Car prices are expected to keep climbing throughout 2022 as the auto industry faces heightened demand and inventory constraints

The prices of new and used cars are expected to keep going up, and experts say that will continue throughout the year.
Increased demand and inventory constraints have caused the cost of cars to go up in recent months. The rate at which car manufacturers can produce vehicles has been impacted by labor shortages.
According to Tyson Jominy, head of data and analytics for J.D. Power, consumers should expect to see higher prices throughout the rest of the year as an estimated 89% of car buyers are paying above sticker price or within 5% of it.
The typical dealership experience that consumers are used to, walking dealer lots with rows and rows of cars, negotiating over price and getting many incentives, is not likely to return this year because there are 4.5 million to 5 million consumers on the sidelines waiting for cars.
With demand for cars on the rise, many automobile sellers have cut traditional sales or deals in order to increase costs, CNBC reported. The average selling price of a new car is higher than the manufacturer's suggested retail price, according to data from the online data base for automotive inventory and information.

In a speech on Friday regarding the December 2021 jobs report, President Joe Biden said his administration is working to alleviate bottlenecks to drive down car prices, with efforts focused on building better factory infrastructure and stimulating domestic production.
Biden said that he has been doing this for a long time. Here's the way to look at it. If car prices are too high, you can either increase the supply of cars by making more of them, or you can make Americans poorer. That's the decision.