Sept. 2, 2021—Even as the Labor Day holiday approaches, new and used car prices are expected to remain steadily high in the coming weeks.
According to a report from the Associated Press, vehicle inventories remain at historic lows due to the ongoing semiconductor chip shortage. New vehicle inventory is still more than 30 percent lower where it normally is at this time of year, which means customers will face higher prices and more limited selections.
“Inventory won’t likely be back to normal levels until next year—if they ever do at all,” said Jessica Caldwell, executive director of insights at Edmunds, in the report. “It seems as if automakers are rethinking their production and inventory strategies given they have sold fewer vehicles but at higher prices, so inventory may look different in the near future.”
