Used cars: used vehicles cost more than new models – “remarkable”
Used vehicle values have risen to record highs since mid-year due to shortages of semiconductor chips. This affected the manufacturing of new cars, as well as the supply of new customers, forcing some to choose to buy a used car.
The average price of used cars in December rose to £17,816, 30.5% higher than the same month in 2020, according to Auto Trader.
The data also revealed that a quarter of “almost new” cars – those less than 12 months old – were selling for more than the list price of an equivalent new model.
Richard Walker, Director of Data and Insights at Auto Trader, said: “2021 has been a remarkable year for the automotive industry.
“Used vehicle prices have seen double-digit growth and used cars are flying off the forecourts in record time.
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At the more prestigious end of the electric car scale, a used Tesla Model 3 will cost you £53,579 on average, or 171% of the average salary.
Andy Alderson, CEO and Founder of Vanarama, acknowledges the difficulty of upgrading at the moment, but thinks some smart purchases could earn you a lot.
He said: “Generally the cost of living in the UK is rising year on year, but used car prices are rising even faster – up 24% over the last five years.
“Thanks to increased demand and global supply issues, this is expected to stretch into 2022.
“However, there are still deals to be had for those in the market. The current stock avoids long delays and additional costs for a used vehicle.
“It’s a tough time to search for your next car, but a little research and a little patience will get you in the right place!”
With prices remaining high, they are expected to remain high in the coming months as global productions remain impacted by the pandemic.
Derren Martin, head of valuations at cap hpi, said: “Semiconductor and other component shortages and logistics issues are not going away anytime soon and new car supply will continue to be affected. until the second half of 2022.
“We could well see a more normal second half as far as deflation is concerned.
“Let’s not forget that the value of used cars generally declines as cars age in their life cycle.
“It will be important to stay close to daily live values in what could be another tumultuous year.”