Used Cars Increasing By As Much As 50% In Value | 6 Reasons Why
Once upon a time, it was ‘normal’ that if you wanted to snag a bargain, you’d buy a used car. However, it would appear that the used car game has changed. Certain used models have increased in value by up to 50%. Today we’ll look at 6 reasons why the value of used cars has increased.
Less Mileage
It can’t have escaped your attention that over the last 18 months, roads have been quieter.
The reason?
Social restrictions and a rise in those ‘working’ from home have meant that people were less inclined to drive… Anywhere. As a result, vehicles that may have done up to 1000 miles per week have been sat idle.
Those familiar with buying used cars will already know that one key metric that affects a car’s value is the total mileage. If this is less for a given year, the value increases!
Global Shortages
One can’t help but feel that the world is changing.
With 2021 facing restricted global economies, major trade route blockages and inter-nation political turmoil, the supply of essential components (such as ECU computer chips) has been reduced.
How does this affect used cars?
Simple. New cars aren’t as readily available.
As a result, shoppers looking for their next ‘new’ motor have resorted to buying used. This creates a seller’s market… And the sellers are looking to maximize their profits.
Supply and Demand | Accidental Savers
Let’s face it.
There hasn’t been that much to spend our money on over the past few months. Big one-off purchases, like holidays, have been put on the back burner. Combined with pub closures, restrictions on dining out and all of the other things that traditionally chip away at disposable income, many have found that they’ve managed to save the money that would have normally been spent elsewhere.
These accidental savers have emerged with a few quid in their pockets. What better way to spend it than invest in a ‘new’ car that would have previously been considered ‘unaffordable’?
More people buying used cars, less used cars to go around… As with all economic spheres, less supply equals higher demand… And higher prices.
Online Shopping
The internet has come into its own over the past year in several areas. And we aren’t just talking about Zoom meetings.
Gone are the days of driving out on a Sunday to have a walk around a used car. Nationwide, many retailers have embraced a second digital revolution and have utilized online sales to continue trading.
Customers now can have a car delivered to their front door, where they can inspect it and even trade in their old vehicle. Previously this option would never have been available. Now it is a standard service.
As with large companies like Amazon, used-car retailers are reaping the rewards of an easier infrastructure… Instead of having to trudge around a rainy forecourt, consumers can purchase a car from the comfort of their own office! This has led to a boost in sales.
Reduced Public Transport
Sitting for an hour in a stifling facemask with 30 other people? No, thanks! Far nicer to sit with the radio on and the window down, working on that right arm tan.
With a reduction in the number of services (if they aren’t cancelled) and restrictions that make public transport an unpleasant affair, those who have to ‘go’ to work are seeking to do so under their own steam.
Add into the mix a section of the population with deep fears about Covid-19, and you’ve got the ‘perfect storm’ to cause a switch to private transport
Avoiding using public transport has led to more people than ever seeking to purchase a car. Again supply and demand dictate the price of used vehicles.
The Grim Truth | Financial Hardship
A car has become a luxury that they either can’t afford or don’t need for some unfortunate people.
For many, they have found that their position has become permanently ‘work from home’… The requirement to commute has evaporated.
For others, they have found that their services are no longer required. Hard to commute to the office if the office doesn’t exist anymore?
Both of the above conditions have ensured that for many, the car has to be sold, opening the door for dealers to have a steady supply of low-cost cars that can be sold for a profit.
Conclusion
There’s a great deal in the present time that is unprecedented. Societal norms are changing, and it would appear that used car prices, in particular, are the latest unexpected change brought about by external forces. When buying a used car, especially without seeing it first, you want to be sure of its reliability. MotorEasy offers extended warranties and fixed price repairs on used cars. Why not get a quote today and protect your investment?
