Car Sales Implode As Buyers Face Shortages And Price Gouging

Car prices have hit record highs lately, whether new or used, as the law of supply and demand has played out with parts shortages crimping production numbers. These factors have combined into a perfect storm, with sales numbers of new vehicles are now projected to hit new lows in the US, as reported by Reuters.

Research from Cox Automotive projects that car and light truck sales will drop preciptiously, tanking by more than 24% in March to a low of just 1.22 million units sold. An overall decline of 16% is expected for Q1 this year, as high prices have buyers fleeing the market while chip shortages keep inventories low. The fall could see the US market reach the lowest Q1 volume figures for the past decade if trends hold.

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