calculator and car

Why are second-hand car selling prices so good right now?

Is it a good time to sell?

Due to Covid, Brexit and the shortage in materials, second-hand car prices have really been changing over the past few years. Now is a great time to sell your car due to many factors. Below is some information from our team in Essex on why prices are so good and why you should consider selling your car – perhaps to our expert car buyers – now.

Now could be a great time to sell, but why?

Supply is low but demand for new cars is high.  Manufacturers have significantly reduced the number of new cars being built due to a global shortage of computer chips and other materials needed to get cars off the production line such as copper and aluminium.  This problem is even compromising those which are being built, with cars being delivered without all expected features fitted. As a result demand for second-hand cars has grown significantly with buyers turning to the used car market to get a ‘nearly new’ car instead of ‘new new’ as it were. The demand is so high that second-hand cars are now actually increasing in value for the first time ever. In fact, research shows that prices are up by as much as 50% in some situations.  All of this means that a second-hand car is going to be worth much more than you have probably realised.

Should I sell my car?

These inflated selling prices won’t last forever and an eventual fall in prices is inevitable. At some point in the not too distant future demand will peak and second-hand cars will be seen as overpriced with a sudden decrease in prices following. So given the current climate, now is the time to sell!   Do you really need that second car?  Should you perhaps consider commuting to work on public transport in future? Would you like to realise an unexpected windfall? Perhaps you are just saving for your perfect car and by selling could move towards realising that dream.  Obviously being a seller’s market only sell if you are in the position to do so, as you ideally want to be the seller, not the buyer. It is worth being aware that some models are in particularly high demand at present and it is definitely worth investigating to see if your vehicle fits this category.  Do talk to our car buyers in Essex for advice and find out what kind of deal we can offer you.

Tell me more – is this too good to be true?

According to Mark Lavery, chief executive of dealer group, Cambria Automobile, as reported recently in the Financial Times: “I’ve never seen anything like this, it’s an absolute freak set of circumstances.”  It remains the case that used car prices in the UK are increasing week on week (for over a year now) and the demand from buyers hasn’t waned. Due to the fall off on spending during successive lockdowns, consumers have built up savings and so are both cash ready and ready for new excitement and adventure.  With limited access to new vehicles, buyers who want to upgrade their existing cars are now looking to purchase quality second-hand cars instead – seeing the considerable benefits of being without the wait and the premium price tag. 

We realise these can be confusing times with needing to make a decision on whether to sell or not to sell, so why not contact our expert car buyers in Essex today to see if we can help with selling your second-hand car? Let’s see what we could offer.