Scarcity on the used car market: demand continues to increase

08 november 2021

The houses are currently being significantly outbid and this also seems to be happening with used cars. There is even a possibility that you can sell your used car for more money than when you bought it. How does that happen? There is a huge demand for second-hand cars while the supply is scarce. You can read all about it below.

The corona crisis

When you drive your brand new car out of the showroom, you know that the car will drastically depreciate in value. However, this has not been the case with used cars recently. Used cars have become a lot more expensive and some prices have even risen by up to ten percent, because demand has increased enormously. This actually all has to do with the corona crisis.

Car factories and showrooms had to close, people preferred to skip public transport so they bought a car and because people went on holiday less often, there was money left over for an extra car. The closure of factories has also led to a worldwide shortage of computer chips for new cars. The manufacturers could no longer meet the high demand for the chips, which caused production of the new cars to come to a standstill. This problem has still not been resolved, which means you sometimes have to wait longer than a year for a new car. All these effects together ensured that people opted en masse for a second-hand car.

Two million used cars

You notice the scarcity in several countries. More than two million used cars were sold in the Netherlands alone in 2020. That's a real achievement. It is also expected that the scarcity of used cars will continue until next year. Smaller cars, a middle class car and company vans are particularly popular and their prices have therefore risen sharply. Many people are therefore thinking about selling their car. However, make sure that this will not be a hasty decision. When you sell your car and want to buy a new car in exchange, you are of course also faced with those high prices. It is therefore especially advisable to sell your car if you do not use it often or at all.

Lease a used car

As was just mentioned, you will not benefit if you sell your car and buy a new one in return. Then you also have to deal with rising prices. You can opt for used car leasing : a lease form in which you lease a second-hand car. This way you can still drive around in a used car for a fixed amount per month. Moreover, these cars are always available from stock, which is seen as a major advantage. In addition, you also have tax benefits when you lease a used car for business. You may also notice rising prices here, but the great thing about used car leasing is that you spread the amount over the term. Is your dream car not listed? Then try to think more broadly and adjust your wishes: the offer from the leasing companies is of course also a lot less than you are used to.