- Massive change is underway in the global used car industry. New car sales are at an all-time low, while used car demand is at an all-time peak
- Used cars appreciated by 30% in September 2021 vs. September 2020
- Values have been steadily increasing month-on-month, with the biggest jump in June (+16%)
- Motorway is a marketplace connecting consumers selling their car with professional car dealers acquiring stock – getting the best possible deal for both parties, and 100% online
- Motorway has seen +300% YOY growth after record £306m sales in Q3 2021
- Company is now on a run-rate to deliver over $2bn in completed sales over the next year
Investing in used cars could soon be a better bet than investing in your pension. With prices for a second hand car surging to unprecedented levels, the value of your car is currently rising every time you take it for a spin.
Whereas cars typically depreciate as soon as they leave the forecourt, this year has seen a complete reversal in used car values. Second-hand vehicles have skyrocketed in the last nine months, with the average value of vehicles soaring by over 30% YoY, according to Motorway, the UK’s fastest-growing way to sell your car.
While the pandemic led to record numbers of consumers looking to buy or upgrade cars with the money they hadn’t spent on holidays or entertainment, the shortage of new cars coming to market – as a result of the semiconductor supply crisis – has turned consumers to the used car market instead. But the new car shortage has had a knock-on effect on used cars too – less new cars also means less used cars available too. Coupled with a massive increase in consumer demand, the used car market that was already heating up, has turned red hot and prices for used cars are now going sky high.
With the pandemic fueling a fundamental behavioural change in both dealers and consumers to buy and sell cars online, both groups have turned to Motorway. At the same time, consumer demand for a simple, fast and online way to sell their car is rising month-on-month. As a result, Motorway has seen a four-fold YoY surge in sales and +65% growth in Q3 sales versus Q2 this year.
The company recorded a +300% uplift in third-quarter sales to £306 million compared with £78 million last year. Between July and September this year, Motorway sold 20,076 cars. This accelerated growth has continued, with Motorway now selling well over 8,000 cars a month, with £140m cars sold in September alone. Over 100,000 used cars have been sold on Motorway since launch, with a new sale now agreed every five minutes.
This recent surge in sales puts Motorway on a run-rate to deliver over $2bn in completed sales over the next year, making it one of the world’s fastest growing digital automotive marketplaces.
The new way to sell your car
Motorway helps consumers to sell their car for up to £1,000 more from the comfort of home. It’s simple, fast and free – a car can be profiled and uploaded onto the Motorway website using only a smartphone. Over 3,000 professional car dealers can then bid for the vehicle in a daily online auction, with the highest offer winning the car. Their car is then collected for free by the winning dealer in as little as 24 hours.
Cutting out the middlemen and moving the whole process online, Motorway removes the hassle and the haggle, helping car sellers and car dealers get a better deal fast, and all entirely remotely.
Motorway data on appreciation of used cars comparing Q3 2021 with Q3 2020
Exclusive data from Motorway sales reveals the month-on-month increases in the average value of vehicles sold on Motorway since September 2020 and a breakdown of prices achieved by popular models:
- A Porsche Cayman has steadily increased by +23%, going for £5,480 more than Q3 2020
- At the other end of the scale, a Ford Focus has appreciated by over +34%, selling for £3,346 more than last year.
- Looking at the used EV market, a Tesla Model S sold for +14% higher than it went for last year
- Even at the cheaper end of the market, pieces have seen huge increases – a Vauxhall Agila went for £2,300, +46% higher than Q3 2020
- An Aston Martin Vanquish rose by +38% just sitting in the driveway during lockdown
Table 1: Month-on-month increases in the average value of vehicles sold on the platform since September 2020
|Month||Avg Value||% +/- v. Sept 2020||£ +/-|
Table 2: A breakdown of prices achieved by popular models comparing Q3 2021 with Q3 2020
|Q321 v. Q320|
|Make||Model||Q320||Q321||Q320 v. 21 (%)||Q320 v. 21 (£)|