Unfortunately, yes. Like everything else, prices have increased. For instance, food prices have gone up. Going to the grocery store bills has increased. I remember going to a fast food restaurant like Carl’s Jr. and getting a combo for under $5, and now a combo is about 7-8 dollars. The most noticeable increase for everyday people is the price of gas and so will the prices of cars. There are several reasons for the price increase of vehicle transportation.
The cost of the materials needed to make a car is going to determine the increased cost of cars. So far, everything that makes up a car is about to or has already gone up in price.
Rubber materials are up “over 45% since January this year, according to the Economic times.
Many cars are replacing steel for aluminum and aluminum alloys to allow vehicles to become lighter in weight which uses fuel more efficiently. Prices on aluminum has increased about 23 percent this year.
Vehicles with steel has the price increased also. Because of the demand of steel in China, prices are rocketing upwards and supplies are short. Tom Danjcek, head of the Steel Manufacturers Association, which represents the so-called mini-mills that produce half the country’s steel, said “ultimately, it will be a substantial inflationary effect.”
The essential part in most cars is plastic. The largest producer of plastic is a Michigan company named “Dow Chemical” which reported by London Times that for the first time, they had to increase prices to all consumers globally by a 20% price rise.
Some companies like BMW have reported to raise prices in the U.S. by 1 percent to make up for the losses. Some companies from around the world like Honda Atlas Pakistan, Honda City MT and CVT, Pak Suzuki Motor Company, and Indus Motors, has increased prices by 1 percent since 2007. Also Indus Motors, the maker of Toyota Corolla have increased their prices on Corollas. So U.S. car companies will eventually or have already increased prices on cars.
More Americans are buying smaller cars because of the fuel-efficient reasons and these are the vehicles the automakers a making a little profit on. Because of other vehicles that are not getting sold, they might be forced to increase the price on smaller vehicles even more to make up for the loss.
Even though economy is unstable, prices of raw materials have gone up and so will be the prices of cars.