The coronavirus pandemic has a major impact on the used car market: the latter is doing well and prices in Switzerland are rising, while the production of new vehicles is in difficulty. Even those who offer four wheels for hire rub their hands.
As the shortage of electronic components, particularly semiconductors, affects the factories of automakers with long waiting periods for new vehicles, more and more potential buyers are turning to the second-hand market. This demand is impacting both supply, which is shrinking, and prices, which are rising.
Since the onset of the coronavirus pandemic, recent second-hand car prices have risen by double-digit percentages in a year, according to figures from industry specialist Eurotax.
Since last March, they have increased by a further 2-3%, Tobias Fässler, spokesperson for Scout24, which includes AutoScout24, one of the largest vehicle sales platforms in Switzerland, confirmed to the financial agency AWP.
No trend change in sight
“The trend is still expected to continue for some time,” added Fässler. It is mainly vehicles that are less than four years old and only a few kilometers away that see their prices rise.
As production capacity is not expected to return to pre-crisis levels in the coming months, Fässler does not expect any medium-term price correction. Especially since the offer continues to decline. “This lack of new cars available directly affects the number of ads,” he said. Currently, 150,000 cars – new and used – are on sale on the platform, up from 157,500 six months ago and 160,000 a year ago.
The scarcity of supply and the rise in prices are benefiting vehicle season ticket providers. At the Carvolution company, for example, business has increased significantly: “We register a high percentage of new subscribers who, if in doubt, are more likely to opt for a flexible solution,” Léa Miggiano, co-founder of the company, told AWP. Basel company. Instead of waiting a long time for a new car or looking for a cheap used car, people prefer quick availability.