Dispatches reveals VW ID3 car is being sold for £59k
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Buying a car is usually the second biggest purchase someone can make after buying a house, but used cars have grown exponentially in price recently. In the last three years alone, the price of some of the UK’s most popular cars has grown massively in price, according to Channel 4’s Disptaches.
The Fiat 500 has increased by 19 percent, the Nissan Qashqai up by a quarter and the Vauxhall Astra growing by 26 percent in price.
Ginny Buckley, motoring journalist and CEO of electrifying.com, analysed how expensive used cars have become and whether prices may come down anytime soon.
In the last few years, prices of many different aspects of vehicles have exploded in price.
The cost of rubber has increased by 72 percent, energy prices have risen by 50 percent and the price of nickel has doubled.
Costs are already huge and are expected to grow at a very fast rate.
Some manufacturers say the only way to make electric cars worthwhile is to make SUVs and other larger vehicles.
The latest data from Auto Trader has found that the average price of a used car has rocketed by £3,300 in just two years.
When compared to pre-pandemic June 2019, values have seen a whopping £4,100 increase.
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The car industry didn’t buy any semiconductors at the start of the pandemic because no one was buying cars, but now life is more or less back to normal, they are lacking.
Electric cars have as many as 3,000 to 4,000 semiconductors in every vehicle, with Ginny calling this “a big part of the problem”.
Experts are also warning that the global supply of semiconductors may get a lot worse.
The world’s largest semiconductor manufacturer is in Taiwan, and experts are fearing that the rising tensions with China may result in a threat to the global supply.
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Car manufacturers buy around one in every nine semiconductors that are made, with other industries like technology and communications companies also using them.
Ginny added: “Is that making hay when the sun shines or taking advantage of the consumer?”
The Volkswagen ID.3 electric vehicle is a modest five-door hatchback designed to bring electric power closer to the masses.
Prices for the EV start from around £33,000 and can be found for up to £38,000.
After searching through car dealerships, Ginny found an ID3 being sold for £59,000, more than £25,000 more expensive than the price of a new model.
She questioned whether car manufacturers and dealers were taking advantage of consumers.
Erin Baker, Editorial Director at Auto Trader, said even the most common cars are growing in price.
The Vauxhall Corsa, one of the UK’s best-selling cars, has grown 249 percent in price year-on-year, with the Volkswagen Golf seeing a 200 percent rise.
On one forecourt in the north of England, a dealer was selling a used car for £25,000 more than its retail price.
Used car sales are down nearly a fifth compared to last year, but as of now, prices haven’t fallen in response.
Dispatches: Why Is My Car So Expensive? is available to watch on All4.
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