[Auto] Why buying a car is still such a miserable experience right now

[FazzNoth]

Compared to a few years ago, companies are manufacturing fewer entry-level sedans and crossovers — and more luxury vehicles, SUVs and pickups, all packed with fancy features. This trend predates the pandemic, but the chip shortage accelerated it dramatically.

"Companies have made a defined decision that says, 'If I only have so many chips, I'm going to put those chips in my most expensive models,'" Volkswagen of America CEO Scott Keogh told NPR in January.

It has pushed average new vehicle prices up significantly, and because people priced out of new cars turned to used cars, every car shopper has felt the impact.

But it's a good time to be an automaker
That focus on more expensive cars has been good for automakers' bottom lines.

Both Tesla and General Motors had record earnings last year, and executives largely credited a focus on higher-margin vehicles like the Model Y for Tesla and full-size pickup trucks for GM.

Ford had its best year since 2016, citing "strong mix," which is business jargon for a higher ratio of more-profitable vehicles.

It's been good for unionized auto workers, too: They will be getting hefty profit-sharing checks — up to $10,250 for GM workers.

Dealerships have also benefited. Scarcity has vehicles flying off the lot, and they, too, profit off the shift to up-market.

"It's very easy to operate as a car dealer in this environment," says Arnaldo Bomnin, the CEO of Bomnin Automotive Group, a dealership group based in Miami. His company just raked in $1 billion in annual revenue for the first time ever.