What will happen to new and used car prices after the pandemic?

You gave an opinion to a question about whether or not, after the pandemic, there would be some bargains on new cars. You said no. I think that after this crisis is over, we're going to see an awful lot of motorists who have purchased vehicles on finance will, sadly, find the repayments unaffordable and will probably want to offload them.

Asked on 15 April 2020 by des

Answered by Andrew Brady
That question was in relation to new car prices. Car factories are closed so there'll be a shortage of new cars arriving in the UK. There are lots of people with outstanding orders who'll be waiting for deliveries of new cars. In China, they've seen a surprising increase in the amount of people visiting dealerships as car travel is now seen as safer than using public transport. All this suggests there'll be little reason for new car dealers to offer big discounts - certainly in the immediate aftermath of COVID-19. Further down the line, if we enter a big recession, then we're likely to see more incentives introduced (from both car manufacturers and the Government).

The second-hand market is a bit different. You're right that there's likely to be a lot of people returning their cars to finance companies. However, experts think the shortage of new cars will also increase demand of good second-hand vehicles, leading to prices going up: www.honestjohn.co.uk/news/coronavirus/2020-03/coro...n. A big chunk of the people returning their PCP and lease vehicles will still need a car, so we could see a lot more demand at the lower end of the market, too.
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