- Semiconductor chip shortages mean order wait times for new cars could be longer than a year
- More drivers are switching to used market to replace motors, increasing second hand value by 21%
- Cap HPI has provided us specific data on which model price is being used higher than the new price
- They’re a one-year-old motor with 10,000 miles on the clock – on average – up to 19% off list prices
Car buyers who are increasingly impatient with delivery delays for new motors are paying more for a used model a few years older than if they ordered it straight from the factory.
The never-before-seen spike in used prices in recent months is the result of an ongoing computer chip shortage that has limited new vehicle production and pushed back delivery schedules for some of the latest models.
The average price paid for second-hand cars is a never-before-seen high, rising by more than a fifth in September alone.
Exclusive data cap HPI provided by vehicle valuation experts shows which 12-month-old models are most in demand right now, with drivers paying 20 percent more than the ‘list price’ for a car with 10,000 miles already on the clock. are ready to pay.
Premium paid for second-hand cars: The average price of used motors listed on AutoTrader last month increased to £16,067, up 21.4% from £13,829 in September 2020. And that means some used models are now selling for higher prices than the new ones…
The country’s largest used car sales platform, Auto Trader, says the prices of used cars have risen for 18 consecutive months – essentially since the pandemic.
With the outbreak of COVID-19 to shut down car factories for at least six weeks from March 2020 – and a shortage of computer chips since then – order books are rapidly bursting and delivery schedules are, in some cases, longer. Extended to 12 months.
Last month, the average price of a used car listed on AutoTrader rose to £16,067, a 21.4 per cent year-on-year increase from £13,829 in September 2020. And that means some used models are now selling for higher prices than the new ones.
Which second-hand cars are selling for more than their new prices?
The CAP HPI, which tracks used car sales and provides vehicle valuation information to drivers, provided information on which year-old motors are currently changing hands for above their average list prices.
Topping the charts is the previous generation Dacia Sandero, which was replaced with a new version earlier this year.
The average price paid for a new one – where the stock resides – is £9,773 while the average selling price A used example with 10,000 miles on the clock is £11,673 – a premium of 19.4 percent.
Similar is the case with the all-new Sandero. Cap HPI says a used price for the six-month-old version is £12,908, while ordering a newer example will – on average – cost only £11,843.
This means buyers are currently willing to pay the same for the one-year-old previous-gen Sandero as the latest example due to the long wait they take.
It’s also ideal for the year-old Duster SUVs, which are about £1,000 more expensive – and with 10,000 miles already clocked up – than their new price orders.
The average price paid for Dacia’s outgoing Sandero Supermini – where stocks live – is £9,773, while the average selling price for used examples with 10,000 miles on the watch is £11,673 – a premium of 19.4%
Such is the case with the brand new Sandero (pictured at left). The used price for the six-month-old version is £12,908, while ordering a newer example will – on average – cost only £11,843. A used premium is also currently the norm for the older Duster SUV (pictured right), which is about £1,000 more expensive – and with 10,000 miles already clocked up – than its new price orders.
Source: Cap HPI data accurate as of end of September 2021
Darren Martin, Head of Valuations at Cap HPI, told us: ‘Everything has gone up in value in recent weeks.
“This is because of strong demand and constraints on the supply of new cars, which leads to issues with older cars as you are not getting the part-exchange and inflow of older models into the market.
‘What is most surprising is that poorly standard mainstream cars are increasing in value, though not all necessarily top the list. But Sandero and Duster are exceptions.
Other examples of the year-old mainstream model being more expensive than the new model include the diesel Range Rover Evoque as well as…