Flipping houses and trading memorabilia have long been money-making ventures. But what about making a profit from selling your old banger?
Prices of second-hand cars have soared, with some models now worth almost 80pc more than a year ago. And while new cars usually depreciate as soon as they are used, soaring demand has made them a prized commodity. Some owners have even sold their old motors for more than they paid for them when new.
James Archer* sold his Jaguar XE to car dealer Arnold Clark this year, making a profit of £4,700 on top of what he paid for it new. Such is the speed of the market for second-hand cars that the firm sold it in just four days for a further profit of £2,300.
The average price of a three-year-old car has risen by 28pc in the past 12 months, far exceeding the 5.5pc rate of inflation, according to Cap HPI, a data firm.
This spike is thanks to a global chip shortage, a key component in car manufacturing. The subsequent squeeze on supply has led to a mismatch in consumer demand, distorting prices across the market. And it’s not luxury cars that are driving up prices, but ordinary runarounds.
The Toyota Auris Hybrid topped the table, with the average price of a three-year-old model up by 78pc in one year to £16,950. It was followed by the Vauxhall Zafira and Vauxhall Combo Life, whose prices increased by 76pc and 65pc to £14,925 and £13,470 respectively in the past 12 months.
The Kia Soul Electric followed, shooting up 63pc to £17,400. This car was an outlier, however, as the average price of second-hand electric models has not grown as fast as those with combustible engines. Electric models increased in price by 21pc, seven percentage points lower than the average across the market, but still far ahead of inflation.
