Lately you don’t see many commercials about 2nd hand, low price cars. If you are wondering why, it’s simply because the prices of used cars are higher than they ever were. Used cars sales are 42% higher when comparing them to a similar period before Covid-19.
Why Is It Happening?
First, some statistics:
The average price for a three-year-old vehicle sold in June of 2021 was $19,330.
That is 31% higher than the same time in 2020.
What caused this insane increase?
Like always, it’s a matter of supply and demand. The thing is, it’s not that the demand got higher, it’s just the supply on new cars got lower. That fact is luring people into the used cars market in much higher rates than in the past.
What is causing the low supply of new cars? Its all about missing chips.
Microchips are the heart of every tech gadget, computer and car. Microchip manufacturing got a big hit in the last 2 years, due to the pandemic.
This has caused a bottleneck in car production and is causing a drop in the supply of new cars.
As expected, not only has used car prices increased, but also new car prices is at all time high.
Even though Covid-19 decreased demand of new cars somewhat, there is still enough demand to increase the prices, and they are soaring.
As many consumers cant afford a new car now, the demand for a used one increased dramatically.
Is It Going To End Soon?
The car industry is expecting some improvement as the chip manufacturing is slowly going back to normal, as the pandemic is slowly coming to an end.
Now that the summer is ending, we can also see a little improvement and prices going back to normal.
Even when new car demand and prices goes back to normal, it will probably take 6-12 months until it will affect the used cars market as well.
Best Websites to Sell Your Car:
The below sites are great to find a new owner for your car, and fast.
They also give advice on how to sell a car, which is very helpful.
The site is free if you sell the car to a dealership, and there is a small fee if you want to sell the car to a private person.
This site has a great database and information on used cars and will help you set the correct price for your car, which will lead to faster selling. They also provide fraud detection.
Like anything on eBay, here you can sell your car for a fixed price or put it in auction.
eBay states that their users have higher buying intent that any used cars site.