Buying a Used Car in 2022? What You Need to Know
#AD. In the interest of disclosure and transparency, the syndication of this article has been provided and paid for by FBD Insurance.
The last two years have brought changes to every industry, and the used car market is no different.
Brexit, COVID-19, and an ongoing shortage of microchips and semiconductors have combined to create an unusual situation in which stock is low, prices are high, and we are heading headlong into uncharted waters.
FBD Insurance is looking at three things you need to know if you plan to buy a used car this year.
You might be in for a wait
If you have been anywhere near a car dealership or a car sales site, you’ll have seen quite a few empty spaces.
There is a lot less stock available this year, in part because of fewer new cars coming onto the market and a significant reduction in imports from the United Kingdom.
In the past, more than 100,000 cars a year were imported from the UK, but since Brexit made the process more expensive, this figure has fallen by over 50%, dropping to just 47,034 vehicles last year, according to RTÉ (www.rte.ie).
Similarly, a combination of pandemic pressure and a shortage of vital components has meant that manufacturers are producing far fewer vehicles than before, leading to long waiting times for new car deliveries.
So, with a dearth of new cars available to sell this January, dealerships don’t have those buyers’ used trade-ins to fill their forecourts for the rest of the year.
Therefore, you might have to be extra patient if you are looking for a specific make, model, spec level, or colour.
Your car might be worth more than you think
This lack of stock is driving prices up, particularly for certain makes and models that are popular in Ireland but difficult to import from the UK.
This can lead to unusual situations where sellers are actually able to achieve the same – or even a higher – selling price for their cars today as their purchase price a year or two ago.
Usually, selling your own car privately will command a higher price than trading it in, but the marketplace is undergoing so many changes at the moment.
You could be surprised – it is worth comparing the two options by checking values online and contacting dealers for estimates.
Of course, increased values represent a double-edged sword: RTÉ reported recently that asking prices for used cars are now 56% higher than before COVID-19.
So, if you were hoping to trade in or upgrade your car to a newer version, you could be facing higher prices at the sales desk, too (www.rte.ie).
You should take your time to shop around
Many people are loyal to their local dealership, but with so much changing in this market, it makes sense to ensure you are getting the best choice and value.
It is easy to shop around from the comfort and safety of your home nowadays, with sites such as CarZone, CarsIreland, and DoneDeal.
Try to make sure you are comparing like with like, in terms of transmission, mileage, and spec level, as these variants can significantly affect a car’s price.
Many dealers have embraced digital sales, too, supplying detailed information, photographs, and even videos of cars by email, text message, WhatsApp, and Facebook.
If you are hoping to borrow the money to buy your car, you can ensure you are getting the best finance deal by comparing quotes from dealers, banks and credit unions too.
If you are thinking about buying a used car in 2022, you will need to be prepared.
It is best to research your preferred make and model, compare prices and trade-in values available, and make sure you have calculated the full cost, including tax and insurance.
FBD Insurance understands that you will want great value car insurance that suits your budget and individual needs. Find a quote online now.