Hassan560
July 20, 2024
Are you waiting for good news from the automotive industry in this era of high inflation? Congratulations! Secondhand car prices surprisingly fall consecutively in 2024 after a significant surge in 2021-2023.
A recent research study shows a 7% fall in secondhand or used car prices. This post will examine the reasons behind this sudden fall in used car prices. Moreover, we’ll also discuss the best used car sites and times to buy, especially for UK car hunters. So, continue reading to delve into further details:
Why Were the Secondhand Car Prices High in 2021-2023?
The main reason behind the surge in second-hand car prices was the shortage of new cars. This shortage has increased the demand for second-hand or used cars globally in the UK and other regions. Besides supply and demand rates, there were also a few factors behind the high prices of used cars. However, these aspects were directly related to the economy and trend advancements in the automotive industries.
If you consider selling your used car through a car trader or dealer, now is always the best time! Even if you cannot get the exact amount that was at the time you bought your car, you can still get a good amount.
In 2019, when the world was worrying about the economy due to the COVID-19 pandemic, the surge in used car prices indicated the need for human mobility. According to an authentic used cars trade index in the UK, the prices of used cars have surged to £3000 – £4000 in 2021.
Again, in 2024, people are witnessing an apparent surge in secondhand car prices. However, this surge is lower than the used car prices back in 2019-2022. Used car prices were down an average of 13% in early 2024 compared to 2023. Luckily! The prices for secondhand cars are still consistent in the middle of 2024.
According to a recent auto trading index, used car prices are stable now in May 2024. However, this is not a good indicator, as used car prices were higher than expected in 2023.
Things You Need to Know About Secondhand Car Prices Swing
There are always two answers to a question: a short one and a detailed one. So, now, our question is ‘why are secondhand car prices rising and falling continuously?”
The short answer is: demand and supply rate for second hand cars in the UK
For a brief answer, let’s take a look from the start to check all the facts and figures:
In early 2021, the UK economy was unstable because of the COVID-19 pandemic. There were not enough secondhand cars in the UK market to meet supply-demand curves. So, the economic incline and high demand were the main reasons for high used car prices in 2021.
Used car buyers in 2019-2021 had to pay more to buy even a secondhand car because of the shortage of vehicles in the market. However, the automotive industry started operating generally in 2023. Because of meeting the supply and demand ratio, more secondhand or used cars are now in the UK market. So, secondhand car buyers can have more budget, mileage, car model, and size options.
What are the Reasons Behind the Drop in Secondhand Car Prices?
Ups and downs are the essential parts of each industry. Everything that has a rise also has a fall! Now, let’s talk about the basics of facts and aspects behind low-cost second-hand cars :
1: Car’s Age and Condition
Car age and condition are significant to check when buying a secondhand car. These two factors can directly impact the car prices for used cars. If your car’s condition is low and it has also gone through a lot of wear and tear, it’ll lower the cost of the used car.
Moreover, car age may also affect the car’s performance and mileage. If the car mileage is high, the buyer will pay you for your vehicle accordingly. Even if you sell a secondhand car with high mileage and low-performance rates through a car trader, you’ll get a lower amount than expected.
2: Surge in Electric and Hybrid Cars
In 2024, the popularity of electric and hybrid cars will impact the secondhand car market in the UK. People are more interested in buying EVs than fuel-powered cars. EVs offer more benefits to buyers than fuel-powered cars. They are more fuel efficient and leave almost zero impact on the environment. So, people prefer buying EVs rather than second-hand or used cars in the UK.
Moreover, most electric vehicles have modern and advanced features, making them slightly more fascinating and productive than fuel-powered cars.
3: Used Car History
A car with proper maintenance, service history, and MOT remarks will be more valuable than a car with improper history documentation. If you are in the UK and want to sell your secondhand car at the best rates, you must strictly work on your car history documentation.
A well-maintained and well-performing car will be more valuable than a low-performing car. If your car history is clear and well-maintained, you’ll be able to attract more potential buyers who can pay you what you expect. A poorly maintained secondhand car is a big red flag for UK buyers.
4: Previous Accident History
If a used or secondhand car has been involved in an accident, it may affect the value of your vehicle. However, you can recover from accidental damage with quick accidental repairs. Remember that a car involved in an accident may require more maintenance and routine performance checkups than a clean, used car.
If you don’t want to compromise the value of your used car, ride it carefully to avoid damage and accidents. The selling price for used cars involved in accidents is falling because of post-accident vehicle issues.
Is it a Good Time to Buy a Used Car?
Of course, yes! Now, 2024 is the right time to buy a used car. Due to the number plate change, March to September 2024 is an excellent time to buy a used car, whether privately or through a car dealer.
Ensure you buy a used car through a dealer or auto trader in the UK, especially if you are a first-time buyer. Ask for complete documentation, including a car history check, previous MOT report, and maintenance report, even if you are buying a used car from a used car dealer.
Buying a used car doesn’t mean that you cannot negotiate for the price. If you think the secondhand car price does not justify its actual value, specifications and condition, request a further price decline from the dealer.
What are the Best Used Car Sites in the UK 2024?
There are multiple factors to consider while choosing the best place to buy a second-hand car in the UK. So, you cannot blindly trust any site or car trader regarding secondhand car prices. If you are in the UK and looking for sites for second-hand car purchases, here are a few trustworthy options:
- Trade London Motor Sports Ltd: Expert used cars sellers & buyers
- Auto Trader
- Gumtree
- Exchange My Car
- eBay Motors
What’s the Next for Secondhand Cars Buyers & Sellers in 2024?
According to our research and after digging into all the facts, used car prices will keep falling until the end of 2024. This is happening because of a sudden fall in new car prices in the market, not only in the UK but globally. However, secondhand car prices might be consistent by the end of 2024. So, let’s wait and watch how far things could yet fall!
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