The used car market in Belfast is still strong, even after the plummeting sales of cars that the world saw when we all went into lockdown, the rise back has been meteoric. The people want to buy cars again and they want to buy a lot.
So the question on the lips of many – Is it better to buy a new or a used car? And Is it cheaper to insure a new or a used car?
New cars vs used cars
The pandemic wreaked havoc across many sectors and the used car market was hit especially hard with every month of 2020 playing out, the figures got worse and worse, with record breaking lows. Car dealers are still not receiving the volume of cars they need because of course Covid stopped production and shipping.
While the new car market is suffering, dropping by over 20% from pre pandemic levels, the sales of used cars are flourishing with sky high figures being reported across the nation, as the UK turned their backs on public transport due to rising concerns surrounding health and safety in the wake of the pandemic. If there was ever a time to sell your used car, it is now!
It’s true that the sales of new cars have, but used car sales have gone and done quite the opposite, with all time high sales reported across the globe.
Looking at the used car market in the UK, the second quarter is the best on record. With sales increasing more than 30 % year on year and over 6% pre pandemic levels with over 2 million used cars changing ownership in Q2 this year.
What are the benefits of used cars?
- Used cars cost less and you can get a better model for a lower price
- The depreciation in value is a lot slower than with new cars which lose 40% in 3 years.
- If used cars have been well maintained then they are just as reliable
- Mileage may still be low and some purely motorway miles
Buying a used car through a private seller can be risky in certain instances, when buyers neglect to check the vehicle and check the debt status of the vehicle, but with our trusted car dealerships Northern Ireland wide, you can be rest assured that you will not be ripped off.
What are the benefits of new cars?
- Manufacturer warranty lasts 3 to 7 years (kia are the longest warranty)
- They are less likely to break down
- Lower initial costs for parts that might break in used cars
- The safety technology is more up to date
- Better fuel economy
- Customisation such as paint and features etc
- That new car smell
New or Used: Which is Cheaper To Ensure
While a new car may have lots of desirable features, it costs more for the insurer to replace the vehicle. There are of course numerous factors that can bring down the insurance:
- Cars of lower monetary value
- Cars with low performance and smaller engines
- Car usage, family cars generally are seen as a lower risk vehicle on the road
- Low left risk insurance is lower as well
- Expense of repairing the vehicle in question
- How easy the parts are to replace
The average age of a vehicle is 8.4 years in the UK. So while cars are becoming safer, there are many people that are
Is this a car ownership boom?
There is a worldwide “car ownership boom” predicted in the next 6 months. In the group of 24-39, those that don’t currently have a vehicle say that they plan to in the next 6 months.
There is a large amount of these people in this group that are still looking at conventionally fuelled cars rather than leaning into the electrical future (2030) that is impending for the automotive industry.
The used car market is going to continue to be unpredictable in the coming year and hopefully there will be a new normal that we settle into and start to see the recovery of the market and more sustainable prices.
