Cars "The unthinkable is happening: used cars are going up in value"
Almost 2MILLION motorists could be driving illegally with expired MOTs
Even the very last cars to have benefited from six-month MOT test extension offered by the Government - which expired on 1 August 2020 - should now have been had their vehicles tested. However, figures suggest that one in five (19.5 per cent) motors that had an extension on their roadworthiness test last year have yet to be assessed since, which equates to some 1.86 million vehicles. And around 600,000 are likely unroadworthy, based on average MOT failure rates.
Theis still causing havoc in the new car market, with certain companies quoting delivery some time next year for cars that would normally take just a few weeks to turn up.
The shortage of new cars is meaning eager buyers – of which there are many – are turning to the used market instead. But the combination of high demand and fewer part-exchanges landing on forecourts over the past year due to Covid-19 means there’s a shortage of good-quality used cars, too. As a result the unthinkable is happening: used cars are actually going up in value.
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There are pockets of new car supply if you know where to shop – and your local Honda dealer could be a good place to start. Speaking to Honda UK MD Jean-Marc Streng, I asked him how the semiconductor crisis is affecting his business. “Not so much,” he told me. “We secured good supply last year.”
New cars that lose and retain most value in three years revealed
With car showrooms reopening last month, new data has revealed which are the 10 new motors that perform best for keeping the most of their value - and the 10 that shed it at an alarming rate. Britain’s best and worst cars for depreciation have been revealed by What Car? in collaboration with valuations experts CAP HPI.The figures are based on an estimated trade-in valuations for new cars after three-years of ownership and the first owner putting 36,000 miles on the clock in that time.
I’m not saying Streng has a crystal ball, but by ordering stock last year for sale this year, Honda now has access to around 9,000 brand-new cars, like the fabulous Honda e. Streng – and his company’s dealers – are in a good place.
That’s not to say Honda dealers – and others with stock – aren’t keen to offer top dollar for your part-ex. With used car values still rising and new car prices not going up (yet), the cost to change is lower than it will have been for a while. Throw in finance that’s cheap to buy, and the deals on offer are hard to turn down.
So where else is there stock? If you’re ready to jump into electrification, it seems car makers are prioritising building electric cars that will lower their average CO2 figure if they’re sold, reducing the risk of EU fines.
For example, one dealer I visited recently had a row of Auto Express Award-winning Volkswagen ID.3s on its forecourt ready for delivery. I’m sorely tempted to jump out of my own finance deal early to take advantage.
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