Following the outbreak of Covid-19 across the UK in late February 2020, it is somewhat surprising to learn that the car market bounced back pretty quickly following the UK nation lock-down with the market bouncing back after just 3 months, with the country still in the midst of a national lockdown. The car market had steadied and returned to its pre-covid figures by June 2020.
In the UK, according to INDICATA analysis, it seems that used car sales are exceeding supply by a whopping 71%, meaning that soon used cars will run out. This appears to be due to car powerhouses putting a stop to manufacturing during the pandemic, many closed factories and put full staff forces on furlough meaning fewer new cars were made during this period which saturated the car market with used cars.
Whilst at the beginning of the pandemic, people seemed to the holding on to their money and it proved difficult to get finance, it seems now
Sadly (in some cases) it seems that the economic crisis the pandemic brought with it has forced sellers to lower their prices in order to make ends meet, meaning those with cash in bank at that time grabbed themselves a bargain with the possibility of great returns in the future. However, now it seems that car prices are rising once again, probably due to the lack of new cars available.
All in all, it would appear that the used car industry is flying.