- The cost of both new and used cars is expected to remain higher than average throughout 2022.
- The increased prices are attributed to high demand for automotives, paired with inventory constraints.
- President Biden said in a speech this week that he is working to alleviate bottlenecks driving up costs.
Skyrocketing prices for both new and used cars show no sign of slowing, and experts say the higher-than-average costs are expected to continue throughout 2022.
The cost of cars has climbed globally in recent months in response to heightened demand and inventory constraints, exacerbated by reduced supply of chips that are integral to automobile production. Labor shortages have also impacted the rate at which car manufacturers can produce vehicles, further driving up costs.
Tyson Jominy, head of data and analytics for J.D. Power, told CNBC that an estimated 89% of car buyers are paying above sticker price