The ongoing global semiconductor chip shortage has significantly impacted the auto industry. Auto manufacturers have had to cut their production targets in the wake of rising chip prices, which, in turn, has caused car prices to surge. This production shortage has led to record high prices due to overwhelming consumer demand. According to Tyson Jominy, head of data and analytics for J.D. Power, around 89% of shoppers are paying more than sticker price or within 5% of it. Bottled-up demand amid logistic disruptions is thus predicted to keep prices high and drive growth in the auto dealership segment.
In fact, used car prices have been appreciating faster than the stock market and certain cryptocurrencies, according to market researcher Jim Bianco.
