Secondhand car price crash?
Discussion
From my own searches it's a bit of a mixed bag.
Mk8 FST3 seem to be up about £1k from last month. Same story with MX5RF 184. But face-lift Mini Cooper S sports are down slightly. Not much change on the i20N although I'm sensing a price increase on brand new coming shortly.
This is all based on AT asking prices.
Mk8 FST3 seem to be up about £1k from last month. Same story with MX5RF 184. But face-lift Mini Cooper S sports are down slightly. Not much change on the i20N although I'm sensing a price increase on brand new coming shortly.
This is all based on AT asking prices.
911hope said:
You are correct. HP is much cheaper.
Interesting that so many choose PCP, as they believe the opposite.
I’m not sure they believe PCP is cheaper, I’d say so many choose PCP because it’s the deal that’s pushed by the dealer, it’s usually incentivised with a contribution and advertised with considerably lower monthly payments than HP. Chuck in a service plan, extra years warranty and you can see why people go down this route. Interesting that so many choose PCP, as they believe the opposite.
I’m on my second PCP now, both were 0% and have done very well out of both of them regarding retained values. Considering paying the balloon on the current one and keeping it.
I think most people understand that with HP you pay less in total interest than PCP but for many its unaffordable
I was looking at the Synter website yesterday, they are offering 13.4% apr on used BMW's ! Thats £22.5k on interest over 4 years or £470pm month approx
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
I was looking at the Synter website yesterday, they are offering 13.4% apr on used BMW's ! Thats £22.5k on interest over 4 years or £470pm month approx
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
HP you don't necessarily pay less interest, you do if all things are equal including the term, but typically you'll take HP over a longer period. If you compared a 3 year PCP to a 6 year HP settled at 3 years chances are the HP will have paid more interest.
You also often get a worse rate on HP.
You also often get a worse rate on HP.
e-honda said:
HP you don't necessarily pay less interest, you do if all things are equal including the term, but typically you'll take HP over a longer period. If you compared a 3 year PCP to a 6 year HP settled at 3 years chances are the HP will have paid more interest.
You also often get a worse rate on HP.
You also often get a worse rate on HP.
Apples - Apples you pay less, Apples - Oranges = Melon
liner33 said:
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
I'm fortunate to be sitting on cash earmarked for a car. Thing is though, having spent time accumulating that cash it still feels like a really big decision to blow it on a car I probably don't really need. Doesn't feel much easier to me. And I'm not seeing the discounts either with cars I'm looking at. I have also been looking at a current PCP deal on a brand new Fiesta ST being offered through most Ford dealers. It's about £5700 deposit then £200 a month over 26 months. So basically £11k to have a brand new car just over 2 years. The balloon is £15k so I'd imagine there would be some equity in it at the end. That's a 0% deal by the way. I can see why people would do it. Certainly feels better than walking in and handing over £26k in cash even if the outcome is the same.
liner33 said:
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
Manufacturers like BMW will do what they always do then - offer very low to 0% APR finance and give big discounts either directly and / or through finance incentives. OR push them through lease deals and make the monthlies compelling.Cash buyers will be the last people they'll be aiming for.
A good strategy for me has been to lease for 18-24mths with zero upfront.
Then at the end of the lease offer to buy via BCA, that way paying with cash feels alot better in the knowledge that a £35k car you have driven from new for the past 24mths and paid £7.5k in leasing costs your now being offered for £20k, 20+7.5=£27.5k total cost, a 28% discount on buying new for cash, I have spread part of the cost over the first 2 years on a bit of a try before you buy, it does not even feel like I have paid any interest over those first 2 years and benefited from having RFL paid as well.
Not sure with current leasing costs its worth doing now, so for that reason I have taken time out from leasing, I normally dip in and out but this for me is an extended break.
Then at the end of the lease offer to buy via BCA, that way paying with cash feels alot better in the knowledge that a £35k car you have driven from new for the past 24mths and paid £7.5k in leasing costs your now being offered for £20k, 20+7.5=£27.5k total cost, a 28% discount on buying new for cash, I have spread part of the cost over the first 2 years on a bit of a try before you buy, it does not even feel like I have paid any interest over those first 2 years and benefited from having RFL paid as well.
Not sure with current leasing costs its worth doing now, so for that reason I have taken time out from leasing, I normally dip in and out but this for me is an extended break.
Deep Thought said:
liner33 said:
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
Manufacturers like BMW will do what they always do then - offer very low to 0% APR finance and give big discounts either directly and / or through finance incentives. OR push them through lease deals and make the monthlies compelling.Cash buyers will be the last people they'll be aiming for.
tter my grandad left us. It's been a great car.
ChrisH72 said:
liner33 said:
Going to be good times for all the PH'ers sitting on large sums of cash as new luxury cars are going to be discounted heavily to sell
I'm fortunate to be sitting on cash earmarked for a car. Thing is though, having spent time accumulating that cash it still feels like a really big decision to blow it on a car I probably don't really need. Doesn't feel much easier to me. And I'm not seeing the discounts either with cars I'm looking at. I have also been looking at a current PCP deal on a brand new Fiesta ST being offered through most Ford dealers. It's about £5700 deposit then £200 a month over 26 months. So basically £11k to have a brand new car just over 2 years. The balloon is £15k so I'd imagine there would be some equity in it at the end. That's a 0% deal by the way. I can see why people would do it. Certainly feels better than walking in and handing over £26k in cash even if the outcome is the same.
ChrisH72 said:
I'm fortunate to be sitting on cash earmarked for a car. Thing is though, having spent time accumulating that cash it still feels like a really big decision to blow it on a car I probably don't really need. Doesn't feel much easier to me. And I'm not seeing the discounts either with cars I'm looking at.
I have also been looking at a current PCP deal on a brand new Fiesta ST being offered through most Ford dealers. It's about £5700 deposit then £200 a month over 26 months. So basically £11k to have a brand new car just over 2 years. The balloon is £15k so I'd imagine there would be some equity in it at the end. That's a 0% deal by the way. I can see why people would do it. Certainly feels better than walking in and handing over £26k in cash even if the outcome is the same.
Its prices like this that make me feel sick with the current car market. 2019 I was looking at a brand new Fiesta ST-3 for £19k on 0% finance, now the same car at £26k. 37% increase over 3.5 years!!I have also been looking at a current PCP deal on a brand new Fiesta ST being offered through most Ford dealers. It's about £5700 deposit then £200 a month over 26 months. So basically £11k to have a brand new car just over 2 years. The balloon is £15k so I'd imagine there would be some equity in it at the end. That's a 0% deal by the way. I can see why people would do it. Certainly feels better than walking in and handing over £26k in cash even if the outcome is the same.
Deep Thought said:
Manufacturers like BMW will do what they always do then - offer very low to 0% APR finance and give big discounts either directly and / or through finance incentives. OR push them through lease deals and make the monthlies compelling.
Cash buyers will be the last people they'll be aiming for.
Discounts isn’t something BMW have been doing for the last 18 months at least even with the apr hitting 4.9% Cash buyers will be the last people they'll be aiming for.
ToastMan76 said:
Its prices like this that make me feel sick with the current car market. 2019 I was looking at a brand new Fiesta ST-3 for £19k on 0% finance, now the same car at £26k. 37% increase over 3.5 years!!
A combination of wages not increasing by the same rate and finance alot higher than what it was 3.5 years can only mean less demand, not too bad if you already have a car to offset some of the increases but coming from a company car, lease deal or a first car then the increases are massive in relation to salary increases. And that is without adding in everything else that has also increased over that same period.
Edited by Theoldguard on Sunday 12th March 15:31
ToastMan76 said:
Its prices like this that make me feel sick with the current car market. 2019 I was looking at a brand new Fiesta ST-3 for £19k on 0% finance, now the same car at £26k. 37% increase over 3.5 years!!
When I bought my fiesta st3 in 2019 it was more than £19k think it was £22k or £23kTheoldguard said:
ToastMan76 said:
Its prices like this that make me feel sick with the current car market. 2019 I was looking at a brand new Fiesta ST-3 for £19k on 0% finance, now the same car at £26k. 37% increase over 3.5 years!!
A combination of wages not increasing by the same rate and finance alot higher than what it was 3.5 years can only mean less demand, not too bad if you already have a car to offset some of the increases but coming from a company car, lease deal or a first car then the increases are massive in relation to salary increases. And that is without adding in everything else that has also increased over that same period.
Edited by Theoldguard on Sunday 12th March 15:31
liner33 said:
Deep Thought said:
Manufacturers like BMW will do what they always do then - offer very low to 0% APR finance and give big discounts either directly and / or through finance incentives. OR push them through lease deals and make the monthlies compelling.
Cash buyers will be the last people they'll be aiming for.
Discounts isn’t something BMW have been doing for the last 18 months at least even with the apr hitting 4.9% Cash buyers will be the last people they'll be aiming for.
Hence why I said "will"
EDIT: Just did a check there and you can get £10K off a new 7 series and £20K off a new M5 Comp. The latter is available with 4.9% APR.
Looks like "will" is becoming "now"
Edited by Deep Thought on Sunday 12th March 16:28
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