Used car prices up -- or down?

By The Post  
Wednesday 1st December 2021 12:57 pm
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Greg Vail believes second hand car sales won't dip much, if at all, in 2022

 

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A PETERSFIELD car dealer says reports car prices in the UK are set to dramatically plunge in the new year are unfounded.

The second-hand car market has seen record prices in 2021, thanks to a huge downturn in the availability of new cars caused by the global pandemic and delivery issues.

But car finance experts at ChooseMyCar.com says many consumers are holding back on car purchasing decisions.

The online car retailer says a potential winter lockdown and the impact this may have on jobs and disposable cash, alongside mounting fuel prices, is to blame.

And as a result, the automotive expert is predicting a market correction that will see second-hand prices plunge dramatically in the new year.

But Greg Vale of Rake Car Sales says ChooseMyCar are painting too gloomy a picture of forecourt sales.

He said: “Second-hand car prices may go down slightly in the new year, but they won’t plunge as some are saying.

“I think after the slight dip, prices will come back strongly.

“And electric cars aren’t really impacting on the market yet, so second-hand buyers are still looking at petrol or diesel.

“In fact there is a shortage of second-hand cars being offered for sale, so prices will stay buoyant next year.”

And fewer new cars being produced as the supply crisis in semiconductor chips continues will also help keep second-hand prices steady.

Volkswagen-owned Skoda has said it will make about a quarter of a million fewer cars this year because of the shortage.

It said it expected the chip shortage to ease in the second half of 2022.

And ten days ago, Jaguar Land Rover was forced to shut down car production at Halewood amid a chip shortage.

Nick Zapolski, the founder of ChooseMyCar.com said the second-hand car market could be facing the perfect storm.

He said: “In my opinion, we’re smack bang in the middle of an automotive mini-recession!

“As well as the chip shortage, ridiculous fuel prices are also convincing many people to look at electric vehicles.

“The result is less purchasing, and therefore less value on used vehicles.

“We’re predicting a huge drop in prices next year, so consumers should be aware of this before getting their wallets out.”

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