According to experts, the cost of buying a new vehicle in the United States is about to hit an all-time high in June. This is a result of high demand for new cars and increased cost of making them due to shortage of materials and disruption of supply chains.
Customer research company J.D. Power and automotive forecaster LMC Automotive released a joint report this week showing that Americans have to pay $45,844 on average for a new vehicle. This represents the highest mark on record and is a 14.5 percent increase compared to 2021.
Increasing prices are set to result in sales drop compared to the same period of last year. The report forecasts 965,300 sold cars at the end of the month, which will represent a decrease of 18.2 percent. After the first half of last year set the record for vehicle sales, the first half of 2022 is expected to take a 19.1 percent plunge and settle at 5,827,300 units.
Despite increased prices and slumping sales, the new cars market is still expecting high demand in the following months, according to J.D. Power’s president of the data and analytics division, Thomas King.
“Vehicles continue to sell quickly, and a significant number of vehicles are being ordered – or purchased – by buyers before they arrive at the dealership,” King said while adding that demand remains “considerably higher” than supply.