Growing demand for affordable used cars has helped to generate a huge increase in accident-damaged salvage car prices during 2020
Values of written-off motors rose 32 percent during the second half of 2020, with one auctioneer reporting more bids per lot and higher sale prices across the board.
The price rises have been by the Covid-19 pandemic – and while demand for budget-priced cars is part of the reason, other factors are at play, too.
Lockdowns have also helped boost the price of salvage cars: because people have been driving less, there have been fewer road traffic accidents, meaning there’s now a shortage of written-off salvage cars in the marketplace.
Brexit is yet another factor: companies were stockpiling parts, which again helped heighten demand.
Values of Category B and Category S vehicles increased by 33 percent, while prices for the most lightly-damaged Category N vehicles rose 41 percent.
These are the vehicles that are most easily repaired and returned to the road.
Vans and light commercial vehicles are in particularly high demand, reports CD Auction Group.
Graham Howes, the firm’s commercial director, said: “We saw demand drive higher prices across the board, but the demand in the LCV sector is noteworthy.
“It’s clear that the growth of online shopping is creating an unprecedented market for all levels of LCV.”
Copyright of Richard Aucock for Motoring Research.