As soon as the COVID-19 Pandemic struck, the automobile industry emerged as one of the hardest-hit ones. From shut factories to closed showrooms, the phase saw probably the worst downfall in the entire vehicle transportation history ever.
However, the initial despair and loss of revenue gave way to a boom that few predicted. With economies opening up and the priority being accorded to safety, the used vehicle industry saw a massive surge.
With people conscious of not spending on new cars, to improve their savings and cut on expenditures, the used car market exploded. In this article, we are going to look at some major reasons why more and more people are buying used cars after the pandemic.
Purchase a used car from ABWIN at competitive prices if you want to enjoy a great vehicle with low miles and excellent after-sales services.
The Used Car boom after the pandemic: What you need to know
According to data, the last year saw used car average prices rise by as much as 21%. From April 2021 alone, the industry has seen a jump of more than 10% on the used car market.
Here are some factors that are contributing to the same-
The Emphasis on Safety and Security post the pandemic-
Everyone wants to be as safe as possible and this includes when it comes to mobility options. The more you stay in your personal vehicle, the better and safer it is for you during such times. This means shuttling kids, getting groceries, going to doctor appointments, and so on. No one wants to use public transport, common handrails, or access points on vehicles.
Reduced Public Transportation Options and Higher Charges-
With many parts of the world still operating in a hybrid model, public transportation options are not back on the roads as compared to pre-pandemic levels. With governments charging enough on fuel to aid social spending, the charges of public transport vehicles have shot up. Lesser number of vehicles, higher ticket prices, and an unsafe environment are major factors.
Easy Used Car researching and buying options digitally-
Most of the better-used car dealerships have realized the power of digital platforms. They have been able to place and showcase their inventory on social media platforms and company websites. This has made the entire used car buying experience a great one. Consumers can request test drives and opt for online payments, insurance, and finance options easily.
Production Hit of New Vehicles due to lockdowns, supply shortages-
The world’s global automobile market is facing a severe shortage of semiconductor chips. Frequent lockdowns, restricted trade points, and poor diplomatic relations have resulted in global supply and logistics issues in new car parts. This has forced brands to shut down new vehicle production. Consumers are being asked to wait for six to eight months because of this.
Rising Prices of New Vehicles in the industry-
All the issues and problems mentioned above have led to a huge increase in the prices of new vehicles. Add to that a steady increase in fuel prices and you are looking at one extremely expensive proposition that will depreciate as soon as it leaves the showroom floor. Buying a used car makes a lot of financial sense as it is not only cheaper but depreciates slower.
Should you buy a Used Car from a Dealership during the Pandemic: Final Thoughts
You might see better options in terms of prices from private owners. However, given the times we live in, you should be looking to restrict meeting strangers as much as possible.
Used car dealerships follow sanitation norms and try to ensure that as many of the processes can be done online to minimize interactions. While our priority should be to ensure the safety of our family and ourselves, we need to look at affordable mobility options.
In such a scenario, opting for a used car that has low miles on it and is in decent condition is a sensible approach. It will help you with lower prices, lesser maintenance and service costs, and more importantly, give you complete peace of mind.
If you have any other questions, you would like to raise, let us know in the comments section below.