A significant shortage of used cars will see their prices remain high for many years to come, according to an auction firm…

Used Car Prices To Remain High

The auction company SVA believes that used car prices will remain high for years to come; citing significant, and ongoing, shortages. A combination of rising inflation and an increased cost-of-living have had a significant effect on the demand for used cars this year.

Some 1.7 million fewer new vehicles were sold between January 2020 and May 2022. Naturally, then, the used car market is short of 1.7 million used cars. The SVA has also pointed out that dealerships throughout the country are retaining a larger amount of part exchanges against the sale of new vehicles.

‘So Short of Stock’ 

Alex Wright, managing director of SVA, commented on the situation. He said, “the market is so short of stock that even if demand remains depressed for a prolonged period prices will remain strong. We do not predict a price crash like we’ve seen in previous years as each month the supply shortage is getting worse”.

He added, “we believe prices will stay at their new normal for another two to three years while the hole in the used car supply is slowly filled”.

Notably, the Vehicle Remarketing Association (VRA) has issued its own warning that the used car shortage is likely to worsen; largely due to manufacturers shifting supply away from fleets towards increasingly profitable private sales. In which case, it may be sometime until used car prices begin to stabilise and fall to any noticeable degree.

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