1 Reason Your Toyota Prius Will Increase In Value
As a Prius owner, I never thought I would see my car appreciate in value so much. I know that used car prices are at all times highs, but what else is the driving factor here?
Supply And Demand
The problems we are facing with supply and demand are more than meets the eye. Supply chains for parts right now are a complete disaster, and even Elon Musk has admitted Telsa is suffering from it.
The semiconductor chip shortage has also played a massive role in new vehicle production. Still, there is more to this story that the car manufacturers are pretty quiet about.
Toyota and other large companies have announced a 40% reduction in production. That means if we are seeing 40% fewer vehicles on the road, your used car is now worth much more.
Both Ford Motor Company and Toyota Motor have stated they are trying to find new ways to keep people employed but will suffer some losses.
Ford has talked about going to a "build on-demand" system for customers, an exciting way of looking at things.
Suppose Toyota and Ford, along with others, will reduce the number of vehicles produced. In that case, that will increase the need for parts and repairs. It could also slow the manufacturers down and get them to think critically about building better, longer-lasting vehicles than the modern-day "throw-away."
Coronavirus has undoubtedly played a nasty hand on all of us globally, and now things have shifted for better or worse. What do you think? Do you feel used car values will continue to climb? Let us know in the comments.
That is all for today. Remember, Today's Adventure is Tomorrow's Story.
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Peter Neilson is an automotive consultant specializing in electric cars and hybrid battery technologies. He holds a Bachelor of Science in Automotive Service Technology from Weber State University. Peter can be reached on Linkedin and you can tweet him at The_hybrid_guy on Twitter. Find his page on Facebook at Certified Auto Consulting. Read more of Peter's stories at Toyota news coverage on Torque News. Search Toyota Prius Torque News for more in depth Prius coverage from our reporter.