Buying a New or Used Car in 2022: Everything you need to know
Buying a New or Used Car in 2022: Everything you need to know
Posted on March 25, 2022
The global chip shortage has sharply increased the delivery time of a new car, causing more buyers to turn to the used market. This is great for used car companies, who see their cars selling like hotcakes. Unfortunately, it tends to be less great for buyers.
Quick Recovery of the Automotive Sector
When the economy restarted after the long stagnation, the market quickly recovered, and the automotive industry is now at the back of the queue. Some brands are more affected by this than others. The expectation is that this won’t be resolved within a year.
Chip companies then shifted the focus of their production, but now that car sales are picking up, and the demand for chips from other sectors isn’t falling, chip producers can’t keep up with the high demand from carmakers.
Chip Shortages for Car Manufacturers
Various car manufacturers even had to temporarily close down factories because there were insufficient production parts. This has led to exceptionally long delivery times for new cars. For specific models, there are fewer problems than for others. It depends on the type and brand you want to buy for another seven months.
The chip shortage has no impact on the price of a new car at the moment. However, used cars have become 5 to 10 percent more expensive. If you have to wait too long for a new car, you can turn to the second-hand market. At the same time, the supply is less. Because fewer new cars are being sold, fewer are being re-sold as second-hand cars.
New vs Used Car, Your Final Choice Will Depend on Your Needs
Now, the decision is yours, and you have two options. If you decide to buy a used car, you need to watch out for market changes that are no longer in favour of the buyer. Due to the lack of new cars, more buyers are looking for a second-hand car. This results in less choices on the second-hand market. Additionally, the seller has to buy the car at an increased price and then sell it at a higher price.
Your advantage in this situation is that you can get your desired car faster. On the other hand, you’ll have less choice in the market, and the car will probably be on sale for a little more money.
If you choose a new car at New Car Nanaimo, prices are unchanged. On the contrary, you may face a longer delivery time: we’re talking about months. Everyone knows that it isn’t fun to wait for a long time. Meanwhile, models are evolving and, who knows, maybe your car will be delivered when the new model comes out.
If we consider the price, the choice and the delivery time, a young, second-hand car at Used Cars Nanaimo is the ideal solution. However, it’s a difficult decision. You have to see for yourself what is the most interesting and what fits best with your current situation.