London, Europe Brief News – In the UK, one in five second-hand cars is now selling not even at the same price but more than their Brands-equivalents. This is happening mainly due to disruption in the supply chain. The market has experienced record values for second-hand cars.
The Two main reasons for a significant mismatch of supply and demand is the stoppage of the forecourt and an immense shortage of semiconductor.
The experts have claimed that the situation has gone from bad to worse in the last couple of months.
According to Auto Trader’s marketplace, the average price for a secondhand car has gone up by 29% during the last year only. The average price is up more than £4,200 in just six months.
Nearly-new cars are those up to a year old. The models of nearly-new cars that are up for selling at more than their Brand price are Smart Forfour, the Toyota RAV4, and the Volkswagen Tiguan.
Data from an Auto trader showed that a five-year-old Ford Mustang 5.0L V8 GT fastback selshift was on the market for £75,000 with an extremely 53 per cent more than a new model at £48,990.
Ian Plummer, Auto Trader’s Commercial Director said “There was little prospect of a swift “Bubble-bursting moment” that would see secondhand prices return to lower levels”.
He said that In terms of new cars, we estimate that probably about a million and a half fewer were sold in the two years of 2020 and 2021.
Mismatch Between Supply And Demand in UK
He further added “Supply and demand are simultaneously swinging quite dramatically away from each other. I’m sure this will narrow over time, but it does not feel like there is going to be radical changes in either metric very quickly”.
Several used cars increase their price to be more than their brand-new version is not limited to Uk only.
The Number of Manufacturers including Toyota, Volkswagen, and many more reportedly claimed that they are struggling big time to deal with the shortage of semiconductors. The manufacturers are failing to hit their target for demand.
The pandemic has led to a worldwide shortage of semiconductor microchips used in cars, caused by factory shutdowns and competing demand.
