Whether it be an Automobile Association update, media reports or a sudden increase in your insurance premiums, it is impossible to ignore the fact that used car prices have soared exponentially since the beginning of the pandemic. The additional escalating petrol price also heralds worrying times for motorists everywhere. There is one area, however, where this can play to your advantage. If you are considering selling or trading in your used vehicle – or even moving away from car ownership to ride-hailing services – now is the time to sell your car for more.
What is fuelling the recent increase in used car prices?
Pre-owned vehicle price fluctuations are generally a strong indicator of current inflation levels. TransUnion’s SA Vehicle Price Index – the most trusted authority for monitoring vehicle prices – calculated a 7% increase in used vehicle prices in Q4 of 2021, up from 2.9% in the corresponding period of 2020.
While the economics of demand exceeding supply for popular models and makes applies, the current global shortage of microchips and semiconductors required for new cars has emerged as the surprising catalyst for soaring second-hand car prices.
Why is now the best time to sell your used car?
Currently, there are long waiting lists for new cars and higher demand for nearly-new pre-owned vehicles. This works entirely in your favour and offers you the opportunity to sell your car for more. Bear in mind though – like a property bubble or a bullish Bitcoin run – this moment won’t last forever. This is why right now might be your best opportunity to get maximum cash value should you decide to sell your car. Because the bubble has to pop sometime – don’t say we didn’t warn or encourage you!
Where can you get the best buck for your second-hand car?
Before you drive off into the sunset with notions of ludicrous cash offers for your used vehicle, we need to take you down a gear or two. The above-inflationary increases in used-car prices are generally noticed in nearly-new vehicles – i.e. a car that was manufactured in 2019 and 2020. The slowdown in the launch of the latest models means that these vehicles are often the latest releases on South African soil.
That being said, the general increase in demand for many popular vehicles offers you a golden opportunity to sell your car for more, to cash buyers.
Finally, make rising inflation work to your advantage by listing your used vehicle on a reputable online platform this season to sell your car at incredible market value rates.
