01 May The Car Market and Coronavirus.
In a previous blog “Top 5 reasons to avoid the cheap car wash” we discussed ways to maximise your cars resale value and improve your chances of selling it.
In this blog, we hope to highlight the potential economic side effect of Coronavirus and how it could impact the used car market, and once again, explain why your car is worth looking after.
Car manufacturers were already having a tough time of it with Brexit, but the devastating impact of Coronavirus has really pulled the rug out from under them. Customers financial uncertainty, reduced manufacturing capacity and the reduction of available finance from the banks, have all contributed to this. But in all this doom and gloom, there is a potential Silver lining, which may see an increase to your existing car’s value.
Like most markets, the lack of supply will cause an increase in demand and price of the available product. Normally, this is never the case with the used car market, as the continued production of new cars always reduces the value of the existing ones.
But what if that flow of new cars off the production line suddenly stopped, and the dealerships selling used vehicles closed? Two things would potentially happen:
- Those wanting to buy a car will have no choice but to buy privately.
- Less choice would lead to increased demand and create a seller’s market.
Now, this might sound great to anybody looking to sell their car at present but don’t for one minute think this means you will sell any old heap for a higher price.
Although there will be an increase in demand for your available vehicle, one of the key factors is that of available credit, and the ability and willingness of the consumer to spend money in this time of financial uncertainty. Therefore, the type of buyer who is both willing and able to still spend a relatively large amount of money will be more discerning and unlikely to purchase a car in poor condition.
If your car is well maintained and looks fantastic inside and out, you will have no problem selling it for a higher price.
Take a look at www.dsjdetailing.com/detailing to see how we can improve your car’s appearance and value, to impress even the most discerning prospective buyer.
Interested in our previous blog ‘why to say no to dealership coatings?’, click here.
Do you want to meet our team and understand what services we offer in further detail if so visit our blog here.
If you would like to know more about how to protect your car’s paint, check out a previous blog here.
Alternatively, book your car in for the signature DSJ detail here.
More information on how to protect your car with ceramic coating can be found here.