Used car prices coming down after Covid pandemic, says prominent vehicle trader

THE pandemic not only disrupted the new vehicle market, it also turned the used car market on its head.

With new cars in short supply because of supply chain disruptions, used car prices increased, prompting more buyers to look at the secondhand market.

However, according to GetWorth, used car prices are finally heading downwards as the new car supply improves.

GetWorth released a graph showing how used car prices up to R800 000 have fared over the past three years.

While prices are still relatively high compared with the pre-Covid era, there is a definite downwards trend in most sectors.

Interestingly, the R100 000 and R700-800 000 price bands are showing the sharpest decline, while the R200 000 category is the only segment still growing in price, albeit marginally.

“Price levels remain high compared to two years ago, so car sellers can still get a decent deal – just not what they would have received at the peak,” said GetWorth CFO Colin Morgan.

“But it is good news for used car buyers. Buying a pre-owned car remains a sound financial decision as the vehicles are much more affordable than the equivalent new cars.”

He said the high interest rates also factor in.

Getworth, an online buyer and seller of used cars, says its price tools are based on artificial intelligence and live market data.

The algorithms are able to separate the effects of mileage and time to expose the real underlying price trends.

The company’s takeaway? “With the market turning, sellers are no longer in the driver’s seat, but for car buyers, there are good deals available,” Getworth said.