Home Business NewsBusinessAutomotive Drivers ‘priced off the road’ as used car prices take to new highs

Drivers ‘priced off the road’ as used car prices take to new highs

by LLB Reporter
19th Jan 22 9:33 am

Automotive industry experts have warned of a dire shortage of cars at the most affordable end of the market – as availability of car prices £2,000 and under fell by 25 per cent in 2021.

Data compiled by car buying website Desperate Seller has lifted the lid on the shrinking stock levels of models available to those with the tightest budgets.

Budget car buyers looking for popular Vauxhall and Ford models, will find 23 per cent and 17 per cent fewer cars being listed for sale at the lower price points respectively than nine months ago.

Other popular makes that saw drops in their most affordable models included Volkswagen, with 10 per cent fewer cars available in December 2021, compared to April 2021, in this price bracket.

This unprecedented situation has been caused by a ‘perfect storm’ of conditions that have impacted the motoring industry.

Henry Smith, Strategy Manager for Desperate Seller, says: “The fall in the numbers of cars at the lowest price points is being driven by two factors.

“First, the shortage of new car availability in the past two years is being felt in the used sector. On the supply side, fewer cars are coming off of leasing and PCP agreements, at a time when used car demand has increased due to the new car shortage we are seeing in the market. This is causing used car stock available in the market to fall.

“In addition, the supply-demand imbalance is pushing prices up across the used car chain, meaning there are fewer affordable vehicles available. While some car owners may find that their motors are suddenly worth considerably more, many consumers without the extra budget to spend are left out in the cold.

“The timing for this could not be worse for many consumers, set against the backdrop of the current cost of living crisis, with rising fuel prices and energy costs stretching household budgets to breaking point.

“With stock availability dropping for key car brands, consumers are faced with less choice, and potentially a longer distance to travel to see these cars in person, a luxury many shopping in this price bracket cannot afford.“

A government report entitled ‘Inequalities in Mobility and Access in the UK Transport System’ revealed the impact that a lack of reliable transport has on those with the least amount of money to spend.

The 2019 report states: “Many people in the UK may not be able to access important local services and activities, such as jobs, learning, healthcare, food shopping or leisure as a result of a lack of adequate transport. Mobility and accessibility inequalities are highly correlated with social disadvantage.”

Henry comments: “This worsening situation could result in vehicles being out of reach for low-income households, the people who often rely the most on having a reliable car.

“At Desperate Seller, we are working hard to ensure stock continues to be available at this hugely important price point. Despite such a challenging environment, we remain the place motorists can come for the most affordable cars at transparent prices.”

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