Last Month, 9 out of 10 New Cars in the US Sold Above Sticker Price

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Last month in the United States, nearly 9 out of 10 new cars were sold at prices higher than the sticker price. This is due to a significant reduction in automobile production caused by the COVID-19 pandemic and semiconductor shortages.

The Wall Street Journal (WSJ) reported on the 14th (local time), citing U.S. market research firm JD Power, that 87% of new cars purchased by individuals last month were sold at prices above the Manufacturer's Suggested Retail Price (MSRP). This is more than 2.5 times the level before the COVID-19 pandemic (36%).

Accordingly, the average price paid for a new car over the past two months has approached $44,000 (approximately 52.03 million KRW), which is about $10,000 higher than before the pandemic.

WSJ explained, "The combination of automobile factory shutdowns due to the COVID-19 pandemic and the shortage of vehicle semiconductors has reduced vehicle production, while consumers preferring personal vehicles over public transportation for commuting have surged to purchase cars."

With limited supply and increased demand, car manufacturers and dealerships have eliminated discounts, imposed additional fees, or raised prices above the sticker price.

The same applies to used cars. According to JD Power, the average price paid for used cars surpassed $30,000 for the first time this month. Some used cars are even traded at prices higher than their sticker price.

Experts expect the inventory shortage to continue until next year. Tyson Jomini, an analyst at JD Power, predicted, "Even if vehicle production normalizes and the semiconductor shortage is resolved, pent-up demand will continue to pressure vehicle inventory."

This content was produced with the assistance of AI translation services.