Cars up to a year old are selling for more than they cost new, a report showed yesterday.
The average price of second-hand vehicles has risen 24 per cent in 12 months as record numbers change hands.
Data from Auto Trader shows that around 10,000 used vehicles registered in the past year – 17 per cent of the total – are on sale for more than the showroom price.
Some used models are being sold for up to £7,000 more than where customers buy them new.
Last week was the 76th in a row that their prices have risen. The boom is being driven by problems in rolling out new cars because of critical shortages of semiconductor chips.
It means impatient buyers are turning to the used market rather than waiting for new models.
The analysis showed the average price of a used vehicle was £19,018.
But the electric Skoda Enyaq had an average second-hand cost of £46,970 compared with £39,960 new. Volkswagen’s electric ID.3 was £33,000 second hand but £28,990 out of the factory.
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For a petrol Peugeot 208, the figures were £24,000 and £21,410 respectively (representing 13 per cent more for second hand).
When cars more than a year old are included, some models have seen their second-hand average asking price increase by more than 40 per cent.
These include the Jaguar XK, Hyundai i30 and Ford Focus.
In August, production of cars slumped by more than a third due to the semiconductor chip shortage. The chips are used for controlling functions such as winding down windows electronically and cars cannot be built without them.
Industry experts say the shortage may effect automative supply chains until mid-2022.
The spike in second-hand sales, which has seen the market grow by more than 108 per cent, is also due to the emergence from lockdown.
The reluctance to return to public transport and a backlog in young people passing driving tests after having to postpone them due to the pandemic are also fuelling demand.
Auto Trader’s Richard Walker said: ‘With levels of used-car price growth once again smashing previous records, there is a lot of speculation around how long this boom could last.
‘While inflation in itself does pose a potential risk to consumer demand, we don’t expect to see price growth slow any time soon.’
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said motorists were turning to used cars because of supply shortages, with others seeking personal mobility and ‘remaining wary of public transport as they return to work’.Internet Explorer Channel Network