According to information provided in the latest report by Manheim Used Vehicle Value Index (MUVVI), a recognized automotive data source, costs for wholesale pre-owned vehicles have fallen by 4.2% in June 2023 compared to May 2023. Analysts mention that it is one of the largest declines since April 2020, when the economy, including the second-hand car business, was shocked by the COVID-19 pandemic.
The main reasons for it are reduced buying power customers hold and increased interest rates, says Karl Brauer, executive analyst at iSeeCars. It means that motorists spend way more to drive and maintain their vehicles, which definitely influences market demand. And that is why we see more and more people considering second-hand cars. Data from Gitnux proves that fact. According to their statistics, used vehicle sales accounted for a substantial 56.7% of total car sales in 2020.
To gain a comprehensive understanding of used car market trends, it is essential to consider the influence of seasonal variations on sales. Winter brings about a distinct decrease in buyer activity, presenting a significant challenge for dealers who must manage this downturn. In order to maintain their businesses and remain competitive, they often resort to reducing car prices. However, as spring gives way to summer, a notable improvement is observed in the used car market. This annual trend happens as motorists plan to upgrade or replace their vehicles in anticipation of the upcoming holiday season, making use of great weather conditions for car inspections.
The increasing focus on sustainability and fuel efficiency has caused an increased interest in used electric and hybrid vehicles. As more consumers actively seek eco-friendly solutions, the demand for these cars is expected to surge. This presents a promising opportunity for dealers to cater to this specialized market while enabling consumers to both: save money on fuel and reduce their carbon footprint. It is worth noting that the absence of customs fees in a lot of countries for imported electric cars also plays a significant role in facilitating this transition.
However, analytics are forecasting a notable rise in vehicle prices within Europe. It can be caused by an ongoing crisis characterized by a lack of cars. In turn, it is reducing the options available to consumers and contributing to the price rise. European buyers are facing challenges in the automotive market, making a vehicle purchase more complicated.
At the same time, there is a great solution to avoid pitfalls when looking for a decent vehicle. The rising popularity of online auto auctions has brought some changes to the usual car dealership model. With a growing number of buyers deciding on Internet vehicle shopping, motorists have a huge number of options where it is possible to get a well-maintained used vehicle without spending a fortune. For example, AutoBidMaster, a recognized Copart representative with more than 10 years of experience, offers more than 300,000 pre-owned cars, motorcycles, ATVs, UTVs, jet skis, and even industrial equipment to bid on. With an extensive list of junk yard locations in the USA and Europe, AutoBidMaster fully covers the needs of their customers. In the summer, a time of adrenaline adventures, it is a great idea to take a look at the salvage motorcycles and ATVs for sale at the dependable online marketplace.
With online auto auctions in 2023, one may buy used vehicles at affordable prices, run a VIN lookup to reveal the car’s background, and order a vehicle shipping inside the United States and Canada. All of that make the purchase easy enough compared to ordering a car or spare parts from Europe. The most of companies can also organize international freight and keep you informed throughout the whole process, so you do not need to worry about your haul. So, if you are searching for a dependable way to buy a car, look no further than Copart and his brokers with their comprehensive services and customer orientation.
Contact Information:
Vitalii Movchan, hello@autobidmaster Automotive Industry Writer
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