The semiconductor chip shortage caused a 25% rise in the transport of second-hand cars from 2019 to 2020, increasing to 54% when compared to 2019 according to data studied by Shiply (http://www.shiply.com/). As everyone in the car insurance sector knows, values of good sub 50K miles prestige cars in particular has rocketed, with some owners of popular BMW, Mercedes, Range Rover, Audi or Jaguar models being offered the full list price for 2 year old vehicles.
The increased movement of used car stock creates an opportunity for specialist Commercial brokers, who can cover freelance drivers moving stock within motor groups or from auction sites. Then there are various transporter vehicles which need insurance for the asset value on board, plus the transporter lorry/van risk itself.
A long series of events has led up to the current semiconductor chip shortage, from trade wars to raw material shortages, but it was the Coronavirus pandemic and subsequent drop in demand from consumers that finally pushed the shortage into a crisis and forced potential car-buyers to look at used vehicles instead.
Robert Matthams, the founder of Shiply, commented that “the semiconductor chip shortage was a growing issue that Coronavirus finally pushed over the edge. As long as supply chain issues continue in the auto industry, we expect to see more and more consumers looking to the second-hand market for cars and for the second-hand market to keep on increasing .”
Shiply, used by several million customers since 2008, allows users to list a car they are buying or selling and receive multiple quotes from car transport companies to move their vehicle. Prices can be up to 75% cheaper than standard rates as drivers are typically already making similar journeys and are trying to fill up space in their vehicles.