Car prices - inflating as expected?
Discussion
regardless of being able to afford one or not - At the current stage of transition to EV even the mighty M cars seem old news or last hurrah cars and I wouldn't want to sink big money into something like that.
On the flip side EV's are so mainstream humdrum that they aren't tempting wither.
in 5/10 years time when hot versions of established EV models start to come along I might be tempted but for now the market isn't too appealing to me on the new car front.
On the flip side EV's are so mainstream humdrum that they aren't tempting wither.
in 5/10 years time when hot versions of established EV models start to come along I might be tempted but for now the market isn't too appealing to me on the new car front.
TheFungle said:
If you'd asked me several years ago if I could have afforded an M3 as an aspirational purchase I would have said yes.
As a 40-ish year old with a modest mortgage, no kids and a salary that I'm neither ashamed or boastful about it's something I could have considered.
At current prices there is no way I'd even bother considering it.
I agree; although I’ve not owned one yet but they always felt attainable. As a 40-ish year old with a modest mortgage, no kids and a salary that I'm neither ashamed or boastful about it's something I could have considered.
At current prices there is no way I'd even bother considering it.
The latest cars less so. I was in my local Sytner last week and a new M4 was £94k in the showroom. That feels like a s
t load of cash now. Glosphil said:
"relatively normal cars feel massively out of touch" - BMW M cars! Only on PistonHeads could these be considered 'relatively normal' cars.
However, actual normal cars, such as Corsa, Focus, Golf, A3, etc. have also increased in price at a rate well above inflation. As already suggested, the number of cars PCP'd or leased has enabled manufacturers to hide these large price increases.
Yes, I think PCP does mask these increases, even if reminded on here that the prices are still on the windscreen or at least easily accessible. Two other main factors are the chip shortage combined with lingering Covid excuses and plain, old fashioned greed. Just revisited this: how do fellow PH members reconcile these prices with the doom and gloom constantly reported in the media and not just the usual suspects, either. I don’t want to get into the PCP argument, as the buyer surely pays somehow.However, actual normal cars, such as Corsa, Focus, Golf, A3, etc. have also increased in price at a rate well above inflation. As already suggested, the number of cars PCP'd or leased has enabled manufacturers to hide these large price increases.
Edited by Lester H on Monday 27th March 22:11
Caddyshack said:
I was shocked when I saw an M3 at 100k.
The problem though is that modern cars still depreciate to very low values quite quickly and they still wear out plus have high servicing. My Rangie was over £100k new, it is 8 yrs old and worth about 25% of new and has some big bills and looks a bit scruffy now. A £100k flat would be worth the same or more....cars just do not make any financial sense to own. We just seem to accept high prices and losing lots of money...if it was anything else we would be shouting for compensation or ripping the companies a new one.
I guess it was ever thus. It depends how fervently you want brand new, as opposed to a two year old. It will still depreciate ( unlike the flat which be starting to look more mature) but the first buyer has “ taken the medicine”. Now maybe a FFRR is a poor example because of its reputation but it is a lovely thing imho.We are still in a bit of a silly phase for used car prices but generally the second hand but still newish model must be the way to go for any remotely mainstream vehicle.The problem though is that modern cars still depreciate to very low values quite quickly and they still wear out plus have high servicing. My Rangie was over £100k new, it is 8 yrs old and worth about 25% of new and has some big bills and looks a bit scruffy now. A £100k flat would be worth the same or more....cars just do not make any financial sense to own. We just seem to accept high prices and losing lots of money...if it was anything else we would be shouting for compensation or ripping the companies a new one.
Ironically the car that feels decent value - the GR86 - is the one that has the supply/demand equation most in favour of it's manufacturer, frustrating.
I've accepted that my next car will cost more be it cash, lease or PCP but that doesn't make it less hard on the wallet. Perhaps the Gov. will finally give me a wage rise in line with inflation..
I've accepted that my next car will cost more be it cash, lease or PCP but that doesn't make it less hard on the wallet. Perhaps the Gov. will finally give me a wage rise in line with inflation..
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