Used car prices heading down, bad time to buy?

[Casa1862]

I’m getting cold feet, lots of bad news and suggestions that we are heading for recession. I’m due to pick up a 6 month old 5 series on the weekend!!!

https://www.thisismoney.co.uk/money/cars/article-7...

[Tyre Smoke]

So?

Your 'new' car is going to depreciate anyway. You are always going to lose money on it.

I don't understand your post.

[Casa1862]

It’s the rate of depreciation, if buying cash and in rush to change, would you be better off hold out for a while, new stories like the one posted don’t help confidence.

[Hub]

Lack of demand for used cars could lead to lower prices. However, if new car sales are falling and others are holding on to their cars for longer then you could argue that lack of supply would balance out the decline and cars may not depreciate so rapidly because of reduced supply?

[Roger Irrelevant]

How much difference is it really going to make? If you've got enough to buy a nearly new 5 series it's hardly going to be a life changing amount. If you're planning to keep the car for a short while then that's a sure fire way to lose a load of cash anyway, and if you're planning to keep it for a long while then it hardly matters. If you want it and can afford it then get the thing bought.

[soad]

Buy something older? Plenty of other choices. You know, like finance.

[ettore]

During the last recession used car prices went up (for normal cars) exactly as the earlier poster described. Lower new car sales plus people holding a little longer restricted supply of your primary 2-4 year old stock. BCA arguably the best bell-weather for this and they made out like bandits!

[Nickp82]

soad said:

Buy something older? Plenty of other choices. You know, like finance.

Yup, some might say a PCP could be useful in safeguarding against depreciation but we all know what happens when that is mentioned .

[Casa1862]

It was more of a general question regarding the market.

I've made the typical mistake of just having a quick browse on auto trader as my current can needs a few repairs, nothing major but I've had it a while and maybe time to change, perfectly good car. Started looking a old shape 5 series for about £10-12k, big jump up to £22k for a 2.5 year old new shape, then got offered a near new for £26k... big difference from £10-12K!!! I

The fact that I'm not "having" to change, would I be better off having the £26k in my bank if prices are on there way down. Now that I've started I'll get the deal done, its already "Lost" 45% of it's list price in 6 months, so decent discount anyway. Just get a bit nervous reading articles like that, always happens to me though!

[CaptainSensib1e]

How long are you planning on keeping it? If it's for 5 years+ then I wouldn't worry, as god knows where we'll be by then. If it's 6 months then perhaps I would worry. Mind you if you're trading in your cars every 6 months you'll take a far bigger hit than depreciation anwyay.

In summary, just crack on.

[anonymous-user]

Obviously a debate for another thread but this is why I lease my E Class. I'm quite confident the cost will be less than the depreciation of a cash purchase over the same term and even if it's not I have the peace of mind with fixed price motoring and my cash remains in the bank. If you plan to keep the car for a long time then depreciation obviously matters less though.