Used cars are more valuable than ever

Used cars are more valuable than ever

The automotive industry has been struggling with a shortage of computer chips needed to make vehicles for two years now. As a result, the rapid availability of new cars has become a challenge and the number of additional buyers on the used car market has increased rapidly. In addition, due to Corona, there is an increased desire to own a vehicle and thus a general increase in potential car seekers. This particularly influenced the price development of used cars. In this context, the trading platform willhaben looked at the used cars of the most popular models that were registered for the first time in 2017 and analyzed how the prices have changed since January 2020.
 

Older, more used, more expensive

Across Austria, the prices for used cars have developed particularly advantageously for used car sellers since the beginning of 2020, as Michael Gawanda, Head of Auto & Motor at willhaben, reports: "If you want to sell your car now, the current situation offers you an optimal starting point. There is a shortage on the entire market, which is why sellers can set the prices for their used cars very confidently. We are currently observing a unique development: Anyone who decided against selling their car at the start of the pandemic and has continued to drive their car until today, “We now have a vehicle on our doorstep that is naturally older, has covered significantly more kilometers and in many cases still has a higher sales value than at the beginning of 2020.”

Popular models in comparison

A look at the data collected by willhaben underlines this impressive development: This year, a Ford Focus built in 2017, with around 20,000 km more on the clock, has an average asking price that is 11.3 percent higher than it was two years ago with a lower mileage. This corresponds to an increase in value of around 1,500 euros. With a similar consideration (around 30,000 km more mileage), a used Audi A3 has also increased in price by 3.2 percent or more than 650 euros since the start of the pandemic. In absolute figures, the Skoda Octavia recorded the highest increase at almost 2,000 euros.

The prices of a Ford Fiesta (+1.9 percent) and those of the BMW 3 Series (-1.5 percent) remained relatively constant. "Even models that were slightly reduced in price as part of this evaluation only recorded a very small loss in value, despite the significantly higher mileage. A Seat Leon lost 4.7 percent or around 750 euros and a Mercedes Benz C-Class lost 5.7 percent or around 1,600 euros. If you consider that these are now two years older cars with significantly more kilometers, the values are very extraordinary across many widespread and popular models," says Gawanda.

Tips for selling used cars

If you want to part with your used car in the currently very good starting position, Michael Gawanda recommends the following tips: "A fundamental question that sellers should ask themselves is whether they would rather sell their car as a private individual or through a dealer. If I have no negotiating experience, perhaps also time pressure and the resulting willingness to perhaps achieve a slightly lower selling price, selling to a dealer should definitely be considered. If you have time, negotiate well and achieve the best selling price If you want to sell something privately, it is often possible to try out both options at the same time to get an optimal overview of the market,” explains Gawanda.

"In any case, it is important to present the vehicle in the best possible way, truthfully and in a well-maintained manner, and perhaps also to carry out or have minor repairs carried out. That is why sellers should take enough time for a thorough exterior and interior cleaning before taking photos or accept the investment in professional vehicle preparation. When taking photos, you should not skimp on detailed photos and a very precise description of the vehicle. It is of course advisable to focus particularly on the positive sides of the used vehicle but also be very open about any defects. The more comprehensive various vehicle documents - from the service booklet to the most recent Pickerl inspection report - can be shown to potential buyers to prove the care and condition of the vehicle, the better. Plan enough time for the viewing, think in advance about how much room for negotiation you want to give or inform them when making the request that the price is not negotiable Bringing in viewing appointments to help with any technical questions can also increase transparency and further improve sales chances.”