Have you taken a look at the used car market, recently? If it’s been a few years, the differences probably shocked you. Today’s used car market is a much different beast than the one from a few years ago. Combined, shortages and delays have made it difficult to produce new cars at scale. So, there haven’t been a ton of cars on the lots. Here are a few ways the pandemic has changed the used car market.
Used Cars Have Jumped in Value
By far, the most noticeable difference would be how expensive everything has become. Used cars were a lot more affordable just a couple of years ago. Now, some used cars have been sparking bidding wars between buyers. That’s driven prices to all-new highs. If you’ve got a used car, it’s worth more than you think. There’s been such a jump because of several changes in the economy. The biggest thing has been the chip shortage that’s been affecting manufacturers. They’ve only been able to produce a fraction of the new cars they had planned. So, dealerships around the world have been short on inventory. Used cars have absorbed most of that demand, though. So, they’ve been able to fetch far higher prices on the open market than in past years.
New Car Production Has Slowed to a Halt
Of course, the chip shortage has had the largest impact on car production. Without enough chips, it’s not possible to manufacture most cars. Lockdowns have also had a large impact on the ability to produce vehicles. Since they’ve been locked down, they haven’t had time to catch up on their production. All this has made it so dealers haven’t been able to keep up their supplies. Go and look at a nearby dealership yourself. Chances are they’ve got a limited supply on the lot.
Chip Shortages Make it Difficult to Find Parts
Chip shortages haven’t just been hurting manufacturers. They’ve also made it difficult for repair shops and enthusiasts. If you’re trying to replace something with chips, it might not be in stock anywhere. Finding parts for your car hasn’t been as easy as it used to be.
When people aren’t able to repair their car, they’ll usually buy another one. If they’re not able to find something new, then they’ve got to look to the used car market. This has been another huge source of demand over the past couple of years.
People Are Shopping Online a Lot More Often
Shopping online for vehicles has recently grown a lot in popularity. Whether you are online car buying in Canada or shopping for your used car online in Denver, you are able to do whatever you need regardless of the medium. By updating websites, dealers were able to stimulate a lot of demand during the pandemic. Most dealers reconfigured their websites when the country locked down. At the same time, millions of consumers switched to online shopping. After seeing how convenient it was, consumers have chosen to continue shopping online.
Used cars have been particularly popular on the internet. That’s because you’ve got a much larger selection than you’d have at a local dealer. Usually, you’d just have to pick whatever caught your eye on the lot. Now, you’re able to search the whole world for a specific model. Finding your perfect used car has become so much easier.
Used Cars Are in Much Higher Demand
Shopping for a used car isn’t the same. Prices are higher, and selection is wider. There are a ton of reasons people have been shopping for used cars. But, none of them discredit the fact that there’s been a change. Simply look at the used market online, and you’ll notice the change yourself. Such a rapid shift in demand has made a tremendous difference to used car prices. But, that’s also made it so they’ll hold their value longer as well. Some cars have even been appreciated over the last several years.
How the Pandemic Impacted the Car Market
Since the start of the pandemic, much has changed all over the world. Today, people are shopping online more than ever before. However, the car industry may have seen the biggest changes of all. Shopping for a car is an entirely new experience because of all these changes.