Used car prices soar to record levels due to ‘supply constraints’ on new vehicles

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New data from the car retailer has revealed average used car prices have increased by a massive 15.2 percent year on year with some vehicles up by more than 50 percent. The increase also marks 66 weeks of consecutive price growth among second-hand vehicles.

Richard Walker, AutoTrader’s Data and Insights Director has blamed delays with new car production on why demand has surged.

Semiconductor shortages have pushed back delivery times with road users not prepared to wait.

He said the delays mean used car sellers can expect a “sustained period” of extra demand.

He said: “Used car demand is being fuelled by many factors, not least consumer confidence, low unemployment levels, concerns about safety on public transport, but now also the supply constraints we’re seeing in the new car market.

“We estimate there are up to 600,000 new car transactions that won’t happen this year because of these constraints, with many consumers looking to used car alternatives.

“This suggests we can expect a sustained period of positive used car demand.”

A new survey by AutoTrader reveals almost half of new car buyers would not be prepared to wait more than one month for their vehicle.

Meanwhile, 74 percent said they would be open to purchasing a used car alternative if their brand new car was not available within their time frame.

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AutoTrader data shows used Jaguar XK models have surged in value by over 50 percent with models now priced at over £26,000.

The second highest price surge was from the Audi RS3 which is up more than 35 percent.

Meanwhile, the Mazda MX-5, Mitsubishi Shogun, Citroen Grand Tourer and Jeep Grand Cherokee were all up by more than 30 percent.

The surge in interest has also created a boom market for sellers who are reporting cars flying off the shelves.

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