Used car prices – what's the problem?
It all started a year and a half ago with the pandemic in full swing. Due to the reluctance to use public transport, many people began to actively consider buying a personal car. Of course, the biggest demand was in the secondary market. As a result, cars became almost worth their weight in gold, which, in turn, led to higher prices.
Another reason is the shortage of new cars. Due to the global shortage of computer chips needed to produce new cars, many dealers lost their stock. As a result, those who wanted to buy a car without mileage began to buy used cars, also contributing to the hype in the secondary market.
Used car prices in the USA
As a result, during the pandemic, in one of the largest car markets in the world, the USA, used car prices rose by 40%! Moreover, some car models were sold for more than they are/were new.
June 2021 was a record month for growth: then the average price of a used car in the United States exceeded $25,000 for the first time, which is 26% more than a year earlier and 29% more than two years ago.
However, now a turning point has come: according to the Manheim Index report, in the first weeks of July, used car prices fell by 1.7% month-on-month.
There are also specific examples: for instance, autoblog.com notes that one used car dealer in Detroit began to offer discounts – for example, on a car for $20,000 you can save $500.
Be that as it may, most experts agree that the peak of maximum prices for used cars has already passed. In an interview with CNN, Charlie Chesbrough, senior economist at Cox Automotive, noted that in the next four to eight weeks, buyers are likely to start noticing a decrease in car prices, but you shouldn't rejoice too much – prices are unlikely to drop below the levels before the pandemic.
Used car prices in Ukraine
In Ukraine, used car prices have also begun to decline. As reported by autoconslating.ua, this was influenced by the easing of quarantine restrictions and the introduction of a preferential period for customs clearance of "euro plates". Now, used cars in Ukraine are being asked for the same as exactly a year ago – in the summer of 2020. A representative of the legacy of the Soviet auto industry in working condition can be bought for $300-500, and foreign cars cost from $2,000. Cars from America have also become cheaper, but here, obviously, the aforementioned changes in the US domestic market played a role.
