Currently there’s a shortage of new cars leaving factories in the UK, used cars however are still available. The demand for buying new cars has seemingly decreased at the moment as they are no longer as needed with the increase in working remotely as well as more options for secondhand vehicles. Lots of people are buying used cars as fleets and leasing companies are holding onto new models for longer, as they keep getting delayed. This has resulted in a higher number in those who want a car going for a used vehicle for reduced costs and better access to vehicles.
What is the chip shortage?
The chip shortage is causing short supply, resulting in long waiting lists for new cars. This is resulting in higher prices for new cars that many can’t afford. Fewer people who usually buy new cars are doing so, resulting in a loss for many car companies. Individuals would rather hold on to their money or invest in the cheaper option – a second hand car.
Car finance could be the right option for you
There are options like car finance bad credit to help you. For some, it’s important to have a car for travelling to work or taking your family to school. A car loan can help you purchase as soon as possible without the need to save up the funds and could be worth it in the long run, if you have a bad credit rating this may not affect your ability to get a used car. It all depends on your affordability. If you’re looking to get a car as a luxury, this is also often an option and spreading the cost with finance can make this a lot more achievable.
There are still plenty of used cars
If you’re looking in the right place, you will be able to find a used car as there are still plenty available although the market costs have risen for some models. The good thing about used cars is that they already exist so they aren’t being affected by the chip shortage; they already have their chips. Finance companies also give you the option to take out a second hand car on finance; this can save you money in the long run.
Why use car finance?
It’s a common option to take out a used car on finance and compared to new cars there isn’t a shortage of second hand cars at the moment, so perhaps this is the best option for you? It’s recommended to research cars in-depth and even go for a test drive if possible before signing up for one, as once you have signed the paperwork, you will have entered a financial agreement. Even if you’re getting a used car, you might be able to afford a better one than if you’re buying a car outright, especially at the moment as car prices for new vehicles have shot up due to the chip shortage.
So, would you go for a used car or pay the extra money and wait for a brand new one? There will be mixed opinions on this issue, and nobody knows when it will be sorted out, some have estimated late next year. We wish you good luck finding a car whether it’s new or used, with second hand cars more openly available.