Cars less than a year old sell for more than they cost new, according to a report released yesterday.
The average price of used vehicles has increased 24% in 12 months, as a record number changes hands.
Auto Trader data shows that around 10,000 used vehicles registered in the past year – 17% of the total – are on sale for more than the showroom price.
Some used models are priced up to £ 7,000 more than where customers buy them new.
Last week was the 76th in a row that their prices had increased. The boom is fueled by problems with deploying new cars due to critical shortages of semiconductor chips.
Cars less than a year old sell for more than they cost new, as some models have seen their used average asking price increase by more than 40%, including the Jaguar XK (pictured, issue 1), the Hyundai i30 and the Ford Focus.
This means impatient buyers are turning to the second-hand market rather than waiting for new models.
The analysis showed that the average price of a used vehicle was £ 19,018.
But the electric Skoda Enyaq had an average used cost of £ 46,970, compared to £ 39,960 new. Volkswagen’s electric ID.3 cost £ 33,000 used but £ 28,990 outside the factory.
For a petrol Peugeot 208, the figures were £ 24,000 and £ 21,410 respectively (13% more for the occasion).
When cars over a year old are included, some models have seen their average used asking price increase by more than 40%.
These include the Jaguar XK, Hyundai i30 and Ford Focus.
In August, car production fell by more than a third due to the shortage of semiconductor chips. Chips are used to control functions like electronic window closing, and cars cannot be built without them.
The boom is being fueled by problems with rolling out new cars due to critical semiconductor chip shortages, which means impatient buyers are turning to the second-hand market rather than waiting for new models. Pictured: Hyundai i30, 2017 model
Industry experts say the shortage could affect automatic supply chains until mid-2022.
The surge in second-hand sales, which has seen the market grow by more than 108 percent, is also due to the exit from foreclosure.
Reluctance to return to public transport and a backlog of young people taking driving exams after having to postpone them due to the pandemic are also fueling demand.
Richard Walker, Auto Trader, said: “With the growth levels of used car prices once again shattering previous records, there is a lot of speculation about the duration of this boom.
“While inflation itself poses a potential risk to consumer demand, we don’t expect price growth to slow down anytime soon. “
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said motorists were turning to used cars due to supply shortages, while others sought personal mobility and “remained wary of public transport when they returned to work ”.