For much of the last four years, automakers and their dealers had so few cars to sell — and demand was so strong — that they could command high prices. Those days are over, and hefty discounts are starting a comeback.

During the coronavirus pandemic, auto production was slowed first by factory closings and then by a global shortage of computer chips and other parts that lasted for years.

With few vehicles in showrooms, automakers and dealers were able to scrap most sales incentives, leaving consumers to pay full price. Some dealers added thousands of dollars to the manufacturer’s suggested retail price, and people started buying and flipping in-demand cars for a profit.

But with chip supplies back to healthy levels, auto production has rebounded and dealer inventories are growing. At the same time, higher interest rates have dampened demand for vehicles. As a result, many automakers are scrambling to keep sales rolling.

  • NauticalNoodle@lemmy.ml
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    5 months ago

    it’s a Type R, not a base model Civic with a traditional 4-cyl engine. Isn’t the type-R used for modification, racing, and supported by a whole secondary market?

    • IamSparticles@lemmy.zip
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      5 months ago

      I think maybe they meant it the other way around? Tuner/enthusiast trims have been getting high markups for decades. It’s weird that the family cars are now getting the same markups.