With the value of used cars increasing by as much as 30% in the UK there is even more reason to look after your car. Regular services and prompt maintenance can save you costly mechanical breakdowns and in this current market help you get the very best price for your car.
So why are used car prices increasing?
It’s not just in the UK, the American market is seeing the same problem with an average increase of 54% on used car prices. Forbes are putting this increase down to four things:
When we went into lockdown there was an exodus of towns and cities and commuters fled to rural retreats, urbanites moved out to the country. There they found a lack of public transport meant they needed more cars pushing up the demand.
Unable to go away on holidays many families found themselves with a holiday fund but nowhere to spend it – home improvements and car sales increased as a result of this additional disposable income.
Covid 19 – manufacturing plants closed and the production of new cars stopped. People looking to change their cars opted for the second hand market.
As the factories opened a severe lack of semiconductors meant that the chips for cars were not available and the weak supply chain has limited production of new cars.
How long will it last?
No one knows as countries around the world shift from lockdown to lockdown.
What is very clear is that used cars are generally graded into 5 categories – Grade 1 being the vehicle that has been well looked after with regular services, sound interior and exterior – Grade 5 is the car that you really don’t want to end up with.
The price difference between a grade 1 to a grade 5 can be as much as 20% of the value of the car which shows that looking after your car with a proper maintenance schedule not only gives you peace of mind but can save you money.