If you are in the market for a used car, you are not alone. If there is one industry that is seeing sizable gains and interest ever since the Coronavirus Pandemic began, it is the used car market. The demands for private transportation are higher than ever. This is forcing people to empty out used car dealerships, drive up the prices and fuel ancillary industries of spares and service.
The pandemic has created interesting opportunities for the used car market. Consumers want to pick up a used car for multiple reasons. The needs of private transportation and the attempt to ditch public transportation for fear of contracting the virus are right at the top. In this article, we are going to speak to a leading dealership that offers resale cars in Singapore.
Specially, we are going to request them to list three major reasons that has created such a frenzy in the used car market. If you, or someone you know is planning to pick up a used car in the near future, this article is going to add to your knowledge and information in a meaningful way.
The Economic Uncertainties of Buying a New Car
Car buying is an experience that most of us do not get to experience every other year. Yes, if you are a millionaire, you might want to keep buying and selling supercars every other month. But for the rest of us, the process of buying a new car is a special and experiential one.
It involves months of planning, model and price comparisons, and then haggling over dealer discounts. With the threat of economic uncertainties looming because of the pandemic, many individuals and families have put off investing in depreciating assets as new automobiles. They do not know when they or their spouse will be laid off.
This financial conservatism is what is forcing people to opt for used cars in the market. If the older car has done ten plus years and has to be moved, then a newer model, which might be two or three years old looks like the sensible thing to do. The risks are lesser, you are not emptying your savings or suffering adversely from rising depreciation.
The Production Problems in New Car Manufacturing (Semiconductor Shortages)
If you have booked a new car, you might have noted how dealers are quoting unending delivery dates. It is not their fault. The entire world is reeling from a shortage of semiconductors. This is the brain of the car and runs everything from our infotainment system to security features.
Almost all the car manufacturers around the world are suffering because of the problem. Apart from the semiconductor problem, the pandemic has fuelled supply chain issues This has led to the unavailability of key automobile parts. A single car is composed of thousands of parts. Even if one doesn’t show up, it halts the complete production line.
Consumers that are looking for immediate deliveries because of several reasons are being asked to wait for three to six months. People do not have that time. The only other option is to hit the used car dealership and get an attractive deal that will be able to help you with your immediate needs and requirements.
The Desire for Safety and Security of the Entire Family during the Pandemic
Last, but by no means the least, the COVID-19 Pandemic forced people to be safe. According to the NY Times, a lot of consumers that are picking up used cars are doing that to maintain social distancing and protocols during the pandemic era. They know that they will be safer when traveling in their own vehicles rather than public transport.
The trains, taxis, and Uber, even when they are more reliable and cheaper are not safe. You never know whether the person coughing next to you has the virus or not. With neighborhoods once again opening up, people are looking to use their cars to travel, visit new destinations or even go for a picnic while trying to stay as safe as possible.
The Bottom Line
While this period is expected to end when the pandemic is over and supply chain problems are sorted, till then, both the consumer that is looking to sell the used car and the buyer that is looking to buy will both be a part of this dying industry that has once again been given a fresh lease of life thanks to the pandemic!