Secondhand car price crash? (Vol. 2)
Discussion
RayDonovan said:
Amazes me to be fair. I guess the Thorney video explains it all really. Couldn't imagine driving something like that and not having a contingency plan/fund.
It is quite common on most cars, lots of people just spend what they can and don’t think about it. Plenty of people with out of warranty Adblue issues on JLR / Stellantis products who end up taking credit to pay for repairs.The last 18 months we have seen lots of people coming off PCP’s asking how to finance their balloon payments as they don’t need a car as much only to find they can’t get cheap finance and it’s more sensible to get another new car.
ChocolateFrog said:
I think most of us could spend all of our disposable and run something like a 570 on finance.
There's a couple round my way where the house is 200-250k with the same value in new or nearly new cars on the drive.
Does make you wonder.
The PH incongruous supercar thread was a very interesting read.There's a couple round my way where the house is 200-250k with the same value in new or nearly new cars on the drive.
Does make you wonder.
ChocolateFrog said:
There's a couple round my way where the house is 200-250k with the same value in new or nearly new cars on the drive.
Does make you wonder.
Depends on your purpose I guess.Does make you wonder.
If it's because you're a petrolhead, love spending most your time driving around Europe and finding the best mountain passes rather than sitting in a nicer/bigger house while watching Britain's Got Talent then I respect it.
If it's because you want to impress other people and somehow makes you feel like a better person then I think you're a mug.
Auto810graphy said:
RayDonovan said:
Amazes me to be fair. I guess the Thorney video explains it all really. Couldn't imagine driving something like that and not having a contingency plan/fund.
It is quite common on most cars, lots of people just spend what they can and don’t think about it. Plenty of people with out of warranty Adblue issues on JLR / Stellantis products who end up taking credit to pay for repairs.The last 18 months we have seen lots of people coming off PCP’s asking how to finance their balloon payments as they don’t need a car as much only to find they can’t get cheap finance and it’s more sensible to get another new car.
AlexNJ89 said:
Just come across this video that Mclaren owners are getting annoyed that they won't take the car on SoR.
To me, this says there are people stuck in finance agreements that can't afford the £10k to get the work done on their car in order to prep it for sale, but they need someone to sell it for them to get out of the car. (as I assume £120k is a lot for a private sale where the money has to go to the finance company).
I would have thought it would have been quite tricky to get a private sale buyer for a £120K where you, as the seller, cant put a warranty on it or take a trade in.To me, this says there are people stuck in finance agreements that can't afford the £10k to get the work done on their car in order to prep it for sale, but they need someone to sell it for them to get out of the car. (as I assume £120k is a lot for a private sale where the money has to go to the finance company).
RayDonovan said:
Interesting insight, thanks. I'm currently looking at a Tesla Model Y and the used PCP rates are actually making a new car on PCH look like a better deal..
Guess the problem with people downgrading on PCP is their next move. If you need a decent amount of space and move from a Kuga to a Puma, what's your next move when the Puma PCP ends?
I'd have thought the sane thing to do would have been to keep the Kuga, via either cash, finance via the finance company or personal loan. Guess the problem with people downgrading on PCP is their next move. If you need a decent amount of space and move from a Kuga to a Puma, what's your next move when the Puma PCP ends?
But then its in the salespersons interest to put them in to a new car, so that cheeky little Puma thats easier parked and easier on fuel is made a compelling offering.
Some time later.... "Car too small for you sir? Lets see if we can get you in to a used Kuga...."
Edited by Deep Thought on Sunday 16th June 12:54
loskie said:
re PCP
Yes it's surprising how seemingly intelligent people think the Guaranteed Future Value equates to equity and a trade in value THEY have in the car. Not the amount of debt they are left with should they choose not to hand the car back.
That always feels like a bit of an internet myth these days, particularly given how car showrooms are required absolutely to explain your initial payment, monthlies and final payment and options in explicit terms.Yes it's surprising how seemingly intelligent people think the Guaranteed Future Value equates to equity and a trade in value THEY have in the car. Not the amount of debt they are left with should they choose not to hand the car back.
Queue someone who "knows someone" who drives something fancy new and believes that....
AlexNJ89 said:
Just come across this video that Mclaren owners are getting annoyed that they won't take the car on SoR.
To me, this says there are people stuck in finance agreements that can't afford the £10k to get the work done on their car in order to prep it for sale, but they need someone to sell it for them to get out of the car. (as I assume £120k is a lot for a private sale where the money has to go to the finance company).
Really?To me, this says there are people stuck in finance agreements that can't afford the £10k to get the work done on their car in order to prep it for sale, but they need someone to sell it for them to get out of the car. (as I assume £120k is a lot for a private sale where the money has to go to the finance company).
It sounded a lot to me like it was people not believing their car needed £10K+ worth or prep work and getting shirtly when being told that was the bill AND that it would take many weeks to complete the work.
Did he even mention people trying to get out of finance agreements or people saying they couldnt afford it?
Even my in comparison relatively humble M2 - i know if i took it to a reputable dealer for SoR they'd probably wanting me to spend £2,500 to take the car to a high standard, which is probably 10% of its value. I could see how someone could be irked by that.
Edited by Deep Thought on Sunday 16th June 15:47
Deep Thought said:
Really?
It sounded a lot to me like it was people not believing their car needed £10K+ worth or prep work and getting shirtly when being told that was the bill AND that it would take many weeks to complete the work.
Did he even mention people trying to get out of finance agreements or people saying they couldnt afford it?
Even my in comparison relatively humble M2 - i know if i took it to a reputable dealer for SoR they'd probably wanting me to spend £2,500 to take the car to a high standard, which is probably 10% of its value. I could see how someone could be irked by that.
The bit you didn't bold was that I said "To me" as in that's what I"m interpreting from this outcome.It sounded a lot to me like it was people not believing their car needed £10K+ worth or prep work and getting shirtly when being told that was the bill AND that it would take many weeks to complete the work.
Did he even mention people trying to get out of finance agreements or people saying they couldnt afford it?
Even my in comparison relatively humble M2 - i know if i took it to a reputable dealer for SoR they'd probably wanting me to spend £2,500 to take the car to a high standard, which is probably 10% of its value. I could see how someone could be irked by that.
Edited by Deep Thought on Sunday 16th June 15:47
Possibly they are arguing with him on whether the work needs done.
Deep Thought said:
loskie said:
re PCP
Yes it's surprising how seemingly intelligent people think the Guaranteed Future Value equates to equity and a trade in value THEY have in the car. Not the amount of debt they are left with should they choose not to hand the car back.
That always feels like a bit of an internet myth these days, particularly given how car showrooms are required absolutely to explain your initial payment, monthlies and final payment and options in explicit terms.Yes it's surprising how seemingly intelligent people think the Guaranteed Future Value equates to equity and a trade in value THEY have in the car. Not the amount of debt they are left with should they choose not to hand the car back.
Queue someone who "knows someone" who drives something fancy new and believes that....
Deep Thought said:
Just curious how you interpreted that from the video?
Because owners are being asked to spend less than 10% of the value of their car in order to prep it for sale, perhaps even get that money back in the asking price if it has had recent spend.Edited by Deep Thought on Sunday 16th June 17:56
But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
AlexNJ89 said:
Because owners are being asked to spend less than 10% of the value of their car in order to prep it for sale, perhaps even get that money back in the asking price if it has had recent spend.
But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
They're refusing to get the work done because - as stated in the video - their either dont believe the car needs the money spending to sell it OR they are trying to pull to wool over any potential buyers eyes and attempting to sell the car on needing work.But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
AND - looking at it from the sellers perspective, that company is offering only SOR but expecting the seller to stump up £10,000 in prep charges with no guarantee of selling it. They could end up with the car back in 3 months time, no better off. In fact £10K worse off.
Deep Thought said:
AlexNJ89 said:
Because owners are being asked to spend less than 10% of the value of their car in order to prep it for sale, perhaps even get that money back in the asking price if it has had recent spend.
But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
They're refusing to get the work done because - as stated in the video - their either dont believe the car needs the money spending to sell it OR they are trying to pull to wool over any potential buyers eyes and attempting to sell the car on needing work.But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
AND - looking at it from the sellers perspective, that company is offering only SOR but expecting the seller to stump up £10,000 in prep charges with no guarantee of selling it. They could end up with the car back in 3 months time, no better off. In fact £10K worse off.
PinkHouse said:
Deep Thought said:
AlexNJ89 said:
Because owners are being asked to spend less than 10% of the value of their car in order to prep it for sale, perhaps even get that money back in the asking price if it has had recent spend.
But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
They're refusing to get the work done because - as stated in the video - their either dont believe the car needs the money spending to sell it OR they are trying to pull to wool over any potential buyers eyes and attempting to sell the car on needing work.But they are refusing to get the work done, so do they not have the £10k?
It certainly doesn't suggest they're selling the Mclaren to upgrade.
AND - looking at it from the sellers perspective, that company is offering only SOR but expecting the seller to stump up £10,000 in prep charges with no guarantee of selling it. They could end up with the car back in 3 months time, no better off. In fact £10K worse off.
If they get the car back, it will have 10k worth of work done, no?
Heard a new one the weekend, "revenge spending".
It's been fading since end of last year according to reports, a name given to the folk who went a bit crazy spending after the pandemic lock downs on holidays, cars, motorhomes and anything else they felt they missed out on during those couple of years. It caused demand to spike at a time when supply was still recovering.
Companies now admitting it's over and they are having to change the way they operate to keep customers spending in this higher interest rate environment, be it pubs / restaurants, clothes retailers, airlines and travel companies they are starting to see spending habits change and the need for offers to return with deeper discounts.
I still don't think we have fully flushed the used car market of the excesses, prices still seem high for certain makes and models, especially those private sellers who are still locked in the revenge spending times.
It's been fading since end of last year according to reports, a name given to the folk who went a bit crazy spending after the pandemic lock downs on holidays, cars, motorhomes and anything else they felt they missed out on during those couple of years. It caused demand to spike at a time when supply was still recovering.
Companies now admitting it's over and they are having to change the way they operate to keep customers spending in this higher interest rate environment, be it pubs / restaurants, clothes retailers, airlines and travel companies they are starting to see spending habits change and the need for offers to return with deeper discounts.
I still don't think we have fully flushed the used car market of the excesses, prices still seem high for certain makes and models, especially those private sellers who are still locked in the revenge spending times.
Theoldguard said:
I still don't think we have fully flushed the used car market of the excesses, prices still seem high for certain makes and models, especially those private sellers who are still locked in the revenge spending times.
I think you could be rightI thought things had finally found their level, but auto trader index showed a surprisingly large drop last month, be interesting to see what the ons figure shows on Wednesday.
According to the numbers, adjusted for inflation used cars are about as cheap as they ever have been, but it absolutely does not feel that way yet.
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