The Coronavirus pandemic is far from over in Australia, with more than 300,000 active cases as of July 2022. And unfortunately, it’s not just the health and well-being of Australians that is suffering. COVID-19 also has significantly impacted local businesses and industries, increasing the prices of essential goods and services, electronics, and second-hand cars in Sydney.
But why has COVID-19 played such a vital role in the price increase of second-hand cars in Sydney? Here are some possible reasons:
- Social distancing
The World Health Organisation (WHO) recommends that individuals remain at least a metre away from other people, so they minimise the spread of the Coronavirus. As a result, most people have opted out of using mass public transportation, which caters to almost 4 million commuters in Sydney.
Naturally, the only way to get around without public transportation is to ride in your own car. Because of this, used car sales have drastically increased, thus raising their wholesale prices by up to 65%.
- Decreased production
One of the main reasons why used car prices have increased is because the supply has failed to keep up with demand. The automotive industry has suffered from computer chip shortages and low production due to the shutdowns forced by COVID-19, preventing manufacturers from creating more vehicles. And because of the lack of new cars on the market, buyers have turned to second-hand cars in Sydney.
- Unemployment and income loss
Almost 2 million Australians lost their jobs in Australia due to the pandemic. Not only that but thousands of businesses have suffered massive losses, with over 66% of establishments reporting a reduction in turnover and 64% reporting reductions in demand. Of course, this has played a huge role in decreasing Australia’s GDP; however, it has affected individual lives on a much more massive scale.
The drastic unemployment rates have led to significant income losses, making it harder for people to afford their basic needs, much less a new car. But to keep up with the social distancing regulations, the demand for private vehicles continues to increase. And as a result, people turned to second-hand cars instead.
Thankfully, the future of the second-hand car market in Sydney is not all bleak. Over 60 million vaccine doses have been administered across the country, and the number is only expected to increase further.
And if you’re planning to sell a second-hand car in Sydney, you’re in luck. A vehicle removal company like Metal Force Recycling can offer you up to $9000, depending on its condition. We will also pick up your car for free, helping you meet physical distancing requirements and guarantee your safety as COVID-19 cases continue to rise.
You can contact us at 0403 191 732 to obtain an instant quote and book your free pick-up service on the same day!