Prices skyrocketed during the pandemic, and remained high, due to supply-chain disruptions and a shortage of semiconductor chips, which power cars and more. But now, experts predict that changing conditions in the market will drive prices down.
“We’ve definitely kind of hit a new paradigm in the car market where these prices are not going to be maintained at these elevated levels we’ve seen for two years,” says Karl Brauer, executive analyst at car search engineRecent trends show that prices are no longer increasing as they have been. The average new-vehicle transaction price slightly decreased to $49,388 in January, a 0.6% decline from the previous month’s record high, according to Cox Automotive-owned Kelley Blue Book.
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