Buying a Used Car Amidst a Period of High Demand
In short, due to the arrival of the COVID-19 pandemic, buying patterns and supply chains for cars have gone through massive changes performance-wise. Demand rates for used vehicles have gone all over the place.
Because of this, buyers around the globe can now find used cars with prices of up to 30% above their original selling value. As expected, tons of people have now opted to pass upon the opportunity of buying a used car. After all, nobody wants to buy at the top of the market.
However, here at House of Cars, we believe that nothing should stop you from buying your preferred car right when you want to buy it. So, with no further ado, here’s our list of recommendations for buying amidst a period of high demand.
Make sure your preferred vehicle will last
It goes without saying, but one of the most significant expenses for any car owner comes in repairs and maintenance. With a decent amount of use, every single car will inevitably reach a point where they’ll need it.
In essence, this is one expense that you cannot hide from forever. Nonetheless, it is one that you could responsibly prolong more than enough.
If you were to find a car whose model was built to last from the get-go, accompanied by a properly clean history report, the chances are that it won’t need as many visits to your local shop.
Keep in mind this is not to say that it will not need any at all. Again, it just means that it will reduce the likelihood of having to carry them out more than you can afford.
On a similar note, assuming that the market normalizes somewhere down the road, you probably won’t get to see it valued at the same price any time soon. After all, you bought it at its point of highest demand, so it stands to reason that its price would only go down from there.
Knowing this, it is within your best interests to hold onto your vehicle as much as you can. In scenarios like this, you are mostly buying for personal use, not for resale potential.
Regarding purchase preferences, keep an open mind
When buying a used car, people tend to set their eyes on a specific model, for which they’ll spend a significant amount of time looking for it. In addition, they usually take this approach accompanied by a well-planned budget.
However, you need to remember that today’s supply chains are not at their strongest, and prices are at an all-time high.
Meaning, you’ll probably have a harder time than ever just when it comes to finding that exact model for sale. More so, if you happen to find it, it might be valued at a price that’s way past your intended budget.
Those two factors alone have already taken a massive toll on your purchase plans, which could amount to you not getting such a vehicle any time soon.
With that in mind, your best course of action is to expand upon your preferences. For the time being, it might serve to look out for a different vehicle model. Alternatively, if you want that model, you could extend the size of your budget.
Or, you could also expand your area of search. Maybe you will find that model under a smaller price tag, only a few miles away from your original search range.
In a few words, your chances of fulfilling a purchase are at their highest when you keep an open mind regarding your purchase context.
Check your lease
For those unaware, vehicle lease providers offer something that’s called a residual value.
Said residual value is often determined at the beginning of your contract, and it comes off as an amount for which you can buy your leased vehicle, only requiring that your contract has already expired.
Believe it or not, this value does not fluctuate with the market’s performance. Assuming you currently hold a lease in a vehicle, ideally, it remains at a value established long before we first arrived in these times of high demand.
With that knowledge, you’d be facing a once-in-a-lifetime opportunity of becoming the owner of a vehicle that’s priced significantly lower than its current market value. If you’re looking to purchase a used car, this might be something worth looking for.
Some extra advice
Under normal conditions, car sales are at their strongest during summer and their lowest during winter. Well, that still stands under these conditions, so it might be best to wait just a couple of months before your purchase.
It is still essential for you to consult the official selling price of any used vehicle you might have got your eyes on. Even during a period of high demand, you need to make sure that you’re not getting overcharged for your purchase.
If you’re planning to take advantage of the situation and sell your current vehicle for an all-time high price, consider whether you’ll have to replace it immediately. That stellar profit will not amount to much if you have to spend it on something of similar value as soon as you receive it.
Get the help you need at House of Cars Airdrie!
Are you interested in buying a second-hand car? Have you had any troubles with your usual used car dealership due to high demand? Well, that’s a thing of the past.
Our team of experts will gladly offer you the very best selection of used cars for sale and help you with all related financial matters. Even with high demand at hand, you deserve to drive out of the lot with the vehicle that speaks to you the most.
At House of Cars Airdrie, you need not worry about your prospects of buying a quality vehicle. Contact us today to learn more!