Increased used car prices UK wide

[Marcus-7tcc2]

On the hunt for my next performance car and my shortlist of C7 RS6/E63s/M5 has shown how high used car prices are currently! Sold my B9 RS5 in March (maybe I should have waited and got more for it who knows?) but even replaced models like the C7 are holding unnaturally high values which is great for the dealer/seller but not for the buyer.
Did a bit of digging and Covid of course has had a major impact with a shortage of available cars, people having savings and wanting to spend ££ on a car to get away from using public transport (I get that totally) all of which contributes to abnormally high selling prices.
Have heard maybe August as a peak time and now Oct/Nove.
Anyone got anything to throw into that? I'm not willing to pay over the odds when the same spec car will be cheaper a few months down the line. Big question is how long will/can this continue? Prepared to wait for a while longer but if its going to be next year sometime then that may force my hand. End of furlough may have an impact as well.
Thoughts?

[georgeyboy12345]

You might be waiting a while if you do that. Like years. Used car prices in the UK are still some of the lowest in the world - it may just be the market normalising.

If you want a particular car & can afford it, then just buy it. Nobody can predict the future.

[Trevor555]

Marcus-7tcc2 said:

On the hunt for my next performance car and my shortlist of C7 RS6/E63s/M5 has shown how high used car prices are currently!

Will they get even higher when everything's gone electric?

Or will Government tax them off the road in the name of saving the planet?

I'd say enjoy them while we can.

I'll guess it'll become almost socially unacceptable to own cars like these in 10/15 years time.

[av185]

As already posted on the other used car threads anyone waiting for prices of used cars at low medium to high end ££ to fall could well be in for a shock as due to the restricted used supplies this could well result in high prices and prices anticipated to continue rising across 2022 and beyond. The percentage rises in the past few months have continued into July with trade guides and Cap Clean up to 10% higher just last month alone and WBAC strong bids reflecting their continued confidence in the future market higher prices. They are rarely wrong.

Could well be the end of traditionally cheaper used cars in the UK.

If you need a car just buy one at the current market price as it will be more expensive in the future short and medium term.

[The spinner of plates]

https://www.pistonheads.com/gassing/topic.asp?h=0&...

Long thread, but interesting

[av185]

Trevor555 said:

Marcus-7tcc2 said:

On the hunt for my next performance car and my shortlist of C7 RS6/E63s/M5 has shown how high used car prices are currently!

Will they get even higher when everything's gone electric?

Or will Government tax them off the road in the name of saving the planet?

I'd say enjoy them while we can.

I'll guess it'll become almost socially unacceptable to own cars like these in 10/15 years time.

Doubtful as they are more likely to become even more desirable due to rarity. Especially niche limited run models.

Everyone predicted diesel used cars would tank in value but the opposite happened (post Euro 6) as the falling numbers of new diesel registrations meant restricted supply of used.

[samoht]

I assume ~3 year old used car prices are high because of the shortage of new cars due to chip supply shortage. At this point it seems it wouldn't be surprising for it to take until sometime next year for the chip plants to wind up production, catch up with demand, supply car makers, new car production to catch up with orders and get into oversupply, and eventually for this to push nearly-new car prices back down again.

I don't see furlough making a huge difference, the people buying the cars you're after aren't mostly on it.

So if you're asking this year or next year for used prices to go back down, I'd reckon next year.

[Ussrcossack]

You want to look at the prices of vans going through the roof

One auction house sold a van 2 years ago and it's come through them again recently

Added miles 30kmore iirc

Made£2k more than at previous sale

[jimPH]

Once the chip supply gets its act together, manufacturers will be building cars like no tomorrow and they'll be available to anyone who wants one (except Porsche of course).

12-18 months I'd say.

Once everyone is back on the PCP with brand new shiny metal, used cars will be plentiful.

Lots of new models coming out that are delayed or in short supply due to chip shortages.

[voram]

Trevor555 said:

Or will Government tax them off the road in the name of saving the planet?

I think there's a real risk of that. We may be rapidly approaching the end of an era.

New car prices seem to have rocketed higher and dragged the price of used cars with them.

[DodgyGeezer]

not just the UK - there's been talk on some of the US forums of people managing to sell 12/18 month old cars for more than was outstanding on them, then (somewhat perversely) being able to (effectively) re-finance a brand-new car replacement. I couldn't at this moment import my car exact spec/miles etc for even the same as I purchased mine...

[Pistonheader101]

Overpriced but will fall. Get a cheap car in the meanwhile and run that.

[av185]

Haha any cheap car worth buying is now an expensive one in the current market. Same with vans.

[Theoldguard]

My personal view is that manufacturers and dealers have driven prices up in order to make up for lost profits the past 12 months, there have been vehicles sitting on forecourts for 12 months since the pandemic and lockdowns hit. The most normal thing would have been these vehicles being a year older would have sold for less money, costing dealers big time, however the opposite has happened and those vehicles are either the same price as a year ago or actually gone up in price, if manufacturers hold back vehicles or fill fields with them then it keeps prices strong. Yes there are chip shortages thrown in the mix and a lack of appetite during lockdown to take new leases by businesses but the situation with used vehicles seems a bit of an overreaction.
I think many dealers / manufacturers its a good way to get a decent price for ICE vehicles before we start to see the rapid roll out of next gen electric vehicles.

[covmutley]

Theoldguard said:

My personal view is that manufacturers and dealers have driven prices up in order to make up for lost profits the past 12 months, there have been vehicles sitting on forecourts for 12 months since the pandemic and lockdowns hit. The most normal thing would have been these vehicles being a year older would have sold for less money, costing dealers big time, however the opposite has happened and those vehicles are either the same price as a year ago or actually gone up in price, if manufacturers hold back vehicles or fill fields with them then it keeps prices strong. Yes there are chip shortages thrown in the mix and a lack of appetite during lockdown to take new leases by businesses but the situation with used vehicles seems a bit of an overreaction.
I think many dealers / manufacturers its a good way to get a decent price for ICE vehicles before we start to see the rapid roll out of next gen electric vehicles.

I don't agree. Many used dealers have half the Stockbury usually carry. They are having to pay more to get the vehicles. One told me that they have to pay more because they need a minimum stock turnover to pay the rent, pay wages etc.

It's simply a case of supply and demand.

[The spinner of plates]

Theoldguard said:

My personal view is that manufacturers and dealers have driven prices up in order to make up for lost profits the past 12 months, there have been vehicles sitting on forecourts for 12 months since the pandemic and lockdowns hit. The most normal thing would have been these vehicles being a year older would have sold for less money, costing dealers big time, however the opposite has happened and those vehicles are either the same price as a year ago or actually gone up in price, if manufacturers hold back vehicles or fill fields with them then it keeps prices strong. Yes there are chip shortages thrown in the mix and a lack of appetite during lockdown to take new leases by businesses but the situation with used vehicles seems a bit of an overreaction.
I think many dealers / manufacturers its a good way to get a decent price for ICE vehicles before we start to see the rapid roll out of next gen electric vehicles.

Nope, it’s just supply and demand.

Car dealers and manufacturers want volume.

There’s no orchestrated restrictions.. the market is far too competitive for someone not to break ranks and take the market share.

[Theoldguard]

covmutley said:

I don't agree. Many used dealers have half the Stockbury usually carry. They are having to pay more to get the vehicles. One told me that they have to pay more because they need a minimum stock turnover to pay the rent, pay wages etc.

It's simply a case of supply and demand.

After a year of lockdowns you have to ask yourself why have prices suddenly jumped across the board, as I said we have a chip shortage, less new vehicle purchases and maybe a move to buying a car rather than public transport due to change in circumstance with your job, bit of extra savings during lockdown, no annual exotic holiday etc.

But struggle to see how the above are still driving up prices month on month, there are only so many people who want to buy a used car at any one time, i just feel some of these increases are over done.

My own personal experience I had a lease coming to an end in April, so out of curiosity I asked for a purchase price, it came in at £19.2K.
I then extended the lease by 3 months and just before the return asked for another purchase price, that came back at £21.2k, with extra miles and wear / tear, less warranty remaining etc . Went onto Auto trader and prices had also increased, maybe not by £2k, but very close, however the same vehicles that were advertised in April were still available, but the dealership had just increased the prices on the stock, stock that they bought obviously at a lower price earlier in the year but were just cashing in on the increases.

This creates a bubble as everyone starts thinking prices are not going to fall back and better get in now and buy as next month prices could be even higher, I am not saying there is collusion but all a dealership does is look at current prices on Auto Trader and advertise their vehicle close to these other dealer prices, so each time a new used advert appears on auto trader at £100 more then the last then prices just keep increasing and dealerships hold the majority of decent stock.

There will always be certain vehicles \ spec in demand, but these increases seem to be across the board and I dont see it changing anytime soon until the economy fully opens back up and the used car flow returns to normal and people have other things to spend money on.

[Marcus-7tcc2]

Some very interesting viewpoints on here and I'm learning a lot about what (and possible reasons why) is driving this ridiculous price jump. The other thread is great and I'm now following the 'Car Dealer' site as that will give some insight as to what dealers are thinking. Crazy to think that even bog standard cars are through the roof let alone anything spicy. Needless to say it will all come down and knowing my luck it will be early on in a finance deal and I'll end up suffering double depreciation. Strange times.
Have a bit of time but sooner or later I'll have to decide to sit and wait (and possibly get a cheap runner) or bite the bullet and see what happens-I only ever keep my cars for a maximum of 2 years anyway. Some of the asking prices I'm seeing are eye-watering that's for sure.

[anonymous-user]

Theoldguard said:

This creates a bubble as everyone starts thinking prices are not going to fall back and better get in now and buy as next month prices could be even higher, I am not saying there is collusion but all a dealership does is look at current prices on Auto Trader and advertise their vehicle close to these other dealer prices, so each time a new used advert appears on auto trader at £100 more then the last then prices just keep increasing and dealerships hold the majority of decent stock.

I have toyed with the idea of getting another car but frankly I am not prepared the prices. I have checked out for now, if this craziness doesn't get back to normal then I suspect I will end up getting something like a brand new Dacia Sandero and just keeping it for 15 years.

Once supply ramps up I suspect a lot of people are going to suffer some horrific depreciation on the more run of the mill cars.

[Pistonheader101]

Tens of thousands of cars all parked up ready to be sold. They are sitting on airfields to drive up the prices of used car prices.