‘Remarkable’: Second-hand cars cost more than a brand new model as prices surge

Second-hand items: Expert gives advice on selling online

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Values of used vehicles have been at record levels since the middle of the year as a result of the semiconductor chip shortages. This has affected the manufacturing of new cars, as well as the supply to new customers, forcing some to choose to buy a used car.

The average used car price during December rose to £17,816, which is 30.5 percent higher than the same month in 2020, according to Auto Trader.

The data also found that a quarter of “nearly new” cars – those less than 12 months old – were selling for more than more than the list price of an equivalent brand new model.

Richard Walker, Auto Trader’s Director of Data and Insights, commented: “2021 was a remarkable year for the automotive industry.

“Used vehicle pricing saw double-digit growth and used cars flew off the forecourts in record time.

“Despite ongoing restrictions, our sector has remained resilient in the face of significant challenges and is on track for strong continued price growth well into the second half of the new year.

“The two main factors fuelling this growth, supply constraints and strong consumer demand, both show no signs of easing anytime soon.

“Claims of an imminent ‘bubble burst’ are failing to take these key dynamics into account.”

The Seat Alhambra saw the biggest growth in price, rising to £19,038, up from just £15,130 in December 2020.

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Other high performing models included family-friendly vehicles such as the Renault Grand Scenic, Skoda Octavia and Ford S-Max which all saw prices of more than 46.9 percent.

This comes as new research has found that the cost of a new car could cost almost 50 percent of an average salary.

Drivers on an average UK salary would be spending 47.2 percent of yearly earnings on a used car.

The current average price of a used Vauxhall Corsa-e, the electric version of 2021’s most popular car, is £23,538 – three quarters of the current average salary.

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