The American car industry has been battered by a shortage of microchips and other parts used in vehicle manufacturing. Semiconductors, in particular, are critical to car electronics and navigation systems. While supply is short, consumer demand has reached normal levels, after an interruption brought on by the COVID-19 recession.
As a result of new car shortages, prices of some used cars have soared, and the most overvalued used car in America is Hyundai Sonata Hybrid.
The imbalance between supply and demand has increased car prices by double-digit percentages year over year, so far in 2022. Cars are among the fastest rising in price among the components in the consumer price index. This has likely caused people to hold their current cars longer, but they eventually will need to replace those cars with new ones or used ones with only modest mileage totals.
The car model with the largest price increase in the period was the Hyundai Sonata Hybrid, which rose 63.9% to $25,620. This midsize sedan generally gets good grades from car research firms and media. U.S. News rates it 8.8 out of 10, while Edmunds rates it 8.1 out of 10. and Kelley Blue Book rates it 4.1 out of 5.