In recent times, there has been a noticeable decrease in used car prices. This reduction in 2024 follows the price hike observed from 2021 to 2023, effectively correcting the used car market.

The anticipated continuation of this decrease, however, remains uncertain due to the recent developments in the Red Sea and the Houthi attacks. This situation keeps the market fluid, and it's possible that prices may stabilize for some time, albeit at lower levels than those seen in 2022.

Speaking to Brief, a key player in the used car market explained that the drop in prices is a result of the normalization of the supply chain and a decrease in shipping costs.

It's crucial to remember that especially in 2022, the war in Ukraine and various pandemic-related impacts negatively affected the supply chain, causing shortages and price increases in raw materials. This led to a rise in car prices and significant delays in transportation. Consequently, many Cypriots turned to the immediate purchase of used cars, pushing their prices higher.

Now, as the same source notes, the supply chain has been restored. Moreover, with this correction, several dealerships now have new and used cars ready for delivery.

When asked about potential price increases in cars due to the issues in the Red Sea following Houthi attacks and the consequent change in shipping routes, leading to higher freight costs and container prices, the source mentioned that the future impact will become clear if these problems persist.

However, for the time being, the repercussions of these attacks have not yet significantly affected the market, and any forthcoming impacts are expected to be limited.