Health pandemic problems have caused a shortage of microchips, causing new car prices to rise. Because of the lack of stock and the high prices of new cars, many have opted to buy used cars. Second-hand car prices have risen as well. The good news is that you can wait until 2023 to buy a car.
The auto forecasting firm AutoForecast Solutions points out that the shortage of microchips is already not negatively affecting the car market at the end of the year; however, they also predict that in 2023 we will finally see a real end to the shortage of semiconductors. New car prices will be lowered as a result, as you have no doubt imagined.
Manufacturers will be able to return to their usual production rate, and demand is going to fall slightly because interest rates on loans for new cars are on the rise. Two key factors, yes or no, are going to force a readjustment in the automobile sector in favor of those looking to buy a new car. The prices of new cars will drop very soon, almost with absolute certainty at this time.
A total of 3.23 million fewer cars were manufactured in North America in 2023 than planned. In 2022, however, despite the semiconductor shortage problems still continuing, 1.5 million fewer cars are expected to be manufactured than expected. Apart from the fact that chip manufacturers have increased production, the demand for technological products, which in recent years received priority orders, has also decreased.
Technology is releasing a lot of semiconductors while manufacturers are increasing their supply. Moreover, the evolution of credits will reduce the demand for new car loans. There have already been announcements that new car prices will drop in 2023 because of these different factors.
The fact that Chinese brands are gaining ground in Europe is also going to affect the sector greatly. Chinese brands are starting to compete with traditional European manufacturers and offer cheaper products. With its recent MG 4, MG is a good example. Compared to the Volkswagen ID.3, this car is much cheaper.
As for the year 2023, several traditional manufacturers have already prepared some new cheap electric cars. BYD Seagull has the highest expectations right now. The car promises to be a small electric car in the B segment at an approximate price of 8,000 euros. In Europe, the microchip crisis and Chinese competition will undoubtedly lead to a significant price drop. As a result, the second-hand car market will ease up and low prices will be offered.