Secondhand car price crash? (Vol. 2)
Discussion
I was looking at used XC40s 5/6 months ago. BEV versions were advertised on Autotrader at £5k+ more than PHEV models. I bought a 21 plate T5 plug-in for £30k.
I was looking a couple of days ago, and the PHEV versions have dropped by a grand or two for the same reg date - pretty much normal depreciation.
The BEV models are now priced very close to the plug-in hybrids - a big drop.
I was looking a couple of days ago, and the PHEV versions have dropped by a grand or two for the same reg date - pretty much normal depreciation.
The BEV models are now priced very close to the plug-in hybrids - a big drop.
I have seen no evidence of any sort of 2nd hand price crash if we exclude electric cars. My VW's have seen next to no depreciation in the last 12 months - I have a VW Tiguan,VW Golf & a VW UP!
My neighbour says he has lost a fortune on his 2022 Tesla M3 - said he paid £50k but its only worth £25k now but he has saved a fair bit on fuel and tax.
My neighbour says he has lost a fortune on his 2022 Tesla M3 - said he paid £50k but its only worth £25k now but he has saved a fair bit on fuel and tax.
Moorlandman said:
I have seen no evidence of any sort of 2nd hand price crash if we exclude electric cars. My VW's have seen next to no depreciation in the last 12 months - I have a VW Tiguan,VW Golf & a VW UP!
My neighbour says he has lost a fortune on his 2022 Tesla M3 - said he paid £50k but its only worth £25k now but he has saved a fair bit on fuel and tax.
Most VW product is dropping off in the trade, Golf Mk8 is loosing the most, they just seem overpriced on the used market.My neighbour says he has lost a fortune on his 2022 Tesla M3 - said he paid £50k but its only worth £25k now but he has saved a fair bit on fuel and tax.
AlexNJ89 said:
A question for the dealers. Is WBAC a good indication of what a car will sell for at a BCA auction?
Not really, WBAC present their bid, when it hits the auction there are multiple bidders. Some oddball stuff makes thousands over CAP clean where are WBAC tend to start their offers around this number.AlexNJ89 said:
A question for the dealers. Is WBAC a good indication of what a car will sell for at a BCA auction?
It depends but in theory every price WBAC offer will be lower than the auction price. But there are markets within markets,
For example if WBAC offer to pay £3k for a fiesta, it will likely make more at auction
Why? Because the desirable run of the mill cars under £5k are in high demand.
Compared to say £30 grand for a Porsche 911, which may struggle to go much above £30k
Why? Because the sports car demand has not returned to post covid levels at current prices.
ACCYSTAN said:
It depends but in theory every price WBAC offer will be lower than the auction price.
But there are markets within markets,
For example if WBAC offer to pay £3k for a fiesta, it will likely make more at auction
Why? Because the desirable run of the mill cars under £5k are in high demand.
Compared to say £30 grand for a Porsche 911, which may struggle to go much above £30k
Why? Because the sports car demand has not returned to post covid levels at current prices.
This makes perfect sense, thank you!But there are markets within markets,
For example if WBAC offer to pay £3k for a fiesta, it will likely make more at auction
Why? Because the desirable run of the mill cars under £5k are in high demand.
Compared to say £30 grand for a Porsche 911, which may struggle to go much above £30k
Why? Because the sports car demand has not returned to post covid levels at current prices.
macron said:
...by no means unusual, but note the Motability offer. There's loads of nominally £40K, nudging £50K EVs now available on Motability for no, or negligible, upfront payment. I know there's no VAT, but bearing in mind the deal includes 20K/miles per year, full insurance (getting expensive now on EVs) and maintenance, you've got to think manufacturers are selling these cars to Motability for absolutely buttons.Disagree, manufacturers have a big mark up on EVs, but that was when supply was limited and demand was healthy.
Now there are lots of EV offerings and moderate demand, and EV list price correction has been underway for the past 6 months and will continue.
When one of the new Chinese manufacturers (not including MG) sets down a proper dealer network and car support in the UK, then we will really see some competition.
I expect it will be BYD , if they are serious about the UK they could be a real force and push the other manufacturers to continue to compete on price.
Now there are lots of EV offerings and moderate demand, and EV list price correction has been underway for the past 6 months and will continue.
When one of the new Chinese manufacturers (not including MG) sets down a proper dealer network and car support in the UK, then we will really see some competition.
I expect it will be BYD , if they are serious about the UK they could be a real force and push the other manufacturers to continue to compete on price.
ACCYSTAN said:
Disagree, manufacturers have a big mark up on EVs, but that was when supply was limited and demand was healthy.
Now there are lots of EV offerings and moderate demand, and EV list price correction has been underway for the past 6 months and will continue.
When one of the new Chinese manufacturers (not including MG) sets down a proper dealer network and car support in the UK, then we will really see some competition.
I expect it will be BYD , if they are serious about the UK they could be a real force and push the other manufacturers to continue to compete on price.
Nope, it's Honda, making the en-wotsit in Wuhan.Now there are lots of EV offerings and moderate demand, and EV list price correction has been underway for the past 6 months and will continue.
When one of the new Chinese manufacturers (not including MG) sets down a proper dealer network and car support in the UK, then we will really see some competition.
I expect it will be BYD , if they are serious about the UK they could be a real force and push the other manufacturers to continue to compete on price.
macron said:
In!
Vauxhall this morning, no crash, just dumbass list prices no one pays.
Doesn't feel that long ago we were being told discounts were a thing of the past and the new normal is you pay the ever increasing retail price, remember the £40k Astra. Manufacturers no longer needed to discount as they were all looking to reduce supply and increase the margins on the lower volume they produce.They suddenly all woke up and realised that all those years of expanding factories and range of vehicles was the wrong way to approach things and they should have stuck to a single small factory and sold those limited run of cars to the highest bidder.Vauxhall this morning, no crash, just dumbass list prices no one pays.
Edited by macron on Sunday 24th March 10:49
Thing is now there are few manufacter who are not discounting , and some quite heavily. Even ditching their smaller cars in favour higher margin models seems to have been a mistake with it likely some will reverse that decision now the Chinese are bringing to market small, cheap EVs to fill that gap manufacturers have created and they kick off the Chinese are undercutting. You can't make it up.
Edited by Theoldguard on Sunday 24th March 22:00
Theoldguard said:
Doesn't feel that long ago we were being told discounts were a thing of the past and the new normal is you pay the ever increasing retail price, remember the £40k Astra. Manufacturers no longer needed to discount as they were all looking to reduce supply and increase the margins on the lower volume they produce.They suddenly all woke up and realised that all those years of expanding factories and range of vehicles was the wrong way to approach things and they should have stuck to a single small factory and sold those limited run of cars to the highest bidder.
Thing is now there are few manufacter who are not discounting , and some quite heavily. Even ditching their smaller cars in favour higher margin models seems to have been a mistake with it likely some will reverse that decision now the Chinese are bringing to market small, cheap EVs to fill that gap manufacturers have created and they kick off the Chinese are undercutting. You can't make it up.
Your memory appears somewhat hazy.Thing is now there are few manufacter who are not discounting , and some quite heavily. Even ditching their smaller cars in favour higher margin models seems to have been a mistake with it likely some will reverse that decision now the Chinese are bringing to market small, cheap EVs to fill that gap manufacturers have created and they kick off the Chinese are undercutting. You can't make it up.
Edited by Theoldguard on Sunday 24th March 22:00
No one said discounts on all cars were going to be a thing of the past for ever.
No one said all manufacturers were going to stop chasing volume and concentrate on profit.
However -
Mercedes openly said they were stopping chasing volume and moving to selling less cars for more. They have done so.
BMW also openly said they were making less cars and making more profit. They have done so.
Ford said they were going to stop making the Fiesta because it wasnt profitable. They have done so.
Manufacturers ditching selling small cars did so precisely because they no longer wanted to compete in a market where they couldnt make money on cars. That is not going to change.
Manufacturers are abandoning the small car market precisely because the chinese are bringing cheap cars to it. They didnt abandon it and then the chinese decided to fill it.
The volume sellers have continued to do what their name suggests - attempt to sell in volume.
Edited by Deep Thought on Sunday 24th March 22:20
Edited by Deep Thought on Sunday 24th March 22:20
I wasnt going to bring it up but saying as some peoples memories seem to be getting somewhat hazy already - some of us have been saying for several years now that once the effects of Covid on the market had passed and we had supply returned on new cars we would see reasonably normal depreciation return, from the high of Covid prices.
On the last page of the previous thread someone asked "Can someone summarise the view of the current market please"
This was the last summary on the last page
On the last page of the previous thread someone asked "Can someone summarise the view of the current market please"
This was the last summary on the last page
ChrisH72 said:
There hasn't been a crash.
For mainstream cars, both ICE and EV, normal depreciation has returned which you'd expect now that supply of new cars is back to normal.
ICE performance cars at sensible money are holding firm on price. Many have been or are being discontinued and remain very desirable.
In general used car prices are much higher than they were before the madness.
For mainstream cars, both ICE and EV, normal depreciation has returned which you'd expect now that supply of new cars is back to normal.
ICE performance cars at sensible money are holding firm on price. Many have been or are being discontinued and remain very desirable.
In general used car prices are much higher than they were before the madness.
Edited by Deep Thought on Sunday 24th March 22:29
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