The shortage is partly explained by the fact that a million fewer new cars have been sold in the past 12 months, which has reduced the number of file-sharing sites. Of the new cars sold, many cars take longer to arrive due to delays in the delivery of semiconductors and raw materials, which also slows the delivery of parts swaps.
According to a what car? According to polls, these delays are the reason a third of new car buyers are considering a used car instead. Add to this the need to catch up from both fuel-efficient customers and dealerships and rental fleets who are desperate to add to the market, and according to Martin there is an imbalance between supply and demand that is driving up used car prices.
The fastest growing sectors include sports cars, premium cars, and SUVs; also diesel, especially large premium cars and SUVs. In addition, there is no clear end in sight.
Martin said, “There is no used car tsunami that will cause prices to fall off a cliff. In fact, some traders are yet to discover that prices have gone up, but if they find that replacing inventory is more expensive than they thought they will have no choice but to increase their prices. Looking to the future, I see that new cars will become more expensive, which in turn will drive up the prices for used cars. “
One consequence of the reduced supply of used cars, especially in the exchange of high-quality parts, is the renewed focus of dealers on their used cars and their willingness to sell older vehicles. Last year, for example, Volkswagen refreshed its approved used vehicle program and extended its 12-month guarantee, TÜV insurance and breakdown assistance to two years. Elsewhere, given the increasing competition for nearly new cars, some major auto supermarkets that specialize in these cars are easing their age and mileage limits and are now stocking older cars as well.
