...By Gift BADEWO for TDPel Media.
Financial Expert Advises Britons to Wait for Better Car Prices
According to a financial expert, UK consumers could save thousands on their next car purchase by following one simple tip – waiting.
The UK car market has shown new signs of life, with new car registrations up by almost a fifth in the past year, according to the Society of Motor Manufacturers and Traders (SMMT).
The UK’s electric vehicle market, in particular, has taken an upturn, with monthly sales reaching their highest ever level in March.
GB News Economics and Business Editor Liam Halligan says there is “downward pressure” on car prices, meaning consumers could be in for a pleasant surprise when buying their next car.
Reasons to Wait for Better Car Prices
The financial expert advised consumers to wait when they next look to invest in a car. According to UBS, there is a high risk of overproduction and growing pricing.
The price war has already started unfolding in the electric vehicle space, and the expert expects it to spread into the combustion engine segment.
Many of the supply chain issues that were seen during the lockdown are now starting to ease, and the market is seeing a surge in production.
The financial expert warns that there will be lots of cars but not enough demand to soak up that supply, which means prices will come down.
This trend is already being seen in the electric vehicle space, as the price of Teslas is already coming down.
Current State of the Electric Vehicle Market
Battery car sales were 19% higher in March than the previous year, with an incredible 46,626 vehicles sold.
The UK’s electric vehicle market is experiencing an upturn, but fears have grown over the shortage of chargers.
Figures released in February by the SMMT show that just one new public charger was built for every 53 electric cars sold last year. According to government statistics, around 37,000 public chargers were available around the country at the start of 2023.
The Committee on Climate Change predicts that 280,000 chargers will be required to meet demand in 2030 when non-hybrid petrol and diesel cars will no longer be legally sold.
Commentary
This advice to wait is timely because it saves consumers thousands of pounds when buying a car.
The electric vehicle market is growing, and the trend is set to continue, but with the surge in production, the market will soon be saturated with cars.
The market is already seeing a drop in the prices of electric vehicles, and it is expected that this trend will spread to the combustion engine segment.
Waiting will be beneficial, especially for those planning to invest in stocks and shares in the car sector.
It is also worth noting that while the electric vehicle market is experiencing growth, there are concerns about the shortage of chargers.
The Committee on Climate Change predicts that a significant increase in the number of chargers will be required to meet the demand in 2030.
Thus, the government must take proactive steps to address this issue.
