Drive For Secondhand Cars In Europe Soars As Chip Shortage Bites
The demand for secondhand cars in Europe is surging even as a global shortage of semiconductors looms. As per the Atlanta, a Georgia-based Manheim US Used Vehicle Value Index reported by Cox Automotive, the prices of used cars went up 19 percent internationally on an annual basis through August. Car costs in Denmark have increased by 30% in the last year.
According to a consumer economist from the Federation of Danish Motorists, İlyas Doğru, the waiting periods for brand new cars tend to be so long that people prefer used cars to new ones. Used vehicles are on-demand more because of this, which has caused a boom for secondhand car sellers.
There has been a shortage of semiconductor chips required to produce new cars. Since semiconductor chips are necessary to produce the latest car models, it is taking manufacturers longer than it usually does to produce them. There are some companies that even have a 12-month waiting period on certain car models.
Higher demand means faster sales of used cars. The increased speed with which dealers sell secondhand cars reflects the increasing consumer demand. The CEO of Honda-Hyundai in Copenhagen, Bjarne Pape, stated that the used car row only had three cars, while they usually have 25-30 used cars. This is a significant difference.
Higher demand also means higher costs. As per the Auto Trader research, automobiles that are less than a year old are sometimes selling for much more than they cost new in the United Kingdom.
Hopefully, the semiconductor chip shortage situation will be sorted out and people in Europe can continue enjoying purchasing brand new motor vehicles.