, and they’re all pandemic-related.

Reasons for car price hikes include:

– Supply issues stemming from a semiconductor shortage
– Increases in cost for raw materials
– Complications around shipping and parts procurement
– Factory shutdowns

The price of new cars has gone up as much as 25% since before the pandemic, according to an ABC article.

A detailed analysis of 1100 models by goauto.com.au meanwhile calculates that as of March 2022, the average price of a new car is up 7.6% since pre-pandemic times.

It appears, because of the wait times for new cars (due to supply constraints), used car prices have gone up even more.

According to Datium Insight’s price index in this ABC article, used cars have risen by 50%!

So, how are people purchasing cars at this rate?

Well, there’s a high chance they took out finance to purchase it, with Mozo research showing 52% of car buyers took out a loan to buy a vehicle in the past decade.⁣⁣⁣

If you’d like to find out more about financing your next vehicle purchase, get in touch with us today.