Demand is off the charts and car companies can't build new motor vehicles fast enough. For the past two decades, there was an over-supply of new vehicles, and car companies slashed prices to win deals. Customers got addicted to sharp drive-away prices that were, in real terms, at 30-year lows.
COVID-19 is among the top reasons why there is a car supply disruption. However, more than two years into the pandemic, we're still in this predicament. The shortage has resulted in record prices for new and used vehicles (although used vehicle prices are starting to come down).