High prices – it seems to be the theme of recent months. If you look at what used cars are currently worth compared to, say, just a year ago, those prices are a lot higher.
The used car is expensive and as a selling car owner you can make a good profit. Even cars bought last year can now even be sold for a profit. At the same time, just like in the housing market, you naturally want to start driving a car again – only a few sell their current car to replace it for traveling by bicycle and/or public transport.
So how do you take advantage of those high prices as a seller and how do you make a smart move as a buyer?
Prior; where does this price increase come from?
The recent rising prices are the result of a combination of factors. First of all, you would almost forget, the Coronapandemic. Although on the one hand much more people worked at home and traveling by car became less popular, this often affected lease drivers.
Others were looking for alternatives that would allow them to travel ‘safer’ or at all in their own ‘bubble’ instead of public transport, for example. The demand for affordable used cars rose sharply. Not in the least because much less was spent on other things, such as holidays or outings, so that there was room to purchase a car of your own.
At the same time, the car industry was facing delivery problems for new cars (computer chips) and more buyers turned to the (young) used car market.
The classic depreciation when driving away “as soon as you drive out the gate, your car is already worth a few thousand euros less” has almost no longer been an issue in the past year in many cases.
How do you take advantage of those higher prices?
Selling your car well now is of course a nice step, but when you buy back another car in the same hot market, you are confronted with the same high prices and you do not get much out of it at the bottom.
However, if you have a car that is rarely used or if you plan to buy back an older and/or smaller used car, you can certainly take advantage. Even if you are open to the less popular brands, models and/or colors, you can do good business if you sell a much sought-after, relatively young car.
Boost for the switch to electric
Another important trend is the accelerated switch to electric. Research has shown that never before have so many people with the intention of buying another car consider the option of electric driving.
The frequently heard barriers (purchase price, ‘exciting to drive electrically’ and ‘what about charging’) are increasingly being removed. In the price category in particular, buyers find themselves in a golden opportunity;
- Fuel prices are skyrocketing and will not drop significantly in the short term. From this point of view, electric driving pays off even more than before.
- Purchase prices of electric cars have been lower for years AND with the new subsidy pots from the start of January, you have extra options in both new and used electric.
- The higher sales price of your used car offers even more financial scope to make the switch to electric, even when electric driving initially requires more investment.
In addition, the Netherlands in particular excels in the network of charging stations and charging options, which means that the provision of sufficient charging points in the vicinity or at work is becoming less of a barrier for many switchers.
Curious about your options in charging solutions, business or private? Then you’ve come to the right place at Ecotap!
View our business and private charging solutions on the website or contact us for a free consultation!