Looking ahead to 2022: Forecasts and trends for the new and used car market
Many areas of the economy have been affected throughout the pandemic, and sadly, the production of new cars is not exempt. The industry was dealt major blows due to a chip shortage and the ‘pingdemic’ – where, earlier in the summer of this year, hundreds of thousands of car production staff had to isolate.
Yet, despite these setbacks, other areas of the industry are thriving. Due to the change in consumer habits and how we are living our lives, people are spending their money differently. Here we look at some key trends throughout 2021, that are likely to continue into next year.
Promising Forecasts For The Used Car Market
The used car market is performing incredibly well, with prices rising across many popular and luxury used car marques throughout 2021.
A report in the London Post states: “The used car market isn’t in turmoil yet and won’t be any time soon […] Interestingly, it’s also predicting that demand will outstrip supplies of late-model and approved-used cars well into 2021.”
The economic landscape has had a big role to play. Brexit, the pandemic and the global shortage of semi-conductors, has in many ways, created the perfect storm for used cars. Part of the increased demand is also due to not enough new cars being manufactured.
If you’d like to secure a used car on finance with us, we have arranged finance for a vast selection of premium vehicles, including Range Rover Vogue, Ferrari 360 Modena and Audi R8.
Consumer Habits Are Changing
With fewer consumers taking holidays abroad, a lot of this cash is being diverted back into other parts of the UK economy. Fast Car Finance has had several clients acquiring a weekend sports car, and Fast Car Finance MD, Andy Wise, believes it’s because they have surplus money to spend.
He says: “Some of these clients are car enthusiasts who have a small collection where they want to make an addition, others perhaps fall into the ‘life’s too short’ category, and the pandemic has seen them take a different view of life.”
With more of us working from home, there is less need for a comfortable commuter car. We are able to choose more stylish models, and as a result, certain marques have done very well, with the used Porsche market being particularly buoyant. Fast Car Finance has provided finance for an impressive selection of iconic classic cars, including the Porsche 911, many of which are selling well above industry valuations.
If you want to get illustrations from an independent car finance specialist, with access to all the lenders on the market, just give us a call – there’s no call centre or webchat to contend with.
Increasing Popularity For Electric Vehicles
Whilst figures were dropping in certain automotive sectors, there continues to be an increase in battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Demand has risen by 9% (and hybrid vehicles by 8%), and this number is set to increase following the UK government’s plug-in grant to encourage the purchase of low-emission vehicles.
Despite the pandemic, 2020 was a huge growth year for Electric Vehicles. Last year saw the biggest annual increase in registrations, with more than 175,000 electric vehicles registered showing a growth of 66% compared to 2019. This sudden surge in popularity could be due to their efficiency – no noise, no pollution, better acceleration and cheaper running costs.
Want to secure electric car finance for a new electric car this year? If you want to find a more sustainable solution to comfortable and reliable travel, we can help. In recent months, we have secured electric vehicle finance on a Tesla Model X and Tesla Model 3 Performance. This means style isn’t compromised, as you play your part in reducing carbon emissions.
If you’re interested in securing electric car finance with us, take a look at Fast Car Finance’s Electric Car examples here to see how much it would cost to buy a new electric car on finance.
Predictions For New Car Registrations in 2022
According to this report in Auto Express, new car registrations for July 2021 declined by almost 30% when compared to the same month last year.
In addition, the Society of Motor Manufacturers and Traders have downgraded their market outlook significantly for 2021, due to the shortages of semiconductors and staff, which have ‘throttled’ a strong economic outlook for the automotive sector.
However, Andy Wise believes there is good opportunity for investment in cars, despite the restrictions the pandemic has caused.
He says: “The pandemic has continued to have a huge impact on the automotive sector. For months, car dealerships were closed and the recent ‘pingdemic’ has brought automotive supply chains to their knees; with lack of materials causing huge production problems. We must continue to remain positive because the automotive sector is a huge indicator of the economic performance for the country; new cars generate new revenue and much needed jobs and will be a key part of our economic recovery.”
Looking To Change Your Car? We Can Help!
If you want to invest in a new car, now might be a good time to do it as interest rates are still low!
If you need finance for commercial vehicles, then our sister-company TVAF will have lots of information about how you can get competitive asset finance for Light Commercial Vehicles and Vans.
If you’re in the market for a classic car as an investment, then take a look at this blog post on how classic cars make brilliant investments.
An independent finance broker can help you to secure the best new car finance, as we can talk to the lender on your behalf and assist with any forbearance that may be sought.
To find out more about new, used or classic car finance, please contact our team on 01635 785 400 or email info@fcfinance.co.uk to book an initial call with us.
