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Oct 31, 2021
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Can’t keep up with used cars?

Can’t keep up with used cars?

Hurry up to buy now, auto experts convince, by the New Year the prices for used cars will increase. What caused the huge jump in used car prices?

My brother decided to buy a used car. I have been saving money for a long time. The incomes of all individual entrepreneurs have now sagged. But when I went for a car I liked, it turned out that the price of a used foreign car with a three-year run in September had risen by as much as 100 thousand rubles!

We’ll have to save some more. But the prices of cars, especially those with low mileage, jump at such a gallop that they cannot be kept up.

The Ministry of Economic Development and Trade recently published a forecast that the price will rise the most by the end of 2021. Along with building materials and cigarettes, cars are on the list. Inflation on non-food products will reach 7.2% by the end of December, which will be a record figure since 2015.

Compared to last year, the growth in average prices for cars in the secondary market was, according to experts, more than 25%. Or from 70 to 135 thousand rubles for each used car on average, if you count on money.

While prices for new cars depend on exchange rates and taxes, the cost of used cars is directly determined by the level of demand. The acceleration in the growth of prices for used cars began in 2020: then their cost jumped on average by 25%, while new cars rose by 15%.

Disruptions in container traffic due to the pandemic and the ship Ever Given stuck in the Suez Canal have caused serious problems with the supply of new cars to Russia. Because of this, a shortage of used cars arose immediately along the chain. Where do they come from? After all, those who would like to buy a new car and, accordingly, sell the old one, simply could not do it – there is nothing to change to!

As a result, the shortage of new cars has created an exuberant demand for cars with a mileage of 1 to 3 years. Their prices went up to the initial cost when they were bought new, off the assembly line.

The demand is spurred on by the psychology of the domestic consumer. One can understand the desire to quickly buy a car in good condition from hands in our unstable time. Such a car can be touched and tested right away, but a new foreign car must be ordered and it is not known how long it must wait.

Another reason for the rise in prices for cars, experts in auto centers call the rise in prices for metals and microcomponents, which is now observed around the world. Prices for rubber and plastic are growing. Steel and non-ferrous metals are becoming more expensive. It turns out that everything that a car consists of has gone up sharply. This is due to the pandemic and the shutdown of production, the disruption of the supply chain due to the globalization killed by the coronavirus.

Olga Poplavskaya.

Photo: ADOBE STOCK

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