Why are used car prices so stupid right now?
Discussion
As the thread title really, i've been considering replacing my Mk2 Focus estate, there's a thread about my journey with it, with either a Focus ST estate or a Skoda Octavia VRS estate, but i begrudge paying £16K+ for a 15/16 plate car with 50-60k on the clock.
So can anyone tell me just why they're so expensive?
So can anyone tell me just why they're so expensive?
Bobberoo said:
As the thread title really, i've been considering replacing my Mk2 Focus estate, there's a thread about my journey with it, with either a Focus ST estate or a Skoda Octavia VRS estate, but i begrudge paying £16K+ for a 15/16 plate car with 50-60k on the clock.
So can anyone tell me just why they're so expensive?
The car market has been artificially propped up by finance for the past 15 or so years now. Covid, ukraine, brexit etc have all hit. The average Joe is poorer than they were in 2008. Low interest rates over the past 15 years were never going to last and everything has kind of reset itself. A lack of demand for new cars has led for second hand prices staying a lot stronger.So can anyone tell me just why they're so expensive?
The UK has always been very unique in that regard with residuals dropping like a stone. Europe has always had a strong second hand market in that regard.
Unless you got an EV that is where residuals are just dropping like a stone with many losing 50% of their value in 18 months.
Speed addicted said:
So is this the new normal? I’d feel pretty stupid buying a car at the high price just to watch it go back to the low price!
I think they are here to stay from an ICE perspective. Only things dropping are your more specialist stuff.Plenty of good EV deals if you want. 60k top spec Ioniq 5's going for 30k barely a year old. Tesla Model 3's barely 3 years old in the low 20's.
BricktopST205 said:
Speed addicted said:
So is this the new normal? I’d feel pretty stupid buying a car at the high price just to watch it go back to the low price!
I think they are here to stay from an ICE perspective. Only things dropping are your more specialist stuff.Plenty of good EV deals if you want. 60k top spec Ioniq 5's going for 30k barely a year old. Tesla Model 3's barely 3 years old in the low 20's.
I just think that cars seem to be at least 15-20% over priced at the moment.
Thanks all for the replies.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
I certainly wouldn’t be sinking money into an overinflated bubble right at the moment…
I certainly wouldn’t be sinking money into an overinflated bubble right at the moment…
The market jumped after COVID as supplies for new cars dried up.
I part-exed my immaculate low mile Fiesta ST in December 2019 for a paltry £8k, just at the wrong time as sporty cars went up and the Insignia SRi I bought has never really stopped going down but at least I got a good price and still have 200hp.
The market has stabilised and some of those cars have come down but dealers still like to use their redundant trade values for your part-ex so, for me, buying a newer car just isn't worth it.
It reflects on what used to be bangers too. Where I pad £900 for a Fiat Panda, several years back, today I paid over £2000. However, even that was cheap and you can find 2011 Pandas over £4000. I mean, it's a 12 year old car. You also see lots of adverts for cars with galactic mileages well over 100k and still not cheap. Further digging will probably reveal that many of these cars are also insurance Cat S as more and more get repaired due to higher values.
Just remember, even poverty cars are over £20k these days but, if you look at good cars that are a little less fashionable or desirable, you can still get some good deals.
I part-exed my immaculate low mile Fiesta ST in December 2019 for a paltry £8k, just at the wrong time as sporty cars went up and the Insignia SRi I bought has never really stopped going down but at least I got a good price and still have 200hp.
The market has stabilised and some of those cars have come down but dealers still like to use their redundant trade values for your part-ex so, for me, buying a newer car just isn't worth it.
It reflects on what used to be bangers too. Where I pad £900 for a Fiat Panda, several years back, today I paid over £2000. However, even that was cheap and you can find 2011 Pandas over £4000. I mean, it's a 12 year old car. You also see lots of adverts for cars with galactic mileages well over 100k and still not cheap. Further digging will probably reveal that many of these cars are also insurance Cat S as more and more get repaired due to higher values.
Just remember, even poverty cars are over £20k these days but, if you look at good cars that are a little less fashionable or desirable, you can still get some good deals.
LuS1fer said:
The market jumped after COVID as supplies for new cars dried up.
That was my experience too. I sold my BMW Z4 Coupe in February 2020 and only got £6,400 for it. Similar mileage and condition ones are still a few thousand dearer now!
Still I only sold it because I had bought a Z4M Coupe in December 2019 for thousands less than a similar one would cost now, so it was a case of "swings and roundabouts".
But the 2005 BMW 330i I bought in March 2019 was a Cat N write off a couple of months ago and I couldn't get a valuation within £1,000 of what I paid. I only gave up trying because I couldn't find an advert for a comparable SE model, they were all M-Sports which always fetch a bit more, and I got to keep the car for a few hundred less than WBAC would have given me for it even with the Cat N marker. And the damage really is minimal.
vaud said:
Well you have disruption in supply from at least 2020 to 2022 which limits the supply into the used market of 2-3 year old cars, combined with high interest rates and inflation meaning people are being more cautious and stretching their current assets?
This, combined with a step increase in the cost of new cars.I would have changed mine 2-3 years ago but am waiting to see what happens. Cars seem to last longer these days too
We only ever buy used, with cash. Although we have no plans to change or add to the current fleet, like any self-respecting PHer I maintain one eye on the classifieds, but I'll admit I'm having to seriously recalibrate my radar for finding a bargain.
The most I've ever spent on a single car is £15k and even that felt like an extravagance. My current car cost me £2k, 6 years ago and I've put another 90k on the clock, on top of its original 90k. I think I'll just keep it and continue using it, as it works and I'd rather not sink £20k or whatever into a daily driver, when a £2k daily did the job.
The most I've ever spent on a single car is £15k and even that felt like an extravagance. My current car cost me £2k, 6 years ago and I've put another 90k on the clock, on top of its original 90k. I think I'll just keep it and continue using it, as it works and I'd rather not sink £20k or whatever into a daily driver, when a £2k daily did the job.
I bought my 2008 Vespa back in 2015 for £1200. Had a quick look just now and 2008 models are now being advertised at £2500.
I wonder if they actually go for that price?
I bought my Duster at the beginning of 2021 for £10500 new. WBAC are still offering £10500 and I've had it nearly 2.5 years.
Mind you, if I sold it now and wanted a 2023 version of the same model, I'd have to stump up over £17,000
That's some jump in price.
I wonder if they actually go for that price?
I bought my Duster at the beginning of 2021 for £10500 new. WBAC are still offering £10500 and I've had it nearly 2.5 years.
Mind you, if I sold it now and wanted a 2023 version of the same model, I'd have to stump up over £17,000
That's some jump in price.
wyson said:
the second hand car price crash thread is analysing this very question over hundreds of pages.
Yes, but in all fairness it could be a few hundred pages shorter had it not been for some posters spamming the thread with the same posts over and over again. The problem with threads like these which ask really important questions is that they fall victim to loud voices, not necessarily the informed ones. Inky81 said:
wyson said:
the second hand car price crash thread is analysing this very question over hundreds of pages.
Yes, but in all fairness it could be a few hundred pages shorter had it not been for some posters spamming the thread with the same posts over and over again. The problem with threads like these which ask really important questions is that they fall victim to loud voices, not necessarily the informed ones. Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
Turnpike1 said:
Ok but which are which?
Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
When the thread has been banging on about a crash for the best part of 18 months I’m not sure it matters. Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
Might start one predicting the heat death of the universe.
Dingu said:
Turnpike1 said:
Ok but which are which?
Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
When the thread has been banging on about a crash for the best part of 18 months I’m not sure it matters. Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
Might start one predicting the heat death of the universe.
Turnpike1 said:
Dingu said:
Turnpike1 said:
Ok but which are which?
Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
When the thread has been banging on about a crash for the best part of 18 months I’m not sure it matters. Do you think we are just on the cusp of a boom with such massive internet rate rises? Do you think they will stimulate the market or cause a massive crash?
Might start one predicting the heat death of the universe.
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