Discussion
I alway check the price of any car i buy on WBAC. Just to see what worse case scenario would be if I had to sell unexpectedly.
Cars in the £50-£60k price bracket are normally around £5-6k less. I’m seeing £14k on some cars now which is ridiculous.
I’m guessing it’s dealers taking the piss rather than WBAC?
Not much is moving in that price range atm. I’m seeing cars that have been for sale for a year.
Cars in the £50-£60k price bracket are normally around £5-6k less. I’m seeing £14k on some cars now which is ridiculous.
I’m guessing it’s dealers taking the piss rather than WBAC?
Not much is moving in that price range atm. I’m seeing cars that have been for sale for a year.
If cars aren't moving on quickly, that's why a dealer needs a bigger margin, right?
WBAC will want to buy at a price that allows them to sell it on at auction, and make a profit. If the dealers are already holding stock of a slow-selling model, they are unlikely to want another one on the forecourt, so won't be bidding unless it's cheap and they can afford to sit on it
WBAC will want to buy at a price that allows them to sell it on at auction, and make a profit. If the dealers are already holding stock of a slow-selling model, they are unlikely to want another one on the forecourt, so won't be bidding unless it's cheap and they can afford to sit on it
clockworks said:
If cars aren't moving on quickly, that's why a dealer needs a bigger margin, right?
WBAC will want to buy at a price that allows them to sell it on at auction, and make a profit. If the dealers are already holding stock of a slow-selling model, they are unlikely to want another one on the forecourt, so won't be bidding unless it's cheap and they can afford to sit on it
Would be great if business worked like that. WBAC will want to buy at a price that allows them to sell it on at auction, and make a profit. If the dealers are already holding stock of a slow-selling model, they are unlikely to want another one on the forecourt, so won't be bidding unless it's cheap and they can afford to sit on it
Cars are depreciating assets. Pricing them higher because you can’t sell them isn’t a great business plan.
Some of the m3/4 I’m looking at have been for sale for a year.
Edited by Jk89 on Monday 25th March 14:21
Jk89 said:
Would be great if business worked like that.
Cars are depreciating assets. Pricing them higher because you can’t sell them isn’t a great business plan.
Some of the m3/4 I’m looking at have been for sale for a year.
What I was getting at was dealers are willing to pay a lot less on some cars for stock, rather than pricing high when selling.Cars are depreciating assets. Pricing them higher because you can’t sell them isn’t a great business plan.
Some of the m3/4 I’m looking at have been for sale for a year.
Edited by Jk89 on Monday 25th March 14:21
If they have (or know that someone local has) a car they paid £55k to buy (and try and sell at £60K), but it's been sitting for a while, they won't buy another one at anywhere near to £55k.
If they are holding out for £60k, that's either because they really can't afford to cut their margins and sell cheaper, or they believe the market will improve.
Slashing advertised prices is one way to completely destroy the market. Such tactics haven't done Stellantis any favours.
Taking a low-ball (realistic) offer is much safer. Gets stock shifted, reduces future losses, but doesn't potentially devalue every other car because the sticker price was below the market.
clockworks said:
What I was getting at was dealers are willing to pay a lot less on some cars for stock, rather than pricing high when selling.
If they have (or know that someone local has) a car they paid £55k to buy (and try and sell at £60K), but it's been sitting for a while, they won't buy another one at anywhere near to £55k.
If they are holding out for £60k, that's either because they really can't afford to cut their margins and sell cheaper, or they believe the market will improve.
Slashing advertised prices is one way to completely destroy the market. Such tactics haven't done Stellantis any favours.
Taking a low-ball (realistic) offer is much safer. Gets stock shifted, reduces future losses, but doesn't potentially devalue every other car because the sticker price was below the market.
I would normally agree but if the price is 25% higher than trade this tactic won’t work in a recession. If they have (or know that someone local has) a car they paid £55k to buy (and try and sell at £60K), but it's been sitting for a while, they won't buy another one at anywhere near to £55k.
If they are holding out for £60k, that's either because they really can't afford to cut their margins and sell cheaper, or they believe the market will improve.
Slashing advertised prices is one way to completely destroy the market. Such tactics haven't done Stellantis any favours.
Taking a low-ball (realistic) offer is much safer. Gets stock shifted, reduces future losses, but doesn't potentially devalue every other car because the sticker price was below the market.
Any market has to react to market conditions.
I sell houses and you should see some of the offers I’m getting.
Used car market never improves during a recession. You only have to look at the deals on new cars to see the market isn’t good.
It’s cheaper to buy a brand new M3 than a 2 year old one currently due to £10k discounts and 4.9% on new.
Weird times.
Jk89 said:
Auto810graphy said:
The answer is buy a car from WBAC.
15% is a fair mark up for a dealer.25% is mental
All sounds pretty normal to me TBH. Performance cars always tanked, it's only the last few years when they've bucked the trend.
50% depreciation in the 1st year on stupid stuff like performance SUVs wasn't unheard of. Not sure why a fast A class should be immune either.
ChocolateFrog said:
Or buy private and take on the risk.
All sounds pretty normal to me TBH. Performance cars always tanked, it's only the last few years when they've bucked the trend.
50% depreciation in the 1st year on stupid stuff like performance SUVs wasn't unheard of. Not sure why a fast A class should be immune either.
I’m used to crazy depreciation but not buying at 25% more than trade. All sounds pretty normal to me TBH. Performance cars always tanked, it's only the last few years when they've bucked the trend.
50% depreciation in the 1st year on stupid stuff like performance SUVs wasn't unheard of. Not sure why a fast A class should be immune either.
I prefer to buy private but they are priced higher than dealer cars at the moment.
Everyone went mad during in lockdown.
We’re changing 2 cars and it’s not as fun as usual so far. Used cars should not have instant new car depreciation.
Tbf the dealer with the A45s seemed to agree that 25% over WBAC for a used a45s was excessive and seemed to suggest they might do a deal with quarter end approaching.
Rs3 makes more sense as they seem to be more sensibly priced if not.
You hear that a lot from people who aren't realistic on property programmes. There's no such thing as 'can't sell my house.' What they mean is 'I want lots of £ for it...' It's not sold because you're asking too much.
The only people who really CAN'T sell are those unfortunates who still have that dangerous cladding.
Same thing applies to any asset, including cars,. Cut the price low enough, or stick it in a no reserve auction (which is the true market value), it WILL sell.
The only people who really CAN'T sell are those unfortunates who still have that dangerous cladding.
Same thing applies to any asset, including cars,. Cut the price low enough, or stick it in a no reserve auction (which is the true market value), it WILL sell.
Property portfolios aren’t as in demand due to interest rates and recession. It’s reflected in many offers.
Money is making money in the bank for the first time in a while too.
People generally can’t afford to move if they don’t get close to asking price for their own home, but individuals aren’t looking to invest like they were.
Everything has slowed considerably.
Money is making money in the bank for the first time in a while too.
People generally can’t afford to move if they don’t get close to asking price for their own home, but individuals aren’t looking to invest like they were.
Everything has slowed considerably.
Jk89 said:
I’m used to crazy depreciation but not buying at 25% more than trade.
The WBAC is not 'trade' price. It's just what one company is offering, and it's low because they don't really want to buy it. For other cars WBAC will be offering more money than other trade offers because they know they can sell the latter more easily/profitably.The point is that if you're going to buy a car that WBAC doesn't want, don't sell it to them.
You might see better prices if you try the other online buying sites. WBAC isn't the only dog in town.
Jk89 said:
People generally can’t afford to move if they don’t get close to asking price for their own home
From your opening post, and this comment, I'm not entirely sure you understand money and choices.WBAC prices have to include 2 chunks of profit - theirs [i]and[/] the dealer's - and so are never going to be competitive, just convenient; this is further refined by what stock they already have on hand.
And people can afford to move if they don't get close to asking price for their current home - they just might not be able to move to the particular house they fancy (or will have to haggle the asking price of that one down)...
...just like you might not be able to afford the particular car you fancy. Come join us in shed-land, where a 20% price difference is a few hundred quid.
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