How much do you expect to spend when it comes to buying a new car? Whether you’re going for a new or used option, you have clear expectations set out of each, right? But what if those expectations get upended and turned on their head? Of course, the second hand market is always going to be the more affordable place to get yourself a new car.
However, why have used car prices suddenly rocketed up? It’s a question that desperately needs answering; when you know why the car you wanted isn’t quite in your budget range at the moment, you’ll be far better able to budget for it in the future! So, in those very same interests, here’s why expensive second hand cars have hit the market in droves recently.
The Market is Always Moving
The automobile industry is one that fluctuates – a lot. More and more car manufacturers come onto the market every day, and vehicle models are being refined at a pace we’ve never seen before.
As such, price points are going up and down all over the place, and it’s hard to pin down what the average cost of a used car really is. However, as it stands at the moment, we’ve seen over a 42% increase in prices in the last decade.
The Demand is Higher Than Ever
Of course, with the Coronavirus pandemic hitting harder than we ever expected it to, more and more people have had the desire for independent, reliable transport. It’s one of the main ways to stay safe when you still have to go out to work or grocery shopping, and you have total control over the cleanliness of the vehicle.
And because of that, demand is high and so are prices. Used car sales saw an increase in 2020, and websites like we finance any car have had an even bigger demand for financing options than ever before. People want to stay safe, and they want to do so in an affordable way, and that’s something dealers have capitalised on.
New Car Prices are Driving Up Too
As is commonly the way, the more cars there are on the market, with the more tech contained within them, the higher the prices for them are going to be. After all, cars are costing more and more to make, and with so much competition out there, manufacturers often roll their price points upwards.
And because of this, used car sales are getting more and more pricey too. After all, you’ve got to try and keep up with how many of these new and expensive models are being sold – it’s expected that about 70 million will roll off the line and straight into homes in 2021.
Second hand cars have become more pricey for a variety of reasons. From the demand for cars due to the Coronavirus, to just how many new cars are being released onto the market, the used market has just been trying to keep up!
