Is your Noughties car worth a small fortune?

Telegraph Money reveals how second-hand car owners can cash in on a booming market

FORD

Everyone knows that from the moment a new car rolls off the showroom floor its value begins to plummet before you’ve even had a chance to fill up the tank.

But drivers who opted for reliable-but-boring models in the 2000s are finding that the conventional wisdom on second-hand cars has shifted into reverse.

Noughties favourites such the Renault Megane, Ford Mondeo and Volkswagen Golf have in some cases doubled in value, according to Auto Trader, the listings site.

The cars have held their value better than newer one to three-year-old models and electric vehicles and defied flatlining used-car prices this year, according to the site’s price index.

Auto Trader compared prices from 2019 to today for the vehicles on its site, finding that values for some models had risen by two-thirds, or even doubled.

Erin Baker, editorial director of Auto Trader, said: “Some nostalgia trends just leave you asking why. But there’s nothing confusing about the appeal of Noughties cars. They’re simple, reliable and remind working Britons of when they fell in love with driving.

“While you might not think your car is old enough to be a classic, it may hold a hidden value so don’t view it as another junk item.”

The increase in price for popular 2000s motors has occurred amid an influx of new drivers brought on by pent-up demand to learn to drive after the pandemic.

Ms Baker added that the trend is “fuelled by a combination of macro factors, including public transport frustrations and increasing numbers of new drivers entering the market as practical driving tests return to normal levels”.

A reluctance among cash-strapped Britons to part with large sums of money has also played a role. Last month consumer spending grew at its slowest rate in a year, according to data from Barclays, Britain’s biggest bank.

This helps to explain the sustained rise in used car prices, which are now around £4,000 more than before the pandemic, as drivers avoid big spends on new cars and opt for used alternatives.

The car market is also still recovering from a supply and demand imbalance left in the wake of lockdowns, Russia’s invasion of Ukraine and shortages in semiconductors around the world.

This means fewer new cars have been built in recent years, leading to a smaller number entering the used car market, inflating the value of the existing second-hand stock.

Old favourites are likely to do well in this environment, as buyers factor in the risk of getting a second-hand vehicle and go for models famed for reliability.

How to sell your car

To make the most money from your Noughties car selling on an online marketplace at a competitive price is likely the best option.

This means avoiding auctions, dealers, part-exchanges, or instant-offer websites where the more niche market trends are unlikely to have much sway.

The first step here is to have your car valued. Auto Trader and Carwow have free valuation services which should take into account the vehicle’s mileage, level of wear and tear and whether the model has special desirability to buyers.

To bolster your chances you should take it for a fresh MOT and servicing. Having it cleaned and ensuring you have all the paperwork, including the V5C logbook, will also help a sale go more smoothly.

Ms Baker said: “Selling your favourite Noughties car doesn’t need to be difficult and with a few simple steps, you can make sure to maximise the price of your vehicle.

“If you have time, selling your car privately rather than part exchanging can result in more money for you. Good quality photography from a range of angles and a clean car will really help your vehicle stand out to prospective buyers and showcase any little quirks that make your car the best one on the market,” she said.

“Try to provide a full service history if you can and ensure there is more than three months left on your MOT. Most importantly, make sure to price your car realistically.

“Car valuation tools online will be your best friend in this scenario as they are powered by data and can give a live view of exactly what it is really worth.”