Plus the cars (mostly Ram trucks) that are being sold are doing so without a mountain of cash rebates. I think you'd find there are also a crapload more custom factory orders vs prior years. When there's slim pickings on the lot (and no incentives) might as well order exactly what you want. And when someone custom orders they are far less likely to walk away from the deal.
Exactly that, no more incentives.
This is very bad in the short term, if manufacturers cut lot times for vehicles it means a constant supply issue and when demand outpaces supply it's a GG.
I am helping a family member shop a kia carnival minivan and they are going for over $6k above sticker.
Take a look around the internet and you will see hellcats with adm, f-150s with adm, and a ton of regular cars with adm, and throughout the board almost 0 in lease or apr credit, there is loyalty for some manufacturers, and then always military and college but that's it.
Low rebates + controlled supply = massive profits for the dealer, manufacturers are changing their gameplan a bit short term as well.
I expect the effects of chip shortage to last into 2023 and have an effect on used cars until production stabilizes.
I think used car prices will come back to earth in the next 6-8 months but they will still be higher than pre pandemic prices.
Almost a perfect storm, covid cuts production causing chip production to be cut causing irreparable damage to the supply line.... or at least unfixable in the short term.