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.
At the more prestigious end of the electric car scale, a used Tesla Model 3 will set you back £53,579 on average, or 171 percent of the average salary.
Andy Alderson, Vanarama CEO & founder, acknowledges the difficulty in upgrading at the moment, but believes some smart shopping could get you a great deal.
He said: “Generally, the UK cost of living increases year on year, but used car prices are rising quicker still – up 24 percent in the last five years.
“Thanks to heightened demand and global supply issues, that’s likely to stretch into 2022.
“However, there are still deals to be had for those in the market. Current stock avoids lengthy delays and paying over the odds for a second-hand vehicle.
“It’s a tricky time to be on the search for your next car, but a little research and some patience will land you in good stead!”
With prices remaining high, it is expected that prices will remain high in the coming months as global productions remain affected by the pandemic.
Derren Martin, head of valuations from cap hpi, said: “The semiconductor alongside other component shortages and logistics issues are not going away anytime soon and new car supply will continue to be affected well into the second half of 2022.
“We may well see a more normal second half of the year with regards to deflation.
“Let’s not forget that used car values do generally drop as cars age in their lifecycle.
“It will be important to keep close to live, daily values in what could be another tumultuous year.”