New Car Prices Going Up, For Now
» Posted July 9, 2021 Resources | Share This Post
As Covid-19 infection rates continue to fall and vaccinations are on the rise, many people who have been stuck at home for much of the last year are ready to hit the road. There is some bad news, however, if they want to do it driving a new set of wheels.
New car prices are on the rise, Car and Driver reports. Low inventory and high demand make for a seller’s market, but experts say a production bottleneck could ease later in the year.
Car inventory is low for a number of reasons, including the global semiconductor chip shortage that has forced some global auto manufacturers to slow production. Many of those same companies had already scaled back production last year, expecting less demand for vehicles during the pandemic.
Vehicle inventory was down by about 25 percent in April, compared to a year earlier, according to Cox Automotive. Inventory could soon drop by 40 percent, researchers say.
Meanwhile, people across the country looked to buy new cars in record amounts as the pandemic eased and federal stimulus checks hit bank accounts. The result: the price tag on new cars is going up.
“It's like toilet paper was a year ago,” Michelle Krebs, an executive analyst for Cox Automotive, told ABC News. “Everyone is rushing to buy a car.”
New Car Safety Risks
As dealers up the price for new cars, the sad fact is that many of the vehicles are likely to come loaded with defects that put everyone on the road at risk of an accident.
Carmakers around the globe are forced to recall millions of vehicles every year, citing defects that range from malfunctioning trunk latches to exploding airbags and an array of issues that can cause engines to burst into flames.
Fortunately, car owners and lessors in California have some valuable rights and protections under the state’s lemon law.
The Song-Beverly Consumer Warranty Act forces car manufacturers to do a variety of repairs on vehicles that are under warranty. Manufacturers are also required to buy back vehicles that the company cannot or will not fix. The company can instead offer to replace the vehicle, but it is up to the owner to decide whether to accept or reject this alternative arrangement.
Talk with a Los Angeles Lemon Law Attorney
If you have been stuck with a malfunctioning vehicle, an experienced Los Angeles lemon law attorney at Bickel Sannipoli APC can help. An attorney at our firm will explain your rights and help you explore your options for making sure that the car’s manufacturer is held fully accountable.
Our lawyers have helped people across the state fight back against defective vehicle manufacturers. We understand the stress and frustration that can come with being sold a lemon and we work to resolve these matters efficiently and effectively.
Our offices are conveniently located in Los Angeles, San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with a Los Angeles lemon law attorney today.