Automotive: why used cars are now more expensive than new cars

the essential
The pandemic and the semiconductor crisis that has raged since have disrupted the car market and dramatically increased delivery times. An unprecedented phenomenon, some used vehicles are traded today for a price equal to or higher than that of new!

Not so long ago, once you had made your choice, the color of your dream car was shown, the options checked, it was normal to wait a little. Without being offended, we waited for the email or the phone call from the “mechanic” for several weeks, or even much longer. It was just the right price to pay to get behind the wheel of a new car and too bad if our tastes changed during the long wait. Maybe time didn’t go quite as fast as it does today…

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The post-pandemic period and the resulting shortage of semiconductors (the groups also lamented major problems with the supply of plastic and steel) have hit the production lines of almost all factories hard. Delays between purchase orders and handover of keys have lengthened, regularly reaching several months. Not easy to accept at a time when it is “urgent” to be served the moment you decide to buy, but that’s how it is. In order not to erode their margins, manufacturers preferred to reserve their available electronic chips for their top models.

Duster, Sandero, the “modest nuggets”

The highly sought after Duster, one of the most sought after on the used market today.
Pixabay/msilvapr

At the other end of the scale, some customers, a little more busy, agree to acquire a slightly different model, forgetting the electric opening of the trunk, a certain upholstery or even the expected color. Others, many, do not hesitate to turn to the occasion.

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Suddenly, in retailers or online, stocks are dwindling and the price of proposals is sky high. Especially for the “pearls” of the market, dacia in particular, Sandero and Duster in the lead, but also the compact cars from Toyota or the timeless Renault Clio and Peugeot 208. If you are today in the shoes of a candidate looking for one of these “modest” nuggets, you will easily understand us. Important precision, even rental companies and companies, heavyweights in the sector, end up interested in low mileage “used”.

In a year and a half, although the trend is currently a little calmer, “second-hand” has taken 20% more. While the prices of energy and the prices of many basic necessities, especially food, are sky high, the increase in our already expensive cars is frankly not welcome.

In 10 years an increase of €7,000 compared to the price of new

According to observers, this situation should not improve until the beginning of next year. However, it should be noted that this phenomenon only concerns certain vehicles and that if we take the entire market, fortunately options are still more affordable than new ones. After the two-month shutdown in 2020, everyone was hoping for a spectacular rebound and everyone was disappointed. From 2.214 million in 2019, sales fell to 1.650 million in 2020 and then 1.659 million last year. The occasion, for its part, broke its record with 5.96 million sales.

The uncertainty of the moment with the doubts associated with the “mandatory” switch to “clean” vehicles (read elsewhere) and the ever-higher sales prices (on average invoices rose by €7,000 between 2010 and 2020) are disrupting a strong recovery.

The 2022 cohort is unlikely to mark a return to normal. In August, after fourteen consecutive months of decline, passenger car registrations (Dacia way ahead) were up 3.8% to 91,411 units. lift? Thinning? chimera?

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