Secondhand car price crash?
Discussion
My old lease cars goes to auction at BCA tomorrow.
2019 VW Arteon Elegance 1.5 DSG with 61k.
The leasing company wanted £17,225 from me to keep it. Bit of a tough one to price as they didn't sell the 1.5 petrol for very long (as it's toss in this car).
There is one on AT with 11k miles but they want £24,300 for it...
2019 VW Arteon Elegance 1.5 DSG with 61k.
The leasing company wanted £17,225 from me to keep it. Bit of a tough one to price as they didn't sell the 1.5 petrol for very long (as it's toss in this car).
There is one on AT with 11k miles but they want £24,300 for it...
New car inflation remained a 6.7 % well below inflation, as it has done throughout this inflation spike.
Unsurprising really as wages haven't kept up with inflation.
Used cars were up 1% but by less than the 1.2% they were down the month before.
I am not surprised to see a bump this month since it is the month the ONS were due to switch methodology, not found any articles confirming they actually did yet.
Unsurprising really as wages haven't kept up with inflation.
Used cars were up 1% but by less than the 1.2% they were down the month before.
I am not surprised to see a bump this month since it is the month the ONS were due to switch methodology, not found any articles confirming they actually did yet.
According to the Daily Mail prices are still rising, not sure the Mercedes S class is the second biggest riser though.......
https://www.dailymail.co.uk/money/cars/article-118...
https://www.dailymail.co.uk/money/cars/article-118...
Joey Deacon said:
According to the Daily Mail prices are still rising, not sure the Mercedes S class is the second biggest riser though.......
https://www.dailymail.co.uk/money/cars/article-118...
It is entirely possible that lots of luxury car drivers are considering swapping to something more recession acceptable like an S class.https://www.dailymail.co.uk/money/cars/article-118...
I'm giving serious thought to swapping to something like that as I'm sure we are in for some tough times and it just looks better to clients and staff etc.
Whether that's enough to push prices up seems a little far fetched though.
Maybe they mean a C class and just got themselves confused.
Inflation for the most part is being driven on the supply side with shortages, energy and shipping costs.
Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
Theoldguard said:
Inflation for the most part is being driven on the supply side with shortages, energy and shipping costs.
Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
That seems like wishful thinking to me but I hope you're right!Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
av185 said:
The 'bellweather' of used car supply Motorpoint appear to be around 66% stocked atm compared to only around half that a few weeks back.
Is that good or bad? As in they can find stuff = good or they can't shift it = bad? Theoldguard said:
Inflation for the most part is being driven on the supply side with shortages, energy and shipping costs.
I think you missed "and piss taking f
king s" from that list, https://www.theguardian.com/business/2023/mar/02/e...And the overall picture is still a mess. Rate decision tomorrow, they're fans of doing f
k all, but may notice some of us get a 10.1% pay rise on our state pensions next month (thanks every one!) which will stoke inflation again. Although leisure activities and discretionary spend have defo been down, bikes aren't selling and idiots who thought lockdown was their new normal overestimated their appeal.https://www.pistonheads.com/gassing/topic.asp?h=0&...
Theoldguard said:
Inflation for the most part is being driven on the supply side with shortages, energy and shipping costs.
Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show
lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
Lower levels of inflation is still inflation - i.e. prices are still going up, albeit at a slower rate. For prices to come down across the board you need deflation, which is arguably much worse than inflation in that it can paralyse an economy (people hold off buying today in expectation of it being cheaper tomorrow).Energy and fuel prices are falling back, supply chains are improving.
It's difficult to see how prices for many products Inc new cars can remain as high as they are if the input costs start to reduce, energy costs drive up the costs of everything else from a pint in a pub, to food on the shelves to new car prices. There will come a point when offical figures show
lower levels of inflation, peoples energy bills will start to lower, food prices will start to fall back and it will be interesting to see what happens with new car prices, if steel prices, battery prices, tyre prices etc all fall back either car manufacturers get greedy and take more profit or adjust their pricing downwards to reflect lower input costs,i think there will be an expectation if alot of other products seem to look cheaper than they once did.
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
What The Deuces said:
e-honda said:
New car inflation remained a 6.7 % well below inflation, .
Given average total pay (inc bonuses) have inflated at 5.7% then cars are getting more expensive still by the looks of itIt is definitely different this time, it really is being very drawn out. We might avoid a technical recession, but when you grew 0% and inflation is 10.4%, even the 0 is a clear misdescription of "not going down", living standards really are...
Inky81 said:
Lower levels of inflation is still inflation - i.e. prices are still going up, albeit at a slower rate. For prices to come down across the board you need deflation, which is arguably much worse than inflation in that it can paralyse an economy (people hold off buying today in expectation of it being cheaper tomorrow).
Exactly, anyone expecting the price of new cars to drop in real terms (like for like) is on crack IMOThe best we can hope for is a number of new manufacturers/models in the market at lower prices like the new MG EV's
Inky81 said:
Lower levels of inflation is still inflation - i.e. prices are still going up, albeit at a slower rate. For prices to come down across the board you need deflation, which is arguably much worse than inflation in that it can paralyse an economy (people hold off buying today in expectation of it being cheaper tomorrow).
I’m quite sure this is exactly what is happening in the property market in much of the country at the moment.I need to relocate in the coming months and I don’t know whether to buy the best house at todays price or hang it out until the end of the year and see if there’s anything better value.
Theoldguard said:
Energy and fuel prices are falling back, supply chains are improving.
(...)
energy bills will start to lower, food prices will start to fall back
Sounds like more disposable income and higher consumer confidence, perhaps the resulting increase in demand will absorb the increase in supply?(...)
energy bills will start to lower, food prices will start to fall back
Theoldguard said:
With recent pay rises embedded and now falling energy prices the BoE may need to rise IR further to counter demand side inflation
If IR rise then car costs will increase as the CAPEX will be higher and the cost of financing will be higher, whether apparent or embedded in the price.nickfrog said:
If IR rise then car costs will increase as the CAPEX will be higher and the cost of financing will be higher, whether apparent or embedded in the price.
Its amusing that some commentators seem to think automotive manufacturers and supply chain are immune from interest rate rises.One thing that may play well with an increased base rate is that the value of the pound should increase and make imports cheaper.
What The Deuces said:
One thing that may play well with an increased base rate is that the value of the pound should increase and make imports cheaper.
True, assuming that competing CBs don't mirror our own IR uplifts. In the past 12 months alone £ has lost 6% of its value against the €.Gassing Station | Car Buying | Top of Page | What's New | My Stuff