Today we are in a special time. You may have noticed, that for some high-end brands such as Porsche, Land Rover, Mercedes AMG, Audi etc., the young used models are almost as expensive, or even more expensive than new cars.
Please read that again.
Used cars more expensive than new cars? How can that be, I hear you say.
Well, we will try to explain that. It’s a bit of a similar situation to the watch market. Due to lack of chips, electronics and personnel, many factories cannot reach their maximum capacity in terms of production numbers. So this causes supply to shrink. When supply shrinks, but demand rises (also due in part to more and more financing options), a logical consequence is that car prices also rise along with demand. After all, supply is limited.
To wait or not to wait?
Extending this line even to the extreme, we see the current situation; ordering a new car takes 12-18 months. Sometimes even 24 months. You as a customer, don’t want to wait 24 months for a new car. The option is to continue driving your current car for 2 more years, or pay a small premium for a young used one that is readily available.
That is mainly why prices have risen 10-15% from roughly a year ago. In general, Dutch car dealers and traders also have to buy more expensive, so there is an overall price increase in the chain; not only the dealers and traders raising their prices, also the factories etc.
Of course, there are those who are happy to be patient for this kind of sum; and that is an excellent choice. However, there are also people who like to drive a car right away and are happy to pay a small premium for it. There are opportunities for these customers, however for the specific car they are limited, stocks in the Netherlands are shrinking.
Here to help
Are you looking for an exclusive car but can’t find it? Let us know; we have many good relationships abroad who always have cars off-market or can find them within a few days.
Do you want to have a car quickly within a short period of time? Then take a look at our inventory. These cars are available immediately and stock in the Netherlands is very limited. Therefore, we are happy to help you find the right car, should we not have it in our stock.
Until the next one,
The Engine Room