Car: Used cars more expensive in Greece and Europe, due to untimely delivery of new vehicles

The long delay in the delivery of new cars, due to the lack of semiconductors, is turning consumers to the used car market. As a result, across Europe, used car sales in the first half of 2021 will increase by 11% compared to the same period in 2019.

The problem of timely delivery of new cars forces the owners of used cars not to think about selling, as they will be forced to stay for many months without a means of transportation. Only when there is a good offer will they consider selling their used car. Used car stocks across Europe are running low and this is the reason for their large price increase.

Traders from Greece looking for cars in Europe are forced to search for several days to find suitable and in good condition used cars. However, their price for city cars is increased by at least 500 euros and in many cases over 1000 euros, while in larger categories the increase is greater. Data from Indicata, which is information software for the management of used cars, confirms this trend. In the Netherlands, where used car prices usually fall as the year progresses, this is not the case this year, as demand remains high and stocks remain low. In July 2021, stocks of used cars in the Netherlands were 2.9% lower than the previous month and 7.5% lower than the same month last year.

In the UK, used car prices rose 4.4% in June, with prices rising as a result of rising demand, according to the UK National Statistics Office. The pandemic has led many consumers to turn to buying a used car, as they will not want to be crowded on public transport. The laws of the market state that when there is an increased demand for a product, its price goes up. On the other hand, the great shortage of semiconductors and the long delay of new cars force many consumers to turn to the purchase of a used car.

The market for new cars in Spain in the first half of 2021 was 35.9% lower than in the first half of 2019. On the contrary, sales of used cars increased by 39.5%. Used car sales in June rose in Italy (+ 17.2%), the UK (+ 17%) and Germany (+ 16.2%), according to data provided by Indicata. However, Denmark, Sweden and Poland reported declining second-hand car sales.

As used car prices rise, dealers naturally want to sell more used cars in the given time period. But they have to spend more money to get it as fast as possible. And what is certain is that this trend will continue until the market is normalized with the issue of deliveries of new cars. There are many car analysts who say that the market will stabilize at normal levels from 2023, where there will be a steady flow of semiconductors.

Source: AMPE