As the year comes to a close, the second hand car market is starting to rebuild and stabilize. The initial push for private transportation at the beginning of the pandemic created a huge discrepancy in the availability of used vehicles, as employment rates dropped drastically, money was scarce, and the country was struggling to right itself in the midst of closures, layoffs, and overall pandemonium. The addition of a $1,200 stimulus check to the mix completely overturned supply vs. demand.
According to the Associated Press:
…the market is starting to even out for used vehicles as trade-ins resume. New vehicle sales were down 9.7% in the third quarter, far better than the 31% free-fall from April through June.
Such that the entire auto industry was disrupted as soon as the pandemic hit – which affected both new and used markets. a 31% downturn in sales is massive, to say the least.
The absence of new cars
When the Coronavirus was at its height, automakers shuttered their doors nationwide, leading to an even bigger deficit in available vehicles. Consumers were extending their leases, trade-ins declined, and as automakers pushed fewer low-end vehicles, dealership sales completely dried up. Beyond that – there was a freeze on repossessions, which severed another arm of the second hand car market entirely.
So what happened? The average asking price for a used car rose more than 9% from May to September. That’s a pretty significant increase. Dealerships that had to keep their inventory stocked then turned to wholesale auto auctions – further driving the divide between consumers and used vehicles. Supply chains were also closing factories, globally, leading to an even bigger decrease in new car production. Thus, even fewer trade-ins available to the public.
As we, as a single planet, are figuring out how to navigate this pandemic, supply chains are reopening, automakers are increasing their output, and the market is finally stabilizing. That’s where we come in to help you.
Auction prices are stabilizing too
The unfortunate reality of the second hand car market online is that the influx of auction cars online hasn’t changed as traffic patterns were largely unaffected, including accidents – which is where a significant majority of salvage auction cars come in.
While vehicles were still available at auction, with a higher number of consumers turning towards alternative purchasing options, prices were skyrocketing on online auction platforms as well. As the vehicle market starts to stabilize all around, online auto auction prices are starting to level out to pre-pandemic rates as well.
With more available avenues to buy second hand cars in every market, competitive back and forth bidding has seen a decline on sites like ours. As the world rebounds from manufacturing stalls and limited availability the auto auction world returns to normal: you have a better chance of placing a bid and having it stick.
Register with us to get started
With second hand car and salvage prices returning to normal: now’s the best time to get started with AutoBidMaster. Register with us by providing some basic information or with your Facebook or Google account, upload a copy of your government-issued ID or passport, and get to biddin’. If you have any questions about the registration process, bidding, or shipping your vehicle, feel free to get ahold of us and we’ll be happy to help you out.