Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

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Earthdweller

13,557 posts

126 months

Saturday 21st May 2022
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ghost83 said:
yellowbentines said:
Going OT now but as mentioned above just back from the Lakes and out of curiosity looked at property prices. At one of the parks (White Cross) there's a 2 bed timber lodge up for 335k! It looks fairly standard in size and is neither brand new nor right on the lake - that price seems bonkers.
Absolute madness! The things ppl could do with 335k rather than buy them
There’s a reason why there’s always loads of them for sale !

The site fees are madness and then council tax on top, you can easily be paying £10k pa and then when it’s 20 years old you have to remove it or buy another one from them

My old firm had 6 or 7 really nice ones on there which I stayed in a good few times but they off loaded them a year or two ago



stevemcs

8,666 posts

93 months

Saturday 21st May 2022
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Evercross said:
Earthdweller said:
Watched a YouTube video yesterday from a caravan dealer who was walking around his stock

He was saying that demand has just evaporated.. gone

He was pointing out vans and saying things like “we’re fully stocked up, bought loads of stock in, it’s just died a death, hands on the head time”

Lots of expensive stock and nobody buying, vans that would have sold in hours .. no interest.
That wasn't difficult to predict once international travel restrictions started to drop-off post Covid.
If it’s the same one I watched then watch the next episode, they have all sold

ghost83

5,478 posts

190 months

Sunday 22nd May 2022
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Earthdweller said:
There’s a reason why there’s always loads of them for sale !

The site fees are madness and then council tax on top, you can easily be paying 10k pa and then when it’s 20 years old you have to remove it or buy another one from them

My old firm had 6 or 7 really nice ones on there which I stayed in a good few times but they off loaded them a year or two ago
Yeah they had loads for sale where I was, and the site was dead!
Manager said even though ppl have the caravans and site fees are paid ppl can’t afford to drive to it and then pay for stuff when there as a wknd in their own caravan can easily cost over £500 by the time they’ve driven bought food or eaten out arcades and other stuff

av185

18,514 posts

127 months

Sunday 22nd May 2022
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Who's interested in caravans?

This is a used car price thread.

And to keep the thread on track for those interested in the world of WBAC prices the last three posts on that thread confirm prices are generally rising again including an X5M up from £36k 2 weeks ago to £39k now.

Wilmslowboy

4,209 posts

206 months

Sunday 22nd May 2022
quotequote all
av185 said:
Who's interested in caravans?

This is a used car price thread.

And to keep the thread on track for those interested in the world of WBAC prices the last three posts on that thread confirm prices are generally rising again including an X5M up from 36k 2 weeks ago to 39k now.
Interesting to know what the X5M was 6 months ago, appears WBAC dropped their bids dramatically earlier in the year (based on my own examples), but now decided to start buying again.


ghost83

5,478 posts

190 months

Sunday 22nd May 2022
quotequote all
av185 said:
Who's interested in caravans?

This is a used car price thread.

And to keep the thread on track for those interested in the world of WBAC prices the last three posts on that thread confirm prices are generally rising again including an X5M up from 36k 2 weeks ago to 39k now.
Maybe but this is all short term! You only have to look towards winter when price cap goes up in October christmas and everything else! Also interest rates will easily go up again by then they’ve already gone up 4 times in the last 5 month! I’d be shocked if we don’t see the base rate go to 2% , ultimately it will all start to add up for most ppl

av185

18,514 posts

127 months

Sunday 22nd May 2022
quotequote all
Wilmslowboy said:
av185 said:
Who's interested in caravans?

This is a used car price thread.

And to keep the thread on track for those interested in the world of WBAC prices the last three posts on that thread confirm prices are generally rising again including an X5M up from 36k 2 weeks ago to 39k now.
Interesting to know what the X5M was 6 months ago, appears WBAC dropped their bids dramatically earlier in the year (based on my own examples), but now decided to start buying again.
Yes and what will be interesting is the effect of the 25% overall drop in new petrol car sales in April partly caused by increasingly limited supplies longer lead times and some buyers opting for BEVs due to rising fuel costs.

gmaz

4,400 posts

210 months

Sunday 22nd May 2022
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My father passed away recently so I had to sell his 2016 Yaris Hybrid. It was bought in Nov 2018 from a Toyota main dealer for £11,300. Earlier this month I sold it to Motorway for £11,459. £159 profit after 3.5years!

It is now listed on a dealer website for £13,700..

Madness!

Back2theFuji

158 posts

23 months

Sunday 22nd May 2022
quotequote all
gmaz said:
My father passed away recently so I had to sell his 2016 Yaris Hybrid. It was bought in Nov 2018 from a Toyota main dealer for 11,300. Earlier this month I sold it to Motorway for 11,459. 159 profit after 3.5years!

It is now listed on a dealer website for 13,700..

Madness!
That is bonkers! Sorry to hear about your father though.

I've just bought a 15 plate seven seater for 10k, same money would have got me a 17 plate two years ago!

HTP99

22,553 posts

140 months

Sunday 22nd May 2022
quotequote all
Back2theFuji said:
gmaz said:
My father passed away recently so I had to sell his 2016 Yaris Hybrid. It was bought in Nov 2018 from a Toyota main dealer for 11,300. Earlier this month I sold it to Motorway for 11,459. 159 profit after 3.5years!

It is now listed on a dealer website for 13,700..

Madness!
That is bonkers! Sorry to hear about your father though.

I've just bought a 15 plate seven seater for 10k, same money would have got me a 17 plate two years ago!
Sold a 2018 Dacia Sandero Essential (mid spec) a few weeks ago for £6995, IIRC it would have been £8.5k in the metallic, brand new 4 years ago!

ghost83

5,478 posts

190 months

Sunday 22nd May 2022
quotequote all
Thing is as long as the public keep buying the prices will stay buoyant or rise! Same with the cost of fuel!

Imagine if everyone stopped buying cars for a month or if no one bought fuel for a week!

Like anything though if ppl have cash to spend they can’t hold onto it!

anonymous-user

54 months

Sunday 22nd May 2022
quotequote all
HTP99 said:
Back2theFuji said:
gmaz said:
My father passed away recently so I had to sell his 2016 Yaris Hybrid. It was bought in Nov 2018 from a Toyota main dealer for 11,300. Earlier this month I sold it to Motorway for 11,459. 159 profit after 3.5years!

It is now listed on a dealer website for 13,700..

Madness!
That is bonkers! Sorry to hear about your father though.

I've just bought a 15 plate seven seater for 10k, same money would have got me a 17 plate two years ago!
Sold a 2018 Dacia Sandero Essential (mid spec) a few weeks ago for 6995, IIRC it would have been 8.5k in the metallic, brand new 4 years ago!
I think it is also because the price of brand new cars has pretty much increased by the same amount of the depreciation. This means the cars value has pretty much remained static as the price of a new car drags up the value of the second hand ones.

Yaris Hybrid list price is now £21,080.00, so even at £13,700 it seems like good value.

swisstoni

17,000 posts

279 months

Sunday 22nd May 2022
quotequote all
ghost83 said:
Thing is as long as the public keep buying the prices will stay buoyant or rise! Same with the cost of fuel!

Imagine if everyone stopped buying cars for a month or if no one bought fuel for a week!

Like anything though if ppl have cash to spend they can’t hold onto it!
Most people don’t buy cars or fuel for fun though.

HTP99

22,553 posts

140 months

Sunday 22nd May 2022
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Joey Deacon said:
HTP99 said:
Back2theFuji said:
gmaz said:
My father passed away recently so I had to sell his 2016 Yaris Hybrid. It was bought in Nov 2018 from a Toyota main dealer for 11,300. Earlier this month I sold it to Motorway for 11,459. 159 profit after 3.5years!

It is now listed on a dealer website for 13,700..

Madness!
That is bonkers! Sorry to hear about your father though.

I've just bought a 15 plate seven seater for 10k, same money would have got me a 17 plate two years ago!
Sold a 2018 Dacia Sandero Essential (mid spec) a few weeks ago for 6995, IIRC it would have been 8.5k in the metallic, brand new 4 years ago!
I think it is also because the price of brand new cars has pretty much increased by the same amount of the depreciation. This means the cars value has pretty much remained static as the price of a new car drags up the value of the second hand ones.

Yaris Hybrid list price is now 21,080.00, so even at 13,700 it seems like good value.
Yep, that's why I can't see a huge drop in used car values back to how they were pre Covid, like some are hoping/predicting.

Just this week a new Stepway arrived at work which was ordered in November, in those 6m the price has increased by £1550.00!

anonymous-user

54 months

Sunday 22nd May 2022
quotequote all
HTP99 said:
Yep, that's why I can't see a huge drop in used car values back to how they were pre Covid, like some are hoping/predicting.

Just this week a new Stepway arrived at work which was ordered in November, in those 6m the price has increased by 1550.00!
Looking at the second hand prices, anyone who purchased a MK3 Stepway has made money on the car. When they were first announced the essential was £10,995, 18 months on they are £13,795 and I recently saw a seven month old white one sell for £12,995 in days which was list at the time. I ordered one last month and it has already increased by £800 in that time.

Prices seem to be increasing by around £500 every 3 months, I can see these prices increasing again in a few months, and Dacia killing off all the remaining essential models.

jonwm

2,521 posts

114 months

Sunday 22nd May 2022
quotequote all
ghost83 said:
Thing is as long as the public keep buying the prices will stay buoyant or rise! Same with the cost of fuel!

Imagine if everyone stopped buying cars for a month or if no one bought fuel for a week!

Like anything though if ppl have cash to spend they can’t hold onto it!
I'm with this, as the others have said before, we need to buy petrol, they can charge what they like but the majority of us need to go to work and mostly involves a car (especially if you are on PH's).

Car prices are dictated to in £ per month so doesn't matter if a car goes up, I work in the industry (the supply to build side & distribution not retail) and they don't flinch about taking spec off or putting the RRP up an blaming "chips", people are still buying them.

My electric and gas have gone up £130 a month this month, i might try and turn the lights of a bit more but realistically other than moan about it there isn't much I or we can do about it, even if crude drops then we will never see <£1.50 a litre now because we just have to pay it and all of a sudden £1.53 looks really cheap!

Used cars will be the same, I don't see any drastic drop as manufacturers have adjusted output to suit, they have made redundancies (covered by COVID grants etc) so in the short term will never go back to pre covid production.

I'm on a manufacturers car scheme, most cars go directly into approved used, they changed the parameters from 9k / 9 months change (order about 6k 6 months) to you can only order at 15k no time limit and reduced the choice by loads, everyone moaned so they offered us £600 a month car allowance to come out the scheme, guess what, no one has and we just order at 15k now, there is now a reduced amount of used going to market directly from the manufactures, they control the used market as much as the new, I'm sure other manufacturers are the same, my last car handover the guy said I was the second and last that day, they used to do 12 to 15 handovers a day! this all reduces the supply keeping prices up.


av185

18,514 posts

127 months

Sunday 22nd May 2022
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HTP99 said:
Yep, that's why I can't see a huge drop in used car values back to how they were pre Covid, like some are hoping/predicting.
Yep this makes sense and I've been saying exactly the same throughout the thread. The days of huge initial new car depreciation in the UK could well now be a distant memory.

Also whilst I and many others on this thread are clearly too young to remember much of what happened in the 1970s apparantly inflation hit 26% and holding cash was a very expensive pastime understandably. Consequently many bought cars which was one of the safest places for your money.

Okay thankfully we are extremely unlikely to return to those extreme levels of inflation but with many asset classes looking expensive and perhaps increasingly less upside in equity markets depending on your risk appetite then throwing money into a car is actually looking like a smarter move for many especially bearing in mind the rapidly rising prices of new cars and more inevitable price rises to come at all price points. Throw a minimum of 10% inflation into the mix and car purchasing looks even more attractive.

The spinner of plates

17,700 posts

200 months

Sunday 22nd May 2022
quotequote all
av185 said:
Yep this makes sense and I've been saying exactly the same throughout the thread. The days of huge initial new car depreciation in the UK could well now be a distant memory.

Also whilst I and many others on this thread are clearly too young to remember much of what happened in the 1970s apparantly inflation hit 26% and holding cash was a very expensive pastime understandably. Consequently many bought cars which was one of the safest places for your money.

Okay thankfully we are extremely unlikely to return to those extreme levels of inflation but with many asset classes looking expensive and perhaps increasingly less upside in equity markets depending on your risk appetite then throwing money into a car is actually looking like a smarter move for many especially bearing in mind the rapidly rising prices of new cars and more inevitable price rises to come at all price points. Throw a minimum of 10% inflation into the mix and car purchasing looks even more attractive.
In your dreams.

jimPH

3,981 posts

80 months

Sunday 22nd May 2022
quotequote all
Meanwhile, back at Ford HQ..

Well that's our supply chain sorted out, we've got a backlog of customer orders and our competitors are restricting supply and increasing margin, they can't fullfill their order books, this could be a great opportunity to gain market share.. "OPEN THE TAPS"


Few months later at VW..

Ford have slashed leadtimes and making more cars available to our customers, their gaining a rapid chunk of market share.. what can we do!! "PRODUCTION, FULL STEAM AHEAD"

Etc... Etc..


av185

18,514 posts

127 months

Sunday 22nd May 2022
quotequote all
The spinner of plates said:
av185 said:
Yep this makes sense and I've been saying exactly the same throughout the thread. The days of huge initial new car depreciation in the UK could well now be a distant memory.

Also whilst I and many others on this thread are clearly too young to remember much of what happened in the 1970s apparantly inflation hit 26% and holding cash was a very expensive pastime understandably. Consequently many bought cars which was one of the safest places for your money.

Okay thankfully we are extremely unlikely to return to those extreme levels of inflation but with many asset classes looking expensive and perhaps increasingly less upside in equity markets depending on your risk appetite then throwing money into a car is actually looking like a smarter move for many especially bearing in mind the rapidly rising prices of new cars and more inevitable price rises to come at all price points. Throw a minimum of 10% inflation into the mix and car purchasing looks even more attractive.
In your dreams.
And presumably in your nightmares because this is happening right now.