Why used cars prices are high?

In the last months, the prices of most goods and services have risen; but perhaps among the needs of the people, the car will face the most price increase. Used cars prices is considered one of the most important factors of inflation and the used cars prices are up by more than 31%. Of course, new cars have also seen an 11% price increase. The shortage of chips has led to a decline in car supply at dealerships against demand. In 2021, car consumers could not easily find their favorite new car and were forced to buy used cars.

People will not get rid of this situation any time soon. Compared to used cars, the price of new cars cannot be kept low, and this factor further increases inflation. According to information published, used products that have been used for two years are 10% more expensive than the 2022 model of the same cars; although the numbers on their odometer are increasing and the technology of these cars is at least two years behind. In order for car sales in the market to go back to pre-pandemic times, new car prices must overtake used cars. Is predicted, in the first quarter of 2022, used car prices will peak and decline, and then in the second quarter of 2022, this will happen for new cars.

Factors affecting the price of used cars

1-Accident is one of the most important reasons for car decline

When we say accident, we do not mean small collisions. Here we are talking about accidents that hit the roof, chassis or pillars of the car hard. In these cases, the decline in car prices will be very large.

2-The useful life of the car is affected by its price

Each car, based on the year of production and of course various other factors, has an age and useful life that when it passes, the purchase value decreases. Therefore, when buying a used car, you should pay attention to the amount of useful life of the car for understanding why used cars prices are up.

3-The model and year of production of the used car is an important point

Generally, in the used car market, there are rules about the year of production of the car and their price that based on it the price of the car is determined. For example, if one year has passed since the year of production of the car, its price will decrease by 12%, and also, respectively, it will decrease by a higher percentage after the year of production.

4-The validity period of car insurance is important

This is one of the things that many people may not pay attention to it, and for this reason, the need to consult an official car expert, especially in car legal cases, shows itself. If the car in question does not have insurance, depending on the model, its price will be reduced.

The color of the car causes the price to drop

One of the important factors in reducing the price of cars is their randomness and color. Generally, the painting of each part of the car reduces the total price of the car by three to five percent, however, painting the front of the car more leads to a further price drop.

6-Consider the technical condition of the car

Defects such as car smoke, cylinder head gasket burn, suspension failure, brake system defects, oil burn reduce the price of a used car. It is recommended to take any technical defects in the car seriously to your used cars prices are up.

7-The performance of the car is an issue that needs to be addressed

One of the most important factors in determining the price of a used car is its function. This function varies according to the age of the car and the amount of its use.

Buying and selling a used car is a hassle for both the buyer and the seller. The buyer is always concerned about buying a healthy car and why used cars prices are up. Also, the seller wants to sell his car at the highest possible price. Their lack of knowledge of each other, they face many challenges to trust and make a deal. The Albaloo is exactly here so that the missing link is between the two parties to the transaction. A third party that provides a safe, transparent, and secure environment for buying and selling your used car.

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