Why your used Ford Focus may very well be value greater than a brand new one | Automotive business

It used to carry that solely basic vehicles had been an funding, however now the identical is true should you personal a Ford Focus.

Shifting secondhand motors is now a “good little earner” as Cockney wheeler vendor Arthur Daley would have put it within the TV present Minder, with costs surging 30% up to now 12 months because of the continuing scarcity of laptop chips stalling new automotive manufacturing, based on figures from the web site Motorway.

And final month one in six almost new vehicles (aged as much as 12 months previous) had been priced larger than the brand-new model, separate information from the Auto Dealer market reveals.

The standard 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 vehicles dries up, mentioned Motorway’s chief govt Tom Leathes. “The numbers are massively decreased,” he mentioned. “The largest motive is the chip scarcity, which implies it is rather troublesome for automotive makers to fabricate in any quantity, so there are large ready lists.”

Consequently the Motorway information reveals huge rises within the secondhand worth of fashionable 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 12 months in the past. The worth of a Nissan Qashqai, one other household selection, had risen by almost 1 / 4, to £11,525.

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

The elevated price of shopping for a automotive will not be the one stress dealing with motorists as, within the wake of panic shopping for that emptied the nation’s forecourts, gas costs are near report highs.

Arthur Daley (George Cole), the used automotive vendor in ITV’s Minder, would have appreciated the hovering price of used vehicles. {Photograph}: Fremantle Media/Shutterstock

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

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

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

The business’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 pressured to briefly shut due to the chip scarcity.

“There have all the time been greater than 100,000 vehicles within the UK at any second that customers might pay money for with nearly quick supply,” defined Ian Plummer, Auto Dealer’s industrial director. “Nobody has a great tackle what that quantity is now, however based mostly on the evolution of obtainable new vehicles on Auto Dealer during the last six months or so, it’s most likely come down two-thirds.”

Demand is excessive as customers 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 suppose many individuals within the business thought a 12-month-old automotive would ever be bought at a better value than the brand new equal,” mentioned Plummer, who added that the speed of secondhand value development was nonetheless accelerating. Figures for the week earlier than final present the common value of a used automotive was 23.9% larger than a 12 months in the past, with Plummer including: “Sooner or later it has to begin bottoming out however for the time being the elemental drivers of the scenario are nothing greater than easy economics.”

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