2020 has been an eventful year thus far, so predicting the price trends of used car sales is tough. There are a couple of things that may occur to influence prices in light of COVID-19’s effect on the economy:
Prices may go up due to a slowdown in the production of new cars. With so many stages of the supply chain hit by coronavirus lockdown measures, new cars are not being produced as rapidly, if at all. This may, therefore, encourage used car sellers to up their prices in anticipation of buyers simply having to opt for used rather than new vehicles.
Prices may decrease due to a lack of sales during the lockdown period. With the buying of a used car classed as non-essential, smaller dealers may want to liquidate assets quickly due to the financial pressure COVID-19 has created. They might also choose to reduce prices in order to meet sales targets when the lockdown has been lifted.
The time of year may not seem like something that would influence used car prices so intensely, but as we have demonstrated, there are several seasonal factors to consider when you look to buy a used car. Be mindful of these factors when you start your search and you may be able to save a considerable amount.