Greg Vail believes used car sales will not decline much, if at all, in 2022
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A PETERSFIELD car dealer says reports of a dramatic drop in car prices in the UK in the New Year are unfounded.
The used car market saw record prices in 2021 thanks to a massive drop in new car availability due to the global pandemic and delivery problems.
But auto finance experts at ChooseMyCar.com say many consumers are reluctant to make car purchase decisions.
The online car dealer says a possible winter lockdown and the impact it could have on jobs and available cash will be to blame alongside rising fuel prices.
The automotive expert is therefore forecasting a market correction that will lead to a dramatic collapse in second-hand prices in the new year.
But Greg Vale of Rake Car Sales says ChooseMyCar paints a gloomy picture of forecourt sales.
He said, “Used car prices could go down slightly in the New Year, but they won’t go down as some say.
“I think after the slight decrease, prices will come back sharply.
“And electric cars still have no real impact on the market, so used buyers are still looking for gasoline or diesel.
“In fact, there is a shortage of used cars for sale so prices will stay high for the next year.”
And fewer new cars, which are being produced in the wake of the ongoing supply crisis for semiconductor chips, will also help to keep used prices stable.
Volkswagen’s own Skoda has announced that it will produce around a quarter of a million fewer cars this year due to the shortage.
It said it expected the chip shortage to subside in the second half of 2022.
And ten days ago Jaguar Land Rover had to stop car production in Halewood due to a lack of chips.
Nick Zapolski, the founder of ChooseMyCar.com, said the used car market could face the perfect storm.
He said: “In my opinion we are in the middle of a mini automotive recession!
“In addition to the shortage of chips, the ridiculous fuel prices also convince many people to deal with electric vehicles.
“The result is fewer purchases and thus a lower value for used vehicles.
“We forecast a huge drop in prices next year, so consumers should be aware of this before they get their wallets out.”
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