New market analysis from CAP HPI suggests that used car values will drop in the second half of 2021. This means that people looking to sell a used car should do so sooner rather than later. CAP HPI provide car and van valuations for the entire motor industry, giving their predictions a high degree of authority. They estimate that used car values will fall by as much as 10% in the second half of 2021.
Those looking to sell a new car should move quickly.
This is obviously bad news for sellers, although those who move quickly can still capitalise on high used car values. It is also important for people to know how much their car is worth. Websites like Motorvate can give accurate valuations and match cars to their perfect buyers quickly.
The drop in used car value is expected to be driven by increasing unemployment following the Covid-19 pandemic. Government schemes like furlough are currently maintaining jobs that might otherwise have been lost, but these schemes will end in the coming months.
Another factor that is expected to contribute to the drop in used car prices is the industry finding ways to get around the global semiconductor shortage. Production of new models has been massively impacted by this shortage, leading to artificially inflated used car prices as buyers look for alternatives in the used car market. As manufacturers find ways to get the semiconductors they need, supply of new vehicles will ramp up and used car prices will correct themselves.
Used car prices will begin to drop in the second half of 2021.
All of this means that the best time to sell a used car is now. Schemes like furlough are currently ensuring that people have money in their pockets, and with many people not going on holiday abroad this year they are looking to spend that money elsewhere. As a result, demand for cars is high. And until manufacturers find ways around the semiconductor shortage, used car prices remain inflated.
Both of these effects will begin to fade as 2021 progresses. So, if you are looking to sell a used car, there really is no moment like the present.