Ford and GM Follow Tesla's Price Hike
New cars are getting more expensive across the board, and domestic heritage brands like Ford and GM are no exception. What’s causing the high prices?
Written by Andrew Koole
Reviewed by Kathleen Flear
Right now, it seems like everything is more expensive, and
new cars
are not an exception. Returned demand after the pandemic, the ongoing chip shortage, and other supply chain crises have contributed to higher prices across the industry. Recent price hikes by Tesla have been in the news, but the EV builder isn’t the only company raising its prices to cover growing costs. Heritage brands like Ford and GM are passing the bill onto consumers as well.
Since last year, manufacturer-suggested retail prices (MSRPs) from both automakers have risen as much as $4,500. That might pale in comparison to the $11,000
price hike
for a Tesla Model 3, but it still could be enough to upset drivers. Ford and GM’s pickup trucks get the largest increases
The prices of American-made vehicles have been rising for at least a year now. Just last December, Ford raised prices on their SUVs and pickup trucks. In February,
CarBuzz
reported another increase on its Mustangs, SUVs, and trucks.The F-150 Raptor saw the largest increase in the most recent hike, gaining $3,300 to its MSRP. Most other F-150s jumped by $1,500, while the Explorer XLT and Mustang Shelby GT500 both increased by over $1,000.
GM’s price hikes are little more scattered.
Motorbiscuit
says MSRPs for some Chevy Silverado and GMC Sierra trims rose by $1,200 in March. But the most recent vehicle to get more expensive was the Chevy C8 Corvette.
Yahoo
says the 2023 model year will have a base price of $63,195—up $1,050 from the current model. Let Jerry find your price in only 45 seconds
No spam · No long forms · No fees
Why are new car prices still soaring?
The size of recent price hikes might vary by make and model, but the reasons for them are the same across the auto industry. At its most basic, the cause of high prices can be boiled down to supply and demand.
Microchip supply
, commodity prices, and the movement of parts and materials were all thrown into chaos during the pandemic, making it impossible for automakers to keep up the demand that returned when lockdowns lifted.In January, the year looked promising to manufacturers hoping to bounce back, but
Reuters
says the impact of the war in Ukraine
, growing inflation, and rising interest rates have forced companies to set projections of normalcy further into the future.How do these factors impact car insurance?
As you might’ve guessed, higher prices for vehicles tend to make rates for
car insurance
rise, too. The current national average for coverage sits at $1,655 a year, and Kelley Blue Book
says it’s expected to pass the $1,700 threshold this year. But with a little help from Jerry, you don’t have to settle for average. A licensed broker, Jerry does all the hard work of finding
cheap quotes
from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
MORE: Why No One Wants to Be a Truck Driver Right Now
4.7
