In the Bay Area and California, the cost of acquiring a new vehicle was at an all-time high towards the tail end of 2021. This year, 2022, things have not gotten better, with toll hikes on Bay Bridge and other bridges in the area.
Here are the reasons it’s not going to be easy for Bay Area motorists any time soon:
The rising price of crude oil is one of the main culprits for the high cost of owning a vehicle. The knock-on effect of having more electric cars on the roads hasn’t set in, and most on the road are internal combustion vehicles.
With the war between Russia and Ukraine, don’t expect the gas prices to go any lower soon.
The toll in the seven Bay Area bridges shot up by the start of 2022 from $6 to $7. It is expected to go to $8 by 2025.
San Francisco is mulling the introduction of new tolls in the downtown area, which could be as much as $6.50 in the pricing zone.
There are also plans for a $5 toll to get into or out of Treasure Island during peak hours. However, the congestion pricing proposals in San Francisco and Treasure Island will offer fee exemptions and discounts based on income level and residence.
The hiking car prices do not make it any easier, as well. The global microchip shortage and the pandemic disrupted the supply chain across dealerships in the US. The cost of new cars has also increased the cost of used vehicles.
As such, what is available in the used car market is expensive and cannot satisfy the demand.
California is one the costliest states to insure a vehicle, and this is expected to rise higher with supply chain disruptions, inflation and a rise in car crashes.