When Will Used Car Prices Drop? Insights from Japan’s Used Car Export Market
The global used car market has seen unprecedented price increases over the past few years. From pandemic-related supply chain disruptions to rising shipping costs and currency fluctuations, several factors have combined to push prices higher worldwide. In this article, we’ll explore why used car prices have been so high, whether they might drop in 2025, and what overseas buyers can do to make smart purchasing decisions. Why Used Car Prices Have Been So High? Global supply chain disruption and shortage of new cars The COVID-19 pandemic caused major disruptions in global manufacturing and logistics networks. Shortages of semiconductor chips delayed new car production, pushing consumers toward the used car market instead. Even as factories resumed operations, demand continued to outpace supply, keeping prices elevated. Increased global demand for Japanese used cars Japan’s reputation for high-quality, well-maintained used vehicles has driven strong international demand. Buyers from Africa, the Middle East, and Oceania are turning to Japanese auctions and exporters more than ever before. As a result, competition has intensified — and so have auction prices. Currency fluctuations and shipping costs Currency exchange rates, especially the weak Japanese yen, have influenced export pricing. While a weaker yen benefits foreign buyers by lowering…