Used Car Prices Soar as Supply Struggles Hit

The COVID-19 has a huge impact on the prices and supply of used car. In September 2020, the prices of the used car were almost 30% higher than the same month in the last year, 2019. It was also 3.8 % higher than the previous month of the same year, August. So, it is the best time for the sellers to sell their used cars. However, we must determine the cause of the incredible increase in the prices to understand the equation properly.

Here are a few reasons that highlight the reason the used car prices soar.

  • Shortage or Tight Supply

The shortage of new cars is one of the most prominent reasons for the increase in prices of old cars. Very few vehicles are available for sale in the market, while people want more cars. The shrink in the supply of car has made it difficult to satisfy the needs of buyers. Moreover, factories are not able to operate fully that has prolonged the disruptions. The automakers had to shut down their supplies of new vehicles to stop the spread of the virus. It is not possible to resolve the shortage until the factories consume their production at full capacity. The preventive measures in the coronavirus pandemic have restricted the export and import businesses of new cars. All of these issues have caused an increase in the prices of used cars.

  • High Demand

Since the coronavirus pandemic has forced people to stay away from each other, they are looking for personal vehicles to avoid public transport. The high demand is not really an issue as the banks are offering low-interest rates on loans with a grace period of up to 12 months. Moreover, those who are financially stable have more money now to buy cars than they had before as they are not spending on the outing, vacations, and a lot of other recreational activities now. On the other hand, the car dealers are not able to fulfil the demands of their customers. So, they are now switching to the secondhand automotive market. As a result, the market has clearly seen skyrocketing prices over the past few months. The prices might continue increasing until the pandemic lasts.

So, with the ongoing restrictions and nationwide lockdowns, the only way to fulfil the high demands of people is by offering them a wide range of used cars. A lot of people who are struggling financially because of the pandemic want to sell their cars at good rates. It is a golden opportunity for them as the number of buyers is getting higher day by day. They want to buy cars and there are very limited options. The internet has become a great source of help for both buyers and sellers. Sellers can publish the photos, description, and details of their car on any renowned website. Similarly, buyers can visit any authentic website as to find the best used pickup, semi trucks and commercial vehicle deals that suits their personal preferences and demands.

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