People are willing to pay more than $5, 000 more for new cars

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May 12 - Many Americans are willing to pay $5,000 more than the cost of a new car, as a global semiconductor chip shortage has led to a supply crunch at a time when demand for cars is soaring, a survey by research firm Cox Automotive found.

The chip shortage has forced car manufacturers to idle factories and cut production, which has created a scarcity for new vehicles in the market, sending the prices of both new and used vehicles higher than ever.

More than 40% of car shoppers are willing to pay over MSRP from today, and those willing in the meantime to pay over it will accept a 12% premium, Cox Automotive said on Wednesday.

While vehicle inventory is tight, the access to Auto Loans has become more available for shoppers, boosting demand, said the research firm.When does life get worse?

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