Used cars not selling?
Discussion
Hello all, first time posting here!
Sadly, not the most upbeat of discussion titles but one that is certainly at the forefront of my mind.
As a small-time used car seller, trade has been virtually dead flat since April this year. No matter what I think of as being the reason, some conclusions just don't add up and it seems to me that the only inevitable reason could be a mass slow down in general.
For example, I had an 2006 MX-5 2.0 Sport with very low miles and a high spec. After three months and three significant price drops, it eventually sold. I thought it was a one off (a confusing 'one off' I must add) but no that was not the case. Multiple examples since and virtually no interest in what I have. My prices are not cheap cheap but the cars are of a high standard with low miles etc.
It does seem that the used car market (for me anyway) is non existent at the moment and I am wondering why? Financial armageddon on the way?
Thanks
Sadly, not the most upbeat of discussion titles but one that is certainly at the forefront of my mind.
As a small-time used car seller, trade has been virtually dead flat since April this year. No matter what I think of as being the reason, some conclusions just don't add up and it seems to me that the only inevitable reason could be a mass slow down in general.
For example, I had an 2006 MX-5 2.0 Sport with very low miles and a high spec. After three months and three significant price drops, it eventually sold. I thought it was a one off (a confusing 'one off' I must add) but no that was not the case. Multiple examples since and virtually no interest in what I have. My prices are not cheap cheap but the cars are of a high standard with low miles etc.
It does seem that the used car market (for me anyway) is non existent at the moment and I am wondering why? Financial armageddon on the way?
Thanks
The deals on new cars along with the poor apr on offer for used vehicles will always have an effect on the used car market, last year I struggled to sell my megane 250, it took 7 weeks and a good few messers before I finally found someone to buy it but then this week I sold my Clio 197 within a day of advertising it!
Are you selling at full dealer prices?
As a self confessed small time trader your competition is mainly from bigger dealers. If I have a choice of two cars, one let’s say at a big main dealer, the other at a gravel yard with a prefab, I’m going to buy the main dealer car. This is simply because if I’m paying a dealer premium I want to think they’ll look after me if I have a problem in the warranty period.
I appreciate the small dealer may well offer better service but in a perception game I think my views will be pretty common.
The used car market in this country has also been changed by pcp as others have said
Good cars are still selling quickly for the right money though. There is near enough full employment and plenty of money around.
As a self confessed small time trader your competition is mainly from bigger dealers. If I have a choice of two cars, one let’s say at a big main dealer, the other at a gravel yard with a prefab, I’m going to buy the main dealer car. This is simply because if I’m paying a dealer premium I want to think they’ll look after me if I have a problem in the warranty period.
I appreciate the small dealer may well offer better service but in a perception game I think my views will be pretty common.
The used car market in this country has also been changed by pcp as others have said
Good cars are still selling quickly for the right money though. There is near enough full employment and plenty of money around.
should the topic not be "overpriced used cars not selling"
just as an example from the lower end of the market ive seen plenty of cars that WBAC would offer £2k for, perhaps & 2500 at a push that are being advertised privately and at dealers for nigh on £4500-5500, there is surely not that big a margin between trade/retail.
even on autotrader it gives an indication if a price is good or not (presumably based on averages of that car/age) an some adverts are highly optimistic.
I think its a case of in slow markets with crap savings rates causes people to value their assets at the higher end of the scale.
just as an example from the lower end of the market ive seen plenty of cars that WBAC would offer £2k for, perhaps & 2500 at a push that are being advertised privately and at dealers for nigh on £4500-5500, there is surely not that big a margin between trade/retail.
even on autotrader it gives an indication if a price is good or not (presumably based on averages of that car/age) an some adverts are highly optimistic.
I think its a case of in slow markets with crap savings rates causes people to value their assets at the higher end of the scale.
eltax91 said:
If your prices are not cheap cheap this could be the problem. I think the vast majority of buyers now search online in price order and phone from top down. They want the cheapest of their desired make/ model/ year/ search criteria and don’t go beyond about 5/6 in the list
+1Very few people will pay a premium for a low miles car these days and even a mint well prepared example pretty much looks like every other car on autotrader, so unless your car is among the cheapest one or two within a significant radius, the phone wont ring.
m3jappa said:
Surely its that everyone or at least massive amounts of people now lease.
£xxx per month for a brand new car with no tax to pay, no mot, no problems, warranty and better mpg than an older unknown car.
This has to be a large factor, I am looking for a 4-6 year old car of a few different 'premium' marques and trying to find a car sold by a private seller vs a main dealer/smaller dealer is nigh on impossible, or if there is a private offering it is then priced at dealer or higher levels. Then of the dealers, the prices vary considerably up to 2-3k extra for the same year/spec/colour.£xxx per month for a brand new car with no tax to pay, no mot, no problems, warranty and better mpg than an older unknown car.
Most of these dealer prices are £2-3k above WBAC trade in values.
Hearing the same thing from others, seeing a huge slow down in sales to almost zero since the start of this year. Price is (apparently) not the issue, edit price up and down (eg end of month offers) and there are almost no enquiries (not even the 2 am email loonies that never reply).
Sub £1k cars are selling (bangers).
Decent £5k to £10k cars no finance are not selling.
Even dealer PCP/lease sales have dropped off a cliff since Q1, friend of mine just left a VW main dealer having been one of their top retail sales guys for the past 36 months, can't hit his targets in 2018.
Even though this has gone down from 20 to 16 units per month (new and used) on a base salary of £12-£15k and £85 per new car sold (plus extra for things like gap, paint protect) etc he had to leave as could not afford to live paying £950 month rent plus all the normal stuff.
I
Sub £1k cars are selling (bangers).
Decent £5k to £10k cars no finance are not selling.
Even dealer PCP/lease sales have dropped off a cliff since Q1, friend of mine just left a VW main dealer having been one of their top retail sales guys for the past 36 months, can't hit his targets in 2018.
Even though this has gone down from 20 to 16 units per month (new and used) on a base salary of £12-£15k and £85 per new car sold (plus extra for things like gap, paint protect) etc he had to leave as could not afford to live paying £950 month rent plus all the normal stuff.
I
V6Alfisti said:
m3jappa said:
Surely its that everyone or at least massive amounts of people now lease.
£xxx per month for a brand new car with no tax to pay, no mot, no problems, warranty and better mpg than an older unknown car.
This has to be a large factor, I am looking for a 4-6 year old car of a few different 'premium' marques and trying to find a car sold by a private seller vs a main dealer/smaller dealer is nigh on impossible, or if there is a private offering it is then priced at dealer or higher levels. Then of the dealers, the prices vary considerably up to 2-3k extra for the same year/spec/colour.£xxx per month for a brand new car with no tax to pay, no mot, no problems, warranty and better mpg than an older unknown car.
Most of these dealer prices are £2-3k above WBAC trade in values.
Drive Blind said:
from what I see nobody wants a 12 year old car.
Nobody in my street has a 12 year old car and I think I'd struggle to find a vehicle of that age in the works car park.
This is a very good point and when I park in my local rail station car park I would say 80% or more of the cars are less than 5 yrs old, most less than 3 yrs - people are not putting money into buying cars when they can rent a new one for such low monthly payments.Nobody in my street has a 12 year old car and I think I'd struggle to find a vehicle of that age in the works car park.
aka_kerrly said:
should the topic not be "overpriced used cars not selling"
I don't think its just that (could be) but I know of traders with their stock listed at well below what they recently paid and zero enquiries - maybe its consumer uncertainty due to Brexit? - A car purchase then only happens when necessary - eg current car fails mot or gets accident damaged?The other thing is, whilst a 2.0i Sport is "the one to have" for us on Pistonheads, out in the real world people wanting a little 2 seater maybe as a weekend or third car will be happy enough with the 1.8i
For example, heres a low miles 2006 1.8i that looks very presentable for under £3K
https://www.autotrader.co.uk/classified/advert/201...
For example, heres a low miles 2006 1.8i that looks very presentable for under £3K
https://www.autotrader.co.uk/classified/advert/201...
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