Used automobile patrons face a double-whammy of considerably increased costs and difficulties discovering accessible and appropriate fashions, new studies warn.

Values of used motors have been at file ranges for the reason that center of final yr because of the semiconductor chip shortages limiting new automobile manufacturing and provide to prospects.

The common used automobile worth throughout December rose to £17,816, which is 30.5 per cent increased than the identical month in 2020, the most recent retail worth index from Auto Dealer exhibits.

And greater than 4 in 5 sellers have responded to a examine to say they’re discovering it troublesome to replenish their inventory of used vehicles as shopper demand and sky-high costs present no indicators of slowing.

Used car prices up almost a third: Used prices have risen by 30.5% year-on-year, up from £13,652 in December 2020 to £17,816 last month, according to Auto Trader

Used automobile costs up virtually a 3rd: Used costs have risen by 30.5% year-on-year, up from £13,652 in December 2020 to £17,816 final month, in response to Auto Dealer 

Auto Dealer claims the worth of like-for-like second-hand vehicles marketed on its web site final month has risen by greater than £4,000 in comparison with the yr earlier, when a used automobile value – on common – £13,652. 

December was the twenty first consecutive month that common costs had elevated, ‘pushed by distinctive market dynamics, specifically the very excessive ranges of shopper demand out there,’ says the automobile gross sales web site. 

That is largely because of automobile patrons dealing with prolonged delays in receiving orders for brand spanking new vehicles, with the chip scarcity which means those that place an order for a mannequin immediately won’t take supply till 2023. 

With shoppers unwilling to attend months for deliveries, the shift to the used market pushed the worth of 1 in 4 ‘almost new’ fashions – these lower than a yr previous – above their model new equivalents. 

In truth, in December the common asking worth of an almost new car elevated by a colossal 45 per cent when put next with two years prior in December 2019, reaching a mean worth of £34,429. 

Values of used motors have been sky-rocketed since the middle of last year as a result of the chip shortage limiting new car production and supply of zero-mile motors to customers

Values of used motors have been sky-rocketed for the reason that center of final yr because of the chip scarcity limiting new automobile manufacturing and provide of zero-mile motors to prospects

Used vehicles which have risen most in worth within the final 12 months

Used Seat Alhambras have risen most in value in the last 12 months, according to Auto Trader. The average advertised price in December was £19,038, up from £15,130 12 months prior

Used Seat Alhambras have risen most in worth within the final 12 months, in response to Auto Dealer. The common marketed worth in December was £19,038, up from £15,130 12 months prior

1. Seat Alhambra – up 50.4%

Dec 2020 worth: £15,130

Dec 2021 worth: £19,038

=2. Renault Grand Scenic – up 47%

Dec 2020 worth: £7,694

Dec 2021 worth: £10,152

=2. Skoda Octavia – up 47%

Dec 2020 worth: £12,104

Dec 2021 worth: £16,826

4. Ford S-Max – up 46.9%

Dec 2020 worth: £11,633

Dec 2021 worth: £15,142

5. Skoda Yeti – up 46.5%

Dec 2020 worth: £10,396

Dec 2021 worth: £12,739

6. Ford Focus – up 45.8%

Dec 2020 worth: £10,771 

Dec 2021 worth: £15,475

7. Land Rover Defender 110 – up 45.5%

Dec 2020 worth: £58,506

Dec 2021 worth: £81,857

8. Hyundai i30 – up 43.9%

Dec 2020 worth: £9,647

Dec 2021 worth: £13,963 

9. Toyota Yaris – up 42.9%

Dec 2020 worth: £10,009

Dec 2021 worth: £13,647

10. Ford Grand C-Max – up 42.4%

Dec 2020 worth: £9,492

Dec 2021 worth: £12,189

Supply: Auto Dealer 

Heightened demand can be contributing to a rise within the velocity through which vehicles are promoting, Auto Dealer’s file present.

Final month, the common used automobile offered 28 per cent sooner than in December 2020, with motors on web site for simply 32 days (down from 41 days a yr earlier).

The 2 primary elements fuelling worth development – provide constraints and robust shopper demand – each present no indicators of easing anytime quickly

Richard Walker, Auto Dealer

Such is the speedy turnaround in vehicles that used motor sellers have stated they’re struggling so as to add to their quickly diminishing inventory of automobiles.

4 in 5 automobile sellers say they’ve seen a surge in used vehicles within the final six months, accordingly to analysis by Shut Brothers Motor Finance.

Its newest Seller Satisfaction Survey of 200 motor retailers throughout the UK discovered that greater than half have seen a ‘important’ enhance in demand for used automobile inventory, while 26 per cent have seen a ‘slight’ enhance. 

The overwhelming majority (83 per cent) of sellers say the semiconductor scarcity has meant there merely just isn’t sufficient inventory to satisfy present file ranges of shopper demand, while 88 per cent admit that getting inventory for his or her forecourts has turn out to be difficult. 

December was the 21st consecutive month that average prices had increased, second-hand car website Auto Trader says

December was the twenty first consecutive month that common costs had elevated, second-hand automobile web site Auto Dealer says

With consumers unwilling to wait months for deliveries of new models, one in four ‘nearly new' motors (those less than a year old) were listed in December above their brand new equivalents

With shoppers unwilling to attend months for deliveries of latest fashions, one in 4 ‘almost new’ motors (these lower than a yr previous) had been listed in December above their model new equivalents

Will used automobile costs fall in 2022? 

With the semiconductor chip scarcity trying set to restrict new car outputs all through this yr and types already quoting lead instances of greater than a yr to prospects, specialists say there’ll unlikely be a drop in second-hand automobile values any time quickly. 

Insiders have predicted a ‘softening’ to spiraling costs this yr, with many questioning how a lot increased costs of used vehicles can go. 

Richard Walker, director of knowledge and insights at Auto Dealer, described 2021 as ‘a outstanding yr’ with ‘double-digit development’ in used automobile costs and motors ‘flying off forecourts in file time’.

And he warned that it will proceed to be the case till new automobile manufacturing returns to full capability and prospects revert their focus away from the used motor market. 

He stated: ‘The 2 primary elements fuelling the expansion within the used automobile market, provide constraints and robust shopper demand, each present no indicators of easing anytime quickly. 

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

December’s worth development on a extra granular foundation, there was  year-on-year worth development for petrol of 31.5 per cent and for diesel 30.9 per cent respectively.  It means the common petrol mannequin value £16,641 final month whereas diesels had been marginally dearer at £17,672.

Electrical automobiles additionally posted worth will increase of over 30 per cent. 

When it comes to fashions, the seven-seat Seat Alhambra MPV noticed the most important rise in common values, up from £15,130 in December 2020 to £19,038 final month – a year-on-rise enhance of fifty.4 per cent.

The Renault Grand Scenic and Ford S-Max – MPVs of an identical ilk to the Alhambra – additionally posted common used worth rises of 47 per cent.  

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