Despite improved production, car prices in the US remain sky-high due to lingering pandemic effects and soaring interest rates. The average new car price hit $48,759 in December 2023, driven by pent-up demand and high loan rates, with used car prices also elevated. While supply chain issues have eased, manufacturers have been slow to replenish inventories, keeping prices inflated. Relief may come as the Fed plans to cut interest rates in 2024, potentially easing the financial burden on car buyers.