Gold Rush: Why Now Isn’t The Time To Buy “Cheaper” Used Cars?
- June 7, 2022
- 0
It is unlikely that those who bought a brand new car a few years ago could have imagined that in 2022 there would be real chaos in the
It is unlikely that those who bought a brand new car a few years ago could have imagined that in 2022 there would be real chaos in the car market, and this same car, despite wear, mileage and other “used” nuances, would be one and a half times more expensive than buying from the dealer. And that’s exactly what happened. Which models, unexpectedly for the owners themselves, have become a good investment and, most importantly, what to expect from the “secondary” next, says the AvtoVzglyad portal.
The rising trend in the cost of cars – both new and used – was outlined three years ago. And the pandemic has only exacerbated it: lockdowns, currency fluctuations, the infamous semiconductor shortage. As a result, fresh cars have risen significantly in price. And since they became inaccessible to most Russians (thanks to the brutal trickery of dealers), the demand for used cars began to actively grow. And along with the demand – and prices.
Initially, 2-3 year old cars, which were the most popular on the secondary market, were significantly increased in price. They were offered for sale at about the same prices that hung on new cars in showrooms. Soon, the cost of ten-year-old cars also rose. In addition, they immediately added 50-100% of the original price. And then the Ukrainian conflict broke out, which greatly aggravated the situation.
– The strongest increase took place after the start of the military special operation in February. It so happened that the car could increase in price by 50,000-100,000 rubles per hour, causing many brands to double in a month. Here, of course, geopolitical instability and a jump in the exchange rate, as well as the high policy rate of the Central Bank and consequently expensive loans, had a strong effect, – Andrey Morozov, an expert at Podboravtospb, told the AvtoVzglyad portal.
In such unfavorable conditions, the Russians simply stopped buying cars. As a result, demand for the “secondary” collapsed, forcing sellers to lower prices. According to the Avtodom Group of Companies, the prices of used cars fell by 20-40% in April, and their average price was set at about 1 million rubles. By the way, this was to some extent facilitated by the stabilization of the ruble: those who could not delay the purchase of a car began to consider options abroad.
Nevertheless, the price tags for “beushki” are still prohibitive. In many cases, they significantly exceed the initial cost, as evidenced by the results of the Avto.ru survey. For example, here’s a price comparison of three-year-old cars, with premium and “almost premium” leading the way. Toyota Hilux, which cost 2.7 million rubles in 2019, is now offered on the secondary market for 4.7 million, Mercedes-Benz GLE (5.6 million in 2019) – for 9.3 million, and the Audi A3 ( 1.7 million in 2019) for 2.8 million.
As for five-year plans, this rating is, oddly enough, led by LADA 4×4: 709,000 rubles in 2022 against 505,000 in 2017. Also, the Toyota RAV4 increased in price by 40%: 2.6 million against 1.9 million rubles. Significantly added Toyota Land Cruiser 200 (7.4 million against 5.4 in 2017) and Mazda6 (2.1 million against 1.5). In addition, LADA Priora (585,000 versus 447,000), Renault Duster (1.2 million versus 945,000) and LADA Vesta (768,000 versus 607,000) were in the top twenty.
In general, the “Japanese” of the three-year-old cars have increased in price the most – by 60-77% of the original price. The “Germans” are not left behind – up to 60%. As for the five-year plans, here the growth is a bit more modest – up to 40%. And within the conditional budget segment – up to 27%. Although, frankly, there are models that, on the contrary, have lost their price against the background of this madness. For example, BMW 7 series and Mercedes-Benz S class – minus 30%. And what to expect?
– Restrictions on the supply of new cars and changes in supply chains will contribute to a further increase in the cost of cars. This factor will also support the demand for used cars in the coming months. Therefore, despite the fact that prices in the secondary market fell in April, they may very well rise again in 2022, – shared their forecast with the AvtoVzglyad portal at Avtodom Group of Companies.
The car expert Andrey Morozov is of the same opinion. He believes that used car prices will not return to sufficient value until the market is saturated with new ones. And this is unlikely in the near future, because Russian factories of foreign brands and deliveries from abroad are still frozen. So for those who were planning to buy a car before the end of the year, it probably makes sense to wait a little longer…
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Photo: www.seguincarcountry.com
Photo: www.timesnownews.com
The rising trend in the cost of cars – both new and used – was outlined three years ago. And the pandemic has only exacerbated it: lockdowns, currency fluctuations, the infamous semiconductor shortage. As a result, fresh cars have risen significantly in price. And since they became inaccessible to most Russians (thanks to the brutal trickery of dealers), the demand for used cars began to actively grow. And along with the demand – and prices.
Initially, 2-3 year old cars, which were the most popular on the secondary market, were significantly increased in price. They were offered for sale at about the same prices that hung on new cars in showrooms. Soon, the cost of ten-year-old cars also rose. In addition, they immediately added 50-100% of the original price. And then the Ukrainian conflict broke out, which greatly aggravated the situation.
– The strongest increase occurred after the launch of the military special operation in February. It so happened that the car could increase in price by 50,000-100,000 rubles per hour, causing many brands to double in a month. Here, of course, geopolitical instability and a jump in the exchange rate, as well as the high policy rate of the Central Bank and consequently expensive loans, had a strong effect, – Andrey Morozov, an expert at Podboravtospb, told the AvtoVzglyad portal.
In such unfavorable conditions, the Russians simply stopped buying cars. As a result, demand for the “secondary” collapsed, forcing sellers to lower prices. According to the Avtodom Group of Companies, the prices of used cars fell by 20-40% in April, and their average price was set at about 1 million rubles. By the way, this was to some extent facilitated by the stabilization of the ruble: those who could not delay the purchase of a car began to consider options abroad.
Nevertheless, the price tags for “beushki” are still prohibitive. In many cases, they significantly exceed the initial cost, as evidenced by the results of the Avto.ru survey. For example, here’s a price comparison of three-year-old cars, with premium and “almost premium” leading the way. Toyota Hilux, which cost 2.7 million rubles in 2019, is now offered on the secondary market for 4.7 million, Mercedes-Benz GLE (5.6 million in 2019) – for 9.3 million, and the Audi A3 ( 1.7 million in 2019) for 2.8 million.
As for five-year plans, this rating is, oddly enough, led by LADA 4×4: 709,000 rubles in 2022 against 505,000 in 2017. Also, the Toyota RAV4 increased in price by 40%: 2.6 million against 1.9 million rubles. Significantly added Toyota Land Cruiser 200 (7.4 million against 5.4 in 2017) and Mazda6 (2.1 million against 1.5). In addition, LADA Priora (585,000 versus 447,000), Renault Duster (1.2 million versus 945,000) and LADA Vesta (768,000 versus 607,000) were in the top twenty.
In general, the “Japanese” of the three-year-old cars have increased in price the most – by 60-77% of the original price. The “Germans” are not left behind – up to 60%. As for the five-year plans, here the growth is a bit more modest – up to 40%. And within the conditional budget segment – up to 27%. Although, frankly, there are models that, on the contrary, have lost their price against the background of this madness. For example, BMW 7 series and Mercedes-Benz S class – minus 30%. And what to expect?
– Restrictions on the supply of new cars and changes in supply chains will contribute to a further increase in the cost of cars. This factor will also support the demand for used cars in the coming months. Therefore, despite the fact that prices in the secondary market fell in April, they may very well rise again in 2022, – shared their forecast with the AvtoVzglyad portal at Avtodom Group of Companies.
The car expert Andrey Morozov is of the same opinion. He believes that used car prices will not return to sufficient value until the market is saturated with new ones. And this is unlikely in the near future, because Russian factories of foreign brands and deliveries from abroad are still frozen. So for those who were planning to buy a car before the end of the year, it probably makes sense to wait a little longer…
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PORTAL “AVTOVGLYAD” IN TELEGRAM
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
