Since the problems related to the health pandemic began, the prices of new cars have not stopped rising due to the shortage of microchips. But it is also that, as a result of the lack of stock and the rise in prices of new cars, many have resorted to the option of buying a used car. And that has caused the prices of second-hand cars to rise as well. But we have good news about it, and the advice is simple: wait until 2023 to buy a car.
From AutoForecast Solutions they point out that already at the end of the year the shortage of microchips is not affecting the car market in such a negative way; but it is that they also advance that during the next year 2023 it will be when we begin to see, for real, the end of the shortage of semiconductors. And this is going to lead, as you have surely imagined, to lower the prices of new cars.
We must add to it, the fact that manufacturers will be able to return to their usual production rate, and the fact that demand is going to fall slightly because interest rates on loans for the purchase of new cars are on the rise. So there are two key factors that, yes or yes, are going to force a readjustment in the automobile sector in favor of those who are interested in buying a new car. At this time it can be assured, almost with absolute certainty, that very soon the prices of new cars will drop.
The crisis of the shortage of microchips subsides, and in 2023 the prices of new cars and second-hand cars will drop as well
During the past year 2023, car manufacturers – in North America – had to manufacture 3.23 million fewer cars than what was planned. And this year 2022, however, although the semiconductor shortage problems have not ended yet, it is expected that there will be 1.5 million fewer cars manufactured than expected. In all this, in addition to the fact that chip manufacturers have increased production, the demand for technological products, which in recent years have received priority orders, has also decreased.
So you have to consider that the technology sector is releasing a lot of semiconductors at the same time that manufacturers are increasing their supply. And on the other hand, we also have the evolution of credits, which will reduce the demand for credits for the purchase of new cars. These different factors have led different leading figures in the automotive sector to have already begun to announce that in 2023 the prices of new cars will drop.
Also, the fact that Chinese brands are beginning to gain weight in Europe is going to change the situation of the sector very considerably. These new Chinese brands are starting to bring competitive and cheaper products than those offered by traditional European manufacturers. A good proof of this is MG, for example with its recent MG 4. A car that offers the same as a Volkswagen ID.3, but is much cheaper.
And for the same year 2023 that we have been talking about, there are already several traditional manufacturers that have prepared some new cheap electric cars. However, the one that has the highest expectations about itself right now is the BYD Seagull. Why? Very easy, because it promises to be a small electric car in the B segment at an approximate price of only 8,000 euros. The evolution of the microchip crisis and the voracious Chinese competition in Europe will undoubtedly lead to a significant drop in prices very soon. And with this, the second-hand car market will ease up and it will also begin to give us lower prices than the current ones.