The lingering effects of the supply chain crunch and the global semiconductor shortage that was the result of manufacturing disruptions during the pandemic limited the production of new cars and drove up their cost. According to Kelly Blue Book, 8 million fewer cars were made between 2021 and 2022, meaning we may be in short supply for an extended period of time. Of the new cars that are being produced, many come with a price tag of over $60,000. The demand for used cars has surged due to high interest rates and the limited supply, which has led to higher prices. Rising prices for raw materials have also contributed to the overall increase in vehicle costs.