Car Buying Trends: Used Car Boom Is The Hottest
The Used Car Boom is one of the Hottest and Trickiest Coronavirus Markets for Consumers.
The COVID-19 pandemic has affected many sectors, and the automobile industry is no exception. When the UK witnessed its first lockdown, the used car prices started to boom. The reason for this was straightforward; the new car manufacturing halted, so their supply shortened and the prices increased. The next best thing for vehicle buyers looking to avoid public transport was to purchase used cars. And because more and more people started buying used vehicles, their prices rose too.
The used car boom was brief; the prices plunged in October 2020 as the lockdown eased. Fast forward today and we face lots of questions from the customers. Are the used car prices still on the rise, and can you purchase a used vehicle you want with ease? Let’s have a look at the current used car market situation in the UK.
What’s the Current Trend in UK Used Car Market?
The used car market shows signs to expand further in the post-lockdown period. According to Auto Trader (AT), the buyer’s intention of used vehicles is high as well, representing a 33 per cent rise in the leads directed to dealers. The sudden increase in demand has pushed the prices upward.
Auto Trader also informed that the average value of a secondhand vehicle in February this year was higher than the price in the same month the previous year. In February, they studied the daily cost of around 900,000 cars, revealing a like-for-like increase of 6.6 per cent. It signifies a price bump for the 11th consecutive months. It ultimately sends a signal that the demand for used vehicles would further increase when national lockdown ends.
AT analysis also tells that the dealers are reducing prices by an average of £271 daily, which is £4 lower than the same time in 2020.
Moreover, electric vehicles witnessed huge growth while the traditional vehicle market remained stable. Demand for EVs went up by almost 19 per cent, and premium EVs made even a bigger jump with a 48 per cent surge in demand.
What Does the Boom in Used Cars Mean for Consumers?
During the lockdown, a used car dealership has to conduct its business online. As a consumer, you might not be new to online purchasing, but automobile trading is different. You might want to browse the vehicles to choose the best ride personally and take it up for a test drive before purchasing.
Whether you want to be a part of this expanding demand bubble depends upon your preference. While used cars can cost cheaper than new ones, they do lack the latest features. On the other hand, you have control when purchasing online during the pandemic. You can browse the vehicle collection according to your pace and without the salesman pressure.
The main reason to go for a used car is the lower price tag. However, the used car boom is limiting the supply of used vehicles due to excessive demand, causing consumers to settle on older models to save money.
Due to lack of supply and excessive demand, the prices for used cars might be so high that you may end up spending as much as you do on a new one.
However, there is a silver lining. At Hilton Used Car Supermarket, you can get your desired used car at a competitive price with a safe click-and-collect facility.
Should you buy a Used Car Right Now?
According to Cap HPI’s head of valuations, Derren Martin right now is a good time to purchase a used vehicle. While these automobiles' prices are currently high, they would skyrocket further when dealers reopen on April 12. He added, "It's a good time to buy a used car for the trade and consumers. I think prices are going to go up once April 12 comes around, and I would be out there looking to buy now."
He further added that during the third lockdown, used car dealers reported a 65 per cent sales average than normal. It means that when the dealerships reopen, the 35 per cent drop off in sales would adjust, pushing the prices further up. These statistics altogether point to purchasing a used vehicle right now to avoid the post-lockdown surge in prices. However, don’t rush your decision just for the sake of saving and end up taking a bad credit car finance UK.