Used car prices soaring in Israel
'People sought cars for their children in the army and grandpa who had been using the bus to get around'
The prices of used cars in Israel are soaring at an unprecedented rate, even faster than residential real estate.
In January 2021, the price of a 2020 Audi E-Tron was $93,700 on Yad2, an Israeli app where users can buy and sell second-hand items.
By the end of last year, though, the price of a second-hand model surged to over $114,000, Hebrew-language newspaper Globes reported.
The price increase is not only affecting luxury cars either - a 2021 Kia Niro hybrid that was selling for $42,000 in January 2021 cost over $50,000 by the end of the year.
"I don't ever remember such a situation," said Yad2 car price list department head Moti Anav.
"Until the Covid pandemic, the annual fall in value on the used car market stayed within the 15 percent to 19 percent range,” Anav continued.
“During 2021… the price of luxury cars like Audi, instead of falling 15 percent, had risen 21 percent.”
Such a surge in prices has not been seen in the used car market since the 1980s, a phenomenon due to demand exceeding supply, which halted because of the pace of manufacturing, according to Globes.
"At the start of Covid there was complete panic and the industry went into stagnation,” said trade0in company Trade Mobile CEO Sagiv Magar.
"People sought cars for their children in the army and grandpa who had been using the bus to get around," he told Globes.
"To this equation, add the fact that people weren't traveling abroad, were spending money on entertainment, and had more money to indulge on upgrading on their existing car."