The global semiconductor shortage is showing no signs of easing – and prices of nearly-new cars are continuing to rise as a result.
Leafing marketplace Auto Trader reports that 1 in 4 nearly-new cars (those aged 12 months or less) now cost more than their brand new equivalents.
What’s more, half of all nearly-new cars are now priced within 5 percent of a brand new motor.
Indeed, prices are rocketing for all used cars, with the average price of a secondhand car surging 30.5 percent in 2021.
The average used car on Auto Trader now costs £17,816.
Despite the rising prices, used cars are also flying off the forecourts faster than ever; the time to sell fell 28 percent last year, from 41 days to 32.
‘Bubble burst’ unlikely
“2021 was a remarkable year fo the automotive industry,” said Auto Trader’s Richard Walker.
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“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 year.
“The two main factors fuelling this, supply constraints and strong customer demand, both show no signs of easing any time soon.
“Claims of an imminent ‘bubble burst’ are failing to take these key dynamics into account.”
Beat the queue
Auto Trader says that customers are switching to nearly-new in order to beat lengthy waiting times for new cars. Some manufacturers are quoting 12 months or more.
The switch is being encouraged by manufacturers significantly reducing consumer offers due to the semiconductor shortage.
These would ordinarily be used to drive demand – but with this exceeding supply, car makers have less need to offer such attractive incentives.
The eagerness to find suitable nearly-new cars is also behind a huge 27 percent increase in visits to Auto Trader during 2021, adds the firm – cementing its position as the UK’s leading new and used car marketplace.