Secondhand car price crash?
Discussion
Based on my travels yesterday, most dealerships are over flowing with part exchanged clogging up yards and compounds,
It has gone back to pre Covid days
Contract manager at Renault said they are offering under cap clean on part exs unless it’s something they can retail immediately as they simply don’t need old or diesel stock.
Despite the buoyancy in most dealerships and Indis, the Vauxhall dealership was empty which was weird for a Saturday midday.
It’s normally one of the busier sites and difficult to park up the van.
It has gone back to pre Covid days
Contract manager at Renault said they are offering under cap clean on part exs unless it’s something they can retail immediately as they simply don’t need old or diesel stock.
Despite the buoyancy in most dealerships and Indis, the Vauxhall dealership was empty which was weird for a Saturday midday.
It’s normally one of the busier sites and difficult to park up the van.
It does feel like more than 11% increase.
I remember buying 2 cars in 2015.
6 year old Honda Civic with 30k miles for £7k
10 year old MR2 roadster, 50k miles for £2.5k
Looking at similar today you can get a 6 year old Civic for £10k which surprised me. Obviously they didn't make the MR2 10 years ago but a similar MX5 is about £9k.
I remember buying 2 cars in 2015.
6 year old Honda Civic with 30k miles for £7k
10 year old MR2 roadster, 50k miles for £2.5k
Looking at similar today you can get a 6 year old Civic for £10k which surprised me. Obviously they didn't make the MR2 10 years ago but a similar MX5 is about £9k.
AmitG said:
I noticed that the Stellantis brands (Citroen, Peugeot, DS, Vauxhall) have started playing hardball on discounts. The price is the price, no discounts on new or used. Stellantis is moving to the agency model in the UK (where dealers have no authority to set prices) so I guess this is the stepping stone.
The Citroen dealer I spoke to said that the only way to get a meaningful discount on a new car is to order off the Citroen website and take the internet discount. They also said that many dealers are not altogether happy about the agency model. I heard that at least one big Citroen dealer has closed up rather than embrace the model.
Citroen and Vauxhall used to discount their cars to borderline comic levels. I can remember being offered 33% off a new Citroen DS5 - and that was BEFORE starting negotiations
This will not end wellThe Citroen dealer I spoke to said that the only way to get a meaningful discount on a new car is to order off the Citroen website and take the internet discount. They also said that many dealers are not altogether happy about the agency model. I heard that at least one big Citroen dealer has closed up rather than embrace the model.
Citroen and Vauxhall used to discount their cars to borderline comic levels. I can remember being offered 33% off a new Citroen DS5 - and that was BEFORE starting negotiations
They will lose market share and have to push more volume towards cheap lease deals. I fully expect europcar and enterprise will be a wash with stellantis products in the next 12 months if they go down the agency route.
They effectively have 4 brands in the same middle market (Fiat, Peugeot, Citroen and Vauxhall) with the likes of Alfa and DS as middle market sports brands (I’m not really sure what DS is).
I can see an argument for Mercedes going the agency model (although it won’t be easy for them if rivals compete heavily on price), but I can’t see how this would work in the mid market, there is too much competition chasing the same buyers.
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