I dont understand used car prices

[numtumfutunch]

Ive always found used car prices a lottery but tonights fantasy trip into the classifieds confirms it:

The CLS 'shooting brake' is my current obsession

There is probably a facelift due soon so MB are freely knocking approx 20% off list:
http://tinyurl.com/kuzn942
Brokers can get you a bit extra too if you fancy

Or alternatively buy a second hand one for £7,000 more than a new car
WTF??

Im happy to admit this car has some "essential" options like memory seats but not only does the ad make it tough to tell whats standard and whats extra but whenever Ive PX'd a car Ive been told the extras are worthless at trade in

Comments welcome



EDIT: oops, forgot 2nd hand link http://tinyurl.com/m4voxl4

Edited by numtumfutunch on Monday 21st July 23:28

[ED209]

I was tempted by an brand new audi a6 avant ultra a couple of months ago, drive the deal were knocking them out at 25k. Now try finding a used one anywhere for anything close to that.

Its mental really, I fancy a new car but when i look on the merc/audi/bmw sites all the nearly new cars seem stupidly priced. So much so I wouldn't even investigate what sort of discount you could get off them.


To be fair the CLS brake is probably my perfect car, great interior, a bit of poke and plenty of room for the dogs unfortunately even the cheapest used ones are way out of my range.

Edited by ED209 on Monday 21st July 23:59

[craig_m67]

Used car prices are simply a result of supply and demand.
BTW, you have some of cheapest used car prices in the world.
Try looking up the equivalent car in Australia or New Zealand for sh#itsandgiggles.

[Ari]

craig_m67 said:

Used car prices are simply a result of supply and demand. .

The point he's making is, where do people think the 'demand' is for a used car that costs more than a new one?

[johnnyBv8]

Because some main dealers (esp BMW) stock their forecourt with nearly new cars at high prices to encourage new car sales....."yes, you could buy a used one, but actually at the moment we're offering a great deal on new cars, so you'd be better off buying new".

[Grumpy old git]

Ari said:

The point he's making is, where do people think the 'demand' is for a used car that costs more than a new one?

The demand not to go on a waiting list for x weeks?

[crostonian]

And don't forget that the asking price and the final selling price can be miles apart, especially on 6mth to 2 year old prestige stuff.

[ED209]

johnnyBv8 said:

Because some main dealers (esp BMW) stock their forecourt with nearly new cars at high prices to encourage new car sales....."yes, you could buy a used one, but actually at the moment we're offering a great deal on new cars, so you'd be better off buying new".

So what do they do with all the used cars then? Leave them to rot?

[ED209]

crostonian said:

And don't forget that the asking price and the final selling price can be miles apart, especially on 6mth to 2 year old prestige stuff.

How far apart is "miles apart", genuinely interested as my next car will probably be of this type.

[valiant]

New cars can have manufacturer supported deposit allowance and other incentives that will drop the price of a new car which aren't available on used stock.

Desirable cars with long build times will have people paying a premium for used stock simply to get ahead of the rest and be seen with the latest model.

People automatically assume that nearly new is cheaper than new and don't even bother to see if it would be any cheaper new.

Case in point, I bought a new Focus and with all the discounts and allowances it came in cheaper than what the same dealer was punting out identical nearly new focus's (foci?).

[CYMR0]

About 10 years ago my friend's sister bought her first "new" car, a Clio.

She found a nearly new one at the local Renault dealer, with a grand and a bit off list and a couple of thousand on the clock.

They also had a special edition for the new registration that was due to come out, which was maybe £2k cheaper than list of the otherwise identical car - let's say they were £6995 new special edition, £7495 nearly new and £8995 new ordinary model.

He suggested she might like to save money, to which the response was "No thanks, new cars lose too much money" and she was adamant that she had to spend more and buy used...

[okie592]

There's golf R on autotrader for £40k now when they cost £30k new, unless it's got 10k of extras I can't see why it's so much more ( white 3dr dsg)

[Shurv]

As already posted, desirable cars with a long waiting list when ordered new,will command a premium used,as you can jump into one without having to wait 12 months or more.Some folk will pay for this privilege.

[TooMany2cvs]

Just because something's _advertised_ for £x doesn't mean that it'll be _sold_ for £x... Also, if the advertised list is £y, advertising 6mo used values as £y-25% will badly hit perception of residuals - even if it's actually only 10% below the _real_ new price.

[ChasW]

I have seen the amazing broker deals though I assume they are individual cars that are hanging around the importers/dealers stock that need to be moved. Maybe they are offered to more than one broker to speed things up. I have seen 20%+ discounts on higher end Audis and Jags on the DTD site.

[johnnyBv8]

ED209 said:

johnnyBv8 said:

Because some main dealers (esp BMW) stock their forecourt with nearly new cars at high prices to encourage new car sales....."yes, you could buy a used one, but actually at the moment we're offering a great deal on new cars, so you'd be better off buying new".

So what do they do with all the used cars then? Leave them to rot?

No, not sure that would work!

We're only talking 'nearly new' stock with very low miles, not where there's more of a gap between used and new in terms of age/miles (for which potential buyers arent really in the market to be upsold a 'new car' anyway).

Will possibly sell them at a discounted, non-advertised price - but more likely put them through auction after they look to have been sitting for too long. Auction prices for stuff like that often isnt far off retail anyway!

Edited by johnnyBv8 on Tuesday 22 July 23:01

Edited by johnnyBv8 on Wednesday 23 July 06:42