Used Cars Market Trends 2023
The used cars market has changed a lot in the last few years, and it is predicted that the trend will continue in 2023. Some of the factors that will contribute to this are the supply chain constraints, the rising interest rates, the cost of living crisis, and the trade-in values. If you are in the business of selling used vehicles, you should keep in mind these trends.
The global automotive industry is coping with a cost-of-living crisis that has been affecting used car prices. It is difficult to pinpoint a specific trigger for this but high inflation is at least a factor.
Last year, the price of used cars rose by more than five percent. However, analysts have predicted a slowdown in prices over the next few years.
A recent study by Autovista Group found that the market is reaching a turning point. This trend is likely to continue into the future, according to the firm.
An average three-year-old vehicle’s %RV fell a whopping 2.6 percent month-on- month in December. Meanwhile, the Manheim Used Vehicle Value Index hit 236.3 in January 2022.
While prices for vehicles continue to fall, they are still well below the historical average. Analysts have warned that used vehicle prices could tumble 20%-30% in the coming two years.
One way to gauge how used car prices will evolve is to look at the trend in new car sales. While there has been a significant drop in sales in the first half of 2022, there has also been a rise in registrations.
The global automotive supply chain is undergoing significant disruption. These challenges include labor shortages, shifting demand, and structural issues. Some companies are facing significant financial losses due to these constraints.
Automotive OEMs can rely on third-party logistics providers to help …