Posted on April 26th, 2022

If you’ve thought about buying a new car, you probably noticed two things: fewer cars on lots and skyrocketing prices.

The average price for a new vehicle purchased in December of 2021 was over $47,000, up nearly $6,000 from a year earlier.

Car manufacturers are still dealing with a microchip shortage and production will likely be squeezed for at least another year, according to industry analysts.

The shortage of new cars has had a ripple effect. Used car prices have also shot up as more people look for a less expensive alternative to a new car. And, more people are holding onto their vehicles for longer, opting to repair them instead of trading them in.

On Monday, MPR News guest host Chris Farrell spoke with an automotive journalist and electric car expert about how consumers can cope with the high-cost car market and where it might be headed.

Listen to the episode at MPR News.