It's been nearly three years since auto plants around the world started to shut down because of the pandemic — but vehicle production has never really returned to normal.
Brand-new Nissan vehicles sit on a sales lot in Richmond, Calif., on July 9, 2021. Car prices surged during the pandemic, and despite coming down from their peak, they still remain higher than a few years ago.
At an auto show this year, Noah and India Grabisch of Laurel, Md., were looking at new SUVs, which they liked. But an $86,000 price tag for a Chevrolet Suburban?The used-car market doesn’t provide much relief either. Retail used-vehicle prices now average $26,510. Consider what happened at Nissan, which continued to struggle with supply chain challenges throughout 2022. In response, it cut production of one of its cheapest cars, the Nissan Versa, by 78%. Nissan also reduced sales of two other cheap models, the Sentra and the Kicks.
Sales of new cars over $60,000, meanwhile, skyrocketed. Those vehicles, costing more than the annual income of the average American, went from 8% of the auto market to 25% of sales. But the new-car woes also had a delayed effect on the used-car market — because new cars, obviously, become used cars after some time.nice two-year-old cars, which means even in the used market, the high end of the market is booming.
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