Why are Vehicles so Crazy Expensive?

learn why dealerships are charging crazy car prices
learn about increasing vehicle costs with us dealer licensing

As you hurriedly throw your lunch together for work, you look out of your kitchen window and see it…your unreliable beater. 

It’s the same fight. Every. Single. Day. You even need to allot yourself extra time to get it started and take it down the highway since it doesn’t go above 55. You know it’s finally time for a new vehicle but in today’s car market…yikes. 

So what’s the deal? Why are new and used vehicles so expensive all of a sudden?

Well, US Dealer Licensing has some answers and a unique way that you can combat soaring car prices (hint, hint: a wholesale dealer license). 

Sticker shock

As you meander through the scarce dealership, you can’t help but be shocked by how expensive the vehicles are! 

Were cars always this expensive? 

Short answer—no. And here’s why!


Many facets of COVID-19 are driving the sky high prices of vehicles. 

As people return to work, their need for new or used vehicles is rising after a year with minimal travel. In addition to travel, many people are choosing to use their own vehicles to avoid cramped public transportation like buses or subways. 

COVID is also affecting the supply side. 

I’m sure you’ve struggled finding items for your home from toilet paper to gasoline to lumber!

Well, so has the auto industry. Tires and resin are a hot commodity that are unfortunately in short supply. With rubber being scarce, the prices have increased to make up for the loss. 

Has Anyone Seen a Computer Chip?

computer chips are becoming scarce which drives up the cost

In addition to the scarcity of things like tires and resin, computer chips have been extremely difficult to get. 

At the start of the pandemic, car manufacturers predicted that there would be a decrease in auto sales so they drastically scaled back on production—including their need for computer chips. In the meantime, demand for things like laptops, phones, tablets, and more skyrocketed with the influx of people working from home. This filled the computer chip gap and took over the supply. When COVID-19 restrictions began to lift, the demand for new and used vehicles exploded which wasn’t predicted…uh-oh. 

To offset lack of sales and idle time at auto plants, the price of new vehicles has soared and in turn affected the price of used cars. 

Lower Rates, More Demand

We’re sure you’ve seen stuff like this everywhere: 

— 0% APR for 60 months!

— $2,000 off any new vehicle when you act now!

— Low monthly payments!

Well, other people have been seeing these ads too and buying like crazy! In addition to all the new incentives, stimulus checks and other relief benefits added to the available cash on hand, which increased the demand for new and used cars, and subsequently, the price. 

Wholesale Dealer License to the Rescue

become your own small business and start flipping cars now with a wholesale dealer license

If you’ve never heard of a wholesale dealer license, you could be missing out on a myriad of opportunities! 

A wholesale dealer license allows you to sell and buy vehicles directly from dealers and participate in dealer-only auto auctions. This allows you to form your own small business and purchase cars on the cheap (hooray for the state of the current market) and then sell them to make a profit. With a dealer license, you can also import and export vehicles overseas. 

So how do you get a license?
Contact US Dealer Licensing! You can get a license in just 30 days and we take care of all the necessary paperwork. Call (888) 344-5570 to begin!

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