Tag

Supply Demand Imbalance

All articles tagged with #supply demand imbalance

Car Prices and Inflation Soar Due to Dealer Markups and Repossessions
business3 years ago

Car Prices and Inflation Soar Due to Dealer Markups and Repossessions

Markups on new cars were a significant contributor to the recent rise in inflation, accounting for between 0.3 and 0.7 percentage points of the nearly 16% increase in the consumer-price index between the end of 2019 and the end of 2022, according to a study published in a U.S. Bureau of Labor Statistics journal. The supply-demand imbalance for new vehicles during the pandemic allowed dealerships to charge more for each car, resulting in extra dealer profits.