Skip advert
Advertisement

"The unthinkable is happening: used cars are going up in value"

With the semi-conductor crisis driving up the value of used cars, editor-in-chief Steve Fowler thinks it's a good time to part exchange

Honda e

The shortage of semiconductors is 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.

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.” 

Advertisement - Article continues below

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.

Check out the best new car deals available now...

Skip advert
Advertisement

Steve Fowler has previously edited Auto Express, Carbuyer, DrivingElectric, What Car?, Autocar and What Hi-Fi? and has been writing about cars for the best part of 30 years. 

Find a car with the experts

Skip advert
Advertisement

Recommended

Car insurance write-off categories explained: what are Cat N and Cat S cars?
Crashed car

Car insurance write-off categories explained: what are Cat N and Cat S cars?

If a car is written off by the insurance provider, it could be assigned Category A, B, S or N status, but what does this mean and how do write-off cla…
Tips & advice
27 Jun 2025
Your dream car colour could actually be a financial nightmare
Opinion - car colour cost

Your dream car colour could actually be a financial nightmare

Paul Barker ponders the price of paint, and how mica and metallic mark-ups are leaving car buyers in the shade over the true cost
Opinion
26 Jun 2025
Prepare to be ruthless when buying a new car
Opinion - ruthless car buying

Prepare to be ruthless when buying a new car

Shane Wilkinson explains why you mustn’t be afraid to say no to a salesperson when buying your next new or used car
Opinion
19 Jun 2025
Buying the right car can work wonders for your mental health
Opinion - mental wellbeing

Buying the right car can work wonders for your mental health

Paul Adam explains the role the car can play in helping to give you the ‘me time’ to maintain your wellbeing
Opinion
13 Jun 2025

Most Popular

New MG IM5 has the Tesla Model 3 beaten on price and range
MG IM5 - Goodwood front

New MG IM5 has the Tesla Model 3 beaten on price and range

The all-electric IM5 brings new technology and design to the MG line-up
News
10 Jul 2025
New MG Cyberster Black is a dark sign of things to come for the brand
Cyberster Black - front 3/4

New MG Cyberster Black is a dark sign of things to come for the brand

MG boss thinks special editions like this might be the ticket to keeping up demand for the electric sports car
News
10 Jul 2025
New Mazda CX-5 revealed with fresh looks, more space and far fewer buttons
Mazda CX-5 - front

New Mazda CX-5 revealed with fresh looks, more space and far fewer buttons

The Mazda CX-5 has been revolutionised to take on the Nissan Qashqai, Kia Sportage and Hyundai Tucson
News
10 Jul 2025