Range Rovers selling for ~10% over market value

[felixlg]

State of the used market at the moment is pretty interesting. Range Rovers and other big luxury motors are going for serious cash over their cap hpi "clean" (i.e. excellent condition) market valuation - they are selling for something like ~10% more than book value at auction.

One 2017 Range Rover SDV8 I was looking at buying through a dealer friend at a BCA auction had a market valuation of £48K and sold at auction for £56K - now being retailed at £60K. Serious money over book value. A lot of people must be after a big barge for their summer staycation in the UK.

Eventually someone is going to have to eat that £6K price difference to the real value of the car once the market cools down.

[Jiebo]

My 2015 BMW 640d is coming up at 14.4k, it was 13k about a week a go! Very strange, seems like these big barges are popular at the moment. Retail prices have got up to £18k, which is more than I paid a year a go.

[shiversaint]

User car market is very strong at the minute, presumably because there is less new inventory about at the moment and people don't feel the need to go for a reliable lease for something they are now not driving very often.

On the 640d thing - it's a car I've been watching as I do want one, the inventory shortage is definitely prevalent there right now. Not many decent examples about and the ones that are there disappear quickly.

[Sheepshanks]

felixlg said:

State of the used market at the moment is pretty interesting. Range Rovers and other big luxury motors are going for serious cash over their cap hpi "clean" (i.e. excellent condition) market valuation - they are selling for something like ~10% more than book value at auction.

One 2017 Range Rover SDV8 I was looking at buying through a dealer friend at a BCA auction had a market valuation of £48K and sold at auction for £56K - now being retailed at £60K. Serious money over book value. A lot of people must be after a big barge for their summer staycation in the UK.

Eventually someone is going to have to eat that £6K price difference to the real value of the car once the market cools down.

Not sure I follow the maths there - if market value is £48K isn't someone looking at £12K hit when if/when values return to normal?

Out of interest, if you have the reg of the car you were looking at, what's the WBAC value? I read elsewhere they're currently very high.

[Doofus]

The 'book value' isn't the law, you know. If people are paying more than that, then the market value is higher than what the book says.

[PistonBroker]

Doofus said:

The 'book value' isn't the law, you know. If people are paying more than that, then the market value is higher than what the book says.

Agreed.

This sort of thing was catching me out when I first started trying to make a bit of pocket money at auctions 20-odd years ago. It was no good standing there with the latest Parker's as it seemingly had no bearing on what the market was actually doing!

Thank god we now have Auto Trader in our pockets all the time.

[felixlg]

Sheepshanks said:

Not sure I follow the maths there - if market value is £48K isn't someone looking at £12K hit when if/when values return to normal?

Out of interest, if you have the reg of the car you were looking at, what's the WBAC value? I read elsewhere they're currently very high.

You're right, my maths is dodgy there - the delta to the real value is quite large.

The reg was MK17 UGV and WBAC puts it at £47,000. Sold at BCA auction for £56,000 after fees. Now up for sale on AutoTrader here for £59K. Quite a big gap which someone will have to eat one day.

[felixlg]

Doofus said:

The 'book value' isn't the law, you know. If people are paying more than that, then the market value is higher than what the book says.

Absolutely correct. I think with this post I'm trying to warn people that "market value" =/= "real value", especially now.

While the market might be hot now, you don't want to be the person who bought at the top and is holding the bag later.

[Doofus]

felixlg said:

Doofus said:

The 'book value' isn't the law, you know. If people are paying more than that, then the market value is higher than what the book says.

Absolutely correct. I think with this post I'm trying to warn people that "market value" =/= "real value", especially now.

While the market might be hot now, you don't want to be the person who bought at the top and is holding the bag later.

But this is what I'm saying; you seem to assume the market will 'correct' back to what the book says the 'actual' value is, but the actual value has moved.

[Sheepshanks]

felixlg said:

You're right, my maths is dodgy there - the delta to the real value is quite large.

The reg was MK17 UGV and WBAC puts it at £47,000. Sold at BCA auction for £56,000 after fees. Now up for sale on AutoTrader here for £59K. Quite a big gap which someone will have to eat one day.

That one is particularly low mileage, but there's quite a wide span of prices amongst similar vehicles.

[anonymous-user]

I've been very tempted in the past few weeks to sell mine, given how buoyant the market is and the offers from WBAC.

If I take the last 12 months - running a p400e AB circa 8k miles will have cost me eight grand based on what I paid and what they offered.

We have a near enough identical Velar coming in a month, so it seems a bit wasteful having two. But as I have no idea what I would replace it with, (992 a strong candidate, but I'm just not in love with it) I've decided not to...for now.

[memzyy]

No sense at the auctions at all these days. I follow property auctions very closely and car auctions every now and again.

3 weeks back my colleague sent me Auto Trader link of 68 plate Sport advertised by main dealer at £49k. While browsing last week i saw the car at BCA catalogue and advert was still live at AT with price reduced to £47k. Cap Clean says £41k. We set to watch the auction he prepared to buy it if it goes up to £42k. It sold for hammer price £46k before the fees...While advert still live on AT to buy from the main dealer for £47k..

[jjr1]

BCA are also ramping up their own stock prices and using the fire extinguisher in the corner to help. Some of these cars are saying SOLD and then appear a week later at the auction and sell for a lot less.

Maybe BCA are worried that all their WBAC stock, is not worth as much as hoped and ramping up auction prices, to make their assets look more valuable?

[memzyy]

I always assumed BCA just provides the platform to sell the cars but they don't own the cars its not their stock as such. Its just an assumption though i might be wrong

[johnnyBv8]

memzyy said:

I always assumed BCA just provides the platform to sell the cars but they don't own the cars its not their stock as such. Its just an assumption though i might be wrong

They own some of it, effectively - as they own WBAC.

Irrespective, high hammer price gives them more commission and keeps them popular with the trade.

[ZX10R NIN]

They also own Cinch so the part ex's that come from there will be BCA stock too.