Secondhand car price crash?

[Saweep]

Merc and BMW seems to have oodles of selected models. 5 series/X5/8series and GLE/C/etc.

I get emails every day from one company or another trying to flog me a Tiguan or an A3 too.

[Fusion777]

What The Deuces said:

ONS DATA

Car Price inflation 6.7%

Wage inflation 5.7%

You're claiming cars are getting cheaper?

Guessing they will be RRPs though, as how would they account for all the varying actual sales prices? RRPs aren’t representative, and I doubt sold price as a percentage of RRP has been constant either.

[Theoldguard]

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).

Technically you are correct, but inflation is a basket of items, certain sectors will react differently, I think we can all agree that both new and used car prices have increased more than the offical inflation figures due to a number of factors, some are specific to the automotive industry. As an example If the price of steel falls back to pre pandemic levels that has an obvious impact on the cost to build a new car, same as energy costs to power factories. Couple that with easier access to components that again lowers their costs and suddenly producing a car is cheaper than what it was costing last year per unit, so where as increases have been above offical inflation then its possible if / when inflation falls back to 2-3% that car prices actually deflate below this figure, same with some food items that have been impacted by the conflict in Ukraine, this added to the cost of energy has meant above inflation increases that when these issues are resolved you would expect the price of these items to fall back.
With long lead times in a high inflation environment manufacturers want to protect themselves against increasing costs, as supply side inflation falls back and continues to trend downwards it will have the opposite effect.

[shopper150]

Saweep said:

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.

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.

I've been monitoring S Class prices closely, are they've increased massively. Higher than quoted in the Daily Mail from my observations of the W222.

[Deep Thought]

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

[Aventador 700]

shopper150 said:

Saweep said:

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.

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.

I've been monitoring S Class prices closely, are they've increased massively. Higher than quoted in the Daily Mail from my observations of the W222.

Not in europe unfortunately

Trying to sell an S63 cabrio and not a sniff..

[Deep Thought]

Aventador 700 said:

Not in europe unfortunately

Trying to sell an S63 cabrio and not a sniff..

I think an S63 cabrio would be a niche within a niche within a niche market.

Most people would be looking for a 4 door saloon diesel variant, i'd have thought

[e-honda]

Aventador 700 said:

Not in europe unfortunately

Trying to sell an S63 cabrio and not a sniff..

I think mercedes had the same problem as you as they didn't seem to last too long.
I have no idea what large convertibles don't seem to appeal.
There is the price but then you could say that about anything expensive.

[Tomanybikes]

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Happy days for savers though.

[cheesejunkie]

Tomanybikes said:

Happy days for savers though.

Nope, banks have long given up on offering good savings rates. I’m not aware of an inflation beating cash savings account. I wouldn’t mind knowing one.

It hasn’t been happy days for savers for a long time.

Investors and speculators have probably done better. Which is what I think you meant .

[Tomanybikes]

cheesejunkie said:

Tomanybikes said:

Happy days for savers though.

Nope, banks have long given up on offering good savings rates. I’m not aware of an inflation beating cash savings account. I wouldn’t mind knowing one.

It hasn’t been happy days for savers for a long time.

Investors and speculators have probably done better. Which is what I think you meant .

+10% would be pretty good going go for a no risk investment!
3.6% instant access is not to be sniffed at.

[Fusion777]

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Wonder if this will be the peak now?

[Tomanybikes]

Fusion777 said:

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Wonder if this will be the peak now?

It will depend on inflation I guess.

[Macron]

Tomanybikes said:

Fusion777 said:

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Wonder if this will be the peak now?

It will depend on inflation I guess.

Which will rocket next month when duffers like me get a 10.1% pension pay rise

[Deep Thought]

Fusion777 said:

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Wonder if this will be the peak now?

There seems to be a view that this, or very fractionally more, will be the peak.

[Canyon78]

https://www.wsj.com/articles/foreign-car-makers-ta...

This artical relates to the Chinese Car market. Will it affect other markets?

[Tomanybikes]

Deep Thought said:

Fusion777 said:

Deep Thought said:

Interest rates rise by 0.25%.

Grind time.

https://www.bbc.co.uk/news/live/business-65046301

Edited by Deep Thought on Thursday 23 March 14:36

Wonder if this will be the peak now?

There seems to be a view that this, or very fractionally more, will be the peak.

There is a theory by some economists that to keep inflation under control the base rate should always be above the inflation rate.

[Greenmantle]

Tomanybikes said:

cheesejunkie said:

Tomanybikes said:

Happy days for savers though.

Nope, banks have long given up on offering good savings rates. I’m not aware of an inflation beating cash savings account. I wouldn’t mind knowing one.

It hasn’t been happy days for savers for a long time.

Investors and speculators have probably done better. Which is what I think you meant .

+10% would be pretty good going go for a no risk investment!
3.6% instant access is not to be sniffed at.

sorry but are you chucking these numbers in randomly:
(1) where is there anything available with no risk at half the 10% - I suggest zero
(2) 3.6% on an instant access VARIABLE account with max deposit of £150 per month max at £5000 = £15 per month = waste of time.

[Theoldguard]

The news rounds this morning talking about companies profiteering and keeping inflation higher than it needs to be with a risk of BoE and other central banks having to keep rates higher for longer.

There has been lots of turbulence the last few years with pandemic and war, energy prices going through the roof has certainly given companies cover to charge what they like.

Now as the dust starts to settle there are early signs that focus is moving to towards the prices that are being charged and are they justified.

I think we will start to see more of this especially as govts have committed to getting inflation down but at the same time don't want IR to go much higher.

[RayDonovan]

Theoldguard said:

The news rounds this morning talking about companies profiteering and keeping inflation higher than it needs to be with a risk of BoE and other central banks having to keep rates higher for longer.

There has been lots of turbulence the last few years with pandemic and war, energy prices going through the roof has certainly given companies cover to charge what they like.

Now as the dust starts to settle there are early signs that focus is moving to towards the prices that are being charged and are they justified.

I think we will start to see more of this especially as govts have committed to getting inflation down but at the same time don't want IR to go much higher.

I work in food and the combination of pandemic, war and energy prices have been the catalyst that some (not all) companies needed to start ramping prices. There's been a race to the bottom in food for a long time now and they are trying to reverse this, quickly!
Own-label and big brands are the worse culprits in all of this, look at Heinz

Heinz Ketchup 910g - £3.99 in Tesco
Tesco own label 890g - £1.25

Guarantee that Tesco will be making a higher % margin on their own label SKU too.