Will Coronavirus hit used car prices? (Vol 2)
Discussion
mrdanbartlett said:
Jules Sunley said:
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.
I would assume many people do the PCP or whatever it is where you just pay the depreciation - rather than a loan where you buy the car outright, and it would cost more per month etc.Edited by Jules Sunley on Wednesday 11th May 17:02
Edited by Jules Sunley on Wednesday 11th May 17:03
mrdanbartlett said:
Jules Sunley said:
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.
I would assume many people do the PCP or whatever it is where you just pay the depreciation - rather than a loan where you buy the car outright, and it would cost more per month etc.Always quite eye opening comparing the actual interest paid on an HP/loan with a PCP or balanced payments scheme. I think there is a calculator on somewhere like magnitude that gives a comparison, is quite surprising how much the interest paid can differ.
Jules Sunley said:
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.
It depends if there any incentives to take the dealer finance such as depsoit contributions of free servicing. You'd then need to work out which is the cheaper way of funding the vehicle.Most bank loans are a max of 50k for easy finance though.
A large number of Rolls and Bentleys I am tracking are falling in price every week.
I'm a serial high end car buyer and am getting the willies about things myself, not just from a financial pov but also an image perspective, and may buy something cheaper as my next car and see where things lie in a year...that behaviour en mass is what drives down the market. People buying cheaper across the board.
A large number of Rolls and Bentleys I am tracking are falling in price every week.
I'm a serial high end car buyer and am getting the willies about things myself, not just from a financial pov but also an image perspective, and may buy something cheaper as my next car and see where things lie in a year...that behaviour en mass is what drives down the market. People buying cheaper across the board.
Jules Sunley said:
Understood, but a longer term personal loan could be a happy medium or of course if they have some equity/ were able to put down a decent deposit. If it's a no to both of those then frankly they are stretching to buy a car they can't really afford (if no savings then what happens it they lose their job and still have payments to make). Call me a grumpy old man if you like but like many of my generation I started with crappy cars and worked my way up the car ladder over the years
Always put in around 10% of the value of the car at the start of a PCP deal, then if the worst happens and you lose your job the worst case scenario is you have to sell your car. Edited by Jules Sunley on Wednesday 11th May 17:02
Edited by Jules Sunley on Wednesday 11th May 17:03
Interesting that the past few weeks the number of the model of car I'm looking at has really dropped, was over 150 now 127, its been 170 at the peak (Jan) and under 70 at it's lowest (summer 2021). Its steadily fallen recently - naturally it could be the cars not selling and coming off AT as some certainly had been on there for months. Hard to know!
Asked before but anyone sold much recently privately, if so how much interest was there?
Asked before but anyone sold much recently privately, if so how much interest was there?
Jules Sunley said:
Joey Deacon said:
You cannot argue that the price of brand new cars is going up rapidly now, and that there are long waiting lists. The knock on effect of this is that second hand prices of nearly new cars are the same if not more than list and are often more expensive due to the finance rate being better on new cars.
How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
At the end of the day, you do what's right for you as an individual. You pays your money, you take your choice.
NelsonM3 said:
Jules Sunley said:
Joey Deacon said:
You cannot argue that the price of brand new cars is going up rapidly now, and that there are long waiting lists. The knock on effect of this is that second hand prices of nearly new cars are the same if not more than list and are often more expensive due to the finance rate being better on new cars.
How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
At the end of the day, you do what's right for you as an individual. You pays your money, you take your choice.
time waster said:
NelsonM3 said:
Jules Sunley said:
Joey Deacon said:
You cannot argue that the price of brand new cars is going up rapidly now, and that there are long waiting lists. The knock on effect of this is that second hand prices of nearly new cars are the same if not more than list and are often more expensive due to the finance rate being better on new cars.
How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
I'm not sure why anyone willingly uses dealers for finance. Personal loan rates from banks are typically much cheaper so if someone is set on financing a car (rather than buy a cheaper one outright/saving up) then use a personal loan to fund it.How long this is going to carry on for I don't know, but it is not suddenly going to stop overnight.
Go and look at the new prices of some pretty mundane white goods cars, I think you will be shocked.
At the end of the day, you do what's right for you as an individual. You pays your money, you take your choice.
You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
ChocolateFrog said:
That's what I was thinking.
You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
Don't forget there are often dealer contributions or things such as free servicing which are dependent of taking out the finance. As you say, it is also less hassle, but once you have the car there is nothing stopping you arranging finance elsewhere at a better rate and paying it off.You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
I have gone for finance on the car I have just ordered, but I am putting down a 40% deposit. The finance rate is 5.9%APR, my thinking is I get the free servicing, it requires zero effort from me and in a few months I can either just pay off the finance from my savings or arrange it at a lower rate if need be.
I could borrow it on my credit card in five minutes at 0% for 15 months with a 4% fee which I might well do once the car is delivered.
sat1983 said:
My 2021 Polo GTI. Risen by £850 over the last week on webuyanycar. I guess they are probably desperate for nearly new stock?
Yes, I think nearly new are the ones that are rising the most due to the long delivery times being quoted at the moment. I read on a forum of someone collecting their new Dacia Jogger and the dealer offering to immediately buy it for £1000 more than they paid.I wonder if anyone is ordering a new car as soon as there current one arrives and being to be able to get into a new version each year for free?
Joey Deacon said:
ChocolateFrog said:
That's what I was thinking.
You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
Don't forget there are often dealer contributions or things such as free servicing which are dependent of taking out the finance. As you say, it is also less hassle, but once you have the car there is nothing stopping you arranging finance elsewhere at a better rate and paying it off.You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
I have gone for finance on the car I have just ordered, but I am putting down a 40% deposit. The finance rate is 5.9%APR, my thinking is I get the free servicing, it requires zero effort from me and in a few months I can either just pay off the finance from my savings or arrange it at a lower rate if need be.
I could borrow it on my credit card in five minutes at 0% for 15 months with a 4% fee which I might well do once the car is delivered.
sat1983 said:
My 2021 Polo GTI. Risen by £850 over the last week on webuyanycar. I guess they are probably desperate for nearly new stock?
Yep just one example and as predicted much run of the mill mainstream stuff not just medium and high end is now rising in value again as longer lead times increasingly affect new orders.Ford stopping new Focus orders is just one example of impacting the market values of used comparables across the board.
time waster said:
Joey Deacon said:
ChocolateFrog said:
That's what I was thinking.
You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
Don't forget there are often dealer contributions or things such as free servicing which are dependent of taking out the finance. As you say, it is also less hassle, but once you have the car there is nothing stopping you arranging finance elsewhere at a better rate and paying it off.You can come up with all sorts of reasons but the only one that matters is that you can walk in to a dealer and relatively hassle free drive out with a shiny new car knowing that it will cost x amount per month.
Even though it takes 10 minutes to do the sums that tell you you're being had I bet 90% don't bother and 89% of them don't care.
I have gone for finance on the car I have just ordered, but I am putting down a 40% deposit. The finance rate is 5.9%APR, my thinking is I get the free servicing, it requires zero effort from me and in a few months I can either just pay off the finance from my savings or arrange it at a lower rate if need be.
I could borrow it on my credit card in five minutes at 0% for 15 months with a 4% fee which I might well do once the car is delivered.
carparkno1 said:
unfortunately just the start, inflation, high interest rates and no growth. there will be pain in the next year or sotime waster said:
unfortunately just the start, inflation, high interest rates and no growth. there will be pain in the next year or so
As I said it would start from April the media are showing March, It’s only going to start to get worse from here the only plus side is as spending slows at some point products have to fall in price whether it’s food utilities cars, to get ppl buying!
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