The semiconductor shortage continues to wreak havoc in the new car market, causing some companies to quote delivery sometime next year for cars that would normally take only a few weeks to appear.
The shortage of new cars means that eager buyers, of which there are many, are turning to the used car market. But the combination of high demand and fewer trade-ins landing in lots over the past year due to Covid-19 means there is also a shortage of good quality used cars. As a result, the unthinkable is happening: used cars are increasing in value.
There are pockets of new car supply if you know where to look, and your local Honda dealership might be a good place to start. Speaking with Jean-Marc Streng, MD of Honda UK, I asked him how the semiconductor crisis is affecting his business. “Not so much,” he said. “We secured a good supply last year.”
I’m not saying Streng has a crystal ball, but by ordering stocks last year for sale this year, Honda now has access to around 9,000 new cars, such as the fabulous Honda e. Streng, and dealers in his company, are in a good place.
That’s not to say Honda dealers, and others with stocks, aren’t willing to offer the best price for your trade-in. With used car values still increasing and new car prices not rising (yet), the cost of upgrading is lower than it has been for a while. Add in financing that’s cheap to buy, and the deals on offer are hard to refuse.
So where else is there stock? If you’re ready to dive into electrification, it seems that automakers are prioritizing building electric cars that will lower their average CO2 figure if sold, reducing the risk of EU fines.
For example, a dealership I recently visited had a row of award-winning Volkswagen ID.3s on their front lot ready for delivery. I am very tempted to break out of my own financial arrangement early to take advantage.
