With driverless tech, flying cars and electric engines, it is easy to fear the worst. Surely the cost of buying a car is going to rise? If history tells us anything, it’s that new technology does cost a pretty penny. So, the current revolution might be good for the planet, but not for customers’ bank balances. At least, that is the logical way to view the industry at the moment.
The thing is that experts believe cars are not going to get more expensive. And, they don’t think they will stay the same. In their view, cars are going to get cheaper in the long-term.
Here is the logic why behind their thinking.
More Competition
The automotive sector has and still is a cliquey industry. From Volkswagen to Ford and Nissan, the manufacturers have been around for years. And, there aren’t many new ones coming to the party. But, this is going to change shortly. Driverless and electric vehicles are the future and everyone knows this to be true. Sadly for them, the old guard is not at the forefront of the technology. Instead, companies such as Tesla and Google are stealing a march. As traditional manufacturers face stiff competition for the first time, prices are bound to fall.
New Tech Is Cost-Effective
“Electric cars ‘will be cheaper than conventional vehicles by 2022.’” That was a headline on www.theguardian.com in February 2016. According to the paper, electric cars will be cheaper to own in five years time because of a variety of reasons. Firstly, the current price is set to decrease as more manufacturers enter the market. Tesla might charge £100,000 now, but the Renault Zoë and Nissan Leaf are affordable alternatives. Plus, the cars are getting cheaper to produce thanks to the reduction in battery costs.
Rise Of The Internet
One look at carsandco.com.au and you’ll see how useful the internet is for bagging bargain. In the past, the only place to go was a dealership. Now, prospective buyers don’t have to leave their house to find a great deal. And, it doesn’t stop with specialist sellers, either. Believe it or not, people will buy cars from eBay.com and Gumtree. As online auction sites, the prices are far lower than the majority you will find on a lot. More importantly, however, is the public’s reliance on the Web. Now more than ever, it is taking over the culture.
Second-Hand Stigma
People always want something new and shiny. Humans are like magpies in that respect. Thankfully, this attitude is changing in regards to cars. In 2017, there were more than 8 million used cars sold in 2016. The trend doesn’t look like stopping either, with 2.1 million already sold in the first quarter of 2017. As with everything, demand dictates supply. So, as the demand rises, the supply will follow providing cheaper alternatives. Quite simply, the second-hand stigma doesn’t exist any longer.
The good news is that car prices should get lower by 2022. And, that is without taking running costs into account.
.JPG){kind=link}