Will Coronavirus hit used car prices? (Vol 2)
Discussion
DonkeyApple said:
And a bunch of cheaper, nearly new EVs is going to tempt a lot of buyers away from nearly new ICE cars, especially thirsty ones. Once they start having to discount new cars then I suspect used ICE prices will return promptly to where they were already heading back in 2019. I'm slightly annoyed to be looking now as I do believe the landscape this time next year for interesting, used ICE is going to be back on track. 
I hope you are correct.911hope said:
DonkeyApple said:
And a bunch of cheaper, nearly new EVs is going to tempt a lot of buyers away from nearly new ICE cars, especially thirsty ones. Once they start having to discount new cars then I suspect used ICE prices will return promptly to where they were already heading back in 2019. I'm slightly annoyed to be looking now as I do believe the landscape this time next year for interesting, used ICE is going to be back on track.
I hope you are correct.The EV market doesn't exist in isolation so if these are being discounted to get them off forecourts then they're going to be taking buyers away from the stuff that U.K. consumers typically switch to EV from which one imagines is most commonly premium German stuff?
The number of used Model 3 cars coming off lease deals is obviously only growing and they're getting discounted along with the new ones. Tesla has started an EV price war that against European manufacturers of EVs it can't lose as its margins are better as is its brand power.
The used Model 3 is a superb prospect for someone on the cusp of switching from mid sized, performance ICE cars among those with money and driveways. Just that EV alone is going to be taking buyers away from the used mid range, premium ICE market.
And by next year it's inconceivable that without a government stimulus for the car market the sellers of new mid range, premium ICE are going to have to discount to take buyers from each other. Their supply in increasing and demand is falling at both ends, firstly the completely normal demand dump that happens when disposable income in a market declines and buyers drop themselves down the ladder by going smaller, older, lessor brands or not doing anything but this time there's a new competitor in town, the EV that is taking buyers away who aren't experiencing any falls in disposable income and crucially, the EV market has the backing of the State, it will be underpinned by taxpayer money, the borrowing of future taxpayer's receipts or the printing of money.
New ICE is a free market, the U.K. govt isn't going to step in to support it. Conversely, the EV market isn't, it's a command economy underpinned and backed by the State with not just cash but legislation. If demand for cars at this level falls this simple disparity implies that almost all of the demand drop would be borne by the ICE market as it is the largest but also it is not manipulated, backed or promoted by the State. At the same time the typical potential EV buyer has a driveway, a suitable lifestyle and is the demographic least likely to be impacted by any cost of living squeeze or lack of salary inflation etc.
DonkeyApple said:
911hope said:
DonkeyApple said:
And a bunch of cheaper, nearly new EVs is going to tempt a lot of buyers away from nearly new ICE cars, especially thirsty ones. Once they start having to discount new cars then I suspect used ICE prices will return promptly to where they were already heading back in 2019. I'm slightly annoyed to be looking now as I do believe the landscape this time next year for interesting, used ICE is going to be back on track.
I hope you are correct.The EV market doesn't exist in isolation so if these are being discounted to get them off forecourts then they're going to be taking buyers away from the stuff that U.K. consumers typically switch to EV from which one imagines is most commonly premium German stuff?
The number of used Model 3 cars coming off lease deals is obviously only growing and they're getting discounted along with the new ones. Tesla has started an EV price war that against European manufacturers of EVs it can't lose as its margins are better as is its brand power.
The used Model 3 is a superb prospect for someone on the cusp of switching from mid sized, performance ICE cars among those with money and driveways. Just that EV alone is going to be taking buyers away from the used mid range, premium ICE market.
And by next year it's inconceivable that without a government stimulus for the car market the sellers of new mid range, premium ICE are going to have to discount to take buyers from each other. Their supply in increasing and demand is falling at both ends, firstly the completely normal demand dump that happens when disposable income in a market declines and buyers drop themselves down the ladder by going smaller, older, lessor brands or not doing anything but this time there's a new competitor in town, the EV that is taking buyers away who aren't experiencing any falls in disposable income and crucially, the EV market has the backing of the State, it will be underpinned by taxpayer money, the borrowing of future taxpayer's receipts or the printing of money.
New ICE is a free market, the U.K. govt isn't going to step in to support it. Conversely, the EV market isn't, it's a command economy underpinned and backed by the State with not just cash but legislation. If demand for cars at this level falls this simple disparity implies that almost all of the demand drop would be borne by the ICE market as it is the largest but also it is not manipulated, backed or promoted by the State. At the same time the typical potential EV buyer has a driveway, a suitable lifestyle and is the demographic least likely to be impacted by any cost of living squeeze or lack of salary inflation etc.
Vroomer said:
This thread has now been running for over three years, spread across nearly 900 pages. There's probably market insight buried in here somewhere!
I am sure there are people who bought a brand new car three years ago who can sell them for pretty much what they paid for them.Joey Deacon said:
Vroomer said:
This thread has now been running for over three years, spread across nearly 900 pages. There's probably market insight buried in here somewhere!
I am sure there are people who bought a brand new car three years ago who can sell them for pretty much what they paid for them.Niponeoff said:
Joey Deacon said:
Vroomer said:
This thread has now been running for over three years, spread across nearly 900 pages. There's probably market insight buried in here somewhere!
I am sure there are people who bought a brand new car three years ago who can sell them for pretty much what they paid for them.https://www.autocar.co.uk/car-news/new-cars/used-e...
Recent Autocar article citing pending collapse of used EV values.
Recent Autocar article citing pending collapse of used EV values.
Fusion777 said:
Hippea said:
I don’t keep track of these things but couldn’t believe how cheap BMW i3s are, why?
Just looked and 2020 models start from £13.5k. They're just normal levels of depreciation returning, really. Plus, it's a 10 year old model now with fairly limited range.Hippea said:
Fusion777 said:
Hippea said:
I don’t keep track of these things but couldn’t believe how cheap BMW i3s are, why?
Just looked and 2020 models start from £13.5k. They're just normal levels of depreciation returning, really. Plus, it's a 10 year old model now with fairly limited range.I suppose it’s going to be affected by going out of production- although that could work either way.
Hippea said:
I don’t keep track of these things but couldn’t believe how cheap BMW i3s are, why?
Weird looking, lots of electrical/battery problems, and hard to fix the bodywork. PH buying guide from 2021 here:
https://www.pistonheads.com/news/ph-buying-guides/...
This section didn’t fill me with confidence!
“BMW came up with a new method of painting for the CFRP panels which used 70 per cent less water and 50 per cent less energy than that required for conventional steel panel painting, which was great, but body part replacement costs could be punitive. One journo offloaded his REx after being asked for £800 for a new door mirror, the old one having lost its folding and indicator functions. Apparently fitting the new one required the door to be dismantled. It is interesting to note how many damaged i3s there are floating around on eBay.”
G-wiz said:
Not coronavirus related as such, just wondering how much margin the dealer has to allow a £4200 price drop (9%).
Are they still making a profit on the car after lopping £4200 off the asking price?
I would imagine Teslas (especially new-ish ones) are probably similar to Range Rovers in that the spread between retail and trade-in price is massive. Are they still making a profit on the car after lopping £4200 off the asking price?
It was probably optimistically priced to start off with. I’m too lazy to type that registration number into WBAC but I bet they’d offer a lot less than £40k.
A beast of a car though, if EVs are your bag. Massive performance and big range as well.
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