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What is new with used? Why are pre-loved so loved right now?

An interesting thing is happening with the pre-loved motor vehicle market right now. Prior to Covid-19, used car prices were on the nose, with most pre-loved cars attracting only a fraction of their original purchase price after 4 or 5 years. But the impact of Covid-19 has provided an unexpected boost to the value of pre-loved cars, with some brands attracting much higher prices than just a few months ago for the same model and year. In fact, Moody’s Analytics has found this price surge to be up to 30% of the value of a used car. Recent examples include Audi SQ5s, Porsche Macans and GL Mercedes that were selling for $54990 six months ago, are now selling for $64990 and supply can’t keep up with demand. Some of the factors driving this price surge include: • people wanting to avoid public transport and drive themselves • new car shortages due to the pandemic resulting in far less trade-ins hitting the market • a 92.6% decline in domestic air travel with people driving to holidays and business trips Dealers are increasingly finding it hard to source low-age, low kilometer cars which could be a big win for you. Your car has increased in value too. If your existing car has a good service history, you can sell it for a lot more than you could six months ago. So, if you want to get out of your car, now is a good time. Do not wait because the prices of used cars will soften as the supply of new cars increases and you don’t want to be left without a seat when the music stops. Give the team at SR Auto traders a call, and we’ll be happy to buy your car for a fair price.