Are cars overpriced?

Cars Info

Unless you have been living under a rock the past year, you would have heard about the semi-conductor crisis. These microchips are a small but very significant part in building cars. The first wave of Covid-19 caused huge supply issues, from which the industry still hasn’t recovered.

With no new cars being built as a result, an estimated 1.4m cars are now effectively missing. The result? Used car prices have boomed, with some cars being worth as much as 30% more than the year previously.

We spoke to our friends at Prestige Cars Kent who commented,

“Used car prices have been at an unprecedented high. We’ve had multiple examples where we have bought cars back from customers for more than they paid, despite the vehicle being a year older, and having up to 10,000 miles extra on the clock!”

As people have found out their cars have ramped up in value when checking the likes of WeBuyAnyCar, many have sold their existing cars for profit, and bought a cheap runabout whilst things have settled down.

So should I buy in 2022?

If you’re worried about being caught out by a dip in values, the experts are saying that higher used car prices are something we should get used to, and there isn’t expected to be any kind of “crash”.

With ongoing shortages of microchips and other raw materials holding back new cars, inevitably this has a knock-on effect for the used car market. This domino effect includes the many thousands of people with car leases extending their contracts, which means there are less cars made available on the second-hand market.

As you may have noticed, this trickle-down effect has affected just about every car out there – bargains are difficult to find! Although we would argue Rich’s new Jaguar XFR provides a lot of bang for your buck.

Adjusting to the new normal

So, whilst you may be kicking yourself for not buying your dream car 12 months ago, this new norm also means the value of what you own now has also increased too. So we encourage you to still go out and buy what you want during 2022, just don’t assume a car at a punchy price automatically means it’s mint – you still need to do your due diligence! We suggest always doing an HPI check, as well as getting a car professionally inspected if you don’t have the confidence yourself.

Prestige Cars Kent gave us their advice on making sure you get the most for your car,

“Every used car we sell comes with a warranty, so we have to be confident anything we buy is in good condition, otherwise we inevitably have to negotiate on the buy price to take into getting a car serviced, MOTd and repairs taken care of. It will be likely cheaper for you to sort out any dings and kerbed wheels than take it to a dealer where you will get chipped. Likewise, service history is obviously a big deal, as well as having two keys. Most dealers want to avoid modified cars, so we would also suggest keeping standard parts, and selling off the modified bits once you’re ready to sell. As a result, use those factors when haggling on your next car too.”

Ready to start your car shopping? Check out our article on 10 Budget Super Saloons, or if you have a little more budget check out more than 200 prestige cars over on the Prestige Cars Kent website

Article written in collaboration with Prestige cars Kent.

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