New data from CAP HPI has revealed that some used cars are selling for more than their brand new counterparts, highlighting the extreme increases in used car values. The ongoing semiconductor shortage is continuing to throttle production of new cars, with wait times for brand new models often exceeding a year. This has sent demand for used cars skyrocketing and taken prices with it. The recent data from CAP HPI included over 25 models, all under one year of age and below 10,000 miles, which are selling for more used than new.
The Dacia Sandero is worth more used than new.
Topping the list is the Dacia Sandero. New models are going for an average of £9,773, compared with £11,673 for a used version with 10,000 on the clock (an increase of 19.3%). Other used cars that are fetching a premium over their new equivalents include the Porsche 718 Spyder (15.2%), Tesla Model X (9.6%), Toyota GT-86 (8.3%), and the 2019 Mercedes-Benz CLA (6.5%).
Whilst this is great news for anyone looking to sell a used car, it is placing a great deal of pressure on used car dealers, whose margins are being increasingly squeezed. As competition for stock has heated up, some dealers have been forced to purchase used cars at retail value in the hope that the price increases continue, leaving them in a very vulnerable position.
The shortage is likely to last until 2023.
Those looking to purchase a used car are also finding themselves confronted with staggeringly high prices, leading some to put off making a purchase until values stabilise again. However, with the global supply of chips (and the value of used cars) unlikely to fully return to normal until 2023, many are being forced to simply accept the new status-quo.