Motoring: Tips to follow when purchasing a used car
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The second-hand car market has seen record prices in 2021, due to a huge downturn in the availability of new cars caused by the global pandemic and delivery issues. New car sales are 44.7 percent down compared to the 10-year average, which was the weakest September since 1998, a year before the two-plate system was introduced.
Nick Zapolski, founder of ChooseMyCar.com, predicted that car prices in the UK are set to dramatically plunge in the new year.
He is warning drivers to hold off on buying cars until next year and be aware of the predicted drop in value.
He said: “In my opinion, we’re smack bang in the middle of an automotive mini-recession!
“The threat of yet another lockdown and potential job losses, combined with huge increases in not only car fuel but energy bills, means that many people are taking a pause on making the decision to buy a car.
“Even when they do decide, vehicle pricing sites like Glasses Guide and CAP-HPI are behind the curve when calculating residual values, meaning consumers are finding it harder to finance cars without having to contribute bigger deposits.
“Used cars prices are artificially high due to lack of stock filtering through new car sales, due to shortages of the semiconductor chips.
“Just yesterday Volkswagen owned Skoda said it will make about a quarter of a million fewer cars this year due to a shortage of chips.
“It said it expected the chip shortage to stabilise in the next few months and gradually ease in the second half of 2022.
Major law changes coming in two weeks as caravan owners warned [WARNING]
DVLA warn motorists over driving licence delays as some wait months [INSIGHT]
Drivers warned of E10 fuel causing issues with flashing petrol light [SHOCKING]
“Last week Jaguar Land Rover was forced to shut down car production at Halewood amid a chip shortage.
“When chip production gets back on track, we will see the return of new cars entering back into the market and this will refresh used car stock levels.”
Chip production has been massively affected by the coronavirus lockdown and its effects with car manufacturers around the world struggling to get the components necessary.
Because of this, the used car market has seen a huge increase in popularity with people looking to return to pre-pandemic driving habits.
Save 10% on your MOT
It’s Kwik Fits’ Midsommer Madness sale and you can take 10% off your MOT Test with the UK’s #1 MOT tester – just click the link to book online.
Source: Read Full Article