A surge in demand for new vehicles is driving prices to unprecedented highs, creating a ripple effect as those same cars later fetch steep premiums in the used market. Analysts warn that the trend could squeeze buyers at both ends of the transaction, with sticker shock becoming a persistent issue. The shift reflects broader supply chain challenges and shifting consumer priorities, leaving many to wonder how long the crunch will last. Those in the market for a vehicle—whether new or used—may need to brace for tighter budgets and strategic timing.
The latest squeeze is starting with new vehicles, which are selling for record prices and eventually command hefty premiums when they hit the used market.
