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Car prices are going up, but one category has now become cheaper

Although the price of new cars went up by ten percent last year and used prices are rising at an even higher rate, one category is getting cheaper – thanks to the strengthening of the koruna, which is the strongest against the euro in almost 14 years, used car prices are falling slightly.

According to data from the European online marketplace Carvago, the prices of older cars from imports fell by about 4 percent in the last month.

Kodiaq from abroad? A strong crown helps

However, the executive director of Carvaga, Jakub Šulta, points out that even here, discounts are only a temporary matter. “The combination of a favorable exchange rate and discounts now provides a chance to buy a used car from abroad under conditions that will be unattainable later in 2022,” said Šulta. According to him, especially used second-hand goods are rapidly disappearing from the market.

For example, the Škoda Kodiaq with its first registration in 2019 and a mileage of around 75,000 kilometers was sold on the German market last December at an average of 842,000 crowns. Thanks to the strengthening crown, the customer will now buy the same 34 thousand crowns cheaper.

However, this effect will soon disappear as the factors that drive prices up persist. That is, mainly the lack of used cars, higher demand and the lack of new cars due to chip supply outages.

Chips and cars are still missing

According to Cofidis, only 20 percent of Czechs buy a new car in the Czech Republic, the rest prefer a used car – either they buy it directly, but about two thirds of those interested go to one of the second-hand car dealers. But there the offer is falling sharply.

In Central Europe alone, it fell by 36,000 from 466,325 cars. Prices jumped by 14 percent and will rise this year as well. The price of used cars for 2022 is estimated by the head of AAA Auto second-hand shops, Karolína Topolová, at more than 15 percent.

And new cars will go upstairs. “We do not predict it, we calculate it. We look at the market, at the competition. Subcontracting prices for various raw materials are rising. Yes, I think prices can go up, “he said interview for SZ Byznys Jaroslav Povšík Chairman of the Škoda Auto Company Board and Member of the Company’s Supervisory Board.

Rising confirmed recently for Seznam Zprávy and Martin Peleška, head of Toyota Lexus ČR I think that the first second quarter of next year will still be marked by rising prices, “said Peleška, adding that at the end of this year, cars could be 25 percent more expensive than in 2019.

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