Used cars have become more expensive in the last two years

Used cars have become more expensive in the last two years. According to the Statistical Office of Germany, one of the largest car markets in Europe, used car prices rose by 3.1% in 2021 compared to the previous year.

The analysis of the data showed that an average of 15,740 euros were paid for the purchase of a used car in 2021, compared to 12,470 euros paid in 2019, indicating a significant increase. One reason drivers have spent more money on buying a used car is that they are turning more to the SUV market, which is basically more expensive. Of course, this is not the only reason for the increase. The pandemic has played and continues to play an important role, which has created a big problem with the production of new cars, forcing a large portion of citizens, who want to buy a car immediately, to turn to the used one.

The lack of semiconductors continues to greatly affect car sales. The slow delivery results in some people turning to the used car market. For example instead of 3.6 million new cars in 2019, only 2.6 million cars were registered in Germany in 2021.

According to the DAT (car software company), fewer new vehicles were released on the market than rental companies, so the needs were met by used vehicles. So these companies did not sell their used cars, they renewed the contracts with the existing ones, significantly reducing the sale of used cars. Also, the cost of transporting used cars from state to state has increased significantly in recent times, resulting in the increase being passed on to the final consumer.

This is not expected to change any time soon. The used car market is likely to remain the same in 2022, perhaps as early as 2023. It will only be normalized when new car production returns to normal and factories are able to meet increased demand.

Of particular importance here is the results of a survey conducted in the spring of 2021, which showed that 69% of all consumers who are in the process of buying would be more likely to choose a new electric vehicle than a used car. By the age of 12 months, a used electric car is still an option for 30% of buyers. Once the car exceeds the specific age limit, then the acceptance for purchase falls to a single digit percentage.

Finally, cars with internal combustion engines, after three years, still cost more than 59% of their original price. According to DAT statistics, the prices of used cars remain quite high, thus preventing many from buying them. Therefore, those interested in buying a new car, instead of a used one, despite the often long delivery times.

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