Price increase
Discussion
Looks like prices have officially increased by a couple of grand…..
At the same time there seem to be a few available to buy “new” without order form various dealers - some with apparent discounts….
I wonder if the cost of money and uncertainty over the economy will kill sales?
Was seriously thinking of committing before the price increase but it’s made we waiver a bit.
At the same time there seem to be a few available to buy “new” without order form various dealers - some with apparent discounts….
I wonder if the cost of money and uncertainty over the economy will kill sales?
Was seriously thinking of committing before the price increase but it’s made we waiver a bit.
Over the last 20 years we are not used to seeing things going up in price so largish increases are more of a shock I suppose but understandable given general cost increases. There will also be a number of companies that will up prices using inflation as an excuse but who have not seen a significant increase in their own costs. No idea if that latter point applies to Alpine or not.
However, there is a point where affordability bites and demand is elastic. I think a contracting money supply, increased finance costs and a general downturn will have more impact on demand than price hikes. These cars (and many like them) are not a sensible choice in an economic downturn and rising interest rates. You can kid yourself that there are strong residuals etc and use man maths but whichever way you cut it they aren't a financially sensible way to get from A to B. Many cars will do 90% of the Alpine's job at well under half the price (and carry 2 or 3 more people). However, historically cheap finance has meant many (most) people drive cars they cant afford to buy for cash and pay the finance houses for the privilege. You only have to look at the profits of the prestige car sellers to see they make no money on the cars but indecently large amounts of money on the finance (usually a linked company).
Like the country, we are living a life that feels like we are successful and wealthy but in reality we are just subsidising stagnant earnings with loads of debt. That was a ridiculously cheap thing to do a couple of years ago. Perhaps not so in future.
PS Having said all of that I own 6 cars - 4 of which are completely impractical (classics) and I am still seriously considering wasting money on an Alpine because they embody the driving fun of a classic without the constant need to keep on top of maintaining them.....
However, there is a point where affordability bites and demand is elastic. I think a contracting money supply, increased finance costs and a general downturn will have more impact on demand than price hikes. These cars (and many like them) are not a sensible choice in an economic downturn and rising interest rates. You can kid yourself that there are strong residuals etc and use man maths but whichever way you cut it they aren't a financially sensible way to get from A to B. Many cars will do 90% of the Alpine's job at well under half the price (and carry 2 or 3 more people). However, historically cheap finance has meant many (most) people drive cars they cant afford to buy for cash and pay the finance houses for the privilege. You only have to look at the profits of the prestige car sellers to see they make no money on the cars but indecently large amounts of money on the finance (usually a linked company).
Like the country, we are living a life that feels like we are successful and wealthy but in reality we are just subsidising stagnant earnings with loads of debt. That was a ridiculously cheap thing to do a couple of years ago. Perhaps not so in future.
PS Having said all of that I own 6 cars - 4 of which are completely impractical (classics) and I am still seriously considering wasting money on an Alpine because they embody the driving fun of a classic without the constant need to keep on top of maintaining them.....
Looked on autotrader at new Alpines that seem to be available to buy now (or due in shortly). A quick count shows 12 GTs 8 Ss and 12 Pures all available to buy now (apparently). Looking prior to Christmas for a 22 year model there was virtually nothing available there and then. Don't know why all these cars don't have owners. Seems a massive punt in the circumstances to order some new ones in the hope of selling them quickly.
I can't but think the dealers involved would be hard pressed to sell that lot any time soon and given so many competing at the same time you'd assume discounts would be in point (some show discounts of a couple of £k but not sure whether that may be simply comparing an old model ordered at the old price with what it would cost to buy now).
I haven't really followed the market much in the last 6 months but I dont recall seeing so many available straightaway?
Bob
I can't but think the dealers involved would be hard pressed to sell that lot any time soon and given so many competing at the same time you'd assume discounts would be in point (some show discounts of a couple of £k but not sure whether that may be simply comparing an old model ordered at the old price with what it would cost to buy now).
I haven't really followed the market much in the last 6 months but I dont recall seeing so many available straightaway?
Bob
Well, if Tesla (which are in the same sort of price bracket) are worried about sales enough to knock £8k of some models, perhaps the car market at that level isn’t quite as robust as the Alpine dealers think….. can’t but think that must be the case. However, may be just wishful thinking!!
Well, I take your points but I suppose there are always alternatives…. they may not be as good or identical but if you want a sports car (or performance coupe) there are cheaper options to the Alpine. In difficult economic times, people either don’t make the purchase switch to a cheaper substitute. It isn’t necessarily as good or desirable but demand becomes more elastic.
Since I made my comments most of the cars still seem to be available. It doesn’t seem like they have been snapped up. Then again prices not fallen.
Since I made my comments most of the cars still seem to be available. It doesn’t seem like they have been snapped up. Then again prices not fallen.
Just looking at a finance deal for a GT at a price of £62k ish. £10k deposit over 4 years the interest charge is about £14k with APR of 7.9% (which seems to be standard). If that rate were 3% that would be interest of £4k ish. BIg difference. That's the issue with PCP and higher interest rates - you're financing a bigger lump for a longer time than on HP.... I suppose people tend to just look at the monthly repayment.
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