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Used Cars Price Go Up During COVID-19

Why Did Used Cars Price Go Up During COVID-19?

The fear of contagion in trains, buses, and other public transport forms and the typical crowds that occur there has triggered the sale of used cars and those who can afford it. This increased demand has resulted in a general price increase for used cars during COVID-19. However, the price change is not as simple as it sounds.

The effects of the Coronavirus outbreak began to be felt in our country. New vehicle sales plummeted in the world and the local market; Simultaneously due to different factors. Our currency lost value against the dollar. Which do dealers use the currency to import new cars.

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Why did used cars’ prices go up during COVID-19?

During the peak period COVID-19, many people were scared to use public transport and got in the market to buy a cheap, used car with the plans of selling it when everything gets back to normal. This drove the used cars price by almost 50%. Suddenly, no one was interested in cars going up in value. However, the trend didn’t last long as more and more people were forced to work from home. 

Therefore, they didn’t need to travel. Despite the decreased buyers, the used cars’ prices haven’t nose driven as expected. Moody’s Analytics graph shows how used cars’ prices skyrocketed in 2021. According to the data, used cars price in Australia has risen by 49% since April 2020. Michael Brisson from Moody states that used cars had price tags similar to the manufacturer’s recommended sale price, which is way above a person’s otele giden escort | İstanbul Escort Bayan pay.

However, as Michael Brisson points out, this correlation no longer exists in the used car market. To show how people refused to use public transport there was a poll in which people were asked about their daily use of it – before March, 15.4% of men and 14.2% of women said they use it almost every day. These numbers fell to 4.9% and 2.9% accordingly in October. Some own an old car and would probably sell it as scrap for cash for car companies like Metro car removals Adelaide.

The increase in used vehicle prices has created the unofficial COVID Tax – it is what people refer to as the “artificial price increase” online. Many people have put their cars up for sale to benefit from the higher market value with hopes of making an extra dollar during the pandemic. The big question is whether this Tax is going to stay or not. The answer is totally up to how Australia responds to the future outbreaks and roll-out of the vaccines. Once people feel safe enough to return to public transport, used cars will see a price decrease. 

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Used cars aren’t the only things that have gone up in value.

Compared to last year, the sales of road motorbikes were up 8.2% in the last quarter of 2021. This significant increase is a direct result of the pandemic as well. And yes, the Covid Tax applies to motorcycles as well cars. However, there are good signs; the prices have decreased by 3% by late December, early January. 

Mr. Brisson states that as the economy recovers, the market will return to normal, meaning increased sales of new cars and decreased prices for used cars. So far, no brand has shown an excessive rise that gives signs of being a response to economic changes, but we will be monitoring how prices behave in the coming months.