Will Coronavirus hit used car prices? (Vol 2)

[greggy50]

av185 said:

greggy50 said:

Oil Trash said:

My cayman coming up,to 5 years old just went for 15k more than offered 18 months ago by my OPC as a trade in against a 992

Crazy

I looked at a 718 Boxter S with 40k miles for £34k about 8 months ago the same car would be 40/42k now...

3 year old 5k mile GT3s costing £130k new now selling at £160k which is approaching flipping premium price 3 years ago. Looks like theres more to come too.

Its mad and personally I need to wait 12-18 months now and see what the maket does so picked up a Z4 SI for £3k which ironically has probably gone up a grand as well...

I don't fancy buying at the peak and stuff like 718s, 997s and V8 Vantages seem to be up a good 5-10k from where they were 12 months ago. Its only R8 V8s and Granturismos that still appear to be staying reasonable price wise.

Edit- Can't believe I turned this real down on a 66 player Cayman with 16k miles now...

Edited by greggy50 on Monday 7th June 08:01

[e-honda]

How are Nissan gtr prices doing?

[The Rotrex Kid]

e-honda said:

How are Nissan gtr prices doing?

Just checked on a 2017/67 on Autotrader with 11k, was for sale for £63990.

CAP clean in December was £55400, today is £60000
Retail in December was £62250, today is £67000, so at £63990 it looks good money!

[mrdanbartlett]

Hi all,

Slightly off topic but could be related due to stock issues. I've seen a few examples recently where a car comes up for sale privately and sells within a few hours or so. Then it soon re-appears on autotrader at a independent dealership - often quite far from the original seller.

Saw a nice c63 for £34.5k and now its £36k at the dealer, I guess the dealers have people checking AT, popping to see cars, offering quick cash and ideally knock the price down a bit - then transport to their base and hope to make 1-2k.
Is this a common practice or something more recent? I've been closely looking at cars for sale recently, where as i've not really looked for some years.

I wonder if it's driven by stock issues? I assumed dealers just relied on trade in's and auction buys (where they might be a bunch of cars in the same auction).

[The Rotrex Kid]

It’s driven by stock shortages, yes. I have been buying stock from private sellers over the last few weeks.

[mrdanbartlett]

The Rotrex Kid said:

It’s driven by stock shortages, yes. I have been buying stock from private sellers over the last few weeks.

Thank for the reply Rotrex , good to know.

I'll bide my time until the market clams down and keep saving in the meantime

[jimPH]

Got this quote on a new GLB 35. Clearly mercedes don't think it will last!

[Fast Bug]

I sure hope it doesn’t last for 4 years!

[Court_S]

Dwh8611 said:

Good on you selling high as many of us are doing less miles with the working from home lark at the mo so I can understand selling now and buying a cheap run about making financial sense. It’s just hard to do when used to driving new cars. I can’t see when prices will come down, chip shortages predicted to take 2 years to get back to usual supply! You may be in a run around for a long time. People are extending leases due to the high prices but will eventually have to return these and then choose expensive new lease or cheap run around.

It’s not a totally lost cause though, at least the 130 has a six pot and is also a last of the breed being N/A. So far it doesn’t feel like a massive downgrade and I’ve found a solution to add CarPlay to the CCC nav system which will modernise it further.

[hammo19]

Our local Mini dealer is offering well over normal part exchange values as they have a shortage of good used stock.

[jimPH]

Fast Bug said:

I sure hope it doesn’t last for 4 years!

Well quite, but it doesn't just get to 4 years and lose most of its value, that's telling me normal rules apply. The dealer certainly doesn't have confidence that the current higher prices will enable them to make better offers.

[Fast Bug]

jimPH said:

Fast Bug said:

I sure hope it doesn’t last for 4 years!

Well quite, but it doesn't just get to 4 years and lose most of its value, that's telling me normal rules apply. The dealer certainly doesn't have confidence that the current higher prices will enable them to make better offers.

The dealer won't set the final payment, they funder sets that. The idea is that at the end of the agreement you should have some equity, I'm not sure I'd want to be brave on an RV for what will be an oddball vehicle*.

If it's on still on my car listing when my CLS goes back I'll get one, so I'm not knocking your choice of car

[mrdanbartlett]

I imagine regardless of stock levels/shortages because of chips etc - if they economy drops then the car market will follow, especially for the luxury/sports sector.

I cannot personally see the economy sustaining this current high for the long term, everything seems a bit inflated. Hyperinflation no doubt playing a part but I suspect interest rates can't stay this low forever and the economy will feel the effect of the covid period at somepoint.

[Type R Tom]

mrdanbartlett said:

I imagine regardless of stock levels/shortages because of chips etc - if they economy drops then the car market will follow, especially for the luxury/sports sector.

I cannot personally see the economy sustaining this current high for the long term, everything seems a bit inflated. Hyperinflation no doubt playing a part but I suspect interest rates can't stay this low forever and the economy will feel the effect of the covid period at somepoint.

This is what I'm worried about, at some point this all has to come crashing down. I would like a new (used) car but I don't need one and the reason I'm not playing this game is I don't want to be the one dealing with a 25% drop in value over a couple of months when the music stops.

Same applies to the property market at the moment, some houses are coming up for sale around my way 25%+ what they would have been worth 18 months ago. Crazy.

[Deep Thought]

Type R Tom said:

This is what I'm worried about, at some point this all has to come crashing down. I would like a new (used) car but I don't need one and the reason I'm not playing this game is I don't want to be the one dealing with a 25% drop in value over a couple of months when the music stops.

Same applies to the property market at the moment, some houses are coming up for sale around my way 25%+ what they would have been worth 18 months ago. Crazy.

+1

I dont mind taking a "normal" drop on a newish car but theres a 20-25% jump in some car values and if that "corrects" at some point back to previous levels theres quite a loss in there.

[JmatthewB]

Type R Tom said:

Same applies to the property market at the moment, some houses are coming up for sale around my way 25%+ what they would have been worth 18 months ago. Crazy.

Isn't that partly due to the stamp duty holiday. People are happy to pay 25% more for a property if it means they can save 2% on stamp duty.

[ghost83]

I find it all crazy that people have the money to pay more for cars and houses during a pandemic

Yet I read that upto 200,000 employees will lose their jobs with extension of the restrictions many businesses are struggling come end of September if furlough does end it’s still predicted a lot of staff will be let go!

So I honestly find it amazing that ppl are spending the way they are!

I’m personally not! being self employed my business hasn’t got any help when we locked down in November I was living on savings till may! My personal priority is to build up my savings for this autumn/winter

I just find it reckless that people are willing to spend the way they are! Even if people have had grants or bounce back loans it’s all to pay back at some point! This high can’t go on forever and it’s got to come crashing down at some point

[West17]

I’ve just bought a new (used) vehicle. From a main dealer. Price seemed about right compared to a year ago and trade in offer was decent.

Chatting to the dealer they told me they have never sold so many new and used cars for cash as they have in last year. Reasons being given people had saved money during lockdown on not going out and on holidays etc. Also folk handing back lease cars and buying used instead.

[spreadsheet monkey]

ghost83 said:

I find it all crazy that people have the money to pay more for cars and houses during a pandemic

The pandemic has been "asymmetric" - it hasn't hit everyone equally. Plenty of people in tech and professional industries have kept the same levels of income, while spending less on commuting and holidays.

[Fast Bug]

ghost83 said:

I find it all crazy that people have the money to pay more for cars and houses during a pandemic

Yet I read that upto 200,000 employees will lose their jobs with extension of the restrictions many businesses are struggling come end of September if furlough does end it’s still predicted a lot of staff will be let go!

So I honestly find it amazing that ppl are spending the way they are!

I’m personally not! being self employed my business hasn’t got any help when we locked down in November I was living on savings till may! My personal priority is to build up my savings for this autumn/winter

I just find it reckless that people are willing to spend the way they are! Even if people have had grants or bounce back loans it’s all to pay back at some point! This high can’t go on forever and it’s got to come crashing down at some point

This maybe a sweeping generalisation, but most of the people still furloughed are younger or lower income people who more than likely wouldn't be buying a new house or car either way. Many people have saved a fair chunk of money on travel costs/no holidays/not going out/not buying lunch at work. Quite a few companies have told their staff that they won't be back in the office 5 days a week in the future as well, quite a few of my customers will be office based for only 2 or 3 days a week.