Used car prices about to fall?
Discussion
- scrappage throwbacks will only affect crap ecoboxes like mine According to a Glass's guide valuation, my car is now worth about £400 more than what I paid for it in early 2009, so another fall in values may still be on the cards. Not sure we will see anything quite as drastic as the price drops of 2008 though. I don't think many people will have jumped back into something they can barely afford the repayments on, so I think there will be less panic sales.
Values are only effected by the market, and the used market is very buoyant at the moment, so to answer your question, no I don't think we are looking at the same 'crash' as 2008. As others have intimated, following that period of time, prices crept back up again over the following year that largely mitigated the losses. A loss is a bit like a profit really, and only actually occurs on the completion of sale.
It depends how it affects oil prices as well- if they go up, bigger engined cars will become (even more) unpopular in the market.
However, it may result in the same scenario as the housing market is currently experiencing; people hold on to their car as they're worried about losing money on it, so there is less supply, and prices stay the same or even go up. Though arguably, people may change cars, as they're stuck in their houses for a while, and are looking for something new to make them feel better. Those looking to buy cars on finance may find it difficult though.
All in all, it's difficult to tell. I'd certainly guess at bigger engined cars taking a hit though, as there will be less demand for them, owing to people not wanting to spend money.
However, it may result in the same scenario as the housing market is currently experiencing; people hold on to their car as they're worried about losing money on it, so there is less supply, and prices stay the same or even go up. Though arguably, people may change cars, as they're stuck in their houses for a while, and are looking for something new to make them feel better. Those looking to buy cars on finance may find it difficult though.
All in all, it's difficult to tell. I'd certainly guess at bigger engined cars taking a hit though, as there will be less demand for them, owing to people not wanting to spend money.
Edited by Twincharged on Saturday 6th August 12:56
Somethings worth whatever someone's willing to pay for it. Small cars are holding up better than others predictably, small diesels even more so. Small automatics are doing well. Small automatic diesels are the Ace card for any dealer right now.
Bigger cars are being sold off cheap due to sky high VED and average economy, meaning if you've got the cash to stomach such running costs you can pick up a brilliant car for not much initial outlay.
Bigger cars are being sold off cheap due to sky high VED and average economy, meaning if you've got the cash to stomach such running costs you can pick up a brilliant car for not much initial outlay.
The Crack Fox said:
Small automatic diesels... Yuk.
Well maybe so but car makers dont produce many but automatics are increasing in popularity as alot of people have automatic only licences and with the price of fuel the diesels are sought after. Well i say that, they're expensive but showrooms dont seem to be shifting them to be honest.
I think less new cars are being sold especially high end, and people are hanging onto their used cars for longer. So the are less used cars on the market and prices are steady.
Obviously large petrolengined cars have already taken a nose dive due to the cost of filling them up.
There are some models such as the R8 which are holding up well as they've got the right desirability v reasonable running costs (for a supercar). There are a glut of cars in the mid to late £50k band.
I think once a few drop below £50k there will be more movement in there prices!
Obviously large petrolengined cars have already taken a nose dive due to the cost of filling them up.
There are some models such as the R8 which are holding up well as they've got the right desirability v reasonable running costs (for a supercar). There are a glut of cars in the mid to late £50k band.
I think once a few drop below £50k there will be more movement in there prices!
I suspect that the uncertainty of the financial markets and the certainty that the Banking sector is about to get another serious haircut can ONLY result in falling values of every asset including cars. Asset??
Car prices will fall as the economy falls. Very very quickly.
No ides where this will end.
Just changed from a Freelander (great car, marred by shoddy build) to a Chevrolet Tacuma to seriously reduce fuel costs, maintenance costs etc etc.
Superminis with diesel engines will hold value best. Consumption/cost ratio.
But in general it is going to get very difficult for everybody in everything.
Car prices will fall as the economy falls. Very very quickly.
No ides where this will end.
Just changed from a Freelander (great car, marred by shoddy build) to a Chevrolet Tacuma to seriously reduce fuel costs, maintenance costs etc etc.
Superminis with diesel engines will hold value best. Consumption/cost ratio.
But in general it is going to get very difficult for everybody in everything.
TheBMWDriver said:
Yes sorry I was referring to proper cars i.e. 250 bhp + or 3000cc + 
£1.50/ltr is a coming 
I'm limping my thirsty old V6 around until I can find a good diesel myself. Everyone will reach a point where they have to give up on these cars eventually.
Edited by SuperHangOn on Sunday 7th August 09:14
I can't see it happening myself. Although things may well be s
t, there's generally less panicking and rushing about - because, well people are used to it now....... Drops yes, but less aggressive.
Also try and take the positives - as if it does happen there will be some great deals, not to be missed.
In Feb-09 I picked up a 997 C2S, great spec, main dealer car for 38k. Fast forward 30 months and 30k miles and I've just sold it for 26k to a trader (didn't want the hasstle of selling privately), meaning the car cost me 400/month in depreciation. That is awesome. (that said running costs are a bit fruity!!!).
Had a wedding not been forthcoming then I'd have kept it - it truly is a fantastic machine. Just hope we have another 'crunch' once the weddings out the way so I can get a new one!!
t, there's generally less panicking and rushing about - because, well people are used to it now....... Drops yes, but less aggressive.Also try and take the positives - as if it does happen there will be some great deals, not to be missed.
In Feb-09 I picked up a 997 C2S, great spec, main dealer car for 38k. Fast forward 30 months and 30k miles and I've just sold it for 26k to a trader (didn't want the hasstle of selling privately), meaning the car cost me 400/month in depreciation. That is awesome. (that said running costs are a bit fruity!!!).
Had a wedding not been forthcoming then I'd have kept it - it truly is a fantastic machine. Just hope we have another 'crunch' once the weddings out the way so I can get a new one!!
I had this discussion over beer with a pal who works for a large independent,they sold 8 cars at their branch yesterday among which were an ML 500,jag xkr,3.5 v6 petrol hyundai 4x4,2010 nissan gtr,bmw e39 540 and a petrol range rover.
Also on thursday he sold an AMG CLS merc and a late diesel jag xj whixh blew my theory out of the water.
He did say that a lot of high end stuff is being offered at the moment but as usual the punters value of their car is wildly different from the dealers value,but he also said they had managed to `rob` a couple of very cheap cars recently.
Also on thursday he sold an AMG CLS merc and a late diesel jag xj whixh blew my theory out of the water.
He did say that a lot of high end stuff is being offered at the moment but as usual the punters value of their car is wildly different from the dealers value,but he also said they had managed to `rob` a couple of very cheap cars recently.
With regard to future fuel prices there is a 4p rise scheduled for January 1 2012 and another 4p ish for August 1 2012. Unless oil drops significantly petrol will be very close to £1.50/litre this time next year anyway assuming no other factors change.
The trade guides marked a lot of thirsty stuff down by huge amounts a couple of months ago so big drops have already happened.
Practical, sensible cars which do 40-50mpg are in high demand and prices seem to be moving in line with normal seasonal variations. Anything which does not fit into that category is under a lot of pressure. Cheap (sub-2£k) cars are also in high demand unless they're a 4 litre V8.
The trade guides marked a lot of thirsty stuff down by huge amounts a couple of months ago so big drops have already happened.
Practical, sensible cars which do 40-50mpg are in high demand and prices seem to be moving in line with normal seasonal variations. Anything which does not fit into that category is under a lot of pressure. Cheap (sub-2£k) cars are also in high demand unless they're a 4 litre V8.
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