EVs... no one wants them!
Discussion
I recently purchased used ID3 with 6k miles because it was cheaper than an equivalent VW golf in age, spec and mileage. (and I wanted to try an ev)
Finance was willing to underwrite a fairly minimal drop in value over 3 years and 15k miles per year.
I used Forza finance
Finance was willing to underwrite a fairly minimal drop in value over 3 years and 15k miles per year.
I used Forza finance
Edited by smallpaul on Saturday 25th March 09:40
I just popped mine through we buy any car (I know it’s not cap)
The offer was £27k that is a drop of £29k in 14 months
The finance company only have 4K left in it to cover costs, and it still has 34 months to run….
I’m sure they will have not paid list and the WBAC is a low offer but even so.
The offer was £27k that is a drop of £29k in 14 months
The finance company only have 4K left in it to cover costs, and it still has 34 months to run….
I’m sure they will have not paid list and the WBAC is a low offer but even so.
I just don't get how the finance companies are underwriting these figures. It is like sub prime mortgages all over again.
Still, from the buyer's point of view, you have a great GFV so no criticism of people taking advantage. I do wonder how on earth some of these smaller companies will stay in business taking on this sort of risk however.
Still, from the buyer's point of view, you have a great GFV so no criticism of people taking advantage. I do wonder how on earth some of these smaller companies will stay in business taking on this sort of risk however.
confused_buyer said:
I just don't get how the finance companies are underwriting these figures. It is like sub prime mortgages all over again.
Still, from the buyer's point of view, you have a great GFV so no criticism of people taking advantage. I do wonder how on earth some of these smaller companies will stay in business taking on this sort of risk however.
Exactly. It’s the next sub prime, albeit smaller market thankfully.Still, from the buyer's point of view, you have a great GFV so no criticism of people taking advantage. I do wonder how on earth some of these smaller companies will stay in business taking on this sort of risk however.
It’s quite simple, GFV’s are often set using CAP monitor to predict values. Over the past couple of years EV values have been very strong, partly because of new price increases and lack of demand.
If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
Auto810graphy said:
It’s quite simple, GFV’s are often set using CAP monitor to predict values. Over the past couple of years EV values have been very strong, partly because of new price increases and lack of demand.
If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
My MD is considering a new Polestar 3 at over £80k; bonkers!If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
Auto810graphy said:
It’s quite simple, GFV’s are often set using CAP monitor to predict values. Over the past couple of years EV values have been very strong, partly because of new price increases and lack of demand.
If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
You seem to be well in the know, do you have any recommendations of something £22k through to £26k I could take advantage of? If you look on Autotrader you will see most EV’s are marked as “low price” and £xxx under market average. This is basically the massive drop on trade prices that has not yet filtered to the retail price data.
Polestars are good example, launch cars were around £48k new in late 2020, until last December a 2 year old one was trading at close to list price. This has now dropped to about £30k in 3 months despite CAP Live data indicating a trade value of £38k.
A few lenders will get burnt come hand back time but that’s business and the risk they have to take.
The lender in question is doing the deal we have all done on EVs only. So any EV will work, but what you want is to be able to buy it cheap vs it’s predicted GFV… then you are paying minimal depreciation in your monthlies
For that budget maybe a Mini electric?
That said, it’s the bigger more expensive EVs that are cheap currently
Also FYI a private seller is fine as long as the car does not have finance on it… given dealer bids will be rude or non existent that’s what you want to find really
Re subprime not really - as that was lending money to subprime customers (remember the strippers in The Big Short). This is lending to prime customers secured against an asset that may or may not be worth what they have forecast….
For that budget maybe a Mini electric?
That said, it’s the bigger more expensive EVs that are cheap currently
Also FYI a private seller is fine as long as the car does not have finance on it… given dealer bids will be rude or non existent that’s what you want to find really
Re subprime not really - as that was lending money to subprime customers (remember the strippers in The Big Short). This is lending to prime customers secured against an asset that may or may not be worth what they have forecast….
Sc0tchland said:
You seem to be well in the know, do you have any recommendations of something £22k through to £26k I could take advantage of?
ID4 is low-mid £20’s trade so these might start appearing soon if dealers just want to take a quick profit. I actually think the EV values may stay at current prices as they seem to be finding homes at the new lower pricing.
TRKid said:
I had a quote to buy my 3yr old egolf from vwfs a month ago for £17900. Quoted again last week at £15200. Today received another formal quote for £13300. 31k on the clock.
Values are dropping hugely. I’m now in a tough position. At £13k it’s quite tempting to buy it, but prices could keep falling
£13k for a 3 year old e-golf seems like an absolute bargain! Unless it’s on a galactic mileage?Values are dropping hugely. I’m now in a tough position. At £13k it’s quite tempting to buy it, but prices could keep falling
MrBig said:
£13k for a 3 year old e-golf seems like an absolute bargain! Unless it’s on a galactic mileage?
No. 31,000 miles on it. It’s definitely below market average when looking on Autotrader, but from what I hear they’re not fetching good money at auction. Given the VWFS stock is all sold through BCA maybe that explains it.TRKid said:
No. 31,000 miles on it. It’s definitely below market average when looking on Autotrader, but from what I hear they’re not fetching good money at auction. Given the VWFS stock is all sold through BCA maybe that explains it.
The below average price is what I mentioned above, the Autotrader pricing algorithm is way behind the real market.For reference BCA stock does not all go to BCA auction. If the user declines the purchase price is collected and returned to BCA storage locations. VWFS remarketing then tier it before it goes to Closed Auction (main dealer groups only), 1-link (larger dealers), BCA (any motor trader). All of these are online.
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