Inflation

Inflation is driving up car prices. 6 tips for buying in 2022

By Betty C. Morrow 4 days ago

2021 was an unusual year for the automotive industry. While customer demand for new cars rebounded from the economic uncertainty of 2020, automakers found themselves unable to meet that demand because of semiconductor chip shortages and supply chain problems, and prices for both new and used cars skyrocketed. 

So what should car shoppers expect for 2022? Much of the same, unfortunately.

“Competition for new vehicles will be fierce as inventory shortages persist in 2022,” said Ivan Drury, senior manager of insights for the auto website Edmunds.

Along with shortages and supply chain issues, drivers also have inflation to thank for continued price hikes for cars in 2022. Overall consumer inflation soared 7% in 2021, the biggest increase in nearly 40 years, the Labor Department said on Wednesday. Used car and truck prices, a main driver of the surge, shot up 37% last year, with the average used vehicle now costing

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Carmakers to hike prices again in January amid chip shortage, rising inflation

By Betty C. Morrow 1 month ago






Several automakers in the country are planning to hike prices of vehicles from January 2022 in the wake of the ongoing chip shortage that has led to slow production despite high demand.

For over a year, automotive companies operating in India have been suffering losses due to supply disruptions and the semiconductor crisis. While the chip shortage situation has improved, most carmakers have a huge backlog due to higher demand and lower production.

In such a scenario, top vehicle manufacturer Maruti Suzuki India said on Thursday that it plans to hike prices of its models from next month to offset increased production costs. Several other car manufacturers like Tata Motors and Hyundai Motor India are also expected to hike prices to make up for losses due to higher input costs.

Read | Buying a car won’t be a cheap affair this festive season. Here’s why

A spokesperson for Tata

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Inflation Mania: 2 Growth Stocks Riding the Boom in Car Prices

By Betty C. Morrow 3 months ago

Not only is inflation running hot, it’s also the hottest topic of discussion among investors.

Rising prices on goods and services are a natural part of our economic system, but if they rise too quickly, it can disrupt consumer spending and slow the economy down. The Federal Reserve typically likes the inflation rate to hover around 2% per year, but in the 12 months ended in September, it rose by 5.4%. Some economists describe the rise as transitory, meaning it’s being caused by short-term issues like supply chain disruptions from the pandemic. But there are concerns inflation might stay higher for longer.

Used car prices, for instance, have exploded 24.4% higher over the last 12 months, with new cars up a robust 8.7% over the same period. The culprit is a shortage of crucial manufacturing components like semiconductors, which is crippling the supply of new vehicles.

Here’s how Ally

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Wall Street monitors used car wholesale auction index to predict inflation

By Betty C. Morrow 4 months ago

Wall Street investors are keeping an eye on used car prices, something they rarely monitored before. It’s not that they’re all suddenly in the market for a well-maintained Ford Edge; it’s because used car prices are currently one of the best indicators of whether the economy is headed towards inflation or not.

The New York Times details the close watching of the Manheim Used Vehicle Value Index, a monthly analysis of wholesale used car sales. It’s operated by Cox Automotive, a massive conglomerate that owns Kelley Blue Book, Autotrader and 80 or so wholesale dealer auctions around the country. Through the approximately 5 million cars they sell a year, they’ve been able to compile a lot of data about used car trends.

Moreover, because these wholesale auctions are dealer-only, they’re a good crystal ball for what consumers will be paying for cars a couple of months down

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