Post-lockdown demand and semiconductor shortage both contribute to used car prices hitting an unprecedented level
25 May 2021
Used car prices have shot up to an unprecedented level, with drivers paying more on average than ever before to secure a second-hand motor.
Pent-up demand from the months in which dealers were closed under Covid-19 lockdown restrictions has been released, with drivers rushing to buy used cars in the same way they did when the first national lockdown ended in summer 2020.
The key difference this time around, though, is the global semiconductor shortage. This has resulted in a smaller supply of new cars, meaning a higher proportion of those wanting to replace their existing car are heading to the used market. This, in turn, has led to supply and demand issues.