Prices for used cars go up as much as possible

From time to time, car prices are a one-way street.

The removal of the same car removes money from the car, and begins an unrestricted slide that can last up to a decade or more when stored as useless pieces.

Not anymore.

In the months of the topsy-turvy since the epidemic, the prices of used cars have been rising, due to availability and demand for inequality due to the coronavirus problem and the lack of chip.

Earlier this year, the biggest increase was recorded by 1% in February 2018. In May, it rose by 6.7%, according to data group Cap Hpi, which has found live prices since 2012.

“Cars are usually cheaper, they are less expensive,” said Derren Martin, chief of the company’s audit. “But in the meantime cars are a benefit.”

Rising prices are felt in the forefront of the UK, Germany and US and fear that they could increase the pressure on inflation in other parts of the economy.

In Germany, prices for older cars have skyrocketed in April, according to AutoScout24, a front page. The median price for the month was € 22,424, more than € 800 lower than at the beginning of 2021.

In April 2020, the average price was € 20,858, up from about € 200 in one year.

“In the past, because of the weather, prices often dropped slightly in the early summer months,” said the company, which has about 2m cars on its page.

The reason they are riding is “probably not really available,” it added, “but the popularity of high-end cars and luxury cars is also causing prices to rise sharply.”

In the UK, a one-year-old Audi A3 today is priced at $ 1,300 more than the same model last year, up 7%, while Mazda MX5 cars are up 50%.

“I’ve been doing this for 28 years, and I’ve seen it happen twice,” said Daksh Gupta, UK’s chief marketing officer for Marshall Motors.

Another period was after the economic downturn in 2008, when prices rose in 2009 when demand was met faster than companies could meet.

This time, there are two things to play.

The demand for cars has grown since the end of last year, when consumers with savings in working and taking off foreign holidays are out.

Sports cars and converts have been very successful, but they have been on the rise in each group, while many motorists still want to avoid public transportation.

A German study by author Deutsche Automobil Treuhand, which collects data on behalf of corporate organizations, found that one-third of all used car dealers were buying a second car to help others in their homes avoid public transportation.

“These are the highest-ever cars I’ve ever seen,” said Robert Forrester, chief executive of Vertu Motors.

A visit to Auto Trader, an online automotive market that uses consumer brands, is 39% higher than in 2019 before the epidemic hit.

“Everyone thought it would be a lot of potential, but it has been achieved,” said Ian Plummer, director of Auto Trader.

But the actual squeezing comes from availability.

The outbreak caused by the epidemic was exacerbated by hurricanes in Texas and fires at the Renesas plant in Japan, one of the leading causes of semiconductor manufacturers.

This has left the millions of cars left behind, with no hope of making lost volumes until next year.

At the same time, stocks are declining while fewer drivers are selling new models and car rental groups are not lowering cars.

Retailers are also making a lot of money.

“If they have enough cars, the sellers are in a good position right now,” says Mark Lavery, a Cambridge-based official. “Wanted by bonkers.”

But eventually the availability of new cars has expired.

“New car buyers may be aware of a two- or two-year-old boy, but everyone is older and laughs at them,” said Ivan Drury, chief of automotive technology at US Edmunds.

Shortages and the need for inequality will only get worse before they can be resolved. The only solution to the chip problem, is to go back to all the components that can eliminate the waves.

“When did this end?” Says Auto Trader’s Plummer. “It all depends on the amount of things we need to get and what we want, and how much interest we will have in cars as it is now. It’s obviously months, but even if it’s years, we can’t say.