So, with the pandemic, the vehicle sales market underwent a complete upheaval. Used cars, which previously depreciated significantly, are now seeing price increases. Therefore, is a used car a good investment now? Find out here if it's worthwhile!

Statistics show that used vehicles are more valuable when comparing prices in 2021 to those in 2020. Thus, if the model is one of the best-selling, the appreciation can be up to 28% higher than before. Furthermore, in some segments, such as luxury versions, the appreciation can reach up to 50%.

Given this, many people are discovering that their vehicle is worth more now than when it was purchased, even though it has already been driven on. Furthermore, this appreciation far exceeds the average return on investments in the financial market.

So, the pandemic brought a new reality to people's consumption habits, especially regarding mobility. Many who previously did not own a vehicle are now choosing to have their own car. With this, they no longer depend on public transportation or ride-sharing services.

Another factor pointed out by experts is that spending on travel, restaurants, movies, theater, and other activities has been replaced by the purchase of a car. As a result, demand has increased, but the automotive industry's production has not kept pace. This has led to an increase in the value of used vehicles.

According to Fenabrave (National Federation of Automotive Vehicle Distribution), which brings together 52 Brand Associations of all types of vehicles, sales in 2021 were six times greater than sales of new models.

Therefore, at this point, if we analyze the issue from a financial perspective, it might be a good time to sell your car, especially if you use it infrequently and it spends most of its time parked in the garage. It's more advantageous to invest the money from the sale and, for example, rent one when needed.

If you wish, you can buy it again when prices start to drop. That way, you'll pay a lower price for the same model and year you sold it for.

So, let's look at some reasons why used cars have appreciated in value.

Well, with the arrival of the pandemic, the automotive industry, which had been breaking productivity and sales records, experienced a sharp reduction in its production due to several reasons. First, with the lockdowns implemented by the government, factories were forced to halt production for a period to contain the pandemic and ensure the health of their employees.

These shutdowns involved not only the car manufacturers, but also the suppliers of components and raw materials. As a result, the production chain was severely hampered, mainly due to a shortage of semiconductor chips and rubber parts, among other items. In short, it became quite limited and demand increased significantly. This caused long waiting lists for new cars and a consequent increase in the value of used cars available for sale.

According to industry estimates, this sector is only expected to begin to stabilize in the second half of 2022. Therefore, at some point the situation will return to normal. With the return of people's movement and the resumption of normal life, prices should fall. But for now, used cars will continue to be in demand.

So, as explained above, the used car sales market is booming. Now might be a good time to sell yours.

According to Fipe (Economic Research Institute Foundation), the current moment is one of high demand. And the automotive industries are unable to meet it. Thus, if we consider the values before the pandemic, we will see that used cars have experienced price increases reaching almost 25%.

Therefore, this could be a good time to sell and get a good deal. And if you have more than one vehicle in your garage, it might be interesting to sell one of them, given the current appreciation in value. 

Therefore, you can invest the money you will receive and use it wherever you wish. Or you can even wait for the market to stabilize before buying a car again. This way, you can get a lower price and a higher profit. Alternatively, it might be worthwhile at this time to sell your more expensive model, buy a cheaper one, and keep the difference.

You'll also be able to invest the money you save and wait for the sector to normalize before buying a more expensive car again. But remember, if you choose to trade it in, you'll also find high prices when you go to buy it.

Therefore, it's worthwhile to do thorough market research. This way, you'll know the prices you can get selling what you already own, as well as the items you want to buy. This will allow you to find opportunities to make a great deal.

In short, as you may have concluded from reading our article, this is a good time to make a profitable transaction.

Also be aware that, due to this new dynamic in the vehicle sales market, some interesting opportunities have arisen to get the car you need.

One of them is the new and expanding trend of renting a car through a subscription service. It offers several advantages and benefits without requiring you to use all your capital.

In this new model, it's possible to rent a car for longer periods without worrying about maintenance, servicing, and fees that would be involved when buying your own vehicle.

So, check out our article about car subscriptions by clicking the link below and find out if it's a good option for your needs!