If you are trying to decide whether or not to sell a used car there really is no better time than now. Multiple factors have combined to drive used car prices to historically high levels. And as with most things these days, it all stems from the pandemic.
Why is now the best time to sell a used car?
The main factors that have led to inflated used car prices are…
- A global shortage of semiconductor chips leading to slowed production of new vehicles.
- Rental companies, which were hurt by the pandemic, not selling surplus inventory to dealers.
- People looking to spend money they saved because of Covid restricting economic activity.
- Pent up demand from months of lockdown.
For those wondering whether or not to sell a used car, these factors offer a strong incentive to move quickly. There was a similar rush of people looking to buy cars when lockdown first ended in the summer of 2020. But this time around the global semiconductor shortage has massively reduced the number of new cars being manufactured, pushing those looking to replace their existing vehicle to the used market.
Because there are less new cars to buy, there has also been a reduction in people part exchanging their old models. Consequently, dealers have less used stock than usual. This has led to issues with supply and demand and used car prices have risen accordingly.
People selling used cars are in a very strong position.
All of this means that if you are looking to sell a used car you in a very strong position. BuyaCar.co.uk has seen its average used car price rise from £13,108 to £15,399, a dramatic increase. Dealerships are desperate for used cars, since their supply of new cars to sell has been badly hit.
The situation is likely to last until manufacturers find a way around the semiconductor shortage. This may take several months, but it’s likely that in the latter half of 2021 used car prices will begin to stabilise and return to their average levels. So if you are looking to sell a used car, sooner is likely to be better.