Why your used Ford Focus might be value greater than a brand new one | Automotive trade

It used to carry that solely traditional automobiles have been an funding, however now the identical is true for those who personal a Ford Focus.

Shifting secondhand motors is now a “good little earner” as Cockney wheeler supplier Arthur Daley would have put it within the TV present Minder, with costs surging 30% previously yr due to the continued scarcity of laptop chips stalling new automotive manufacturing, in response to figures from the web site Motorway.

And final month one in six practically new automobiles (aged as much as 12 months outdated) have been priced increased than the brand-new model, separate information from the Auto Dealer market reveals.

The normal guidelines of motoring, together with {that a} automotive begins to shed worth as quickly as you drive residence from the dealership, not maintain true as the availability of latest automobiles dries up, mentioned Motorway’s chief government Tom Leathes. “The numbers are massively decreased,” he mentioned. “The largest cause is the chip scarcity, which suggests it is extremely tough for automotive makers to fabricate in any quantity, so there are enormous ready lists.”

Consequently the Motorway information reveals huge rises within the secondhand worth of well-liked fashions such because the Ford Focus. Final month the common Focus, as pushed by Microsoft founder Invoice Gates and singer Lily Allen, bought for £13,309 on the location, which is £3,346 – or 34% – greater than a yr in the past. The worth of a Nissan Qashqai, one other household alternative, had risen by practically 1 / 4, to £11,525.

Final week information from the Workplace for Nationwide Statistics confirmed that used automotive costs have been up by greater than a fifth since April, stoking inflation at a time when many Britons are frightened about their family funds.

The elevated price of shopping for a automotive isn’t the one strain dealing with motorists as, within the wake of panic shopping for that emptied the nation’s forecourts, gasoline costs are near report highs.

Arthur Daley (George Cole), the used car dealer in ITV’s Minder, would have appreciated the soaring cost of used cars.
Arthur Daley (George Cole), the used automotive supplier in ITV’s Minder, would have appreciated the hovering price of used automobiles. {Photograph}: Fremantle Media/Shutterstock

Leathes mentioned the scarcity of latest automobiles meant individuals who would usually purchase model new have been choosing secondhand, including: “Meaning there’s extra demand on used automobiles than ever earlier than, and there’s much less of them, significantly the practically new stuff, in order that’s inflicting costs to go up considerably. We’re in unprecedented occasions – a used automotive is usually a depreciating asset.”

The squeeze is highlighted by trade information that reveals the collapse in new automotive gross sales. Simply 215,000 new automobiles have been registered final month, the bottom determine since 1998. The numbers have been a 3rd down even on a weak 2020, when Covid restrictions hindered shopping for and promoting, and down virtually 45% on the 10-year common earlier than the pandemic.

With secondhand costs hovering, Auto Dealer figures present that in September one in six practically new automobiles price greater than the brand new model.

The trade’s ruptured provide chain means the common ready time for a brand new automotive is between 4 and 6 months, however is as much as 12 months for fashions such because the Land Rover Discovery Sport. Final week Jaguar Land Rover’s Halewood manufacturing facility on Merseyside was compelled to quickly shut due to the chip scarcity.

“There have at all times been greater than 100,000 automobiles within the UK at any second that customers might pay money for with just about fast supply,” defined Ian Plummer, Auto Dealer’s business director. “Nobody has a very good tackle what that quantity is now, however primarily based on the evolution of accessible new automobiles on Auto Dealer over the past six months or so, it’s most likely come down two-thirds.”

Demand is excessive as shoppers look to purchase or improve their car utilizing cash saved through the lockdowns, or as they swap away from public transport to get to work.

“I don’t assume many individuals within the trade thought a 12-month-old automotive would ever be bought at the next worth than the brand new equal,” mentioned Plummer, who added that the speed of secondhand worth development was nonetheless accelerating. Figures for the week earlier than final present the common worth of a used automotive was 23.9% increased than a yr in the past, with Plummer including: “In some unspecified time in the future it has to start out bottoming out however in the meanwhile the elemental drivers of the state of affairs are nothing greater than easy economics.”

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