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How the COVID Pandemic has Impacted Used Car Prices

How the COVID Pandemic has Impacted Used Car Prices

Have you tried browsing used import cars for sale during the COVID-19 pandemic? You have probably noticed the increase in prices. What caused the price surge in used vehicles? The main reason is the increased demand.

A lot of people are now hesitant to use public transportation in fear that they might get infected with the virus, so there’s more demand for used cars. Having a vehicle can be handy for making hospital trips or supply runs, too. For instance, a used SUV for sale may be practical because it has enough space to load all the essentials and extras you want to buy in one go, so you don’t have to keep coming back to the store.

Are you interested in buying a used car but are not sure if this is the right time? Let’s look further into the factors that are driving the prices and the current pricing policies for used cars.

How much should a used vehicle cost?

It’s common knowledge that the cost of an average brand-new vehicle is likely to drop by 23 percent within the first year once it’s driven off the showroom. That’s why some financial experts recommend buying used import cars for sale that are a year old and in good condition instead of brand-new vehicles. Of course, this is merely a generalization that may not apply in specific market environments and situations—like this pandemic, which is considered by many to be an ‘emergency situation.’

At the start of 2020, there was an uncharacteristic increase in the cost of used cars—and the prices kept going upward. By summer, the average cost of a vehicle reached $21,558. And while you can certainly find good quality vehicles that cost less than $20,000, you’ll probably have to compromise on the brand, color, or model you really want and get something more affordable and practical.

Reasons for the price increase during the pandemic

In a pandemic-less economy, a used SUV for sale will likely be put in the market because the previous owner wants to get rid of it to buy a new one. Rental companies also renew their fleet regularly and sell the cars they no longer need.

However, due to COVID-19, rentals stopped. Moreover, the supply chain experienced issues that increased manufacturing costs for new vehicles. More people hesitated to invest in brand-new cars because they were unsure if they could hold on to their jobs during the pandemic, so they kept their current vehicles. More people also preferred to buy used import cars for sale to avoid taking a big financial risk. Eventually, the used car supply was unable to meet the demand anymore, resulting in the increasing prices.

What will happen after the pandemic?

Months into the pandemic, many manufacturers have been able to restore their supply chains. The situation is expected to gradually return to normal in 2021. Prices may not be the same as during the pre-COVID days, but they won’t be as high as they were in 2020, either.

If you are looking to buy a used SUV for sale, now is a great time to check the listings at Savannah Pennysaver. We make it easier for consumers to buy and sell their used vehicles online. If you happen to have one for sale, don’t hesitate to use our platform to find buyers.