Second hand value pricing adjustment
Discussion
Hi all,
This is not a question on why second hand car prices are what they are, I think we all know there are numerous reasons.
Ahead of my next car purchase, I am sense checking my logic that essentially car prices are roughly £10k above what they were shortly before Covid (e.g. a £20k car then is now a £30k now for an equivalent) and that the this adjustment is reflected across the full range. A formerly £5k car now would be say £10k or even £15k for another example.
I suppose what I am trying to judge is if spending more on a car to try and get a like for like to what was available before Covid, would then leave me with the similar difference after I came to sell it later on or would I still be left with the same value as before Covid therefore taking a much bigger depreciation hit now.
My feeling is the former but experiences welcome along with opinions.
This is not a question on why second hand car prices are what they are, I think we all know there are numerous reasons.
Ahead of my next car purchase, I am sense checking my logic that essentially car prices are roughly £10k above what they were shortly before Covid (e.g. a £20k car then is now a £30k now for an equivalent) and that the this adjustment is reflected across the full range. A formerly £5k car now would be say £10k or even £15k for another example.
I suppose what I am trying to judge is if spending more on a car to try and get a like for like to what was available before Covid, would then leave me with the similar difference after I came to sell it later on or would I still be left with the same value as before Covid therefore taking a much bigger depreciation hit now.
My feeling is the former but experiences welcome along with opinions.
It isn't going to work like that. One example the increase is 50% in another it's 300%.
Cars are more expensive in general but you need to look by brand and model. It's not too hard to get a picture of the asking prices with a few minutes searching which then gives you an idea of the current values.
Cars are more expensive in general but you need to look by brand and model. It's not too hard to get a picture of the asking prices with a few minutes searching which then gives you an idea of the current values.
SFTWend said:
Depends what you are buying, but you are right that there has been significant inflation since pre Covid.
Many, if not most, ICE cars are holding value much better than before but nobody can accurately predict the future in terms of depreciation.
I think I can fairly accurately predict depreciation in that for most cars, their value will be close to zero before 200k miles or 20 years.Many, if not most, ICE cars are holding value much better than before but nobody can accurately predict the future in terms of depreciation.
In many cases, well before.
The shape of the curve though, I think it's changing.
Some older cars seem very overpriced.
If you look at the price then consider how many years or tens of thousands of mile before it's a shed or an ELV, newer cars can look better value.
Cars have changed. 5 year old cars are different from 10 year old cars.
EVs are now a big enough slice of the market to have an impact.
I think we need to realise that the old style of depreciation we used to rely on may not always apply.
There are a lot of cars out there which can go from 'worth decent money' to 'ELV' with one thing going wrong.
I have used cars I used to really want, the BMW 330d is an example, as my guide on this. It looks like the typical German badges are roughly £10k more than they were before Covid on a like for like basis, proportionally. My own car which is a Skoda was £13.5k in 2021 and the equivalent now to buy are up for near £20k.
This isn't reflected across the market then?
This isn't reflected across the market then?
Premium cars may attract different premiums at different times?
Maybe less 330d were sold in your second sample and now they are quite sought after.
Adjusted for inflation, some 320d look expensive with 125,000 + miles, others not so much.
The market has always been kind of non linear, I used to keep an eye on what my car would cost to replace, every year with 10k miles a year it seemed to drop quite a modest amount, then suddenly it went from about 4k to about 2k.
I think money could get tighter and values might drop on the one hand, OTOH, some people will keep their cars longer so people will have to fight over the few good ones for sale?
Maybe less 330d were sold in your second sample and now they are quite sought after.
Adjusted for inflation, some 320d look expensive with 125,000 + miles, others not so much.
The market has always been kind of non linear, I used to keep an eye on what my car would cost to replace, every year with 10k miles a year it seemed to drop quite a modest amount, then suddenly it went from about 4k to about 2k.
I think money could get tighter and values might drop on the one hand, OTOH, some people will keep their cars longer so people will have to fight over the few good ones for sale?
We have been looking for a Freelander and i have to say, haven't noticed prices increased that much if any at all on those but i guess at that budget they are fairly stable?
Mind you. a nice 64 plate HSE LUX with average mileage is still floating around 15k ish, although there are not that many around.
Mind you. a nice 64 plate HSE LUX with average mileage is still floating around 15k ish, although there are not that many around.
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