The Covid-19 pandemic spelled disaster for many industry sectors. In the automotive world however, while new car sales stalled, used car transactions enjoyed a major surge.

According to The Society of Motor Manufacturers and Traders (SMMT) and their Q2 2020 report, sales of older, second hand cars increased by 108.6%, and this was during a time when lockdown restrictions were in full swing.

Post-Covid second hand car sales have continued to climb, with statistics reporting more than double the transactions. But why are second hand cars still so popular and so expensive?

Less new cars were being manufactured

Lockdown restrictions affected many businesses, and in most cases, brought the production of new vehicles to a complete standstill. With the supply of new cars slower, the prices of older, second hand vehicles began to rise.

The microchip mix-up affected production

The microchips that new, more technologically enhanced vehicles need to function were also in short supply, another factor that prevented production from going ahead as planned during the Covid-19 pandemic.

While microchips were being produced (alas in smaller quantities), they were instead being used in consumer electronics rather than brand new motors. This production slump continued even as lockdown restrictions were lifted due to the lack of these essential components. A gap in the market that was all too easily filled by used vehicles.

Owners were trading in their vehicles…

With demand outweighing supply, savvy vehicle owners looking to cash in on increasing used car prices did just that, and there was certainly a market for it!

The remote working policies – many of which still remain in place today – meant some people didn’t need to rely on their vehicles as much as they did pre-pandemic. Those looking to tighten their belts due to workplace closures were also in a position to trade in their new or nearly new vehicles for less expensive, used alternatives and profit in the process.

…while commuters were investing

People who commuted via public transport before the Covid-19 pandemic found safety concerns took them back behind the wheel, making a used car the best mode of transport for them.

Some had more money to spend

While the Covid-19 pandemic saw lots of people struggling financially, others found lockdown restrictions worked wonders for their savings pot. It’s estimated that Britons saved up to £200 billion due to being stuck in during the pandemic. What better way to spend those savings than buying a second hand car?