Car prices | Low prices for new and used cars: full warehouses and few buyers

(The newspaper online): During the year, interest rates rose, food prices rose, and a number of goods and services became more expensive.

At the same time, there are certain categories of goods whose prices have fallen. This applies, among other things, to new and used cars, boats, motorcycles and watches, Nordea’s figures show.

– This will be cheaper, because demand is low. People don’t have the purchasing power they once had, explains consumer economist Derya Incidursson from Nordea.

Used car prices are falling

Last year there was a huge increase in new car sales. Especially in December with 39 thousand new cars registered. In January of this year, sales dropped dramatically, to just 1,860 new registered cars.

This can also be seen in relation to the new electric vehicle tax introduced from January 2023.

– High interest rates and general price increases have discouraged interest in new cars, leading to increased inventories in Norway. This has led to price cuts and favorable interest rates for new cars, says the consumer economist.

When Tesla cut prices on several models in January 2023, others had to follow suit. Among other things, Skoda announced a price reduction for the popular Enyaq model by NOK 175,000. And more Other car manufacturers have reduced the price by more than NOK 100,000.

The average price of a new passenger car has fallen by NOK 2,811 compared to the same period last year, so the average now stands at NOK 561,273 so far this year.

Massive sale of expensive cars

The used car market was not affected by economic fluctuations like the new car market.

– People still need transportation regardless of the economy.

According to figures from Nordea, the number of used cars sold has remained roughly the same as the previous year, but the average price of cars is lower.

However, selling expensive cars, especially expensive electric cars, has become more difficult in difficult economic times, says Insidorson, who further explains:

– People preferred to buy cheap used cars instead of expensive alternatives. It was also noted that the average loan value was lower compared to the previous year, based on figures from Nordea.

The market was saturated last fall

BilNytt.no editor Atli Falsch Tverud tells Nettavisen that the market picture and prices are very different now than they were just over a year ago:

– How are the prices of new and used cars compared to the same period (the first half of the year, for example) in 2022?

– In the first half of last year, the market was still overheated. There were long waiting times and large back-up of orders for new electric vehicles. People can still sell their new electric car at a profit after it is delivered. It was almost a bidding war for good used cars.

There is still a backlog in new car customers after the pandemic, which has become a golden age for the Norwegian car industry, says Tovrod.

– All cars are sold at full price without discounts – Almost all car makes and models are selling well. Everyone wanted a new car before the VAT on electric cars was announced, he says, and continues:

– This year the situation is completely different. The new car market actually began to saturate last fall, at the same time that the auto industry was preparing for an era before the VAT on electric cars and the weight tax. In December all the cars arrived, but many of them lacked customers. A number of new cars were pre-registered before the start of the year.

Dramatic situation

Tovrod takes a look at Tesla’s price cuts this winter, and believes the consequences are still affecting the auto industry:

– When Tesla opened the new year by putting the entire industry to sleep on January 13 by cutting prices, the situation became dire overnight.

He explains that many of them still had large order reserves, but throughout the spring and summer traditional players followed suit with significant price cuts and interest rate campaigns.

– “Everyone” expected cars to be more expensive this year with the new taxes, but then a price war broke out. What the auto industry is experiencing now is a few years of “overselling,” too many registered cars, and a very strong player like Tesla, which has run away with more than 22 percent of the new car market. Tesla has already set a new record so far this year, says Tovrod, who follows the auto industry closely.

Still more with good advice

Netavisen asked consumer economist Incidursson questions about whether the decline in commodity prices has a direct relationship to the fact that things are not like that. He should Ha, but which is It’s nice to have Such as a new car or motorcycle:

It is interest rates and inflation that have a lot to say here, yes.

– Who has the opportunity to make a deal on these goods then?

– There are still a number of families who can afford it. What we must not forget is that there are differences here and.

Incedursun says that families can be divided into four categories:

– The one who struggles a lot, the one who struggles a little, the one who has a good income is worried, and the one who has a very good income.

For high-income people

These goods, which have become cheaper, are sufficient for those with high income and good purchasing power. They can service debt, keep their car and house. Now I’m not talking about billionaires, but rather about families with good incomes who are not particularly affected by rising prices.

The consumer economist explains that the vast majority of people feel rising prices and rising interest rates are hitting their wallets.

– But there are also many families who are not worried and have the money to be able to make purchases. There were many people who saved a lot during the pandemic, and still had some savings. Others have had to use their savings due to the situation in recent years.