Vehicles were in high demand and in short supply during the pandemic. Automakers are struggling to secure parts such as semiconductors, causing shortages of vehicles in dealer lots and higher prices. You can see the signs. Supply is improving and demand is slowing.
Cox Automotive's Michelle Krebs said it has become easier to find certain types of vehicles at dealerships since the end of summer.
That said, Krebs expects car sales to fall 8% this year. This is largely due to weakening demand for new cars, thanks to higher interest rates on auto loans.
"It drives up monthly car payments, which are now well over $700, which is not affordable for some," she said.
But as car inventories continue to improve, the rise in new car prices could moderate, said Karl Brauer of ISeeCars.com.
“We are paying more than we did pre-pandemic, but the momentum seems to be returning to normal rather quickly.”
Brauer said he expects demand for new and used cars to continue to slow next year.
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