KQED's Forum Car and Gas Prices Are Shooting Up. How Will Drivers Respond?
Mar 26, 2026
Jessica Caldwell, head of insights at Edmunds, breaks down pricing trends. Scott Moura, UC Berkeley transportation expert, explains fuel economics and policy effects. Edward Loh, MotorTrend editorial lead, discusses market shifts and vehicle features. They explore record car prices, rising gas, electric vehicle uptake, used EV bargains, and how regulations and fleets shape what drivers buy.
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Market Shift From Cars To SUVs And Trucks
- U.S. demand favors larger vehicles; manufacturers profit more from SUVs and trucks so they focus R&D and inventory there.
- Jessica Caldwell: affordable sedans largely disappeared because consumers reverted to bigger cars after the recession.
Chip Shortage Fueled Price Increases
- Pandemic supply shocks, especially semiconductor shortages, reduced inventory and let dealers and manufacturers push higher prices.
- Shortages prompted prioritization of features and allocation of scarce chips to higher-value functions.
Inflation Explains Much Of The Price Rise
- Inflation explains a sizable part of nominal price growth: $35,000 in 2016 equates to about $47,000 in 2026, so real increases are smaller than headlines suggest.
- Scott Moura notes safety and regulated features also add cost but scale reduces per-vehicle impact.