The 2020 Covid-19 pandemic has changed not just how we live our lives but also our shopping habits. Things we would have previously not considered important are now at the top of our wanted list, as lockdown life takes effect on how we spend our spare time. The used car market was not exempt from this turmoil as showrooms closed across the UK. This curbed sales overnight, but car dealers reacted well to keep trading despite the restrictions in place. Between July and September, used car sales soared to over 2 million and here are a few reasons why they have bounced back so strongly:
New car production slowing
The business disruption caused by the pandemic hit the new car market hard with demand and production falling to historic lows. Whenever the new car market struggles, the used car market will often benefit through a surge of demand. With a lack of other activities, like holidays and nights out, to spend their money on many consumers dipped into the used car marketplace to upgrade their personal transport.
Remote buying improvements
With the country in lockdown, dealerships had to find away to stay trading with their premises closed or customers looking to limit their exposure to the virus. Used car traders immediately transformed their business model to make contactless sales a possibility. Many improved the digital shopfront to enable easy negotiation and viewing of vehicles online, to allow customers to purchase from the comfort of their own home. Instead of showroom pickups, the vehicles would be delivered using a secure key handover and the cars thoroughly sanitised prior to handover.
Avoidance of public transport
As Covid-19 spread and social distancing measures came into force, people were advised not to meet and congregate in big groups. This extended to public transport, with the government recommending that commuters avoid mass transport options unless absolutely necessary and led to a lot of businesspeople rushing their way into private transportation to get safely to and from work; without the need to interact or put themselves more at risk.
More drivers and second car syndrome
You may have heard that the waiting list for driving tests is extraordinarily long currently, as new drives rush to swap their uber-loving city life for their own ride. This demand has seen growth in new passers looking for cars and shopping predominantly in the used car market. Data also shows that those buying used cars are not part-exchanging their old car like normal, but instead buying a cheap second or third car to have another vehicle ready to use.
If you are looking to sell your car in the pandemic, then Sell My Car Direct can help.