Shortage of chips also hitting Czech secondhand car sales
The number of secondhand cars available on the Czech market has fallen considerably as a shortage of computer chips means fewer new automobiles are now being produced, iHned.cz reported on Monday.
Michal Šišák of secondhand dealers Auto Hlaváček told the news site that there was a great shortage at present. He said that while two years ago his company was offering 90 used cars, at present it has only 25.
At the same time, interest in buying cars from both individuals and companies is enormous, causing the price of secondhand models to shoot up.
Some traders expect prices to rise even further by the end of the year, iHned.cz said.
Last year the average price of secondhand cars went up by between 10 and 15 percent and similar increases are due in 2021, the news site said.
Filip Kučera, head of marketing for the Auto ESA network of used auto dealerships, said the higher cost of acquiring secondhand car stock would lead to increased prices for the customer.
Alongside the rise in prices, the market it also starting to see a shortage, iHned.cz said.
The country’s largest used car dealers agree that the biggest reason for this is the relatively small number of new ones currently rolling off the country’s production lines.
Secondhand dealers depend on companies renewing their fleets and getting rid of older models. At present this is happening less than usual as the firms cannot find replacements.
The coronavirus pandemic has led to a worldwide shortage of computer chips for cars that is leaving makers to produce far fewer automobiles than usual.
At the same time, new cars are becoming more expensive due to the transition to electric vehicles aimed at meeting stricter emissions standards.
Petr Vaněček, operations director of Aures Holdings, which includes the AAA Auto network, told iHned.cz that not just carmakers but parts manufacturers underwent production downtime due to Covid.
The temporary shuttering of car showrooms also had an impact on new car sales, Mr. Vaněček said. With people not buying new ones they have held onto older cars, stalling the entire market, he added.
Another factor has been people’s unwillingness to invest in new cars in view of uncertainty caused by the pandemic, dealers say.
Many vehicles sold secondhand in the Czech Republic come from such states as Germany, Belgium and the Netherlands but those countries too have seen a downturn in new car sales, further reducing availability, an industry representative told iHned.cz.