The used cars selling for MORE than new models
ANY motorist knows that the value of a new car plunges the moment it is driven out of the showroom.
But in a bizarre new twist, research by The Mail on Sunday has found that used cars are selling for thousands of pounds more than new versions.
The situation, described as ‘bonkers’ by one industry veteran, has been prompted by a shortage of new vehicles. With demand vastly outstripping supply, used-car prices have soared by more than a quarter in the past six months. While nearly-new secondhand cars are fetching the highest prices, research shows that even some five-year-old models are selling for more than new ones.
Analysis for The Mail on Sunday by online car retailer Cazoo found that the average three-month-old Kia Sportage was for sale at £25,998 last week, compared with £22,405 new.
A three-month old Volkswagen T-Roc cost £31,989 compared with £26,230 new. A three-month-old Nissan Juke was typically listed at £24,825 secondhand last week against £20,995.
Data from Autotrader showed that a five-year-old Ford Mustang 5.0L V8 GT Fastback SelShift was on the market for £75,000 – an astonishing 53 per cent more than a new model at £48,990. A two-year-old Nissan Micra IG-T Acenta was listed at £13,300, outstripping £12,844 for a new version, while an 18-month-old Mercedes G-Class had lost none of its value at the same £164,995 as a 2021 model.
The pandemic has led to a worldwide shortage of semiconductor microchips used in cars, caused by factory shutdowns and competing demand. Fewer cars are being produced, with a corresponding fall in used cars being sold.
Last night, Daksh Gupta, a 28-year veteran of the industry and boss of Marshall Motor Group, said the ‘very, very unique and unprecedented’ circumstances meant that some motorists could sell their used car and snap up a new vehicle for less money, if they could find one.
He said: ‘It’s bonkers, but a good situation for consumers as the car
‘It’s bonkers, but a good situation for consumers’
holds its value and the cost of switching vehicles becomes smaller.’
Figures from the Society of Motor Manufacturers and Traders last week showed that only 214,000 new cars were sold in September, the lowest total for more than two decades.
Mr Gupta added: ‘There will be a gradual reverse out of this rather than a sudden crash.
‘Even if someone suddenly found a trillion chips in a cave, the car manufacturers would not have the production capacity to suddenly build lots more.’