Is Now A Good Time To Buy A Used Car?

by Rae Castillon

Despite a second lockdown, the used car sector is showing continued growth according to Auto Trader. Last week, the average retail price in the UK increased by 8.3% year on year on a like-for-like basis; an impressive amount of growth considering that many forecourts have had to close across England, and tighter restrictions have been put in place.

Interestingly, the UK’s almost nine month ban on car repossessions is set to be lifted at the end of January, and many dealerships anticipate a sharp increase in the supply of used cars as a result. So, with more used vehicles readily available, is now a good time to get your hands on one, wherever you are in the world?

The UK Market

With repossessions expected to begin at the end of January, you may benefit from the sheer amount of used cars expected to be available from dealerships. This will almost certainly have an impact on the prices of vehicles due to oversupply. But, if you’re in the UK, you may be able to take advantage of other country’s car markets too.

The level of demand has remained stable and despite Lockdown 2.0, its value is rising YoY. Customers being happy with click and collect is one of the reasons pointed for the market stability.

The AU Market

The Australian market has seen a slightly different turn of events, with many cars experiencing up to a 40% increase in price. Could this be due to the way the country has handled the crisis versus others, or are there different factors at play?

The Daily Mail reported that a Mitsubishi Triton rocketed up 41% in cost and a Holden Colorado increased by 37.4% in price. It seems that if you’re in the market for a used car, you may be paying more than you anticipated.

The US Market

The US is experiencing a similar increase in car prices too. This is because the prices are growing so fast and causing a spike in inflation.  A used car is a hot commodity in many countries, even more so now in the US. From June to September this year, the typical cost of a used car soared by 15%. The increasing market size has caught the eyes of professional investors, looking to profit from its rise. Perhaps those in the US could look at importing from elsewhere in the world to beat these rocketing costs?

Global Trends

It seems that across the globe, different countries’ used car markets are being affected in unique ways. Whether it’s a direct cause of lockdown measures or quarantining is yet to be seen; but what we can expect is that used cars will remain popular no matter what.

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