Cars are the most prized investment. The feel and the ease of owning a car, whether a brand new or used car, are satisfying and give a sense of achievement.
The used car market is booming because of the economic distress caused by the Global Pandemic Covid-19. People are buying used cars in good condition as it is affordable and easy to buy and the paperwork is also done easily and the whole process does not take a long time.
But just like any other goods, the sales of used cars are affected by seasonality and people’s demands, significantly influencing the used car market.
How Does Seasonality Impact The Used Car Prices?
Like every other sector, Automobile industry feels the effects of seasonality on used car prices. There is a particular time during the year that affects the car prices and demands, the customers of these cars have a timeframe in their minds when they want to buy these cars, and it affects the prices as well along with the other factors that are discussed below.
1. Sales of Used Cars Are Different for Every State
The sales of used cars are different for every state in the country as the seasonal temperatures and the infrastructure vary from state to state, for example, in Northern states, people tend to buy more cars in the summer than in other parts of the country because of the hot temperatures that make public transportation harrowing and in the southern and eastern part of the country the sales peak during winter and spring because the winters are more relaxed and the weather is pleasant for a nice drive.
2. The Launch of The New Model
The launch of the new models in the summer months after the end of the financial year in March makes the prices of used cars rise as people are looking to buy used cars with similar features that will cost them less. This seasonal trend of buying used cars before the launch of the new model is very old and with so many used vehicles available efficiently, it is easy to make a choice. That is why, the buyers of the car also go through car valuation online so that they can make the best deals for their dream cars during that time.
3. Tax Refunds
Buyers of used cars generally wait for the end of the financial year after filing the taxes as it brings some exemptions and rebates, which can result in some income that can be used as a downpayment for the used car. That is why at the end of the financial year the sales of these used cars go up, and this seasonal effect influences the prices of the used cars. You can check car valuation on CARS24 to know the actual price and other features of the vehicles you want to buy to make the final decision.
4. End of The Year Price Is Lower
As the end of the year approaches, sellers want to clear their stock. It is prevalent in all sectors and the automobile industry as well, the sellers want to sell and make a profit, and even if the price is lower, they sell the used cars, and this helps the buyers to get a good deal with some negotiation. This is the reason why buyers of used vehicles wait for the end of the year. Hence, the price is lower, and they can get their cars at a reasonable rate.
5. The Type of Car
The type of car sold is also affected by the seasons. Most people tend to buy SUVs in the summer months as it has a lot of space and makes room for many people. Since the pandemic, people have been buying more SUVs than sedans to maintain distance and better air circulation. They can carry more people than sedans, and although this can be considered a personal choice, external factors affect the buyers’ decision-making of the used cars. Since it is an investment they are making. It has to be given proper thought.
Also read: Understanding the Benefits of Routine Car Inspections and Maintenance
6. The Holiday Seasons
Whether it is the used car market or the brand new car market, the holiday season is celebrated everywhere. All the goods markets have a sale or some offers going on to commemorate the festivities, and so the automobile sector also offers buyers deals that prompt them to buy cars in this season. These deals might not be available in the non-holiday seasons. The used cars’ market sales go up during the holiday season as buyers line up to get the best deals they offer and take their dream car home.
7. The Digital Revolution
With the digitization of the automobile sector, the potential buyers of used cars are privy to all the information about the vehicles they want. During the peak sales period before the end of the financial year, they can look online for the best deals offered by the used car market sellers and make an appropriate choice. They can also negotiate the previous prices in different seasons to get the price lower, which is why seasonal trends heavily influence the used car market.
Also read: How Technology Is Helping In Checking Used Car Price
The impact of Covid -19 has led to an increase in the sales of used cars, and the seasonal fluctuations and trends also influence the minds and decisions of buyers. The end of the year is the best time to buy a new car. It also gives tax refunds and rebates that make it easier to buy a used car.
The used car market sales skyrockets in these seasons as people buy these cars instead of new vehicles, some for economic reasons and some to learn to drive until they can buy a new car.Keep these factors in mind before buying a used car as it is an investment.