Is the nearly new market in trouble?

[carparkno1]

Is a nearly new hatch still the money saver a brand new car isn't?

The more I look online at dealer incentives (I suppose with end of year coming and facelifts etc) I am seeing more and more finance-based discounts from dealers to shift new metal over nearly new. I am thinking about a new family hatch right now and have sized up the usual suspects with a turbo petrol engine - Focus, Golf, Giulietta (why not!), Leon etc and the focus on new sales is amazing. I was close to an M135i but can't justify 30k right now so maybe a focus st or something is the answer. Used versions seem to be costing the same as a new one, and a look on a couple of broker sites reveals 3-5k discounts on certain cars.

I guess my concerns are a) what does that do to the GFV on a car (by example a 20k Alfa/ford/Seat that can be had for 16k, what will the GFV be in 3 years?

b) what will the market be like in a year or two when all these cars flood the used market when owners hand the keys back to get a new motor on the financial cycle of doom...

Not the most PH of threads but I am only looking at nippy petrols

[kiethton]

1. Standard PH reply

Can't beat them join them and get a M135i on lease for £260 a month

[OnistOssifer]

"Nearly new" almost always means "ex rental". Watch out for the ones with about 16k on the clock.

[carparkno1]

kiethton said:

#Standard PH reply

Can't beat them join them and get a M135i on lease for £260 a month

Christ almighty..... Tempting.

[carparkno1]

OnistOssifer said:

"Nearly new" almost always means "ex rental". Watch out for the ones with about 16k on the clock.

Forgive my ignorance but why that number? Is that when they get handed back?

[valiant]

My brand new Focus was actually cheaper than a nearly new example so was a no-brainer.

New cars have a lot of manufacturer based incentives which are not available on the used market.

[Engineer1]

I suspect the nearly new market is still fine, the manufacturers are shooting themselves in the foot if they sell too many cars too cheap as the residuals will bomb meaning they have a batch of second hand cars they can't shift on.

[carparkno1]

Engineer1 said:

I suspect the nearly new market is still fine, the manufacturers are shooting themselves in the foot if they sell too many cars too cheap as the residuals will bomb meaning they have a batch of second hand cars they can't shift on.

I wonder... A focus ST is 22k approx for mid level. Can be had for 18k.... What would the gfv be and will we ssee massively cheap st models in 2-3 years.

[Sir Bagalot]

carparkno1 said:

OnistOssifer said:

"Nearly new" almost always means "ex rental". Watch out for the ones with about 16k on the clock.

Forgive my ignorance but why that number? Is that when they get handed back?

I tend to find they have to be sub 10K miles.

Always always ask to see the V5, if they refuse then walk. if they do then always google the company name as not all rental cars are held under obvious names. If it is rental, and you know that, then at least you're walking into the deal with your eyes open.

[Steff]

Engineer1 said:

I suspect the nearly new market is still fine, the manufacturers are shooting themselves in the foot if they sell too many cars too cheap as the residuals will bomb meaning they have a batch of second hand cars they can't shift on.

Exactly, give it a year or two and all of these cheap deals will kill resale values.

[AmitG]

valiant said:

My brand new Focus was actually cheaper than a nearly new example so was a no-brainer.

New cars have a lot of manufacturer based incentives which are not available on the used market.

Same here with my car.

Retail price 26K
Nearly new examples (a few months old and with minimal mileage) 23 - 25K
I bought a new one for about 22K (taking the P/X at book value)

I could have got another 1K off if I'd taken the finance out, got the manufacturer contribution and then paid it off, but I didn't want to do that.

The dealer said that they were heavily incentivised to get new sales over nearly new. The incentives seem to distort the new market considerably.

I think that if you are looking at nearly new cars, it is well worth asking for the best deal on a new example.

[dapearson]

carparkno1 said:

kiethton said:

#Standard PH reply

Can't beat them join them and get a M135i on lease for £260 a month

Christ almighty..... Tempting.

http://www.centralukvehicleleasing.co.uk/vehicle/c...

It works out at approx £7.5k over 2 yrs and 20k miles. If you were thinking spending £26k (including a bit of discount) on buying one, this might be a better alternative. Leave your cash in the bank. Walk away at the end.

[panholio]

AmitG said:

Same here with my car.

Retail price 26K
Nearly new examples (a few months old and with minimal mileage) 23 - 25K

Do nearly new cars really go for 25k when the list was 26? I'd be expecting to pick up a £26k car for £20kish "nearly new" with any miles at all on the clock and a previous owner on the log book.

[AmitG]

panholio said:

AmitG said:

Same here with my car.

Retail price 26K
Nearly new examples (a few months old and with minimal mileage) 23 - 25K

Do nearly new cars really go for 25k when the list was 26? I'd be expecting to pick up a £26k car for £20kish "nearly new" with any miles at all on the clock and a previous owner on the log book.

At a Toyota main dealer, definitely. You would think that you would save the VAT straight away, but I guess they think that the market will pay more...

Of course, whether anyone buys at that price is another matter...

[Snowboy]

Sometimes delivery times can mess with nearly new values.
I know a bloke who one sold a six month old mini for more than he bought it for - it was some high spec job with an 8 month waiting list.
The dealership wasn't allowed to sell a new car for more than a used one, but they did facilitate the meeting.

Anyhow.
It's a global village now.
Chances are a lot of those 3 year old 135's will be boxed up and taken abroad rather than resold here.