Car buyers are becoming more and more impatient with the delays in the delivery of new motors. They pay more for some used models that have been in use for a year than for models ordered directly from the factory.
In recent months, there has been an unprecedented surge in use value. This is due to the continuous shortage of computer chips that has restricted the production of new cars and has significantly delayed the delivery schedule of some of the latest models.
The average price of used cars is at an unprecedented high, soaring by more than one-fifth in September alone.
Exclusive data provided by car valuation expert cap hpi shows which 12-month-old models are currently in the highest demand, and drivers are willing to pay 20% higher than the “list price” for a car that has driven 10,000 miles.
Paying a premium for used cars: The average value of used motors listed on Auto Trader last month rose from £13,829 in September 2020 to £16,067, an increase of 21.4%. This means that some second-hand models are now priced higher than new ones…
Auto Trader, the largest used car sales platform in the United States, said that the value of used cars has increased for 18 consecutive months-basically since the pandemic.
As the Covid-19 outbreak forced auto factories to close for at least six weeks from March 2020 — and subsequent computer chip shortages — orders surged, and delivery schedules have been extended to more than 12 months in some cases.
The average value of used cars listed on Auto Trader last month rose from 13,829 GBP in September 2020 to 16,067 GBP, an annual growth rate of 21.4%. This means that some second-hand models are now priced higher than the prices of new models.
Cap hpi tracks used car sales and provides vehicle valuation information to drivers. It provides This is Money with information about which years of use cars are currently changing hands at a price higher than their average list price.
At the top of the list is the previous generation Dacia Sandero, which was replaced by a new version earlier this year.
The average price of a new car—and inventory—is 9,773 pounds, while the average price of a used car that travels 10,000 miles on the clock is 11,673 pounds—a 19.4% premium.
The brand-new Sandero has a similar situation. Cap hpi said that the use value of the six-month old version was £12,908, while the average price of the new sample ordered was only £11,843.
This means that buyers are currently willing to pay roughly the same price for the previous generation Sandero a year ago, because they are the latest examples, simply because of the long waiting time.
This is also the standard of the Duster SUV that has been in use for a year. Compared with the new price directive, the price of a used car is about 1,000 pounds higher, and it has already driven 10,000 miles.
The average price of Dacia’s outgoing Sandero supermini-still in stock-is £9,773, while the average price of a second-hand example with 10,000 miles on the clock is £11,673-a 19.4% premium
The brand new Sandero (pictured on the left) has a similar situation. The second-hand value of the six-month old version is £12,908, while the average price of the new sample ordered is only £11,843. The second-hand premium is also the norm for the Duster SUV (pictured on the right) that has been used for one year. The second-hand price is about 1,000 pounds higher than the new price and has been driven 10,000 miles.
Derren Martin, head of valuation at cap hpi, told us: “In recent weeks, the value of everything has gone up.
“This is due to strong demand and limited supply of new cars, which has caused problems with used cars because old models cannot enter the market and get parts exchange and traffic.”
‘The most surprising thing is that the value of swamp-standard mainstream cars is rising, although not necessarily all are on the list. But Sandero and Duster are an exception.
Other examples where mainstream models were more expensive than new models a year ago include the diesel Range Rover Evoque and the fuel Land Rover Defender and Discovery Sport.
This is on the basis of Land Rover’s confirmation that some of its new models will now have to wait more than a year on the waiting list.
Jaguar Land Rover said earlier this year that due to a shortage of semiconductor chips, the waiting time for some of its models exceeded one year. This makes the average use value of Range Rover Evoque (left) and Land Rover Defender (right) diesel a year ago higher than the new list price by £3,000
The second-hand value of Minis Coopers with 10,000 miles on the clock is 6% higher than the new list price of the model. The one-year-old second-hand Cooper S (pictured) is also 3.7% higher than the list price
Other examples of mainstream motors on the standings are Mercedes CLA Coupe, Mini Cooper, Volvo XC40, MG ZS and Ford Puma.
The remaining 25 cars listed by cap hpi are sold at a second-hand premium as “ideal models”, which may sometimes require higher value due to the small production volume and exclusivity.
For example, the average price of a new Porsche 718 Spyder sports car is 86,250 pounds, while the new model is 74,850 pounds. The situation is similar for the Macan compact SUV, where used cars are currently about 14% more expensive than new cars.
Martin told us that aspiring models like Porsche, Ford Mustang and Lamborghini Urus have been around for a year, and they “usually bubble up” around new car prices.
The same is true for Toyota GR Yaris, a popular hatchback inspired by the Japanese brand of rally racing, which is relatively limited in number and praised by critics around the world for its incredible performance. GT86 sports cars are also on the rise, although this is because this first-generation model has been discontinued and will be replaced by a new version.
Volkswagen’s California is another vehicle with an exceptionally strong residual value in history, and there is a huge demand for expensive camper second-hand vehicles-especially in recent months, as Covid-19 has affected the large-scale holiday in the UK Prosperity.
Cap hpi said that, like the Macan in the picture, Porsches usually maintain their value well, although it is still rare that the price of used cars is higher than the price of new cars.
Want a Porsche 718 Spyder? If you are unwilling to wait for new samples with an average price of £74,850 to arrive within a few months, you will have to pay a premium of £11,400 to get today’s second-hand samples-and the average price is 10,000 miles covered
In the list of high-priced 25-year-old cars on new models, only two electric models have features: Tesla Model X and Porsche Taycan.
Both are the “ideal” cars with smaller output as described by cap hpi, which means that second-hand premiums are often more common.
As more and more drivers consider switching to electric vehicles, why don’t more battery cars have a higher price of used cars than new ones?
“Part of the reason is that their prices tend to be high, so it is difficult to exceed these prices,” Deren Martin told us.
‘Second-hand electric vehicles are already very expensive, so it is difficult to increase their value. When you compare them with gasoline and diesel equivalents, the former is more valuable.
Cap hpi experts said that the value of used cars for electric vehicles is already so high, because there is still more demand for new electric vehicles than used cars, and buyers are more willing to wait for delivery. In other words, the average value of the Tesla Model X a year ago was 9.6%-about 9,000 pounds-higher than the new list price
The only other electric model in the list of the 25 highest premium cars used in the Porsche Taycan example
“Once the price of a used car is higher than that of a new car, it is almost unsustainable. However, if you can’t buy a new car, it may last longer than most experts predict.
Mr. Martin added that the second-hand market may stabilize before it starts to decline, although this may not happen for a while: “The current shortage of semiconductor chips has no signs of ending, and we think it will continue until the second half of next year. normal.
‘This means that the number of cars entering the market will be reduced a lot, and this phenomenon of higher value of second-hand cars will continue.
“And even if demand drops, we don’t think there will be enough supply to quickly reverse the sharp rise in second-hand prices.”
An average of 362,000 used cars were listed for sale on Auto Trader every day last month. In comparison, the average number of people a year ago was 381,000, a decrease of 5%.
Richard Walker, director of data and insights for the car sales website, said: “The shortage of new and used cars has led to a sharp increase in used car prices, and the current increase is more than 20%.
“On the surface, this price increase may be seen as a disadvantage for car buyers who are forced to spend more on the next car. However, similar to moving, if you have a car to sell, Whether it is privately or as a part exchange, it will also rise proportionally, which will help balance growth.
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Post time: Nov-04-2021