Not many people predicted that used car prices would end up becoming one of the biggest drivers of inflation. But that’s the situation we find ourselves in right now.
These strange circumstances provide an exciting opportunity if you currently have a vehicle to sell. So, I’m going to explain why now could be the ultimate time for you to consider selling your old motor, along with some tips for getting the best price possible.
What’s going on with the used car market?
Inflation figures are running rampant and one of the biggest ‘drivers’ of rising prices is second-hand cars.
A global chip shortage has made it difficult for car manufacturers to pump out as many new cars as they’d like, so the supply is low. But demand for cars remains high, and as a result of the coronavirus pandemic, there are a lot of reasons why people now want to buy cars:
- Some have built up decent savings and want to spend them on a car
- People are more hesitant to use public transport and be cramped in with lots of other people
- More of us are choosing to live outside cities which often means needing a car
Because car companies aren’t able to build enough new vehicles to meet demand, people are turning to the second-hand market to pick up a motor instead.
Why is now the best time in years to sell your used car?
All this interest and demand in second-hand cars means you can sell yours for a much higher price than you might have been able to before.
In the US, the Manheim Used Vehicle Value Index is a good measure of the American market and the index is 44.9% higher than it was in November 2020!
Also, last week, used car prices in the UK increased for the 80th consecutive week. So, if you have a car you’re thinking of selling – whether to upgrade or pocket some profit – now could be an excellent time to shift your wheels.
How can you get the best price when selling a used car?
Although the second-hand car market is buoyant, getting the best price for your car can still take a little work. If you want to take advantage of the high demand, here are some tips for getting the best price when selling your car:
- Do a thorough job cleaning up your car, or pay to have it professionally valeted.
- Take high-quality photos with good lighting. If you’re listing online, you’d be surprised by how much of a difference decent pictures make.
- List the vehicle on multiple websites and online marketplaces to widen your reach.
- Make sure all of your paperwork is in order to prove things like the MOT and service history.
- Consider investing some cash if needed to address minor things that need fixing (touching up paintwork, simple mechanical issues or replacing a balding tyre).
- If organising a sale is too much hassle, speak to your local dealerships. Some will offer you amazing trade-in deals (if they have the car you want in stock).
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About the author
George is a writer and qualified financial adviser focused on educating others in personal finance & investing.
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