Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

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kryten22uk

2,344 posts

230 months

Thursday 2nd February 2023
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Been thinking of selling my car (a 2016 XC90) and the WBAC price has been going up £500 a week since december. Its like one of those cash games on the radio. How long do you leave it before you risk the buzzer going off and you lose the money (price crashes in this case). They are already offering me more than i thought it was worth.

How long do u guys leave it before you cash in?

ETA: just seen that Motorway estimate another £1500 on top of what WBAC offer. crazy prices.

Edited by kryten22uk on Thursday 2nd February 16:57

911hope

2,679 posts

25 months

Thursday 2nd February 2023
quotequote all
kryten22uk said:
Been thinking of selling my car (a 2016 XC90) and the WBAC price has been going up £500 a week since december. Its like one of those cash games on the radio. How long do you leave it before you risk the buzzer going off and you lose the money (price crashes in this case). They are already offering me more than i thought it was worth.

How long do u guys leave it before you cash in?

ETA: just seen that Motorway estimate another £1500 on top of what WBAC offer. crazy prices.

Edited by kryten22uk on Thursday 2nd February 16:57
I got a quote from WBAC a few weeks ago. It started at £14K and rose to £19K over a few weeks.

£14K is a low ball offer, hoping to take advantage of the idiot end of the selling population.
£19K is within £1k of retail price, so would obviously not be paid, if I went to sell it.

They would find that the tyres are wet, or some other reason to reduce the offer.

kryten22uk

2,344 posts

230 months

Friday 3rd February 2023
quotequote all
911hope said:
I got a quote from WBAC a few weeks ago. It started at £14K and rose to £19K over a few weeks.

£14K is a low ball offer, hoping to take advantage of the idiot end of the selling population.
£19K is within £1k of retail price, so would obviously not be paid, if I went to sell it.

They would find that the tyres are wet, or some other reason to reduce the offer.
I've used them a few times, as I really dont like selling privately, and find in general they are quite good for reductions. Obviously there is the top price for faultless cars, and everyone thinks their scuff/dint/kerbing is immaterial, but they're not free to make good. Obviously different branches probably vary on the scale as to how far they take it or not.

mclwanB

600 posts

244 months

Friday 3rd February 2023
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911hope said:
chickenbarns said:
https://cardealermagazine.co.uk/publish/used-car-p...

the prices are still rising and will continue to do so. we are into the new year yet no doom plunge in sight as predicted by some on here.

-CB
Actual content of this article.

3yo/60k miles cars 0.1% increase in asking prices.
Falling EV asking prices.

Hardly a neutral analysis of the market. Best to wait for ONS data.
Actually given inflation of over 10% even if the 0.5% for the month is correct real prices are dropping in comparison...

Been looking at 2-3 year old ioniq evs and there are just more and more enterinhg the market and even the autotrader 'lower price' that are allegedly 10% + under market are barely moving

CRA1G

6,501 posts

194 months

Saturday 4th February 2023
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mk1coopers

1,199 posts

151 months

Saturday 4th February 2023
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There are definitely more of the vehicle types I’ve been looking for listed, there are more with price reductions, though these tend to be the ones that started really high, or have comparatively high mileages, I still can’t see how prices won’t fall, perhaps not crash, but certainly not race ahead like they did.

My car is coming up to 10 year old, full dealer history, my plan was that it would have been changed 1.5 to 2 years ago for a 3yo ‘new’ (to me) version of something similar, this was about the time when prices were rising, very difficult choice now, I still think there is time to wait out the market, a sudden positive global change will drive prices down as manufacturers start to increase volume, it will only take one of them to do that and the rest will follow, however at the moment the money for the car is sat there doing ‘OK’ where it is, and a used car purchase is more of a want than a need, so I could just run what I have until it has no value, it’s still nice transport, guess it’s just a case of watching the prices and making that decision if the want turns into a need

DonkeyApple

54,934 posts

168 months

Saturday 4th February 2023
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Demand for frugal, modest transport boxes will probably remain good. Demand for the wasteful, lifestyle, non essential stuff has shrunk dramatically.

For the average household the car loan is the second largest debt to fund. When times are good they increase how much the allocate to cars each month. An extra £100/month here and there over a few years to use nicer and nicer cars. When money supply tightens the monthly car budget is among the first costs to be marked for slashing. It takes time though as they're locked into finance deals that may have as long as three years left. So it's the quick discretionary spending that gets slashed first. The stuff that can be changed instantly. It's fewer shopping trips, less dining out, cheaper holiday, terminating some monthly subscriptions.

Mortgage/rent increase by £100/month. Utilities by £100/month, food by £100/month and all the essential, unavoidable ancillaries by £100/month.

It's easy to see many households who have been spending £500/month on a nice car when times were good now have an increased baseline cost of easily £500/month. That has a big phycological impact. £500 of increased, unavoidable spending and then having to look at a big metal box of discretionary, non essential
Spending that's costing £500/month and now for no good reason. On top of that, life is cr4p because they've had to cut all the fun things that make life enjoyable like spending every weekend walking around the shops randomly buying complete junk with money that hasn't been earned yet. Booking a more expensive holiday than the salaries really permit but sticking the excess on the loan account. Going to a restaurant to photograph a plate with the specific intent of showing it to people to convince them that you're a better human than they are.

All those little joys of modern life gone because they can't ditch the car they no longer want or can afford and bu the end some will really resent. On Ph you'll spot the latter folk as they'll be the ones poster continuously about how bad those cars are and how much better a Honda Jazz now is to an M Sport, AMG Line, whatever bodykitted SUV and lots of stuff about how SUV drivers are baby killers and the cause of all their problems. biggrin

And this will hopefully give all of us a good and fair value supply of nice but non frugal cars to pick from before we all eventually switch to sitting in satellite controlled electric boxes while playing driving simulation games in the desperate hope that it helps us avoid facing the reality of how completely ste it all has become for petrolheads. smile

The spinner of plates

17,649 posts

199 months

Saturday 4th February 2023
quotequote all
DonkeyApple said:
Demand for frugal, modest transport boxes will probably remain good. Demand for the wasteful, lifestyle, non essential stuff has shrunk dramatically.

For the average household the car loan is the second largest debt to fund. When times are good they increase how much the allocate to cars each month. An extra £100/month here and there over a few years to use nicer and nicer cars. When money supply tightens the monthly car budget is among the first costs to be marked for slashing. It takes time though as they're locked into finance deals that may have as long as three years left. So it's the quick discretionary spending that gets slashed first. The stuff that can be changed instantly. It's fewer shopping trips, less dining out, cheaper holiday, terminating some monthly subscriptions.

Mortgage/rent increase by £100/month. Utilities by £100/month, food by £100/month and all the essential, unavoidable ancillaries by £100/month.

It's easy to see many households who have been spending £500/month on a nice car when times were good now have an increased baseline cost of easily £500/month. That has a big phycological impact. £500 of increased, unavoidable spending and then having to look at a big metal box of discretionary, non essential
Spending that's costing £500/month and now for no good reason. On top of that, life is cr4p because they've had to cut all the fun things that make life enjoyable like spending every weekend walking around the shops randomly buying complete junk with money that hasn't been earned yet. Booking a more expensive holiday than the salaries really permit but sticking the excess on the loan account. Going to a restaurant to photograph a plate with the specific intent of showing it to people to convince them that you're a better human than they are.

All those little joys of modern life gone because they can't ditch the car they no longer want or can afford and bu the end some will really resent. On Ph you'll spot the latter folk as they'll be the ones poster continuously about how bad those cars are and how much better a Honda Jazz now is to an M Sport, AMG Line, whatever bodykitted SUV and lots of stuff about how SUV drivers are baby killers and the cause of all their problems. biggrin

And this will hopefully give all of us a good and fair value supply of nice but non frugal cars to pick from before we all eventually switch to sitting in satellite controlled electric boxes while playing driving simulation games in the desperate hope that it helps us avoid facing the reality of how completely ste it all has become for petrolheads. smile
hehe funny because it’s true.

I’m already thinking which year to switch my track days budgets into a high end online driving sim rig for the spare bedroom… it’s coming.

chickenbarns

135 posts

19 months

Sunday 5th February 2023
quotequote all
Pommy said:
911hope said:
chickenbarns said:
https://cardealermagazine.co.uk/publish/used-car-p...

the prices are still rising and will continue to do so. we are into the new year yet no doom plunge in sight as predicted by some on here.

-CB
Actual content of this article.

3yo/60k miles cars 0.1% increase in asking prices.
Falling EV asking prices.

Hardly a neutral analysis of the market. Best to wait for ONS data.
And trying to optimistically claim if it wasn't for EVs absolutely tanking the gains wouldn't have been 0.1% they would have been 0.5% and calling out sub £15k and below as decent, yeah ignoring the massive market above £15k lol.

Yeah, let's just report the better than expected stuff and ignore the fact a massive cost reduction exercise in car buying is occurring.
this is not optimism this is reality.
there were those on here that said big barges are especially getting hit with the cost of living crisis but they are doing fine.
look at the AMGs they are up up!
sporty high performance models will keep climbing and the days of cheap sports cars is over.
This time last year the prices were lower just look at old advertisements.

-CB

Edited by chickenbarns on Sunday 5th February 07:20

Pommy

14,229 posts

215 months

Sunday 5th February 2023
quotequote all
chickenbarns said:
Pommy said:
911hope said:
chickenbarns said:
https://cardealermagazine.co.uk/publish/used-car-p...

the prices are still rising and will continue to do so. we are into the new year yet no doom plunge in sight as predicted by some on here.

-CB
Actual content of this article.

3yo/60k miles cars 0.1% increase in asking prices.
Falling EV asking prices.

Hardly a neutral analysis of the market. Best to wait for ONS data.
And trying to optimistically claim if it wasn't for EVs absolutely tanking the gains wouldn't have been 0.1% they would have been 0.5% and calling out sub £15k and below as decent, yeah ignoring the massive market above £15k lol.

Yeah, let's just report the better than expected stuff and ignore the fact a massive cost reduction exercise in car buying is occurring.
this is not optimism this is reality.
there were those on here that said big barges are especially getting hit with the cost of living crisis but they are doing fine.
look at the AMGs they are up up!
sporty high performance models will keep climbing and the days of cheap sports cars is over.
This time last year the prices were lower just look at old advertisements.

-CB

Edited by chickenbarns on Sunday 5th February 07:20
The data for the very particular stats they optimistically chose ignores the reality of all the data they didn't.

DonkeyApple

54,934 posts

168 months

Sunday 5th February 2023
quotequote all
CRA1G said:
In other news, AutoTrader reports that it currently sees no Zulus near Rourke's Drift and sees no reason for alarm or to believe anything is about to change. biggrin

Fusion777

2,213 posts

47 months

Sunday 5th February 2023
quotequote all
No-one in their right mind at AT is going to do anything that will negatively impact market sentiment. When your income and prosperity is directly linked to market health, it tends to colour your judgement and viewpoints.

DonkeyApple

54,934 posts

168 months

Sunday 5th February 2023
quotequote all
Plus, all the 3 year stock pouring into auctions is owned by the lending entity that priced the finance of the first three years by underwriting the value at auction today. They don't want to be the first to crack and take the loss while there is still a chance of getting the stock out and the risk onto a dealer etc.

In the US the 'no sales' at auctions appear to be ramping up as the finance houses opt to run losses unrealised and it seems very unlikely to not be the case here.

It'll be interesting to see how manufacturers manipulate new supply to try not to have to discount and subsequently trigger the breaking of the used market.

It's all very precarious at the moment.

Zoltar

17 posts

14 months

Sunday 5th February 2023
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DonkeyApple said:
It's all very precarious at the moment.
To say the least. Better grab onto something, the used car ride is only going one way...


anonymous-user

53 months

Monday 6th February 2023
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So PH collective, I wonder what we all predict is the future value of my recent dream car ownership (not that it matters too much to me because am loving it).

Defo not a standard run of the mill car. But does that automatically mean prices are going up? Or down?

Cons: Car is now nearly 10 years old. Big bills always on the horizon (already had a £6k warranty bill). MPG/ Road Tax. Mileage is creeping up as it's my daily. Currently on 74k miles.

Pros: Hpi clear, full Merc history. Bloody look at it. The noise.

I purchased for £23.5k which may have been on the high side but it comes with a 3year warranty which has more than paid for itself.

What we all think?


swisstoni

16,855 posts

278 months

Monday 6th February 2023
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Your best hope is that it depreciates slowly imho. So just enjoy it and anything better than that is a bonus.

Truckosaurus

11,183 posts

283 months

Monday 6th February 2023
quotequote all
I think cars that have no direct 'new' replacement will hold their value well as long as they are in condition with modest mileage.

eg. New Merc AMGs being 4 cylinder or there not being any sign of a hot hatch version of any of the recent cars from the Vauxhall/Peugeot partnership.

mrdanbartlett

702 posts

216 months

Monday 6th February 2023
quotequote all
MuddyK said:
So PH collective, I wonder what we all predict is the future value of my recent dream car ownership (not that it matters too much to me because am loving it).

Defo not a standard run of the mill car. But does that automatically mean prices are going up? Or down?

Cons: Car is now nearly 10 years old. Big bills always on the horizon (already had a £6k warranty bill). MPG/ Road Tax. Mileage is creeping up as it's my daily. Currently on 74k miles.

Pros: Hpi clear, full Merc history. Bloody look at it. The noise.

I purchased for £23.5k which may have been on the high side but it comes with a 3year warranty which has more than paid for itself.

What we all think?

Not an expert but would guess there will be a point when the prices bottom out and then the good examples just keep appreciating.

Pommy

14,229 posts

215 months

Monday 6th February 2023
quotequote all
MuddyK said:
So PH collective, I wonder what we all predict is the future value of my recent dream car ownership (not that it matters too much to me because am loving it).

Defo not a standard run of the mill car. But does that automatically mean prices are going up? Or down?

Cons: Car is now nearly 10 years old. Big bills always on the horizon (already had a £6k warranty bill). MPG/ Road Tax. Mileage is creeping up as it's my daily. Currently on 74k miles.

Pros: Hpi clear, full Merc history. Bloody look at it. The noise.

I purchased for £23.5k which may have been on the high side but it comes with a 3year warranty which has more than paid for itself.

What we all think?

Can't quite work out if it's a)a genuine question about prices, or b) wanting everyone to tell you how lovely your car, or c) an advert to hopefully get offers, or d) all of the above.



MUDGUTZ

117 posts

146 months

Monday 6th February 2023
quotequote all
MuddyK said:
So PH collective, I wonder what we all predict is the future value of my recent dream car ownership (not that it matters too much to me because am loving it).

Defo not a standard run of the mill car. But does that automatically mean prices are going up? Or down?

Cons: Car is now nearly 10 years old. Big bills always on the horizon (already had a £6k warranty bill). MPG/ Road Tax. Mileage is creeping up as it's my daily. Currently on 74k miles.

Pros: Hpi clear, full Merc history. Bloody look at it. The noise.

I purchased for £23.5k which may have been on the high side but it comes with a 3year warranty which has more than paid for itself.

What we all think?

How much is the rent on that?