5 Distinct Used Car Prices That Have Skyrocketed in Value This Year
The pandemic’s impact on the semiconductor shortage has resulted in a massive backlog of new car models that car manufacturers are unable to create. As a result, there has been an increase in demand for used cars, along with exceptional growth in used car prices and value. The automotive industry has undergone one of its longest shortages due to all of these factors affecting production. The financial damage extends beyond the automotive sector, negatively impacting smartphones, computers, and other consumer goods.
Auto Trader, the nation’s most used second-hand car online platform announced their online traffic levels are 27% higher than they were two years ago with users spending 14% more time researching the automotive marketplace. This is a reason why it’s essential for used car dealerships to improve their online presence while demand is high. To learn more about how to set up and improve your online presence on Google, click here.
With the UK now in the 83rd consecutive week of the increase in used car prices, the cost of second-hand motors, along with record fuel prices have become a major contributing factor to inflation, increasing up to 4.2% in October compared to the beginning of the year.
Despite signs of a seasonal downturn in November [eBay Motors Group], the market continues to grow rapidly and shows no signs of slowing, with the shortage yet to be overcome, as more than a quarter of used cars currently costing more than their most recent models. Even in October, when sales typically decline, sales were made 16 percent faster than in 2019.
What can we expect for January and the rest of 2022?
In the six months leading up to 2022 the used car industry has experienced five years of growth in just six months. However, industry observers disagree on the direction the market may go.
Many believe the industry expansion is forecasted to last through 2022, pushing lead times for shipping and manufacturing new cars into 2023 as demand continues to grow and car value rises.
However those that disagree with this prediction expect the market to crash. Nationalword.com has explored this question further with the negative mindsets causing clashes among industry expertise.
Second-hand car values will crash in the coming year, according to one car finance chief. Values of used models have been soaring for the last 18 months but one industry observer claims that a “market correction” will see values fall dramatically in the new year.
With the future of the used car industry unclear we take a look at the used cars that have increased in value the most during 2021.
Used cars that have increased in value
1. Land Rover Defender 90
The vehicle that received the biggest increase in value throughout 2021 was the short wheelbase, three-door Defender 90. The previous-generation 4×4 has been in hot demand since the production in January 2016, so there’s no surprise the Defender 90 is proving immensely popular since it has doubled in price costing a consumer in the £79,022 region, as offered on Auto Trader. That’s a 104.2% price increase in the last 12 months! The waiting times to get one is between 9 and 12 months. Where as the Defender 90 Carpathian Edition is listed for used up to £150,000.
2. Seat Alhambra
One size really fits all with the spacious Alhambra family car. Taking its popularity with the British public this year in second place for the biggest increase in used cars with buyers expected to pay £19,106. That’s a price increase of 49.2%!
3. Peugeot 207 CC
207 CC is a stylish and well equipped small convertible that won’t leave car buyers faffing with roof problems unlike the car model released before this one. The 207 CC holds an average asking price of £3,331. Whilst this is an affordable model, it’s an increased price change of an outstanding 46.8%.
4. Ford Focus
Due to the huge acceleration in used car prices, the Ford Focus is now averaging an asking price of £15,149 from used car consumers, which is 44.2% more since before the shortage of the semiconductor. The compact car along with the Ford Fiesta always remains a top choice for consumers, whether it’s new or used.
5. Renault Grand Scenic
Renault Grand Scenic has proven to be a favourite choice for large families, long journeys for comfort and storage space. Perhaps this is due to the popularity of staycations since there have been ongoing restrictions regarding the ever-changing climate of travelling abroad. The result of the consumer demand and decline in used Renault Grand Scenic stock has led the Grand Scenic to receive a price increase of 43.9%, asking used car buyers for £9,423.
How do you believe the market will change in 2022? Let us know by tagging us in your social post and using the hashtag #StayConnected
We love helping used car dealers further increase their used car sales so we created ‘Connected Academy’ to give dealerships exclusive access to tools, tips and techniques to help expand their business, sales and marketing knowledge. Click the suggested articles below to find out more.
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