Secondhand car price crash?

[AlexNJ89]

Theoldguard said:

I suspect car manufacturers also fit into this profiteering on the back of the war and pandemic.

Interesting they are now talking about negative inflation, this to me would seem logical when high energy costs have driven up pretty much everything else, so when those energy prices fall (as they are doing) the knock on effect should be that everything that uses energy is cheaper to produce, so that 10% increase could turn to a 5% decrease, the questions about pricing will really start being asked when pay rises for most will be a non starter, the expectation for prices to fall will be widespread and the media will be all over it with rip of Britain.

https://www.theguardian.com/business/2023/mar/24/g...

I really think that's just the Guardian looking to make people angry with headlines. Competition in most markets is too fierce for this. That's why the 3-series, C-class and A4 are always so closely priced. It's not because they're colluding but because they're competing downwards to find that sweet spot for profit and demand.

If they could put their prices up and down as easily as that then one year BMW would just make the 3-series significantly cheaper in order to gain a big market share and keep people in the PCP loop.

[CubanPete]

RVB said:

cheesejunkie said:

A good alternative would have farmers making a living and us all paying more with the supermarkets maybe losing some margin.

Supermarkets only have margins of around 5% which is about half the margin of an average company and only a quarter of the margin of a company like Apple.
If I was looking to start up a business, food/grocery retail is one of the last industries I would want to be in.

I've never known a poor farmer. One next to me has just chopped in his 4yo Range Rover for a brand new 110.

My best mate is a farmer, I know a few farmers, all are far more comfortable than others in my friendship circles.

5% is a pretty good margin for a business with a high turnover, largely recession proof and a positive cashflow. Supermarkets turn over their foods far quicker than the 60 day end of month they pay. Estate agents only have a 1.5% margin!

[Saweep]

CubanPete said:

Estate agents only have a 1.5% margin!

Could you explain what you mean by this?

[911hope]

Saweep said:

CubanPete said:

Estate agents only have a 1.5% margin!

Could you explain what you mean by this?

The poster is confusing commission with margin.

They are not the same thing, obviously.

[Fusion777]

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

[ChocolateFrog]

Fusion777 said:

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

You'd have to be utterly mental to pick something like an ID3 now over a Model 3.

Those that paid £45k for a lightly used ID3 last year must be suicidal.

[Inky81]

ChocolateFrog said:

Fusion777 said:

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

You'd have to be utterly mental to pick something like an ID3 now over a Model 3.

Those that paid £45k for a lightly used ID3 last year must be suicidal.

Perhaps, but who would want to buy a Model 3 now either when the price will probably be lower in a months time? No-one wants to catch falling knives.

[Macron]

Is that list price or just one dealer trying to sell one or two examples? It is a new car, but I'm not seeing this as yet another Tesla (itself) price drop. Given the shocking state of GBP I would think their apparently fat margins are taking a hammering anyway.

[hiccy18]

Fusion777 said:

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

Final payment of £14352; indication of the expected depreciation, or Tesla playing really safe?

[hiccy18]

Macron said:

Is that list price or just one dealer trying to sell one or two examples? It is a new car, but I'm not seeing this as yet another Tesla (itself) price drop. Given the shocking state of GBP I would think their apparently fat margins are taking a hammering anyway.

Existing new inventory.

[Chamon_Lee]

hiccy18 said:

Fusion777 said:

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

Final payment of £14352; indication of the expected depreciation, or Tesla playing really safe?

I suspect all EVs will end up being the same due to the rate of technology advancement. It needs to mature before depreciation would stablilise.

[akadk]

It’s a new car but as it’s coming to the end of the quarter , it’s likely an offer to drive sales before the end of March

[Fusion777]

Inky81 said:

Perhaps, but who would want to buy a Model 3 now either when the price will probably be lower in a months time? No-one wants to catch falling knives.

Market psychology is a strange thing. When prices are high and/or rising, people often want in (fear of missing out). When they’re low or falling, some people won’t touch the product, for the (sensible) reason you’ve posted.

You see it a lot with share prices. It’s almost as though high/rising prices attract people, when the opposite should happen.

Have said it before, but the entry point for EVs is going to get lower and lower for the next few years as capacity ramps up and process efficiencies get better.

I’m sure before long we’ll reach the equivalent of the “regular” car market we saw some years back, with mass market companies being stacked out with heavily reduced, vanilla models, because that will be what sells and what most people can afford to buy/lease.

Most people don’t have £50k or £700/month to chuck at a car, but they might have £19k or £250/month.

[SWoll]

Fusion777 said:

https://twitter.com/evmanuk/status/163904439117506...

Model 3 down to £38,790 now, another price drop.

Assuming you are happy with a completely standard car in white then it looks a great deal.

There's also 1 blue car with 19" wheels for £41,130 with a similar level of discount off list.

[confused_buyer]

£15-£20k ish is where it is "at" in terms of volume private sales across Europe, UK included. Whether list or with a discount/nearly new.

With inflation that's probably pushing up to £20k-£25k but that's where EVs will need to be to hit the big time.

[SWoll]

confused_buyer said:

£15-£20k ish is where it is "at" in terms of volume private sales across Europe, UK included. Whether list or with a discount/nearly new.

With inflation that's probably pushing up to £20k-£25k but that's where EVs will need to be to hit the big time.

FYI



Half of those have a starting price of £25k+

Edited by SWoll on Saturday 25th March 09:29

[Macron]

SWoll said:

Half of those have a starting price of £25k+

Edited by SWoll on Saturday 25th March 09:29

So half don’t.

[skinnyman]

They're also not the best examples of EV's. Yes they're 'only' £25k, but take the Fiat 500, it's twice the cost of the petrol equivalent, which will do 45-50mpg all day long, so not exactly expensive to run

[av185]

Thats the old model Corsa which is due a facelift anytime now. Explains the discount.

[Macron]

av185 said:

Thats the old model Corsa which is due a facelift anytime now. Explains the discount.

And I don’t know (or much care!) if they’re face lifting the qashqai, but AT suggests 20% off faux list is easily possible.

The whole industry is built on financial lies.