Used car market appears to trend upwards

The used car market has always been a big one. It is a great way to enable cars of all specs, sizes, and prices, to be much more accessible. Cars are vital, especially for those who have families. They are important to take on school runs, long commutes to the office, enthusiastic hobbyists, or those who love a road trip. But with the rise of COVID-19, it seems a little backward to have an increase in purchases in used cars. With more people staying at home, working at home, and not traveling as much, it makes you question why. 

Here are some of the latest updates on the used car market trends.

Lower costs 

Commonly, costs for insuring a vehicle are cheaper if they are of a lower value. When purchasing a second-hand car, you are purchasing a car that has lost some of its value. It will continue to decrease as new technology and vehicles are rapidly brought onto the market. The more technical new cars become, the more expensive the costs are associated with getting them fixed and maintained. Older, used cars tend to be well-known amongst mechanics, and have a plethora of parts available. 

More freedom 

There has become a new wave of individuals after the COVID-19 pandemic who are interested in traveling more. As more people work from home, have less of a commute, and are closer to home, they have more time to take themselves and their families on adventures. A car is a much more practical option, as more railcards have been scrapped. Used cars mean families can get more value for their money, as they are priced much cheaper. 

Problems with the supply chain

There have been rumors of a decreased supply of cars, due to problems with the supply chain. With the COVID-19 pandemic, there were a lot of production facilities having to shut down as people were sent home, and when you could work together again, staff shortages have been common due to rises in infection rates. As there are different facilities involved in the process of building a car, from components being shipped internationally to production and manufacturing facilities, it has not been an easy process for the industry to supply the same amount of cars as usual. It can also be argued that demand rapidly went down at the start of the pandemic, with no one needing to travel and the uncertainty around job security and therefore, money. 

New hobbies

Spending time at home, people around the world have developed new hobbies that have taken their interest. One extremely popular hobby is cars. Many people like to purchase luxury vehicles, for example, from a used Ferrari dealer, as they view it as an investment. They will then spend time upgrading a car, restoring a car, collecting cars, or even combining them with other hobbies, such as photography.  

These are just some of the reasons why used cars are becoming popular, despite the COVID-19 pandemic.