What's happening in the UK car industry?
You might have noticed in the news, that new cars and vans are scarce whereas used car prices have skyrocketed. But why? Find out:
August 27, 2021
You might have noticed in the news, or even as you walk around your local car dealership, that new cars and vans are scarce whereas used car prices seem to have skyrocketed, so what’s going on?
One of the reasons is simply supply and demand. We had to close under the Covid-19 lockdowns, so when we opened our footfall was unprecedented. Which is fabulous for car dealerships but has led to car factories dealing with way more orders than forecasted and delay times being long.
The difference between this time and previous openings in Covid-19 is the global shortage of semiconductors. Due to the shortage, there’s a smaller supply of new cars which means people wanting to replace their car are heading towards to the used car market, creating a higher demand for used cars and raising prices accordingly.
What does this mean for you, the customer?
Firstly, it means that if you’re looking at getting a new car it’s worth checking out any trade in or scrappage schemes that the dealership is offering. You may get more than you think for an older car, even if it has war wounds or high mileage.
Secondly, it means that if you’re looking to order a brand-new car, you need to move fast. The faster you can order it, the faster you’ll get it. The demand for new cars doesn’t look like it’s going anywhere fast and the sooner you’re in the queue the sooner you can get your brand new car!