How the Covid Pandemic has affected used car prices 2021

As we head towards the last quarter of 2021, we’re taking a look back over the last eighteen months to see how the pandemic has impacted the used car sector.

From increasing prices to component shortages and even the recent fuel crisis, it’s clear that motorists are continuing to feel lasting implications caused by the coronavirus. With this in mind, let’s take a look at how used car prices have been impacted in 2021.

Did the covid pandemic have an effect on used car prices 2021?

Yes, Covid19 had a huge impact on prices for used cars. Prices  surged by as much as 21 percent since last April 2020, and have seen a further 10 percent increase in 2021 alone.

During the pandemic there was a huge increase in demand for used cars as people wanted to avoid using public transport in a bid to avoid catching the virus.  Another huge factor for the increase in demand for used cars is that new vehicle car dealers were struggling to keep a steady flow of new car sales, which has impacted their stock levels. While new car sales have risen compared to January of 2020, this factor has caused a huge disruption in the supply chain. It has added to the demand for used cars.

We are offering quick and easy valuations on all cars. If you recently bought a used car, there is a strong chance that it may have gained value and could be worth much more than you initially paid for it. To find out how much your car is worth, please enter your details and we can arrange a no-obligation valuation.

Why is there a delay in new cars being manufactured?

The coronavirus pandemic has caused  a shortage of Semiconductors chips. This is having a significantknock-on effect throughout the automotive industry. The shortage of this chips has resulted in a slow production at manufacturers including Ford, General Motors, Honda, Toyota and other businesses.

But what are semiconductors? Well, they are found in everything in a car from brake sensors andpower steering, to parking cameras and even entertainment systems. As more cars use modern technology to run, the more chips are needed.

Where are Semiconductors used in cars?

Body & interior:

-          Doors & seats

-          Bluetooth Connectivity

-          Infotainments

-          Computers & gateways

-          Instrument clusters

-          Smart junction box

Powertrain

-          Throttle control

-          Transmission control

-          Electrification

-          Engine control

-          Ignition

-          Start-stop system

ACTIVE SAFETY

-          Electric -mirror

-          In-cabin adas

-          Park assist

-          Surround view camera

-          Forward-looking adas

-          Rear view camera

LIGHTING

-          Pixel lighting

-          Adaptive headlights

-          Stepper motor control

-          Laser lighting

-          Led exterior

-          Led interior

 What has caused this chip Shortage?

As the Covid19 outbreak unfolded, signs of early fluctuation demand led to businesses stockpiling and advance ordering of chips by various firms. This unfortunately left others struggling to get the components that they need.

Additionally, many different companies had to close their factory’s during the peak of the virus. This was due to covid outbreaks and health and safety risk assessments believing that it was not safe for employees to work. A few examples of businesses that were effected are Murtata who temporarily stopped operations at its factory in Fukui, Japan along with STMicroelectronics and Infineon. Both of these firms had to close their sites in Malaysia due to the virus – and as key auto suppliers, this impact is now being felt worldwide.

Cable harnesses are a complex part of a car which is mainly put together by hand in Vietnam for Sumitomo electric industries, yaziki and Furukawa. However with the virus sweeping through Vietnam, cables harness production slowed down due to a the lack of staff and safety in place.

AUTOMAKERS THAT TEMPORARILY HALTED THEIR PRODUCTION DUE TO CHIP SHORTAGE

What about the recent fuel crisis?

Another key issue that could impact the used car market is the recent fuel crisis whereby petrol stations ran out of petrol and diesel. Many electric car and hybrid car drivers may have felt relieved that they were not impacted by the crisis, and it could spur many people onto considering investing in a used electric car.

We recently wrote about electric cars, providing answers to some of the most common questions that motorists have about electric vehicles. We anticipate that in the coming years, the used car market will see a flurry of activity around purchasing used electric vehicles, particularly as we head towards the governments deadline of ending the sale of petrol and diesel cars by 2030.

If you are considering making the switch to an electric or hybrid vehicle, please contact us. We can use our network of UK contacts to source the perfect used electric car for you. Alternatively, why not visit one of our four showrooms (Greg Street in Reddish, Buxton Road in Stockport, Manchester Road in Stockport, and Liverpool Road in Eccles).