One in 5 nearly-new vehicles are actually promoting at greater than their brand-new equivalents, as disruption to provide chains continues to push used vehicles to document values.
The closure of forecourts due to Covid and an ongoing scarcity of semiconductors are the principle forces behind a significant mismatch of provide and demand, which has been worsening over the previous few months. The common worth of a used automobile on Auto Dealer’s market has elevated 29% during the last yr, in keeping with its newest figures. Common costs are up greater than £4,200 in simply six months.
The weird spectacle of nearly-new vehicles promoting for greater than their brand-new worth has been fuelled by consumers having to hitch lengthy ready lists for brand spanking new vehicles, prompting them to go to the secondhand market.
Almost-new vehicles are these as much as a yr previous. Amongst these promoting above their brand-new worth are fashions of the Good Forfour, the Toyota RAV4 and the Volkswagen Tiguan.
It comes with the complete used-car market seeing document costs. Of the ten fashions that noticed the least worth development for the reason that begin of final February, solely the underside three fashions really noticed a drop in worth on Auto Dealer’s website. The common worth for a automobile on its website is greater than £20,000 and has elevated for 93 consecutive weeks.
Ian Plummer, Auto Dealer’s business director, mentioned that there was little prospect of a swift “bubble-bursting second” that might see second-hand costs return to decrease ranges. “By way of new vehicles, we estimate that most likely about one million and a half vehicles fewer have been bought within the two years of 2020 and 2021,” he mentioned. “I feel the market will nonetheless be half one million or so shorter than it will ordinarily be this yr. On prime of that, extra usually, there’s a big urge for food for automobile possession.
“Provide and demand are concurrently swinging fairly dramatically away from one another. I’m certain this can slender over time, however it doesn’t really feel like there’s going to be radical modifications in both metric in a short time.”
The variety of used vehicles exceeding the worth of their brand-new variations will not be restricted to the UK. Producers, together with Ford, Volkswagen and Toyota, have all just lately mentioned that they’re nonetheless struggling to take care of the influence of the semiconductor scarcity hitting manufacturing targets.