Supply and demand: The yearslong rise in car prices

BECKLEY, WV (WVNS) — The principle of causation is one that we all deal with every day and cannot escape.

An item is in high demand, but the supply is low. That leads to the price for the item being high. It is no different in the auto industry.

Consumer Reports said that car prices have been rising steadily over the past several years.

This means the effects are felt far more keenly when it comes to buying a vehicle.

Rick Lewis, General Manager of Dutch Miller’s Beckley Automall, said it all leads back to supply and much more urgent demand.

“Now, we’re actually seeing the new cars more plentiful in all the lots. However, some of the used cars are still staying higher just because of the demand, you know? The larger SUVs, you know, Yukons, Tahoes, things like that and heavy-duty trucks,” said Lewis.

Lewis said the lack of supply of these vehicles is causing the rise in prices because there is more demand for them.

Some of the heavy-duty trucks in his lot go for upwards of $70-thousand. Unfortunately, Lewis said this will be the new normal going forward, at least in his experience.

“[I’ve] been doing this for thirty years and I’ve never seen a downturn in any pricing. Every once in a while, you’ll have different times of the year where where they come down, but for the most part you either have a steady trend or an upward trend,” said Lewis.

Lewis said none of this is new, however. He said the price of vehicles has been on an upward trend for years.

“Things set precedence, and covid set a big precedence. You know, not only covid, but you know, prior to covid, things[ . . .] You know you can’t buy a car nationally for the same price now as you could even ten years ago,” said Lewis.

Lewis said you should be looking at interest rates and monthly payments when you head out to purchase a vehicle.

He said interest rates are at some of the lowest points they have been in years.

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