Salvage car prices jump by a THIRD due to Covid

Demand for affordable cars saw even prices for written-off salvage cars and vans rocket in 2020 – and the pandemic is a major cause.

Damaged salvage car

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.” 

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Richard Aucock
Richard Aucockhttps://www.richardaucock.co.uk/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently vice chair of the world's largest organisation for automotive media professionals. Richard is also a juror and Steering Committee director for World Car Awards and the UK juror for the AUTOBEST awards.

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