Inflation nation and cars
Discussion
Hi,
Has anyone else noticed it feels the gap between second hand (even at ten years old) is massively closing to the nearly new second hand pricing? Say ten year old cars listed at 10k but three year old later models at 16k with FSH etc?
When do you think the tipping point is to stop the older (and what were much cheaper) second hand cars no longer rising? Surely there is a point that the cost benefit of the older car flips over to buying the newer younger low mileage even though it costs a few grand more?
Thanks
Has anyone else noticed it feels the gap between second hand (even at ten years old) is massively closing to the nearly new second hand pricing? Say ten year old cars listed at 10k but three year old later models at 16k with FSH etc?
When do you think the tipping point is to stop the older (and what were much cheaper) second hand cars no longer rising? Surely there is a point that the cost benefit of the older car flips over to buying the newer younger low mileage even though it costs a few grand more?
Thanks
Car prices are just getting ridiculous now. The used market is 8% higher now than in March 20 for the exact same cars (so 1 year older 8% higher!)
New car volumes are hugely down even coming back into recovery from CV19 so theres a lack of supply of NN and ex-PCP.
PCP is a never ending inflation machine - 5 years ago youd pay £150-250 per month on a decent car with little deposit, now you are paying £400 a month and £5k in for a boggo A3.
Theres a huge lack of computer chips in the Far East thats affecting basically any electrical product (Xbox, fridge, cars).
Materials (steel etc) are massively up in cost since last year - and currency devaluation has caused huge swings in the price of cars (an MX5 was around £20k 2 years ago, now £25k at best).
All this is filtering down to the used market, but people are spending their free money from no holidays and furlough so the higher prices mean nothing to them. Until the economy opens up again and people spend on leisure, the car market is donald ducked.
New car volumes are hugely down even coming back into recovery from CV19 so theres a lack of supply of NN and ex-PCP.
PCP is a never ending inflation machine - 5 years ago youd pay £150-250 per month on a decent car with little deposit, now you are paying £400 a month and £5k in for a boggo A3.
Theres a huge lack of computer chips in the Far East thats affecting basically any electrical product (Xbox, fridge, cars).
Materials (steel etc) are massively up in cost since last year - and currency devaluation has caused huge swings in the price of cars (an MX5 was around £20k 2 years ago, now £25k at best).
All this is filtering down to the used market, but people are spending their free money from no holidays and furlough so the higher prices mean nothing to them. Until the economy opens up again and people spend on leisure, the car market is donald ducked.
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