Used values finally dropping?

[neilf]

Anyone else tracking used valuations at the moment?

I’ve been following the WBAC value of my Dads 2019 Macan 2.0 for a few months since he placed an order for a new S.

November value was £49,000
At Christmas it was £47,500
Today £43,000

Is this a blip or do we think prices are getting back to normal, whatever normal is?

[Lexington59]

In constant discussion on the salesman thread:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

January should usually be a buyers market; but fundamentals in terms of the shortages haven't really changed.

If there is a temporary drop I'd say make the most of it if buying, springtime should see the usual price increases.

[Koln-RS]

Yes, WBAC valuations have dropped across the board from my recent experience - I pop the details of various cars we have into their app, and typically they have eased back about 6% from their best.

I do know a guy who does the site valuations for WBAC, and he said they are being instructed to be much more critical with their inspections, as they are anticipating the market to get tighter.

I have also also noticed, in my ‘window shopping’, that a lot of stock is not moving.

Might be ‘time of year’, or it might be a change in confidence.

[MeisterH]

Koln-RS said:

Yes, WBAC valuations have dropped across the board from my recent experience - I pop the details of various cars we have into their app, and typically they have eased back about 6% from their best.

I do know a guy who does the site valuations for WBAC, and he said they are being instructed to be much more critical with their inspections, as they are anticipating the market to get tighter.

I have also also noticed, in my ‘window shopping’, that a lot of stock is not moving.

Might be ‘time of year’, or it might be a change in confidence.

totally agree with this, Stock is soo over priced for nearly new cars, i think buyers are not prepared to pay 5/10/15 k over list price

[Lexington59]

MeisterH said:

Koln-RS said:

Yes, WBAC valuations have dropped across the board from my recent experience - I pop the details of various cars we have into their app, and typically they have eased back about 6% from their best.

I do know a guy who does the site valuations for WBAC, and he said they are being instructed to be much more critical with their inspections, as they are anticipating the market to get tighter.

I have also also noticed, in my ‘window shopping’, that a lot of stock is not moving.

Might be ‘time of year’, or it might be a change in confidence.

totally agree with this, Stock is soo over priced for nearly new cars, i think buyers are not prepared to pay 5/10/15 k over list price

Will depend on the current lead times for a new one. I don't think much has changed in that regard hence presume existing stock will continue to be priced at a premium no matter how much we may wish otherwise.

I think a massive crash in values has been predicted since the start of the pandemic, but thus far appears not to have materialised.

[Wilmslowboy]

MeisterH said:

totally agree with this, Stock is soo over priced for nearly new cars, i think buyers are not prepared to pay 5/10/15 k over list price

I just paid over list for a Taycan (RWD), and even then it was the cheapest straight car in the UK,
Similar cars being advertised for £5k more and selling.

I’m not saying it will last forever but no one is discounting at the moment, so at worse it a stand off.

[julian987R]

MeisterH said:

totally agree with this, Stock is soo over priced for nearly new cars, i think buyers are not prepared to pay 5/10/15 k over list price

you might rightly no be prepared to pay that much overs, but plenty are prepared, therefore as stated on another thread, whilst values on some specific models might soften, that is not reflective of the whole market which will continue to rise beyond 2030, year on year.

[Royal Jelly]

julian987R said:

you might rightly no be prepared to pay that much overs, but plenty are prepared, therefore as stated on another thread, whilst values on some specific models might soften, that is not reflective of the whole market which will continue to rise beyond 2030, year on year.

[MDL111]

julian987R said:

MeisterH said:

totally agree with this, Stock is soo over priced for nearly new cars, i think buyers are not prepared to pay 5/10/15 k over list price

you might rightly no be prepared to pay that much overs, but plenty are prepared, therefore as stated on another thread, whilst values on some specific models might soften, that is not reflective of the whole market which will continue to rise beyond 2030, year on year.

Better go an secure a big garage if that is the case - you will become rich while having toys to drive

[EC2]

julian987R said:

you might rightly no be prepared to pay that much overs, but plenty are prepared, therefore as stated on another thread, whilst values on some specific models might soften, that is not reflective of the whole market which will continue to rise beyond 2030, year on year.

I really don’t see how you get to this view. Modern ICE cars are not special enough and are too prevalent to carry strong value, special editions apart, long term. Most people will be glad to get into electric on second phase tech when they realise how good such sports are and how, on reflection that the last 15 years of ICE cars don’t sound or go that great, again special editions apart.

Edited by EC2 on Saturday 29th January 10:23

[julian987R]

EC2 said:

julian987R said:

you might rightly no be prepared to pay that much overs, but plenty are prepared, therefore as stated on another thread, whilst values on some specific models might soften, that is not reflective of the whole market which will continue to rise beyond 2030, year on year.

I really don’t see how you get to this view. Modern ICE cars are not special enough and are too prevalent to carry strong value, special editions apart, long term. Most people will be glad to get into electric on second phase tech when they realise how good such sports are and how, on reflection that the last 15 years of ICE cars don’t sound or go that great, again special editions apart.

Edited by EC2 on Saturday 29th January 10:23

I get the feeling you follow too much main stream media. My mantra is to always bet the opposite. I don't believe most people will be glad to get into electric on second phase tech. Mass market don't care about the sound or how they go, cup holders and room for the kids are the important factors.
Lets see. But what ever mass consensus is, my recommendation in life is to always bet on the exact opposite.

[EC2]

Yep it will be interesting to watch. I like the feel of driving a geared car with changing engine revs etc but things are gradually being diluted more and more to the extent that the propulsion system might become irrelevant to many people even at the sports car end of the market. How good the electric Cayman proves to be will help many decide I suspect.

[Fnumber1user]

Nope, don't see values weakening any at all currently.

EG: WBAC are back on the up - nowhere near the summer peak of £56k, but have gone up £4k on a 69 plate 2.5F4T Cayman GTS from pre Christmas low of £48.5k. Porsche offered slightly more, tbh can't find anything with the performance/cost with which I'd even consider replacing it with.

[stewieyan]

I've been researching BMW prices recently and they are as a rule £5-6k higher than one would normally expect.

[Coder]

julian987R said:

I get the feeling you follow too much main stream media.

Err...

julian987R said:

Mass market don't care about the sound or how they go, cup holders and room for the kids are the important factors.

Yes, IMO the majority of people being able to afford EV cars that suit their needs (i.e. estate / SUVs etc) and then being able to charge them up at their convenience are the two main decision points, neither of which are the case at present. So, whether 2nd/next generation tech is widespread depends on cost coming right down and charging points being deployed everywhere. I'm sure both will happen eventually, but not very quickly. At least 5y, maybe 10y?
After this point running an EV would be easier and cheaper than ICE, especially bearing in mind taxes on fuel and ownership going up. At that point ICE would be for enthusiasts who love the car so much they're willing to pay more. Should be fine for Porsche owners, right!?

[julian987R]

Coder said:

Yes, IMO the majority of people being able to afford EV cars that suit their needs (i.e. estate / SUVs etc) and then being able to charge them up at their convenience are the two main decision points, neither of which are the case at present. So, whether 2nd/next generation tech is widespread depends on cost coming right down and charging points being deployed everywhere. I'm sure both will happen eventually, but not very quickly. At least 5y, maybe 10y?
After this point running an EV would be easier and cheaper than ICE, especially bearing in mind taxes on fuel and ownership going up. At that point ICE would be for enthusiasts who love the car so much they're willing to pay more. Should be fine for Porsche owners, right!?

I guess time will tell but I am not convinced that running an EV would be easier and cheaper than ICE. Once mass adoption happens it'll be a different story. If 100% of the country went EV tomorrow there is no way they'd stick with the zero road tax and no fee to drive through a city etc.

[981SPYGANG]

julian987R said:

Coder said:

Yes, IMO the majority of people being able to afford EV cars that suit their needs (i.e. estate / SUVs etc) and then being able to charge them up at their convenience are the two main decision points, neither of which are the case at present. So, whether 2nd/next generation tech is widespread depends on cost coming right down and charging points being deployed everywhere. I'm sure both will happen eventually, but not very quickly. At least 5y, maybe 10y?
After this point running an EV would be easier and cheaper than ICE, especially bearing in mind taxes on fuel and ownership going up. At that point ICE would be for enthusiasts who love the car so much they're willing to pay more. Should be fine for Porsche owners, right!?

I guess time will tell but I am not convinced that running an EV would be easier and cheaper than ICE. Once mass adoption happens it'll be a different story. If 100% of the country went EV tomorrow there is no way they'd stick with the zero road tax and no fee to drive through a city etc.

Totally agree……tax incentives to get us all in and then move the goal posts.

Just think if they continued with zero road tax our roads would soon be covered in unrepaired potholes…….

[BertBert]

I'm wondering if the threat of war in Europe, rampant inflation and the end of Covid might dampen used car prices?

[Lexington59]

With higher inflation I suspect it is unlikely manufacturers will be rushing into cutting prices.

[981SPYGANG]

BertBert said:

I'm wondering if the threat of war in Europe, rampant inflation and the end of Covid might dampen used car prices?

I think a modest correction in all asset prices would be healthy but it’s kinda like there is too much money in the system. (~$23 Trillion worldwide QE might explain that one)

With ‘real’ interest rates ( base rate - inflation) being negative peeps either/are encouraged to spend their money (they get next to nothing on it in the bank) or try to squeeze out some sort of yield by chasing asset prices higher.

Who knows how this all plays out?……I don’t think anyone knows!