The price of secondhand cars has been soaring over the last year. It is all due to the fact that there is a shortage of new vehicles. In fact, over the last year, estimates state that used car prices have increased by around 30%. When searching for a new vehicle, a large number of people found that there is a shortage of new cars. This means that they have now turned towards secondhand cars to be their solution.
A lot of the growth has happened in the last three months. Auto Trader reported that the growth rate has actually doubled in the last three months alone, with the first 9 months of the year being a dramatic rise already.
Price increases since August 2020
If we go from August 2020 to August 2021, the rate of growth has been between 17 and 30 percent. In fact, there have even been some cases where nearly new models of specific cars have been listed and sold for more than the brand new price. This is happening because buyers are not able to find the cars that they want brand new. Therefore, they are willing to pay whatever they have to in order to get what they want. This has led to some models selling for more than 50% more than they would have back in August of 2020.
If you are looking to get a secondhand vehicle, then you should look at dealers such as Bayside CDJR who have a fantastic reputation. You want someone reputable. Hopefully, the price won’t be too high for you to afford right now.
New rules coming soon
With all the changes that are coming about, is it any surprise that there are going to be new motoring laws in the UK come 2021/2022? One of the biggest instigators of this is Brexit. When looking at the news in the UK for a long time, all you heard about was Brexit. You may have forgotten a little about it. Now that the consequences are starting to flood in, motoring is one of them.
While using your mobile phone while driving has been banned since 2003, there was a small way to get around this. That meant people could still take pictures while driving. A new rule in 2021 means that touching your phone for any reason while driving is illegal and could land you six points and a fine.
In 2022, speed limiters will be mandatory on all new vehicles. These handy little devices are responsible for altering drivers if they are going too fast. Additionally, they will automatically lower the speed of the vehicle if the person driving doesn’t do it themselves. Of course, secondhand cars don’t have this feature on them, so it’s not that difficult to see why people are turning to secondhand cars.
Why a shortage of new vehicles?
One of the reasons that the UK is currently facing a shortage of new cars is because there is a shortage of raw materials. This means that the price and supply of new vehicles are being threatened, leaving people to turn to secondhand instead.
For example, a global chip shortage is what is forcing many brands to slow down when it comes to producing their vehicles. Originally, this was just a minor inconvenience for those who wanted to buy the latest games console such as the Xbox or the PlayStation 5. But, now it is more than that and is impacting the car industry in ways that were never imaginable.
With all of this going on, the car industry has also had to go through all the uncertainty of Brexit like many other industries. The waiting lists for new cars are growing. Yet, due to both of these factors combined, they could be waiting for a while.
The overall cost of owning a car
It is, of course, worth considering the cost of owning a car and whether this has also increased. The reality is that right now virtually every cost associated with owning a car has risen dramatically. One example of this would be fuel. Gas prices are soaring. and this is due to unexpected shortages not planned for.
Ultimately, the cost of fuel has now reached an exponential level. It’s causing drivers to question whether they can continue to keep their vehicles on the road. This situation will improve eventually. However, it could be a reason why it might be better to go for a hybrid or an electric vehicle if you are investing in a secondhand or new car.
The other massive cost that you need to think about here is going to be repairs and maintenance. The cost of maintaining a car has also been increasing dramatically. You might be blown away by just how much. One of the problems right now is the fact that service and repair companies are struggling to get the parts necessary to fix the common issues with vehicles.
You will encounter this even if you go to the service that is directly connected to your brand of vehicle. This is why it is recommended that you get a direct quote for any services before committing. Make sure that the garage in question can source any parts you need.
It’s also why it’s important to make sure that there are no issues with a secondhand vehicle you are investing in. It’s not going to be easy to get a repair for a car like this at an affordable price.
Now, you understand a little more about the price of secondhand cars rising due to a shortage of new vehicles. There has been much speculation in recent years about the automotive industry. Therefore, it’s important to understand that there was no prediction of this crisis. Nobody could have seen this coming. However, we’re now at the point where we have secondhand cars rapidly rising in price. Unfortunately, there are no signs of slowing down. This is all due to the halting of new car production due to the pandemic, among other reasons.
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