It has been a turbulent time in the automotive industry in recent times with the pandemic causing chaos and disruption throughout. Interestingly, used car sales grew by 11.5% in 2021 according to the SMMT in a year that was severely affected by lockdowns and low consumer confidence. Despite this, performance was still 5.5% below the pre-pandemic five-year average.
The Growth of Used Car Sales
So, why have used car sales continued to grow despite all of the disruptions from the pandemic? This is because there is still a strong demand for vehicles and people are much more likely to dip into the used car market when consumer confidence is so low and people are avoiding making big-ticket purchases during periods of unpredictability. Additionally, many people’s driving habits have changed as a result of COVID-19, which led many to change the vehicle that they were driving. Another factor is the semiconductor shortage, which has massively slowed the production of new cars leading many to the used car market instead.
The Benefits of Buying Used
There are also many benefits to buying used that will appeal to people in the current climate. In addition to being cheaper, you will also get more for your money, avoid depreciation and find cars that are cheaper to insure. It is also easy to find what you are looking for by searching online, such as a used Volkswagen in London if you are looking for a VW in the capital. Overall, a used car is a smarter financial investment and people have been extra careful with their spending habits ever since the pandemic started.
What Will Happen in 2022?
It is hard to predict what is going to happen in the automotive industry moving forward with so much uncertainty in the air. Many experts are predicting that used car prices will not increase at the rate seen since the start of the pandemic and there will be a slight (but not a major) correction. This means that this year could be a good time to buy a used car if you have been thinking about one, but demand will remain high so you will need to act quickly if you find a used car that ticks all of the boxes.
It is an interesting time in the automotive industry right now with the used car market growing despite all of the chaos and disruption. It is hard to predict the future, but it is thought that 2022 could be a good time to buy used if you are in the market for a new car.