Secondhand car price crash?

[Fast Bug]

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.

This. Tesla are doing a great job at destroying their residual values with all these price cuts. I know of one company (circa 700 cars on fleet and mainly BEV or PHEV) that have taken Tesla off their lists for the moment. The price cuts keep pushing the RV down which is pushing the contract hire figure up.

So for a lot of company car fleets, they're actually doing more harm than good as the leasing companies are getting nervous of their product.

[confused_buyer]

SWoll said:

FYI



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

Edited by SWoll on Saturday 25th March 09:29

You can get a Qashqai new for under £25k. And that's the UK. Look at the actual cars on the road next time you are in Spain or Italy. They're nearly all Pandas, Clios, 500s or whatever.

I also suspect the list of private sales which aren't company leases, salary sacricife or some other employment deal would be different.

The next generation of EVs will be cheaper and better and make the current ones look very dated technology very quickly IMO.

[confused_buyer]

Fast Bug said:

This. Tesla are doing a great job at destroying their residual values with all these price cuts. I know of one company (circa 700 cars on fleet and mainly BEV or PHEV) that have taken Tesla off their lists for the moment. The price cuts keep pushing the RV down which is pushing the contract hire figure up.

So for a lot of company car fleets, they're actually doing more harm than good as the leasing companies are getting nervous of their product.

Don't all cars sold in volume to company car fleets suffer high depreciation? They always have, why won't they still do so?

[ChrisH72]

confused_buyer said:

The next generation of EVs will be cheaper and better and make the current ones look very dated technology very quickly IMO.

I think that's the thing for me.

Looking at 3 year old examples it's perfectly possible to get an EV for the same or less than the equivalent ICE. Just look at the Mini cooper s for example. I just don't want one yet but I'm fairly confident they'll be okay in a few years.

[Driver101]

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?

The GFV is low. Cheap price to buy, but low GFV makes it much higher monthly payments if on PCP finance.

I don't think the person that posted the link on Twitter really grasps PCP deals.

[911hope]

Driver101 said:

The GFV is low. Cheap price to buy, but low GFV makes it much higher monthly payments if on PCP finance.

I don't think the person that posted the link on Twitter really grasps PCP deals.

Lower GFV makes the total purchase cost lower, as you are paying less interest.

[confused_buyer]

Driver101 said:

The GFV is low. Cheap price to buy, but low GFV makes it much higher monthly payments if on PCP finance.

I don't think the person that posted the link on Twitter really grasps PCP deals.

I think perhaps they do but are still in a fantasy world where depreciation is no longer a serious thing on cars and the negligible depreciation of the last 3 years will continue forever. It won't, particularly for EVs.

"Normal" depreciation is returning. Please note, before anyone jumps in, that is not the same as a crash in used values. It is just depreciation resuming from a new, higher, starting point. Cars *should" depreciate as they get older, more worn, higher mileage and better new ones come along to replace them and hence increasingly less desirable.

[Fast Bug]

confused_buyer said:

Fast Bug said:

This. Tesla are doing a great job at destroying their residual values with all these price cuts. I know of one company (circa 700 cars on fleet and mainly BEV or PHEV) that have taken Tesla off their lists for the moment. The price cuts keep pushing the RV down which is pushing the contract hire figure up.

So for a lot of company car fleets, they're actually doing more harm than good as the leasing companies are getting nervous of their product.

Don't all cars sold in volume to company car fleets suffer high depreciation? They always have, why won't they still do so?

Most, but not all. Several chunky drops in list price doesn't help you on the back end. Just look at the book drops of late, that's not a coincidence is it?

[confused_buyer]

Fast Bug said:

Most, but not all. Several chunky drops in list price doesn't help you on the back end. Just look at the book drops of late, that's not a coincidence is it?

Volume fleet cars have always had chunky list drops or discounts. It was no different to when every company driver was tooling around in a Sierra/Mondeo or Vectra/Insignia. Now they have Model 3.

Model 3 residuals are still very good for a £40-£50k car sold in volume. Still better than, for example, a 3 or 5 series and drops on EVs have been on all makes, not just Tesla. In fact Tesla has held up better than most.

[Driver101]

911hope said:

Lower GFV makes the total purchase cost lower, as you are paying less interest.

Why do you think you are paying less interest? You pay interest on the total amount borrowed including the balloon payment.

[pb8g09]

Cost to change is ridiculous at the moment- Cazoo wanting a £4k spread on a £15-20k car.

Anybody got a manual M235i/M240i and want to swap it for an auto?!

[911hope]

Driver101 said:

911hope said:

Lower GFV makes the total purchase cost lower, as you are paying less interest.

Why do you think you are paying less interest? You pay interest on the total amount borrowed including the balloon payment.

Because....you actually pay interest on the outstanding debt, which falls faster if the balloon payment is lower.

Edited by 911hope on Saturday 25th March 13:50

[Fast Bug]

confused_buyer said:

Fast Bug said:

Most, but not all. Several chunky drops in list price doesn't help you on the back end. Just look at the book drops of late, that's not a coincidence is it?

Volume fleet cars have always had chunky list drops or discounts. It was no different to when every company driver was tooling around in a Sierra/Mondeo or Vectra/Insignia. Now they have Model 3.

Model 3 residuals are still very good for a £40-£50k car sold in volume. Still better than, for example, a 3 or 5 series and drops on EVs have been on all makes, not just Tesla. In fact Tesla has held up better than most.

None of them have drops on the list price, it's all discount off the list price that very few people see.

[Niguy]

Driver101 said:

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?

The GFV is low. Cheap price to buy, but low GFV makes it much higher monthly payments if on PCP finance.

I don't think the person that posted the link on Twitter really grasps PCP deals.

That's one hell of a drop to the GFV

[Theoldguard]

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.

Seeing the same with houses around here, past 12mths or more they have been rising month on month and each one that comes to market is snapped up within days.

Now prices have levelled off, quite a few of the recently sold (circa last 6 months) have come back onto the market at a lower price, it seems the sale has fallen through (sold sign never removed from the garden), so now prices are falling less seem to want to buy or are holding out for further falls it seems, property certainly hanging around alot longer to sell these days.

[Driver101]

911hope said:

Driver101 said:

911hope said:

Lower GFV makes the total purchase cost lower, as you are paying less interest.

Why do you think you are paying less interest? You pay interest on the total amount borrowed including the balloon payment.

Because....you actually pay interest on the outstanding debt, which falls faster if the balloon payment is lower.

Edited by 911hope on Saturday 25th March 13:50

I get what you mean now.

Not many people end up buying the car at the end of the PCP. I would want the GFV as high as possible to keep payments as low as possible. Paying in thousands extra to save hundreds in interest doesn't sound appealing. I would rather have the security of a high GFV.

GFV are usually a good indicator.

[shopper150]

Are there any good tools available to ‘slice and dice’ data of used car listings across different platforma? I am looking to buy, and am noticing cars being relisted at different prices and sometimes different mileage. I’m sure this is to disguise how long the car has been on the market for etc.

Can anyone recommend some good tools with easy to use interface?

[AlexNJ89]

shopper150 said:

Are there any good tools available to ‘slice and dice’ data of used car listings across different platforma? I am looking to buy, and am noticing cars being relisted at different prices and sometimes different mileage. I’m sure this is to disguise how long the car has been on the market for etc.

Can anyone recommend some good tools with easy to use interface?

I don't know of any. But if you didn't know already, the AutoTrader has the date the car was listed in the URL, it's just backwards.

There's also a website called Desperate Seller which tracks whether the car has been reduced.

[confused_buyer]

Fast Bug said:

None of them have drops on the list price, it's all discount off the list price that very few people see.

Well, that's a consequence of the agency model and not having dealers.

Others which are moving to such a model will be the same.

[ChrisH72]

I've been watching this Fiesta for a few weeks.

http://www.autotrader.co.uk/car-details/2023021542...

It started off at 18995 and has now been increased to over 20k.

Not sure what cars people are looking at but I'm seeing no reductions with small petrol hot hatches. Quite the opposite in fact.