How the Pandemic Drove Car Prices Higher Over Five Years

The pandemic played a significant role in causing car prices to go up so much in a span of four to five years. The pandemic caused a number of problems for the automotive industry, including:

• A shortage of semiconductors, which are used in many car parts.
• A decrease in production, as factories were forced to close or operate at reduced capacity.
• An increase in demand, as people were looking for new cars to avoid public transportation.

These factors all contributed to a decrease in the supply of cars and an increase in the demand for cars, which drove up prices.